Law & Contractual Procedures
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AI Summary
Law & contractual procedures are the processes of establishing good mechanisms for the construction. This study material explains various procurement methods and conditions of contract. Discussed The quantity Surveyors, which, play a major role in the construction industry i.e. from designing part of the client’s objective to completing the project. It also explains Law principles related to the construction industry in terms of Consideration in the light of the law, implied terms, and types of them.
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Law & contractual procedures QS/
15/40/16
Acknowledgement
First and foremost I wish to pay my gratitude to my lecturer Mr. M.I.M. Azver for his
valuable and kind advices and support and this individual assignment, class activity and
presentation on Laws and Contractual Procedures aided me in the field of QUANTITY
SURVEYING being a student. Further I should thank the teaching panel of the BCAS
Academy for their guidance, theory and practical inputs which helped me in designing and
formulating this assignment. They opened the gates for the fundamentals of QS. The study of
Laws and Contractual Procedures gives me a great confidence for my present as well as
future career as a Quantity Surveyor. My heartiest thanks also go to my mother, for her love
and affection, understanding and her support".
I understood that Laws and Contractual Procedures plays a very important role in the
field of quantity surveying and also it is compulsory in this respective field to become a
Quantity Surveyor. It gives me a great pleasure in submitting this assignment. The knowledge
gained from the previous semesters too helped me to complete this assignment successfully
and in a better way.
Mr. Haseeb, Manager of Quantity surveying department and the course coordinator &
the gem of assessor for Laws and Contractual Procedures, satisfied the entire students
through his good guidance & he is very kindly. Our English Language Teaching Unit
(ELTU) should also not be forgotten to thank for the great effort taken by them to build up a
basic capacity in QS
15/40/16
Acknowledgement
First and foremost I wish to pay my gratitude to my lecturer Mr. M.I.M. Azver for his
valuable and kind advices and support and this individual assignment, class activity and
presentation on Laws and Contractual Procedures aided me in the field of QUANTITY
SURVEYING being a student. Further I should thank the teaching panel of the BCAS
Academy for their guidance, theory and practical inputs which helped me in designing and
formulating this assignment. They opened the gates for the fundamentals of QS. The study of
Laws and Contractual Procedures gives me a great confidence for my present as well as
future career as a Quantity Surveyor. My heartiest thanks also go to my mother, for her love
and affection, understanding and her support".
I understood that Laws and Contractual Procedures plays a very important role in the
field of quantity surveying and also it is compulsory in this respective field to become a
Quantity Surveyor. It gives me a great pleasure in submitting this assignment. The knowledge
gained from the previous semesters too helped me to complete this assignment successfully
and in a better way.
Mr. Haseeb, Manager of Quantity surveying department and the course coordinator &
the gem of assessor for Laws and Contractual Procedures, satisfied the entire students
through his good guidance & he is very kindly. Our English Language Teaching Unit
(ELTU) should also not be forgotten to thank for the great effort taken by them to build up a
basic capacity in QS
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Law & contractual procedures QS/
15/40/16
Introduction
Low & contractual procedures is the process of establishing good mechanisms for the
construction. This explains various procurement methods and conditions of contract. The
selection of a procurement method is the prominent role in the construction industry. It
depends on client objective and the size of the project etc. The quantity Surveyors, therefore,
play a major role in the constructions industry i.e. from designing part of the client’s
objective to completing the project.
Further, the quantity surveyors have an important role to perform in building procurement
selection and need to market and develop their skills. Also he participates in selecting
contractor and nominating subcontractors and suppliers. Once the project started, he should
prepare interim valuations. Finally he issues the final certificate after the practical completion
of the project.
15/40/16
Introduction
Low & contractual procedures is the process of establishing good mechanisms for the
construction. This explains various procurement methods and conditions of contract. The
selection of a procurement method is the prominent role in the construction industry. It
depends on client objective and the size of the project etc. The quantity Surveyors, therefore,
play a major role in the constructions industry i.e. from designing part of the client’s
objective to completing the project.
Further, the quantity surveyors have an important role to perform in building procurement
selection and need to market and develop their skills. Also he participates in selecting
contractor and nominating subcontractors and suppliers. Once the project started, he should
prepare interim valuations. Finally he issues the final certificate after the practical completion
of the project.
Law & contractual procedures QS/
15/40/16
Contents
Introduction…………………………………………………………………………………..01
Acknowledgement …………………………………………………………………………...02
Contents………………………………………………………………………………………03
Task 01
Task 1.1………………………………………………………………………...Presentation 04
Task 1.2…………………………………………………………………………………...05-08
Task 1.3………………………………………………………………………………...CRA 09
Task 02
Task 2.1…………………………………………………………………………………...10-14
Task 2.2…………………………………………………………………………………...15-18
Task 2.3………………………………………………………………………………...CRA 19
Task 03
Task 3.1…………………………………………………………………………………...20-23
Task 3.2…………………………………………………………………………………...24-28
Task 04
Task 4.1………………………………………………………………………...Presentation 29
Task 4.2…………………………………………………………………………………...30-34
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Contents
Introduction…………………………………………………………………………………..01
Acknowledgement …………………………………………………………………………...02
Contents………………………………………………………………………………………03
Task 01
Task 1.1………………………………………………………………………...Presentation 04
Task 1.2…………………………………………………………………………………...05-08
Task 1.3………………………………………………………………………………...CRA 09
Task 02
Task 2.1…………………………………………………………………………………...10-14
Task 2.2…………………………………………………………………………………...15-18
Task 2.3………………………………………………………………………………...CRA 19
Task 03
Task 3.1…………………………………………………………………………………...20-23
Task 3.2…………………………………………………………………………………...24-28
Task 04
Task 4.1………………………………………………………………………...Presentation 29
Task 4.2…………………………………………………………………………………...30-34
Law & contractual procedures QS/
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Conclusion…………………………………………………………………………………....35
Reference……………………………………………………………………………………..36
Task 01
Task 1.1
Discuss the types of nuisance and explain what measures could be useful in order to
avoid nuisance in the construction process.
(Presentation)
15/40/16
Conclusion…………………………………………………………………………………....35
Reference……………………………………………………………………………………..36
Task 01
Task 1.1
Discuss the types of nuisance and explain what measures could be useful in order to
avoid nuisance in the construction process.
(Presentation)
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Task 1.2 Critically analyze given Scenario 1 with the support of principles
of consideration and discuss William v. Roffey Bros. & Nicholls
(Contractors) Ltd (1991) 1Q.B.1
Definitions of consideration
A valuable consideration, in the sense of the law, may consist either in some right, interest,
profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility,
given, suffered or undertaken by the other.
Consideration means something which is of some value in the eye of the law, moving from
the plaintiff; it may be some detriment to the plaintiff or some benefit to the defendant, but at
all events it must be moving from the plaintiff.
Nature of Consideration
The bargain theory of contract suggests that a contract is essentially an agreement between
parties where each gets something in return for his or her promise. If this is the case, then
every promise by an offer or to do something must be conditional. The promise must include
a provision that the offered, by conveying acceptance, will promise something to the offeror.
The “something” that the promisor receives in return for the promise’s promise is called
consideration an essential element of every simple contract. Consideration can take many
forms. It may be a payment of money, the performance of particular service, a promise not to
do something by the promise, the relinquishment of a right, the delivery of property, or a
many other things, including a promise in return for the Promise. However, in every case, the
consideration must be something done with respect to the promise offered by the promisor.
15/40/16
Task 1.2 Critically analyze given Scenario 1 with the support of principles
of consideration and discuss William v. Roffey Bros. & Nicholls
(Contractors) Ltd (1991) 1Q.B.1
Definitions of consideration
A valuable consideration, in the sense of the law, may consist either in some right, interest,
profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility,
given, suffered or undertaken by the other.
Consideration means something which is of some value in the eye of the law, moving from
the plaintiff; it may be some detriment to the plaintiff or some benefit to the defendant, but at
all events it must be moving from the plaintiff.
Nature of Consideration
The bargain theory of contract suggests that a contract is essentially an agreement between
parties where each gets something in return for his or her promise. If this is the case, then
every promise by an offer or to do something must be conditional. The promise must include
a provision that the offered, by conveying acceptance, will promise something to the offeror.
The “something” that the promisor receives in return for the promise’s promise is called
consideration an essential element of every simple contract. Consideration can take many
forms. It may be a payment of money, the performance of particular service, a promise not to
do something by the promise, the relinquishment of a right, the delivery of property, or a
many other things, including a promise in return for the Promise. However, in every case, the
consideration must be something done with respect to the promise offered by the promisor.
Law & contractual procedures QS/
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Unless a promisor gets something in return for his or her Promise, the promise is merely
gratuitous. Generally, consideration for a promise must exist for the contract to be legally
binding.
Adequacy of Consideration
In general, the courts are not concerned about the adequacy of consideration because they are
Reluctant to become involved in deciding the fairness of the price or value that a person
receives for a promise. Apart from the requirement that the consideration be legal, their main
concerns are with the presence or absence of consideration, rather than whether the promisor
received proper compensation for his or her promise. In some cases, however, the courts will
look more closely at the adequacy of the consideration. If the promisor can satisfy the court
that the promise was made under unusual circumstances (such as where an error occurred that
rendered the consideration totally inadequate in relation to the promise made), the courts may
intervene.
Seal as Consideration
A major exception to the requirement for consideration in a contract is a device that was used
by the courts to enforce promises long before modern contract law emerged. This particular
device is the use of a seal on a written contract. In the past, a written agreement would be
forced by the court if the promisor had placed his seal on the document. The general thinking
of the judges of the day was that any person who affixed a seal to a document containing
promise to do something had given the matter considerable thought, and the act of affixing
the seal symbolized the intention to be bound by the agreement. This particular method of
establishing an agreement, this ritual, distinguished the formal contract from the ordinary or
simple contract that may or may not be in writing. Today, most formal legal documents that
require a seal either have the seal printed on the form or have a small gummed wafer attached
to the form by the party who prepares the document before it is signed by the promisor. The
binding effect of a formal contract under seal, however, persists today. The courts will not
normally look behind a contract under seal to determine if consideration exists.
