The Australian Business Law | Study
Added on 2020-05-11
6 Pages1344 Words57 Views
BUSINESS LAW2 | P a g eIntroduction When it comes to the contracts which are formed between two parties, it becomes important toclarify each and every item, so that it can be clarified what kind of an item that it and theconsequence of the breach of such a term. With regards to the contract drawn between thecontractor and the client, there are three key points which need to be clarified and this has beendone in the following parts. Clause 4Whenever a contract is formed, it is formed for a particular purpose and the contract generallycomes to an end when the purpose of the contract is fulfilled. The contract can also come to anend when the time period covered under the contract lapses. When a term of the contract statesthat each aspect of the contract is to be undertaken in a timely manner, it becomes a term of thecontract and the same has to be properly fulfilled (Andrews, 2015). In case this is not done, itresults in the contract being breached. The terms of a contract are a very crucial element and it isobligatory for the term to be clear and not result in ambiguity. One of the essential elements inthe creation of contract is the clarity of the terms of contract (Elliot, 2011). The clause 4 of this term is a term of contract and each aspect of the construction and paymenthas to be undertaken in a time based manner. In case the same is not done, the contract would bebreached. In other words, even though the construction and payment is undertaken, but when thesame is not done in a time bound manner, the contract would be deemed to have been breached.
BUSINESS LAW3 | P a g eThis clause is a time based term of the contract and has to be adhered properly. Also, the samewould be valid as it is very clear and is not ambiguous. Clause 19A condition is deemed as a key term of the contract, which goes to the very root of the contract.Where any condition is contravened, the aggrieved party gets the option of ending the contract,by repudiating the same and also apply for damages (Marson and Ferris, 2015). In Poussard vSpiers and Pond [1876] 1 QBD 410, the court held that owing to the breach of the condition, thecontract had been breached. Hence, a condition is deemed as a key part of the contract and wherethe same is not fulfilled, it results in a breach of contract, which makes the remedies available tothe aggrieved party (Latimer, 2012).In the given contract, clause 19 is a condition of the contract. So, where the contractor fails toengage in completing the formal exterior presentation of building, with the requisite shrubs andtrees, which were a minimum of four years old and were also native to Sydney Basin, it would bedeemed as a breach of condition. This is because this clause was a condition of the contract andthus, forms a crucial part of it. And the breach of this clause would give the aggrieved party, i.e.,the client the option of rescinding the contract.Clause 26An exclusion clause can be defined as such a clause under the contract, which has the power oflimiting or restricting the liabilities, which are born from the contract or for something else. Inshort, the exclusion clause helps in extinguishing the liability of one of the contracting parties,
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