This study provides a practical understanding of UK law regarding contracts breach and the remedies available. It discusses contract law, conditions, terms, and agreement between parties, as well as the types of breach of contract. The study also presents a case of breach of contract and explores the remedies and necessary actions in such cases.
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 Contract Agreement……………………………………………………………………………….3 CONCLUSION................................................................................................................................5 REFERENCES................................................................................................................................1
INTRODUCTION The study is about UK law regarding contracts breach and the remedies to it. This gives a practical understanding of how the law is implemented and pertains to company and business law. The ethical issues are addressed by the legal system and helps in corporate governance. The study elaborates on the contract law, conditions, terms and agreement between parties obliging the contract. The study also takes a case of breach contract in consideration where it discusses remedies in case of breach contract and the recommendations on the possibilities within the cases and necessary actions. Before taking up the case of contract breach, here is a look at what contract is and what are the types of breach of contract. Contract Agreement A contract to be valid has presence of three elements: a)Agreement: It has to be between two parties in which one party is offering something to the other party. This may be an offer to sell goods and services or offer goods and services. b)Acceptance: The offer should be in acceptance to the party offered and the terms of the offer clearly understood (Andenas and Della Negra, 2017). c)Intention to create legal relations: The parties intention for the contract should be legally binding. d)Consideration: Each party should be offering something as a form of good or service to other. It is generally one party serving goods or services and the other giving money to the other. It will be thus called a legally binding contract. Although it is not necessary that contracts have to be in written form except a contract of sale of land or property which has to be in written form to be legally enforceable. Talking about the time when contract becomes effective there should be firstly acceptance of offer and consideration i.e. payment has transferred from one person to another. The acceptance of offer is there when the offer is agreed in words or by conduct (Eller, 2020).
Certainty of terms Speaking of a legal contract, the terms of the contract should be clear to the parties. If a condition is not settled between the parties then the agreement will not be considered as a contract in law. Breach of contract It occurs when a party does not comply with the terms and conditions of the contract or leaves the contract in between. In this case the innocent party can lay claims for damages against the other party. Types of Breach of contract It may be a breach of a)Condition: The innocent party may claim damages for breach of condition or terms by another party and can also terminate the contract. This is known as repudiatory breach of contract. b)Warranty: The innocent party may claim damages by breach of contract although they cannot terminate the contract (Eller, 2020). c)Intermediate term: The contract can be terminated depending upon the nature of the consequences of the breach of the term. Considering the case presented here, Raymond had agreed to a contract of 800 euros and was paid only 200 euros by Samantha. This can be termed a breach of contract as the consideration paid is lesser than agreed at the time of making contract. The remedies in this case entitles Raymond to a right of monetary compensation that is damages for failure to perform the contract. That means Raymond should be getting back the promised money. However, the consequences of breach not only depends on the terms of the contract but also what the affected or innocent party does at the breach of contract. It may be argued that the party had accepted the sum offered at the breach of contract as full and final settlement. Although that was done in the case of Samantha not being able to pay money that time but now the financial position has changed.The breach of contract here stands of defective performance which states that the contract is partly performed and not performed up to the standard requirement. Raymond can go forrepudiationagainst Samantha for breach of contract. Raymond will have to show on the balance of probabilities that there has been a breach of contract which has caused loss to him. Before bringing the breach of contract claim, Raymond should comply with the pre-action
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protocols concerned to the CPR. CPR means the civil procedure rules used by the courts of appeal in England and Wales (Howells, 2017). There is also a clause of mitigation of losses to reduce the impact of the breach of contract so that the other party cannot claim that the innocent party could not mitigate the loss. Yes, the answer would have been surely different if Samantha had paid 200 euros earlier with agreement of Raymond because here is a verbal agreement between the two concerned parties. If Raymond had accepted in full faith the amount mentioned , then Samantha also would have been assured that an agreement has been done. As the parties agree to a consensus, breach of contract would not have occurred. The contract would have been surely altered but with the consideration money being agreed to. Later on, claim could not have been made for extra payment as the payer would have stood relieved of her duties. It would certainly be a different situation if Raymond had asked for 400 euros as payment as full and final settlement. It would have to be Samantha’s take now as to how she would have responded. As she did not have money then, she may have declined but then if she had agreed to pay later, then she would have a statement of agreement that the sum was decided later to be 400 euros with Raymond in agreement. Then Raymond could not have put a claim of 600 euros as the sum to be paid would have been agreed by him as full and final settlement and the amount asked of 400 euros would have been from Raymond’s side. Thus Raymond’s claim for 600 euros wouldhavebeenweakenedanditwouldhavegoneagainsthimtoclaimmonetary compensation. The advice for Samantha is that she should be ethically considerate in giving the remaining amount back to Raymond as she is in a better financial position now and can afford to give back the money. This would save her from being charged with breach of contract and also save her reputation. Both the parties can come together to a settlement by a mediator, this would save time for both instead of filing a case. The image of Samantha has been built of a promising artist which could get tarnished by any suit filed.
CONCLUSION It can be concluded that the contract is a day to day component in today’s business environment. As many businesses are interrelated with each other in today’s global era, contracts keep occurring in today’s corporate world. It is therefore very necessary to have a sound contract law which caters to the needs of the parties whether it may be the terms, conditions, the legal binding of the contract etc. The contracts made in good faith are covered by law and categorisations of breach of contract with its own remedies to follow has made it easier for innocent parties to claim their damages. The contract should be made as such that there is no ambiguity between the parties as this will help to wade off any disruptions coming in business and will prove beneficial for the economy. The cases can be avoided if simple business ethics are implemented and parties fulfil their contract conditions.
REFERENCES Books and journals Andenas, M. and Della Negra, F., 2017. Between contract law and financial regulation: towards the Europeanisation of general contract law.European Business Law Review,28(2017), pp.499-521. Eller,K.H.,2020.ComparativeGenealogiesof“ContractandSociety”.GermanLaw Journal,21(7), pp.1393-1410. Giliker, P., 2018. Examining English contract law in the light of Brexit–an end to the European dream?. InEssays in Memory of Professor Jill Poole(pp. 14-32). Informa Law from Routledge. Howells, G.G., 2017. The European Union's Influence on English Consumer Contract Law.Geo. Wash. L. Rev.,85, p.1904. Hsiao, J.I., 2017. Smart Contract on the Blockchain-Paradigm Shift for Contract Law.US-China L. Rev.,14, p.685. Lehmann, M. and Zetzsche, D., 2016. Brexit and the consequences for commercial and financial relations between the EU and the UK.Eur. Bus. L. Rev.,27, p.999. Poncibò, C., 2017. Book Review: Research Handbook on EU Consumer and Contract Law, edited by Christian Twigg-Flesner.(Cheltenham (UK) and Northampton (US): Edward Elgar Publishing Limited. 2016.).European Review of Private Law,25(4). Renaudin, M., 2019. The consequences of Brexit on the regulatory competition and the approximation of commercial contract law in Europe. 1
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