In spite of its ancient roots, the contract under seal is a useful form of contract today. For
Example, where parties wish to enforce a gratuitous promise, the expression of the promise in
writing with the signature of the promisor and a seal affixed is the usual method used. Many
formal agreements still require a special form and execution under seal to be valid. For
15/40/16
Unless a promisor gets something in return for his or her Promise, the promise is merely
gratuitous. Generally, consideration for a promise must exist for the contract to be legally
binding.
Adequacy of Consideration
In general, the courts are not concerned about the adequacy of consideration because they are
Reluctant to become involved in deciding the fairness of the price or value that a person
receives for a promise. Apart from the requirement that the consideration be legal, their main
concerns are with the presence or absence of consideration, rather than whether the promisor
received proper compensation for his or her promise. In some cases, however, the courts will
look more closely at the adequacy of the consideration. If the promisor can satisfy the court
that the promise was made under unusual circumstances (such as where an error occurred that
rendered the consideration totally inadequate in relation to the promise made), the courts may
intervene.
Seal as Consideration
A major exception to the requirement for consideration in a contract is a device that was used
by the courts to enforce promises long before modern contract law emerged. This particular
device is the use of a seal on a written contract. In the past, a written agreement would be
forced by the court if the promisor had placed his seal on the document. The general thinking
of the judges of the day was that any person who affixed a seal to a document containing
promise to do something had given the matter considerable thought, and the act of affixing
the seal symbolized the intention to be bound by the agreement. This particular method of
establishing an agreement, this ritual, distinguished the formal contract from the ordinary or
simple contract that may or may not be in writing. Today, most formal legal documents that
require a seal either have the seal printed on the form or have a small gummed wafer attached
to the form by the party who prepares the document before it is signed by the promisor. The
binding effect of a formal contract under seal, however, persists today. The courts will not
normally look behind a contract under seal to determine if consideration exists.
In spite of its ancient roots, the contract under seal is a useful form of contract today. For
Example, where parties wish to enforce a gratuitous promise, the expression of the promise in
writing with the signature of the promisor and a seal affixed is the usual method used. Many
formal agreements still require a special form and execution under seal to be valid. For
Law & contractual procedures QS/
15/40/16
example, in some provinces where the Registry System applies to land transfers, the law may
require a conveyance of land to be in accordance with a particular form, as well as signed,
Sealed, and delivered to affect the transfer of the property interest to the grantee. A power of
attorney in some provinces must also be executed under seal to authorize an attorney to deal
with a grantor’s land. Corporations also may use a seal containing the corporation’s name to
sign formal documents. It should be noted, however, that not all corporations are required to
have seals. Under some business corporations’ statutes formal documents need only be
signed by the proper officers of the corporation. The general trend has been to eliminate the
need for business corporations to use seals to execute such documents as contracts.
William’s v Roffey Bros. & Nicholls (Contractors) Ltd. (1991)
Roffey Bros. was contracted by Shepherds Bush Housing Association to refurbish 27 flats in
London. They subcontracted carpentry to Lester Williams for £20,000 payable in
installments. Some work was done and £16,200 was paid at which point Williams ran into
financial difficulty as the price was too low. Roffey Bros. was going to be liable under a
penalty clause for late completion, so they had a meeting on 9 April 1986 and promised an
extra £575 per flat for on time completion. Williams did eight flats and stopped because he
had only received £1,500. New carpenters were brought in to complete the work and
Williams claimed. He was awarded £3,500 at the lower court, which was appealed by Roffey
Bros.
Judgment:- Glidewell LJ held Williams had provided good consideration even though he
was merely performing a pre-existing duty. Williams got £3,500 (not full expectation
damages). He said that the idea of promissory estoppels was not properly argued and ‘not yet
been fully developed the concept of economic duress provided an answer to Stilk’s old
problem. The test for understanding whether a contract could legitimately be varied was set
out as follows.
If A has a contract with B for work, before it is done, A has reason to believe B may not
be able to complete. A promises B to pay more, A ‘obtains in practice a benefit, or
obviates a disbenefit from giving the promise and there is no economic duress or fraud
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example, in some provinces where the Registry System applies to land transfers, the law may
require a conveyance of land to be in accordance with a particular form, as well as signed,
Sealed, and delivered to affect the transfer of the property interest to the grantee. A power of
attorney in some provinces must also be executed under seal to authorize an attorney to deal
with a grantor’s land. Corporations also may use a seal containing the corporation’s name to
sign formal documents. It should be noted, however, that not all corporations are required to
have seals. Under some business corporations’ statutes formal documents need only be
signed by the proper officers of the corporation. The general trend has been to eliminate the
need for business corporations to use seals to execute such documents as contracts.
William’s v Roffey Bros. & Nicholls (Contractors) Ltd. (1991)
Roffey Bros. was contracted by Shepherds Bush Housing Association to refurbish 27 flats in
London. They subcontracted carpentry to Lester Williams for £20,000 payable in
installments. Some work was done and £16,200 was paid at which point Williams ran into
financial difficulty as the price was too low. Roffey Bros. was going to be liable under a
penalty clause for late completion, so they had a meeting on 9 April 1986 and promised an
extra £575 per flat for on time completion. Williams did eight flats and stopped because he
had only received £1,500. New carpenters were brought in to complete the work and
Williams claimed. He was awarded £3,500 at the lower court, which was appealed by Roffey
Bros.
Judgment:- Glidewell LJ held Williams had provided good consideration even though he
was merely performing a pre-existing duty. Williams got £3,500 (not full expectation
damages). He said that the idea of promissory estoppels was not properly argued and ‘not yet
been fully developed the concept of economic duress provided an answer to Stilk’s old
problem. The test for understanding whether a contract could legitimately be varied was set
out as follows.
If A has a contract with B for work, before it is done, A has reason to believe B may not
be able to complete. A promises B to pay more, A ‘obtains in practice a benefit, or
obviates a disbenefit from giving the promise and there is no economic duress or fraud
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The practical benefit of timely completion, even though a pre-existing duty is performed,
constitutes good consideration.
He noted that Roffey Bros’ employee, Mr. Cottrell had felt the original price to be less than
reasonable, and there was a further need to replace the ‘haphazard method of payment by a
more formalized scheme’ of money per flat. "True it was that the plaintiff did not undertake
to do any work additional to that which he had originally undertaken to do but the terms upon
which he was to carry out the work were varied and, in my judgment, that variation was
supported by consideration which a pragmatic approach to the true relationship between the
parties readily demonstrates. (Purchas LJ concurred with Glidewell LJ) [12].
So the given scenario also talks about the same situation. In this case the main contractor
appoints a sub contractor to do joinery work and agree to pay Rs. 2,000,000 and then
contractor reviewer recognized that the work that has to de perform will be higher the agreed
sum. So to avoid paying price to the client, due to delay in construction. So the main
contractor promised the subcontractor to pay Rs. 400,000 as an extra payment. And asked
him to finish the work as early as probable. So beyond his sub contractor obligation he
finished the work and handed over to the main contractor and the main contractor handed
over the project to the client and he got all his payment, and he is now refused to pay the
promised amount to the subcontractor.
When we look at the both cases, both are same type. The sub contractor has not received his
promised payment but in William v. Roffey Bros. & Nicholls contractor’s Ltd (1991) 1Q.B.1
case, the court of request upheld that decision of judge that this promise was enforceable.
Because, that reflection is benefiting the main contractor. So that promise became the
consideration and went beyond the obligation. So the case can be enforceable. So by looking
at the both cases, as a conclusion I can advise the sub contractor that this promise can be
enforceable in the court, because this will come under the category of factual benefit of
promise. And the promise has got actual benefit from that promise. And also the initial
obligation also invalidated at the time of agreeing to the promised work. That means if the
sub contractor agrees to accelerate the work, this could amount to be a good consideration. So
by consideration, a new contract has been formed between main contractor and the sub
contractor.
15/40/16
The practical benefit of timely completion, even though a pre-existing duty is performed,
constitutes good consideration.
He noted that Roffey Bros’ employee, Mr. Cottrell had felt the original price to be less than
reasonable, and there was a further need to replace the ‘haphazard method of payment by a
more formalized scheme’ of money per flat. "True it was that the plaintiff did not undertake
to do any work additional to that which he had originally undertaken to do but the terms upon
which he was to carry out the work were varied and, in my judgment, that variation was
supported by consideration which a pragmatic approach to the true relationship between the
parties readily demonstrates. (Purchas LJ concurred with Glidewell LJ) [12].
So the given scenario also talks about the same situation. In this case the main contractor
appoints a sub contractor to do joinery work and agree to pay Rs. 2,000,000 and then
contractor reviewer recognized that the work that has to de perform will be higher the agreed
sum. So to avoid paying price to the client, due to delay in construction. So the main
contractor promised the subcontractor to pay Rs. 400,000 as an extra payment. And asked
him to finish the work as early as probable. So beyond his sub contractor obligation he
finished the work and handed over to the main contractor and the main contractor handed
over the project to the client and he got all his payment, and he is now refused to pay the
promised amount to the subcontractor.
When we look at the both cases, both are same type. The sub contractor has not received his
promised payment but in William v. Roffey Bros. & Nicholls contractor’s Ltd (1991) 1Q.B.1
case, the court of request upheld that decision of judge that this promise was enforceable.
Because, that reflection is benefiting the main contractor. So that promise became the
consideration and went beyond the obligation. So the case can be enforceable. So by looking
at the both cases, as a conclusion I can advise the sub contractor that this promise can be
enforceable in the court, because this will come under the category of factual benefit of
promise. And the promise has got actual benefit from that promise. And also the initial
obligation also invalidated at the time of agreeing to the promised work. That means if the
sub contractor agrees to accelerate the work, this could amount to be a good consideration. So
by consideration, a new contract has been formed between main contractor and the sub
contractor.
Law & contractual procedures QS/
15/40/16
so due to above reason the main contractor is allow to pay the amount that he has promised.
And I can say to him that to file a case in the court against main contractor, because he can
get that promised amount through the court.
Conclusion:
According to the scenario and case of William v Roffey Bros, when we make a proper
consideration we must follow/obey some principles according to the law procedure.
Consideration must be preferable to the promise. Consideration must move from the promise
- but not necessarily to the promissory. Consideration need not be adequate - but must be
sufficient. Consideration must not be illusory - see illusory promise. Consideration must be
current - it cannot be past. Performance of an existing obligation under a contract owed to the
promissory - is not consideration for a promise. Part payment of a debt - is not consideration
for a promise to discharge the whole sum. Performance of a public law duty - is not
consideration for a promise. Performance of a contractual obligation owed to a third party -
does amount to consideration for a promise.
Task 1.3
CRA
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so due to above reason the main contractor is allow to pay the amount that he has promised.
And I can say to him that to file a case in the court against main contractor, because he can
get that promised amount through the court.
Conclusion:
According to the scenario and case of William v Roffey Bros, when we make a proper
consideration we must follow/obey some principles according to the law procedure.
Consideration must be preferable to the promise. Consideration must move from the promise
- but not necessarily to the promissory. Consideration need not be adequate - but must be
sufficient. Consideration must not be illusory - see illusory promise. Consideration must be
current - it cannot be past. Performance of an existing obligation under a contract owed to the
promissory - is not consideration for a promise. Part payment of a debt - is not consideration
for a promise to discharge the whole sum. Performance of a public law duty - is not
consideration for a promise. Performance of a contractual obligation owed to a third party -
does amount to consideration for a promise.
Task 1.3
CRA
Law & contractual procedures QS/
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Task 02
Task 2.1 Critically analyze the condition and warranty under the express
terms will decided cases.
Condition
A condition is a term (oral or written) A condition is a term (oral or written) which goes
directly 'to the root of the which goes directly 'to the root of the contract', or is so essential to
its very contract', or is so essential to its very nature that if it is broken the innocent nature
that if it is broken the innocent party can treat the contract as party can treat the contract as
discharged. That party will not therefore discharged. That party will not therefore be bound to
do anything further under be bound to do anything further under that contract.
Warranty
A warranty is a term of the contract which A warranty is a term of the contract which is
collateral or subsidiary to the main is collateral or subsidiary to the main purpose of the
contract. It is therefore not purpose of the contract. It is therefore not so vital as to affect a
discharge of the so vital as to affect a discharge of the contract. A breach of warranty only
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Task 02
Task 2.1 Critically analyze the condition and warranty under the express
terms will decided cases.
Condition
A condition is a term (oral or written) A condition is a term (oral or written) which goes
directly 'to the root of the which goes directly 'to the root of the contract', or is so essential to
its very contract', or is so essential to its very nature that if it is broken the innocent nature
that if it is broken the innocent party can treat the contract as party can treat the contract as
discharged. That party will not therefore discharged. That party will not therefore be bound to
do anything further under be bound to do anything further under that contract.
Warranty
A warranty is a term of the contract which A warranty is a term of the contract which is
collateral or subsidiary to the main is collateral or subsidiary to the main purpose of the
contract. It is therefore not purpose of the contract. It is therefore not so vital as to affect a
discharge of the so vital as to affect a discharge of the contract. A breach of warranty only
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contract. A breach of warranty only entitles the innocent party to an action for entitles the
innocent party to an action for damages; he cannot treat the contract as damages; he cannot
treat the contract as discharged.
Types of conditions and warranties
Express
Implied
Express terms
Express terms are statements of promises made by the parties, for example the contractor’s
undertaking to carry out and complete the works by a specific date, and the employer’s
undertaking to make interim payment to the contractor.
Often, during the negotiating stage in the formation of a contract, statements are made by the
parties which have to be written into, or appended to the contract .considerable care is
required in preparing these statements due to their contractual effect.
It should be noted that an express term will normally take precedence over an implied term.
Case: Interferon Pictures Library Ltd v Stiletto Visual Programmers (1989)
The defendants ordered photographic transparencies from the plaintiffs, not having
dealt with them before. The plaintiffs duly sent them 47 transparencies, together with a
delivery note which contained a number of conditions. Condition 2 stated that a holding fee
of £5 per day was payable for every day that the transparencies were kept in excess of 14
days. The defendants failed to return them on time and were sent an invoice for £3,783.50,
which they refused to pay. In an action by the plaintiffs to recover the £3,783.50 the Court of
Appeal held that condition 2 was not incorporated into the contract because, on the basis of
the test outlined above, insufficient notice had been given to the defendants of its terms
In order to analyze the context of the sale of goods act 1979, which categories the
terms of contract of sale into either conditions or warranties, it will be important to define the
meaning of the two terms. Further on, it will be helpful to use relevant cases from the English
law to show how the different terms can be used in real life in different types of contracts.
Different cases can be used to analyze both the meaning of the terms and how the terms are
being used to resolve a twist were a breach of a contract have taken place. It will also be
15/40/16
contract. A breach of warranty only entitles the innocent party to an action for entitles the
innocent party to an action for damages; he cannot treat the contract as damages; he cannot
treat the contract as discharged.
Types of conditions and warranties
Express
Implied
Express terms
Express terms are statements of promises made by the parties, for example the contractor’s
undertaking to carry out and complete the works by a specific date, and the employer’s
undertaking to make interim payment to the contractor.
Often, during the negotiating stage in the formation of a contract, statements are made by the
parties which have to be written into, or appended to the contract .considerable care is
required in preparing these statements due to their contractual effect.
It should be noted that an express term will normally take precedence over an implied term.
Case: Interferon Pictures Library Ltd v Stiletto Visual Programmers (1989)
The defendants ordered photographic transparencies from the plaintiffs, not having
dealt with them before. The plaintiffs duly sent them 47 transparencies, together with a
delivery note which contained a number of conditions. Condition 2 stated that a holding fee
of £5 per day was payable for every day that the transparencies were kept in excess of 14
days. The defendants failed to return them on time and were sent an invoice for £3,783.50,
which they refused to pay. In an action by the plaintiffs to recover the £3,783.50 the Court of
Appeal held that condition 2 was not incorporated into the contract because, on the basis of
the test outlined above, insufficient notice had been given to the defendants of its terms
In order to analyze the context of the sale of goods act 1979, which categories the
terms of contract of sale into either conditions or warranties, it will be important to define the
meaning of the two terms. Further on, it will be helpful to use relevant cases from the English
law to show how the different terms can be used in real life in different types of contracts.
Different cases can be used to analyze both the meaning of the terms and how the terms are
being used to resolve a twist were a breach of a contract have taken place. It will also be
Law & contractual procedures QS/
15/40/16
possible to analyze or maybe criticize outcomes of the cases being shown. This essay will try
to do this as good and clearly as possible.
Body:
A condition is a fundamental term of the contract which goes to the very root of the
contract. A failure to perform a condition will render the contract significantly different from
that contracted for. Breach of a condition entitles the innocent party to treat the contract as
repudiated and itself as discharged from performance of all outstanding obligations under the
contract.
Poussard v Spiers and Pond [1876] 1 QBD 410 is an example of a case were a breach of a
condition took place. In this case an actress was hired to sing in the opera, but she got ill and
could not perform until a couple of weeks after the premiere. It was held at the court that this
breach went to the root of the contract, and therefore the opera could repudiate the contract
and hire a new actress.
On the other hand, the case of Bettini v Gye [1876] 1 QB 183 is an example were the breach
of contract did not go to the root of the contract, and was therefore not considered as a breach
of condition. In this case a singer was hired to sing and perform for about a month, which
included six days of rehearsals. The singer missed out a few days of the rehearsals, but this
was not held as a breach of condition, and damages were the only remedy available in this
instance.
The outcome of these two cases tells us that a breach of an obligation in a contract have to be
significant in order to call it a breach of condition.
A warranty is considered as ancillary to the main terms of a contract. A breach of a warranty
would only amount to damages, and the innocent party does not have the right to repudiate
the contract.
In the case of Wills v Amber [1954] 1 Lloyd's Rep 253, a four-berth motor boat had been
sold. An innocent statement by the seller that the hull was sound was held to be a warranty,
which the buyer had entered into the contract in reliance upon it, when in fact the hull was
rotten. But the contract was not substantially different to that which the parties originally
intended. He was awarded damages.
In the case of Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235, The House of
Lords stated that a breach of a condition allows for termination of the contract. But the case
15/40/16
possible to analyze or maybe criticize outcomes of the cases being shown. This essay will try
to do this as good and clearly as possible.
Body:
A condition is a fundamental term of the contract which goes to the very root of the
contract. A failure to perform a condition will render the contract significantly different from
that contracted for. Breach of a condition entitles the innocent party to treat the contract as
repudiated and itself as discharged from performance of all outstanding obligations under the
contract.
Poussard v Spiers and Pond [1876] 1 QBD 410 is an example of a case were a breach of a
condition took place. In this case an actress was hired to sing in the opera, but she got ill and
could not perform until a couple of weeks after the premiere. It was held at the court that this
breach went to the root of the contract, and therefore the opera could repudiate the contract
and hire a new actress.
On the other hand, the case of Bettini v Gye [1876] 1 QB 183 is an example were the breach
of contract did not go to the root of the contract, and was therefore not considered as a breach
of condition. In this case a singer was hired to sing and perform for about a month, which
included six days of rehearsals. The singer missed out a few days of the rehearsals, but this
was not held as a breach of condition, and damages were the only remedy available in this
instance.
The outcome of these two cases tells us that a breach of an obligation in a contract have to be
significant in order to call it a breach of condition.
A warranty is considered as ancillary to the main terms of a contract. A breach of a warranty
would only amount to damages, and the innocent party does not have the right to repudiate
the contract.
In the case of Wills v Amber [1954] 1 Lloyd's Rep 253, a four-berth motor boat had been
sold. An innocent statement by the seller that the hull was sound was held to be a warranty,
which the buyer had entered into the contract in reliance upon it, when in fact the hull was
rotten. But the contract was not substantially different to that which the parties originally
intended. He was awarded damages.
In the case of Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235, The House of
Lords stated that a breach of a condition allows for termination of the contract. But the case
Law & contractual procedures QS/
15/40/16
also shows that even if the parties themselves expressly designate a particular obligation as a
condition, the word condition is not always conclusive. The circumstances surrounding their
agreement may indicate that the parties had no intention of using the word in its technical
sense. Additionally, the law itself may give an indication of the status of a particular term. It
may be implied either by statute (eg Sale of Goods Act 1979) or by a previous judicial
decision.
It may seem easy to understand and decide whether a term in a contract is a condition or a
warranty, but it can be more difficult to decide in practice. So when the Sale of Goods Act
1979 classifies the terms of a contract either into conditions or warranties, it seems to be quite
easy to handle in practice also. But not all contractual obligations fall conveniently into the
traditional division between conditions and warranties. Such are called intermediate terms
and are not mentioned in the Sale of Goods Act 1979.
An in nominate term or intermediate term, is a term that is not clearly defined, but the
severity of the consequently breach will determine whether it is a condition or warranty. The
term remains unclassified until the seriousness of a breach can be judged. If the benefit goes
to the root of the contract, the relevant term will be classified as a condition. If the breach
substantially deprived the innocent party of the whole of the benefit which was contracted
for, then such a breach would allow termination of the contract along with the right to
damages. But if the breach is not so server, then the innocent party is only entitled to
damages.
The Hong Kong Fir was chartered on the “Baltime 1939” form for 24 months, one month
more or less. Her engines at the time of delivery were in a reasonable condition but, because
of their age, required careful attention. The engineers employed by the owners on delivery
were insufficient in number and also incompetent. Consequently, there was, on the very first
charter voyage, a succession of serious engine failures. A voyage from Liverpool to Osaka
included five weeks off hire for repairs and was followed by 15 further weeks of repairs at
Osaka. Before the ship was again ready for sea, the charterers purported to terminate the
charter and the owners claimed damages on the ground that the purported termination was
wrongful. It was held that:
The owners were in breach of the undertaking of seaworthiness having regard to the
incompetence of the engine room staff;
15/40/16
also shows that even if the parties themselves expressly designate a particular obligation as a
condition, the word condition is not always conclusive. The circumstances surrounding their
agreement may indicate that the parties had no intention of using the word in its technical
sense. Additionally, the law itself may give an indication of the status of a particular term. It
may be implied either by statute (eg Sale of Goods Act 1979) or by a previous judicial
decision.
It may seem easy to understand and decide whether a term in a contract is a condition or a
warranty, but it can be more difficult to decide in practice. So when the Sale of Goods Act
1979 classifies the terms of a contract either into conditions or warranties, it seems to be quite
easy to handle in practice also. But not all contractual obligations fall conveniently into the
traditional division between conditions and warranties. Such are called intermediate terms
and are not mentioned in the Sale of Goods Act 1979.
An in nominate term or intermediate term, is a term that is not clearly defined, but the
severity of the consequently breach will determine whether it is a condition or warranty. The
term remains unclassified until the seriousness of a breach can be judged. If the benefit goes
to the root of the contract, the relevant term will be classified as a condition. If the breach
substantially deprived the innocent party of the whole of the benefit which was contracted
for, then such a breach would allow termination of the contract along with the right to
damages. But if the breach is not so server, then the innocent party is only entitled to
damages.
The Hong Kong Fir was chartered on the “Baltime 1939” form for 24 months, one month
more or less. Her engines at the time of delivery were in a reasonable condition but, because
of their age, required careful attention. The engineers employed by the owners on delivery
were insufficient in number and also incompetent. Consequently, there was, on the very first
charter voyage, a succession of serious engine failures. A voyage from Liverpool to Osaka
included five weeks off hire for repairs and was followed by 15 further weeks of repairs at
Osaka. Before the ship was again ready for sea, the charterers purported to terminate the
charter and the owners claimed damages on the ground that the purported termination was
wrongful. It was held that:
The owners were in breach of the undertaking of seaworthiness having regard to the
incompetence of the engine room staff;
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Law & contractual procedures QS/
15/40/16
The owners were not protected by the “Baltime 1939”exceptions clause (Clause 13)
since the incompetence of the engine room staff was attributable to the owners’ want
of due diligence in their selection;
Seaworthiness was not a condition; therefore, it did not in itself give the charterers the
right to repudiate;
The charterers could justify their purported termination only if the breach of the
undertaking of seaworthiness went to the root of the contract;
The breach of the undertaking had resulted in considerable delays, but this could not
be regarded as going to the root of the contract or as depriving the charterers of
substantially the whole benefit of the contract unless the delays were such as to
frustrate the charter.
This case can show that it might be difficult to classify all contractual obligations into either
conditions or warranties. Although it could be easier and more convenient without the
intermediate terms, this case shows the importance of these terms.
In Cehave v Bremer HandelsgessellschaftM.B.H (The Hansa Nord) [1976] QB 44, Lord
Denning showed a reluctance to allow rejection under the Sale of Goods Act for what he
considered to be a fairly minor breach in relation to damaged goods and held the goods
merchantable under s.14 but not in good condition a breach of the express term to that effect
– an intermediate stipulation for which breach damages was the appropriate remedy.
Implied Terms.
In addition to express (clearly stated) terms, a contract may contain one or more implied
terms. A court can only recognize an implied term if it satisfies five requirements. It must be:
i. Reasonable and equitable
ii. Necessary to give 'business efficacy’ (effectiveness) to the contract If the contract is
valid without the term in question—that is, it is effective and meets the intentions of
the parties—then the term cannot be implied
iii. So obvious that it 'goes without saying'
iv. Capable of clear expression
v. Consistent with (not contradicting) any express term of the contract.
From the relationship which exists between an employer and employee when a contract of
employment is made various duties are implied. Both employer and employee are subject to
15/40/16
The owners were not protected by the “Baltime 1939”exceptions clause (Clause 13)
since the incompetence of the engine room staff was attributable to the owners’ want
of due diligence in their selection;
Seaworthiness was not a condition; therefore, it did not in itself give the charterers the
right to repudiate;
The charterers could justify their purported termination only if the breach of the
undertaking of seaworthiness went to the root of the contract;
The breach of the undertaking had resulted in considerable delays, but this could not
be regarded as going to the root of the contract or as depriving the charterers of
substantially the whole benefit of the contract unless the delays were such as to
frustrate the charter.
This case can show that it might be difficult to classify all contractual obligations into either
conditions or warranties. Although it could be easier and more convenient without the
intermediate terms, this case shows the importance of these terms.
In Cehave v Bremer HandelsgessellschaftM.B.H (The Hansa Nord) [1976] QB 44, Lord
Denning showed a reluctance to allow rejection under the Sale of Goods Act for what he
considered to be a fairly minor breach in relation to damaged goods and held the goods
merchantable under s.14 but not in good condition a breach of the express term to that effect
– an intermediate stipulation for which breach damages was the appropriate remedy.
Implied Terms.
In addition to express (clearly stated) terms, a contract may contain one or more implied
terms. A court can only recognize an implied term if it satisfies five requirements. It must be:
i. Reasonable and equitable
ii. Necessary to give 'business efficacy’ (effectiveness) to the contract If the contract is
valid without the term in question—that is, it is effective and meets the intentions of
the parties—then the term cannot be implied
iii. So obvious that it 'goes without saying'
iv. Capable of clear expression
v. Consistent with (not contradicting) any express term of the contract.
From the relationship which exists between an employer and employee when a contract of
employment is made various duties are implied. Both employer and employee are subject to
Law & contractual procedures QS/
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these implied duties. A breach of these duties will be treated as a breach of the contract of
employment.
Implied terms may be divided in to three groups. The first consists of terms implied in Fact,
that is terms which were not expressly set out in contract, but which the parties must have
intended to include. The second consists of terms implied in Law that is, terms imported by
operation of law, although the parties may not have intended to include them. The third
consists of terms, implied by custom.
Conclusion: All these cases and definitions of the terms in a contract states that the
classification of the terms of a contract, made in the sale of Goods Act 1979, may be
deficient. It also shows that even though it may be easy to classify different terms in a
contract into either conditions or warranties in theory, it is much more complicated in
practice. This because every case has its own character and that is why intermediate terms
can “provide a more flexible and equitable remedy”
Which in my opinion is a good thing? But it may also introduce a greater degree of
uncertainty into the law, which can create more practical difficulties, and make it harder for
the court to decide the remedy. It can also cause problems for the involved parties, like the
case of Hong Kong Fir mentioned earlier. Where the victim of the breach decided to treat it
as a breach of condition, and therefore treated the contract as repudiated, which later turned
out not be the case, ruled by the court. This is an example that shows the uncertainty of these
terms.
Task 2.2 Analyze the given scenario 2 with the support of the exemption
clause with the support of the Photo production Ltd. Securicor transport
ltd.(1980 H.L.) case and the unfair contract terms Act 1977 in England.
Photo Production Ltd v. Securicor Transport Ltd. (1980)
The appellants, Securicor Transport Ltd, are appealing the decision of the English Court of
Appeal which stated that the party pays Rs150,000 damages plus interest to Photo Production
Ltd, the respondents in the House of Lords.
Fact of the case
While the security guard was on patrol of the Photo Productions building he intentionally
started a fire that destroyed the whole building.
15/40/16
these implied duties. A breach of these duties will be treated as a breach of the contract of
employment.
Implied terms may be divided in to three groups. The first consists of terms implied in Fact,
that is terms which were not expressly set out in contract, but which the parties must have
intended to include. The second consists of terms implied in Law that is, terms imported by
operation of law, although the parties may not have intended to include them. The third
consists of terms, implied by custom.
Conclusion: All these cases and definitions of the terms in a contract states that the
classification of the terms of a contract, made in the sale of Goods Act 1979, may be
deficient. It also shows that even though it may be easy to classify different terms in a
contract into either conditions or warranties in theory, it is much more complicated in
practice. This because every case has its own character and that is why intermediate terms
can “provide a more flexible and equitable remedy”
Which in my opinion is a good thing? But it may also introduce a greater degree of
uncertainty into the law, which can create more practical difficulties, and make it harder for
the court to decide the remedy. It can also cause problems for the involved parties, like the
case of Hong Kong Fir mentioned earlier. Where the victim of the breach decided to treat it
as a breach of condition, and therefore treated the contract as repudiated, which later turned
out not be the case, ruled by the court. This is an example that shows the uncertainty of these
terms.
Task 2.2 Analyze the given scenario 2 with the support of the exemption
clause with the support of the Photo production Ltd. Securicor transport
ltd.(1980 H.L.) case and the unfair contract terms Act 1977 in England.
Photo Production Ltd v. Securicor Transport Ltd. (1980)
The appellants, Securicor Transport Ltd, are appealing the decision of the English Court of
Appeal which stated that the party pays Rs150,000 damages plus interest to Photo Production
Ltd, the respondents in the House of Lords.
Fact of the case
While the security guard was on patrol of the Photo Productions building he intentionally
started a fire that destroyed the whole building.
Law & contractual procedures QS/
15/40/16
The respondents, Photo Production Ltd, and the aforementioned appellants entered into a
contract whereby Securicor Transport Ltd would provide nightly security patrols at the
factory belonging to the plaintiffs. On one such occasion an employee of Securicor Transport
Ltd lit a fire which got out of control, causing the factory to burn down. At the original trial it
was decided that the current appellants were not liable for the damages caused by their
employee. However this judgment was overturned on March 15th 1978 when the Court of
Appeal ordered that the current appellants pay the respondents Rs150,000 for
Issue of the case
The issue was whether Securicor could rely on the exclusion clause to escape liability for
their employee's conduct.
The contract entered into by the parties contained conditions which may exclude the
appellants' liability in certain circumstances. This is known as an exclusion clause. One of the
main issues is whether the circumstances present on the night of the incident would cause the
appellants to be free from liability, thus overturning the order to pay damages to the
respondents. Had Musgrove's conduct truly constituted a fundamental breach, thus
invalidating the contract entirely
Analysis
A security guard, employed by Securicor Transport, was put in charge of guarding Photo
Production's building. The agreement between Securicor and Photo Productions contained an
exclusion clause that absolve Securicor from any liability for damaging act or default by any
employee of the company. Photo Productions argued that the clause could not apply under
the policy of fundamental breach. That is, the breach of the contract was so substantial that it
invalidates the whole agreement. At the Court of Appeal, Lord Denning held that the policy
of fundamental breach did apply, and that Securicor was liable.
Application of the policy of fundamental breach and decide for a "rule of construction"
approach. Exception clauses are to be understand the same as any other term anyway of
whether a breach has occurred. The capacity of the exclusion is determined by investigative
the construction of the contract. On the facts, load found that the exclusion clause excluded
all liability even when damage was caused on purpose. Confirm the long line of cases in this
court that when one party has been guilty of a fundamental breach of the contract, and the
other side accepts it; so that the contract comes to an end. That the question whether an
15/40/16
The respondents, Photo Production Ltd, and the aforementioned appellants entered into a
contract whereby Securicor Transport Ltd would provide nightly security patrols at the
factory belonging to the plaintiffs. On one such occasion an employee of Securicor Transport
Ltd lit a fire which got out of control, causing the factory to burn down. At the original trial it
was decided that the current appellants were not liable for the damages caused by their
employee. However this judgment was overturned on March 15th 1978 when the Court of
Appeal ordered that the current appellants pay the respondents Rs150,000 for
Issue of the case
The issue was whether Securicor could rely on the exclusion clause to escape liability for
their employee's conduct.
The contract entered into by the parties contained conditions which may exclude the
appellants' liability in certain circumstances. This is known as an exclusion clause. One of the
main issues is whether the circumstances present on the night of the incident would cause the
appellants to be free from liability, thus overturning the order to pay damages to the
respondents. Had Musgrove's conduct truly constituted a fundamental breach, thus
invalidating the contract entirely
Analysis
A security guard, employed by Securicor Transport, was put in charge of guarding Photo
Production's building. The agreement between Securicor and Photo Productions contained an
exclusion clause that absolve Securicor from any liability for damaging act or default by any
employee of the company. Photo Productions argued that the clause could not apply under
the policy of fundamental breach. That is, the breach of the contract was so substantial that it
invalidates the whole agreement. At the Court of Appeal, Lord Denning held that the policy
of fundamental breach did apply, and that Securicor was liable.
Application of the policy of fundamental breach and decide for a "rule of construction"
approach. Exception clauses are to be understand the same as any other term anyway of
whether a breach has occurred. The capacity of the exclusion is determined by investigative
the construction of the contract. On the facts, load found that the exclusion clause excluded
all liability even when damage was caused on purpose. Confirm the long line of cases in this
court that when one party has been guilty of a fundamental breach of the contract, and the
other side accepts it; so that the contract comes to an end. That the question whether an
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Law & contractual procedures QS/
15/40/16
exceptions clause was applicable where there was a fundamental breach of contract was one
of the true constructions of the contract.
Analysing specific conditions in the contract aided the judges. Most potent was the condition
printed on the reverse of the agreement. “1. Under no such circumstances shall the company
be responsible for any injurious act or default by any employee of the company unless such
act or default could have been foreseen and avoided by the exercise of due diligence on the
part of the company as his employer.” (852) Lord Salmon said that “the words of the clause
are so crystal clear that they obviously relieve Securicor from what would otherwise have
been their liability for the damage caused by Musgrove.” (852) In the House of Lords the
judges have concurring judgments, and so must highlight the discrepancies they see with the
judgment of the Court of Appeal. Lord Diplock makes the point that the Court of Appeal was
“bound so to hold by previous decisions of its own”. (847) The first case which bound the
court to its judgment was Harbutt's “Plasticine” Ltd v Wayne Tank and Pump Co Ltd [1970]
1 Q.B 447. Furthermore he said that this case's judgment was supported by Lord Denning's
interpretation of Suisse At antique Society d'Armement Maritime S.A v N.V Rotterdamsche
Kolen Central [1967] 1 A.C 361.
Lord Wilberforce interprets Suisse At antique very differently from Lord Denning. He
rebukes Lord Denning, saying that the exclusion clause did stand, as a breach did not affect
the interpretation of such a clause. Lord Wilberforce found that, having analysed the facts
regarding the construction of the contract, the boundaries of exclusion lay beyond the conduct
of Musgrove, and so the Appellants were not liable. It was made clear by Lord Salmon that
the Unfair Contract Terms Act 1977 be ignored as commencement of the contract occurred
before the commencement of said Act.
The case is remembered for two principal reasons
The explicit rejection of the doctrine of fundamental breach under English law
It is remembered as the high water mark of the disputes between the Lord Denning led Court
of Appeal and an more and more unpleased House of Lords, who strongly criticize of
Denning's challenge to re mould the law in a way that he supposed to fit the justice of the
situation.
In this case a Securicor Transport security guard was put in charge of guarding Photo
Production's building. The agreement between Securicor and Photo Productions contained an
15/40/16
exceptions clause was applicable where there was a fundamental breach of contract was one
of the true constructions of the contract.
Analysing specific conditions in the contract aided the judges. Most potent was the condition
printed on the reverse of the agreement. “1. Under no such circumstances shall the company
be responsible for any injurious act or default by any employee of the company unless such
act or default could have been foreseen and avoided by the exercise of due diligence on the
part of the company as his employer.” (852) Lord Salmon said that “the words of the clause
are so crystal clear that they obviously relieve Securicor from what would otherwise have
been their liability for the damage caused by Musgrove.” (852) In the House of Lords the
judges have concurring judgments, and so must highlight the discrepancies they see with the
judgment of the Court of Appeal. Lord Diplock makes the point that the Court of Appeal was
“bound so to hold by previous decisions of its own”. (847) The first case which bound the
court to its judgment was Harbutt's “Plasticine” Ltd v Wayne Tank and Pump Co Ltd [1970]
1 Q.B 447. Furthermore he said that this case's judgment was supported by Lord Denning's
interpretation of Suisse At antique Society d'Armement Maritime S.A v N.V Rotterdamsche
Kolen Central [1967] 1 A.C 361.
Lord Wilberforce interprets Suisse At antique very differently from Lord Denning. He
rebukes Lord Denning, saying that the exclusion clause did stand, as a breach did not affect
the interpretation of such a clause. Lord Wilberforce found that, having analysed the facts
regarding the construction of the contract, the boundaries of exclusion lay beyond the conduct
of Musgrove, and so the Appellants were not liable. It was made clear by Lord Salmon that
the Unfair Contract Terms Act 1977 be ignored as commencement of the contract occurred
before the commencement of said Act.
The case is remembered for two principal reasons
The explicit rejection of the doctrine of fundamental breach under English law
It is remembered as the high water mark of the disputes between the Lord Denning led Court
of Appeal and an more and more unpleased House of Lords, who strongly criticize of
Denning's challenge to re mould the law in a way that he supposed to fit the justice of the
situation.
In this case a Securicor Transport security guard was put in charge of guarding Photo
Production's building. The agreement between Securicor and Photo Productions contained an
Law & contractual procedures QS/
15/40/16
exclusion clause that absolved Securicor from any liability for "injurious act or default by any
employee of the company."
While the security guard was on patrol of the Photo Productions building he intentionally
started a fire that destroyed the whole building.
Could Securicor rely on the exclusion clause to escape liability for their employee's conduct?
Photo Productions argued that the clause could not apply under the doctrine of fundamental
breach. That is, the breach of the contract was so huge that it invalidated the whole
agreement.
At the Court of Appeal, Lord Denning found that the doctrine of fundamental breach did
apply.
However at the Court of Appeal, Lord Wilberforce, overturned Denning and found that the
exclusion clause could indeed be relied upon.
Lord Wilberforce explicitly rejected Denning's application of the doctrine of fundamental
breach and opted for a "rule of construction" approach. Exemption clauses were judged to be
interpreted the same as any other term regardless of whether a breach has occurred and the
scope of the exclusion must be determined by examining the construction of the contract. On
the facts, Lord Wilberforce found that the exclusion clause precluded all liability - even when
harm was caused intentionally.
Photo Productions Ltd sued Securicor Transport Ltd after Securicor's employee, Mr
Musgrove, started a fire at Photo Production's factory to warm himself while at work and
accidentally burnt it down, costing Rs150,000. Securicor argued that an exclusion clause in
its contract meant they were not liable, as it said "under no circumstances be responsible for
any injurious act or default by any employee… unless such act or default could have been
foreseen and avoided by the exercise of due diligence on the part of [Securicor]." Photo
Productions argued that the clause could not apply under the doctrine of fundamental breach,
that the breach of the contract went to the root of the contract and invalidated the whole
agreement, and extinguished the exclusion clause.
In commercial matters when risks are normally borne by insurance were purposely left by the
Parliament for the contracting parties to apportion the risk as they think fit and for regarding
their decisions the variation cases from which the policy of fundamental breach got its past
background. Can be regard as proceeding on normal principles applicable to the law of
contract generally. That it’s a matter of the parties, it may be preferable that they should be
15/40/16
exclusion clause that absolved Securicor from any liability for "injurious act or default by any
employee of the company."
While the security guard was on patrol of the Photo Productions building he intentionally
started a fire that destroyed the whole building.
Could Securicor rely on the exclusion clause to escape liability for their employee's conduct?
Photo Productions argued that the clause could not apply under the doctrine of fundamental
breach. That is, the breach of the contract was so huge that it invalidated the whole
agreement.
At the Court of Appeal, Lord Denning found that the doctrine of fundamental breach did
apply.
However at the Court of Appeal, Lord Wilberforce, overturned Denning and found that the
exclusion clause could indeed be relied upon.
Lord Wilberforce explicitly rejected Denning's application of the doctrine of fundamental
breach and opted for a "rule of construction" approach. Exemption clauses were judged to be
interpreted the same as any other term regardless of whether a breach has occurred and the
scope of the exclusion must be determined by examining the construction of the contract. On
the facts, Lord Wilberforce found that the exclusion clause precluded all liability - even when
harm was caused intentionally.
Photo Productions Ltd sued Securicor Transport Ltd after Securicor's employee, Mr
Musgrove, started a fire at Photo Production's factory to warm himself while at work and
accidentally burnt it down, costing Rs150,000. Securicor argued that an exclusion clause in
its contract meant they were not liable, as it said "under no circumstances be responsible for
any injurious act or default by any employee… unless such act or default could have been
foreseen and avoided by the exercise of due diligence on the part of [Securicor]." Photo
Productions argued that the clause could not apply under the doctrine of fundamental breach,
that the breach of the contract went to the root of the contract and invalidated the whole
agreement, and extinguished the exclusion clause.
In commercial matters when risks are normally borne by insurance were purposely left by the
Parliament for the contracting parties to apportion the risk as they think fit and for regarding
their decisions the variation cases from which the policy of fundamental breach got its past
background. Can be regard as proceeding on normal principles applicable to the law of
contract generally. That it’s a matter of the parties, it may be preferable that they should be
Law & contractual procedures QS/
15/40/16
considered as a body of authority generis with special rules derived from past and
commercial reasons.
The case concerned allegation of negligence against the local authority’s building inspectors,
the main issue being whether the claim was statute - barred. Which was the base of the cause
of action, was wrongly decided. The case resulted in the House of Lords approving, with
some modification, the flood of litigation was bound to continue. That it’s a matter of the
parties, it may be preferable that they should be considered as a body of authority generis
with special rules derived from past and commercial reasons.
Task 2.3
CRA
15/40/16
considered as a body of authority generis with special rules derived from past and
commercial reasons.
The case concerned allegation of negligence against the local authority’s building inspectors,
the main issue being whether the claim was statute - barred. Which was the base of the cause
of action, was wrongly decided. The case resulted in the House of Lords approving, with
some modification, the flood of litigation was bound to continue. That it’s a matter of the
parties, it may be preferable that they should be considered as a body of authority generis
with special rules derived from past and commercial reasons.
Task 2.3
CRA
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Law & contractual procedures QS/
15/40/16
Task 03
Task 3.1 Critically analyze the provisions of the Arbitration Act 1996
together with the advantages and disadvantages in relation to settlement of
construction disputes.
15/40/16
Task 03
Task 3.1 Critically analyze the provisions of the Arbitration Act 1996
together with the advantages and disadvantages in relation to settlement of
construction disputes.
Law & contractual procedures QS/
15/40/16
Arbitration:-This is the formal settlement of a dispute by a third person chosen by the
disputing parties. It is an alternative method to court action. But, it is impossible to avoid
recourse to the courts by agreement, as any such agreement or contractual clause to that effect
is void at common law for being contrary to public policy. Thus, Arbitration decisions know
as awards, may be appealed against in the high court, but only on a question of law and the
court may confirm, vary or set aside such an award or send the award for reconsideration
back to the arbitrator.
Duties of the arbitrator
The arbitrator must confirm to certain minimum requirements (that the arbitrator
should in fact be unbiased and should act so as to convey this impression to the
parties) of fairness and impartiality.
He should give each party an opportunity of dealing with every relevant point.
He must take a sufficient note of the evidence and argument to enable him to
determine the issues and to deliver a reasoned award.
Disputes may be settled by arbitration in a number of different situations.
Under a special Act of Parliament
In any legal dispute
Where court proceedings have already started
By prior agreement to arbitrate in the event of a dispute
Arbitration is an adjudicative process, in which a judge, jury, or arbitrator determine the
outcome. In many states now have arbitration or other ADR (Alternative dispute resolution)
program annexed to the courts to facilitate settlement of lawsuits.
According to arbitration act (rsbc1996), In England,
Arbitration means, a reference before an arbitrator to resolve a dispute under this act or an
arbitration agreement.
Arbitrator means, a person who, under this actor an arbitration agreement, resolves a dispute
that has been referred to the person, and includes an umpire.
Arbitration is the most formal type of ADR. in this situation , an arbitrator is able to impose a
solution upon the parties. Arbitration is often used when other more informal forms of ADR
have failed. Arbitration is often built into commercial contracts as the means by which any
arbitrator, or a panel considers the facts and an argument presented by the parties and renders
15/40/16
Arbitration:-This is the formal settlement of a dispute by a third person chosen by the
disputing parties. It is an alternative method to court action. But, it is impossible to avoid
recourse to the courts by agreement, as any such agreement or contractual clause to that effect
is void at common law for being contrary to public policy. Thus, Arbitration decisions know
as awards, may be appealed against in the high court, but only on a question of law and the
court may confirm, vary or set aside such an award or send the award for reconsideration
back to the arbitrator.
Duties of the arbitrator
The arbitrator must confirm to certain minimum requirements (that the arbitrator
should in fact be unbiased and should act so as to convey this impression to the
parties) of fairness and impartiality.
He should give each party an opportunity of dealing with every relevant point.
He must take a sufficient note of the evidence and argument to enable him to
determine the issues and to deliver a reasoned award.
Disputes may be settled by arbitration in a number of different situations.
Under a special Act of Parliament
In any legal dispute
Where court proceedings have already started
By prior agreement to arbitrate in the event of a dispute
Arbitration is an adjudicative process, in which a judge, jury, or arbitrator determine the
outcome. In many states now have arbitration or other ADR (Alternative dispute resolution)
program annexed to the courts to facilitate settlement of lawsuits.
According to arbitration act (rsbc1996), In England,
Arbitration means, a reference before an arbitrator to resolve a dispute under this act or an
arbitration agreement.
Arbitrator means, a person who, under this actor an arbitration agreement, resolves a dispute
that has been referred to the person, and includes an umpire.
Arbitration is the most formal type of ADR. in this situation , an arbitrator is able to impose a
solution upon the parties. Arbitration is often used when other more informal forms of ADR
have failed. Arbitration is often built into commercial contracts as the means by which any
arbitrator, or a panel considers the facts and an argument presented by the parties and renders
Law & contractual procedures QS/
15/40/16
a decision. Arbitration is less formal than a court trial. There are still procedures to be
followed disputes are to be resolved. Arbitration is a process in which a neutral third person,
called an. The decision is usually binding and the right to appeal the decision of the arbitrator
or panel of arbitrators is very limited. in arbitration, arbitrator listens to both arguments and
then imposes their decision. and arbitrator is usually a lawyer .but may also be an expert in
the appropriate field; often both parties are represented by a lawyer .the reason arbitration is
sometimes cheaper than litigation is that arbitrators are not bound by the complex rules of
evidence that applied in court.
Who are the arbitrators
Arbitrators are often lawyers, but can be any individual. Often arbitrators have met specific
criteria and are certified to act as and arbitrators afer receiving special training. usually,
parties and their attorney will have input as to the selection of then arbitrator. In selecting an
arbitrator, consideration should be given to the arbitrator’s reputation, experience, training
arias of expertise or concentration and any certification. the arbitrator may hold. an arbitrator
will be impartial and free of any bias.
Why choose arbitration over court litigation
Arbitration is similar to a court trial except there is no judge or jury and arbitration hearing is
conducted privately. And arbitration hearing is less formal than a trial and the presentation
may be stream lined. This procedure is often simpler, faster and less expensive (for some
extend) than court room litigation. The final decision of the arbitrator or panel of arbitrators
may or may not preclude parties from further litigation.
Duties of the arbitrator
Arbitration Act 1996, 1996 c. 23, Part I, The arbitral proceedings, Section 33
(1) The tribunal shall-
(a) Act fairly and impartially as between the parties, giving each party a reasonable
opportunity of putting his case and dealing with that of his opponent, and
(b) Adopt procedures suitable to the circumstances of the particular case, avoiding
unnecessary delay or expense, so as to provide a fair means for the resolution of the matters
falling to be determined.
15/40/16
a decision. Arbitration is less formal than a court trial. There are still procedures to be
followed disputes are to be resolved. Arbitration is a process in which a neutral third person,
called an. The decision is usually binding and the right to appeal the decision of the arbitrator
or panel of arbitrators is very limited. in arbitration, arbitrator listens to both arguments and
then imposes their decision. and arbitrator is usually a lawyer .but may also be an expert in
the appropriate field; often both parties are represented by a lawyer .the reason arbitration is
sometimes cheaper than litigation is that arbitrators are not bound by the complex rules of
evidence that applied in court.
Who are the arbitrators
Arbitrators are often lawyers, but can be any individual. Often arbitrators have met specific
criteria and are certified to act as and arbitrators afer receiving special training. usually,
parties and their attorney will have input as to the selection of then arbitrator. In selecting an
arbitrator, consideration should be given to the arbitrator’s reputation, experience, training
arias of expertise or concentration and any certification. the arbitrator may hold. an arbitrator
will be impartial and free of any bias.
Why choose arbitration over court litigation
Arbitration is similar to a court trial except there is no judge or jury and arbitration hearing is
conducted privately. And arbitration hearing is less formal than a trial and the presentation
may be stream lined. This procedure is often simpler, faster and less expensive (for some
extend) than court room litigation. The final decision of the arbitrator or panel of arbitrators
may or may not preclude parties from further litigation.
Duties of the arbitrator
Arbitration Act 1996, 1996 c. 23, Part I, The arbitral proceedings, Section 33
(1) The tribunal shall-
(a) Act fairly and impartially as between the parties, giving each party a reasonable
opportunity of putting his case and dealing with that of his opponent, and
(b) Adopt procedures suitable to the circumstances of the particular case, avoiding
unnecessary delay or expense, so as to provide a fair means for the resolution of the matters
falling to be determined.
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(2) The tribunal shall comply with that general duty in conducting the arbitral proceedings,
in its decisions on matters of procedure and evidence and in the exercise of all other powers
conferred on it.
The arbitrator must confirm to certain minimum requirements (that the arbitrator should in
fact be unbiased and should act so as to convey this impression to the parties) of fairness and
impartiality. He should give each party an opportunity of dealing with every relevant point.
He must take a sufficient note of the evidence and argument to enable him to determine the
issues and to deliver a reasoned award.
Advantages of the arbitration
Flexibility -- Arbitration can accommodate the needs of the parties. Because the details
and circumstances of every dispute differ, arbitration allows parties to design their own
procedure or agree to use an established set of rules. Parties are consulted on the format
that will be used for the hearing. When deciding when and where a hearing will be held,
arbitrators can take into consideration the convenience of the parties. If required, an
arbitrator may visit a location connected to the dispute, such as a construction site.
Efficiency and economy -- because arbitration is less formal than litigation, the hearing is
usually shorter than a court case would be. Also, an arbitration hearing can be scheduled
much sooner than a court dates. The savings in time can be reflected in lower overall
costs to the parties.
Certainty --Arbitration results in a final and binding decision that can be enforced like a
court order. Expertise --Parties have the option of selecting the person who will decide
their case. For example, they can select an arbitrator who has technical expertise in a
particular field or business area.
Control - Parties provide input on when, where and how the arbitration will proceed. This
gives them greater control than in litigation, where court rules are inflexible and time
frames depend on the availability of court resources.
Informal atmosphere -Although arbitration is an adversarial process in which each side
tries to win its case, the flexibility of the process and the opportunity for the parties to
design and participate in the hearing contribute to a less antagonistic atmosphere, which
in turn helps reduce stress and encourages cooperation. This can be a particular advantage
if the parties continue a business relationship after their dispute is resolved.
15/40/16
(2) The tribunal shall comply with that general duty in conducting the arbitral proceedings,
in its decisions on matters of procedure and evidence and in the exercise of all other powers
conferred on it.
The arbitrator must confirm to certain minimum requirements (that the arbitrator should in
fact be unbiased and should act so as to convey this impression to the parties) of fairness and
impartiality. He should give each party an opportunity of dealing with every relevant point.
He must take a sufficient note of the evidence and argument to enable him to determine the
issues and to deliver a reasoned award.
Advantages of the arbitration
Flexibility -- Arbitration can accommodate the needs of the parties. Because the details
and circumstances of every dispute differ, arbitration allows parties to design their own
procedure or agree to use an established set of rules. Parties are consulted on the format
that will be used for the hearing. When deciding when and where a hearing will be held,
arbitrators can take into consideration the convenience of the parties. If required, an
arbitrator may visit a location connected to the dispute, such as a construction site.
Efficiency and economy -- because arbitration is less formal than litigation, the hearing is
usually shorter than a court case would be. Also, an arbitration hearing can be scheduled
much sooner than a court dates. The savings in time can be reflected in lower overall
costs to the parties.
Certainty --Arbitration results in a final and binding decision that can be enforced like a
court order. Expertise --Parties have the option of selecting the person who will decide
their case. For example, they can select an arbitrator who has technical expertise in a
particular field or business area.
Control - Parties provide input on when, where and how the arbitration will proceed. This
gives them greater control than in litigation, where court rules are inflexible and time
frames depend on the availability of court resources.
Informal atmosphere -Although arbitration is an adversarial process in which each side
tries to win its case, the flexibility of the process and the opportunity for the parties to
design and participate in the hearing contribute to a less antagonistic atmosphere, which
in turn helps reduce stress and encourages cooperation. This can be a particular advantage
if the parties continue a business relationship after their dispute is resolved.
Law & contractual procedures QS/
15/40/16
Confidentiality - in the arbitration of a commercial dispute, matters remain between the
parties and the arbitrator. Hearings are closed and the arbitrator’s decision is not normally
a matter of public record.
Disadvantages of the arbitration
The parties must agree upon one of the Arbitration procedure method to resolve where
disputes arise.
The decisions of Arbitration procedure methods are not legal binding except arbitration.
But in litigation which legally is binding.
The awarding may be some sort of favourable for either party in Arbitration procedure.
But in litigation court will decide base on evidence presented together with relevant
legislation.
Arbitration procedure process awards have fewer enforcement remedies than judgments
in litigation.
In the arbitration process, if there is a panel of arbitration it will take more times to
hearing which can lead to delays in long cases
The parties need to pay arbitrators, medications and conciliators which add an additional
layer of the legal cost.
If agreement is not reached the process will be a waste of time, effort and expense.
The court will generally always be able to offer a sound opinion on a point of law. In
arbitration, the arbitrator may of course seek the opinion of the courts. But this could
easily overlook in which case a mistake could occur.
In arbitration, an arbitrator does not have the power to bring in to arbitration a third party
against his wishes. The courts are always able to do this.
15/40/16
Confidentiality - in the arbitration of a commercial dispute, matters remain between the
parties and the arbitrator. Hearings are closed and the arbitrator’s decision is not normally
a matter of public record.
Disadvantages of the arbitration
The parties must agree upon one of the Arbitration procedure method to resolve where
disputes arise.
The decisions of Arbitration procedure methods are not legal binding except arbitration.
But in litigation which legally is binding.
The awarding may be some sort of favourable for either party in Arbitration procedure.
But in litigation court will decide base on evidence presented together with relevant
legislation.
Arbitration procedure process awards have fewer enforcement remedies than judgments
in litigation.
In the arbitration process, if there is a panel of arbitration it will take more times to
hearing which can lead to delays in long cases
The parties need to pay arbitrators, medications and conciliators which add an additional
layer of the legal cost.
If agreement is not reached the process will be a waste of time, effort and expense.
The court will generally always be able to offer a sound opinion on a point of law. In
arbitration, the arbitrator may of course seek the opinion of the courts. But this could
easily overlook in which case a mistake could occur.
In arbitration, an arbitrator does not have the power to bring in to arbitration a third party
against his wishes. The courts are always able to do this.
Law & contractual procedures QS/
15/40/16
Task 3.2 Critically analyze the restrictions to the adjudicator to settle the
construction disputes under the Housing Grants, Construction and
Regeneration Act 1996.
Alternative Dispute Resolution (ADR)
Alternative dispute resolutions include a number of formal, non-adversarial dispute
resolution methods without resorting to the courts. If any third parties involved who should
be neutral. Alternative Dispute Resolution is an inexpensive, quicker and probably more
palatable alternative to litigation. If the Alternative Dispute Resolution process is
unsuccessful, both parties can recourse the litigation.
Some of Alternative Dispute Resolution methods are describe bellow.
- Arbitration
- Negotiation
- Mediation
- Conciliation
- Adjudication
- Mini trial
Arbitration
Arbitration is the process where the parties refer any disputes arising in the course of contract
to an agreed third party to be resolved. According to the Clause 41 of JCT, Where reference
to arbitration is in writing. Arbitration is commonly used formal method of resolving
constructions disputes out of court Which should used once the parties to a contract have
agreed to settle a dispute by reference to arbitration. The types of disputes which refer to
arbitration may be spelled out clearly and broadly in arbitration clause.
Agreement to the arbitration can be made at the time of dispute or by an agreement in the
contract. The arbitrator is to be a person agreed by parties who will resolve the dispute. The
decision of arbitrator is conclusive.
Validity of Arbitration Clause
The essential features of a valid arbitration agreement as follows.
The parties must be capable of entering into a legally binding contract
15/40/16
Task 3.2 Critically analyze the restrictions to the adjudicator to settle the
construction disputes under the Housing Grants, Construction and
Regeneration Act 1996.
Alternative Dispute Resolution (ADR)
Alternative dispute resolutions include a number of formal, non-adversarial dispute
resolution methods without resorting to the courts. If any third parties involved who should
be neutral. Alternative Dispute Resolution is an inexpensive, quicker and probably more
palatable alternative to litigation. If the Alternative Dispute Resolution process is
unsuccessful, both parties can recourse the litigation.
Some of Alternative Dispute Resolution methods are describe bellow.
- Arbitration
- Negotiation
- Mediation
- Conciliation
- Adjudication
- Mini trial
Arbitration
Arbitration is the process where the parties refer any disputes arising in the course of contract
to an agreed third party to be resolved. According to the Clause 41 of JCT, Where reference
to arbitration is in writing. Arbitration is commonly used formal method of resolving
constructions disputes out of court Which should used once the parties to a contract have
agreed to settle a dispute by reference to arbitration. The types of disputes which refer to
arbitration may be spelled out clearly and broadly in arbitration clause.
Agreement to the arbitration can be made at the time of dispute or by an agreement in the
contract. The arbitrator is to be a person agreed by parties who will resolve the dispute. The
decision of arbitrator is conclusive.
Validity of Arbitration Clause
The essential features of a valid arbitration agreement as follows.
The parties must be capable of entering into a legally binding contract
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Law & contractual procedures QS/
15/40/16
The agreement should whenever possible be in writing.
It must be signed by the parties concerned.
It must state clearly those matters which will be submitted to arbitration and when the
proceedings will be initiated.
It must not certain anything that is illegal.
Negotiation
Negotiation is thus a form of alternative dispute resolution. Negotiation is an interaction of
influences. Negotiation involves two basic elements: the process and the substance. The
process refers to how the parties negotiate: the context of the negotiations, the parties to the
negotiations, the relationships among these parties, the communication between these parties,
the tactics used by the parties and the sequence and stages in which all of these play out.
Mediation
In mediation, independent mediator will selected by the parties in dispute to facilitate the
settlement to their dispute. The mediator should preferably have expertise relative to nature
of dispute and be skilled in problem solving.
Here, mediator acts as only facilitator not as judge. The normal procedure in the mediation
that the mediator meets parties to agree the format and suggestions. Mediator tries to get them
into common point through the passing offer from one party to the other. Then he leads the
parties in to the best possible negotiable settlement. The mediator should well knowledge,
confident and impartial at those position.
Conciliation
Conciliation is to some extent similar process to mediation. There are no private meetings
between the individual parties to the dispute and conciliator. But the conciliator will actively
participate in the discussions between the parties offering views on the cases put forward.
The conciliator will recommend how the dispute should be settled where the parties fail to
reach agreement. This is more informal method than mediation.
Adjudication
15/40/16
The agreement should whenever possible be in writing.
It must be signed by the parties concerned.
It must state clearly those matters which will be submitted to arbitration and when the
proceedings will be initiated.
It must not certain anything that is illegal.
Negotiation
Negotiation is thus a form of alternative dispute resolution. Negotiation is an interaction of
influences. Negotiation involves two basic elements: the process and the substance. The
process refers to how the parties negotiate: the context of the negotiations, the parties to the
negotiations, the relationships among these parties, the communication between these parties,
the tactics used by the parties and the sequence and stages in which all of these play out.
Mediation
In mediation, independent mediator will selected by the parties in dispute to facilitate the
settlement to their dispute. The mediator should preferably have expertise relative to nature
of dispute and be skilled in problem solving.
Here, mediator acts as only facilitator not as judge. The normal procedure in the mediation
that the mediator meets parties to agree the format and suggestions. Mediator tries to get them
into common point through the passing offer from one party to the other. Then he leads the
parties in to the best possible negotiable settlement. The mediator should well knowledge,
confident and impartial at those position.
Conciliation
Conciliation is to some extent similar process to mediation. There are no private meetings
between the individual parties to the dispute and conciliator. But the conciliator will actively
participate in the discussions between the parties offering views on the cases put forward.
The conciliator will recommend how the dispute should be settled where the parties fail to
reach agreement. This is more informal method than mediation.
Adjudication
Law & contractual procedures QS/
15/40/16
Adjudication is much quick method in alternative dispute resolution compare with all the
other methods. That is because the adjudicator, together with the procedures and the types of
disputes which can be referred to adjudication, will all be agreed and stated in the conditions
of contract. Any decisions of adjudication will be implemented immediately; therefore this
process will be effective. Appeal should only be permitted after practical completion has been
achieved. Due to the speedy resolution for a dispute, parties can proceed with less damages
and delays to the relationship of the parties and the project. It may minimize the number of
disputes compare to mediation and conciliation.
Adjudicator's decision
. The adjudicator shall decide the matters in dispute. He may take into account any other
matters which the parties to the dispute agree should be within the scope of the adjudication
or which are matters under the contract which he considers are necessarily connected with the
dispute. In particular, he may open up, revise and review any decision taken or any
certificate given by any person referred to in the contract unless the contract states that the
decision or certificate is final and conclusive, decide that any of the parties to the dispute is
liable to make a payment under the contract (whether in sterling or some other currency) and,
subject to section 111(4) of the Act, when that payment is due and the final date for payment,
having regard to any term of the contract relating to the payment of interest decide the
circumstances in which, and the rates at which, and the periods for which simple or
compound rates of interest shall be paid.
In the absence of any directions by the adjudicator relating to the time for performance of his
decision, the parties shall be required to comply with any decision of the adjudicator
immediately on delivery of the decision to the parties in accordance with this paragraph. If
requested by one of the parties to the dispute, the adjudicator shall provide reasons for his
decision
Mini trial
Arrange an independent advisor, who hears the arguments made by the all parties to the
dispute, which may be represented by lawyers. Witnesses and experts are called to give
evidence. After the arguments senior management enter into negotiations, with the objectives
of settle the problems.
15/40/16
Adjudication is much quick method in alternative dispute resolution compare with all the
other methods. That is because the adjudicator, together with the procedures and the types of
disputes which can be referred to adjudication, will all be agreed and stated in the conditions
of contract. Any decisions of adjudication will be implemented immediately; therefore this
process will be effective. Appeal should only be permitted after practical completion has been
achieved. Due to the speedy resolution for a dispute, parties can proceed with less damages
and delays to the relationship of the parties and the project. It may minimize the number of
disputes compare to mediation and conciliation.
Adjudicator's decision
. The adjudicator shall decide the matters in dispute. He may take into account any other
matters which the parties to the dispute agree should be within the scope of the adjudication
or which are matters under the contract which he considers are necessarily connected with the
dispute. In particular, he may open up, revise and review any decision taken or any
certificate given by any person referred to in the contract unless the contract states that the
decision or certificate is final and conclusive, decide that any of the parties to the dispute is
liable to make a payment under the contract (whether in sterling or some other currency) and,
subject to section 111(4) of the Act, when that payment is due and the final date for payment,
having regard to any term of the contract relating to the payment of interest decide the
circumstances in which, and the rates at which, and the periods for which simple or
compound rates of interest shall be paid.
In the absence of any directions by the adjudicator relating to the time for performance of his
decision, the parties shall be required to comply with any decision of the adjudicator
immediately on delivery of the decision to the parties in accordance with this paragraph. If
requested by one of the parties to the dispute, the adjudicator shall provide reasons for his
decision
Mini trial
Arrange an independent advisor, who hears the arguments made by the all parties to the
dispute, which may be represented by lawyers. Witnesses and experts are called to give
evidence. After the arguments senior management enter into negotiations, with the objectives
of settle the problems.
Law & contractual procedures QS/
15/40/16
deadline for the final and arguably the most significant public consultation dealing with
implementation of Sir Michael Latham’s report on the operation of Part 2 of the Housing
Grants, Construction and Regeneration Act 1996. The 1996 Act was amended by Part 8 of
the Local Democracy Economic Development and Construction Act 2009 but consequential
amendments to the (overriding) Scheme for Construction Contracts (England and Wales)
Regulations 1998 are still required. This current consultation is therefore, primarily, focused
on seeking views on the Government’s proposed changes to the existing “Scheme” so as to
enable the 2009 Act to take effect. These so-called ‘consequential proposals’ are small in
number but raise significant conceptual issues (for example whether the payment process
should be ‘payer-led’ or ‘payee-led’ and whether these should be a stand-still period between
delivery by an adjudicator of a Decision and compliance by the parties of that Decision).
Case 01
The enforcement of adjudicator's decisions
The decision in the case of A & D Maintenance and Construction Limited -v- Pagehurst
Construction Services Limited delivered in the Technology and Construction Court on 23
June 1999, is the first judgment in which the court has given summary judgment for the
payment of a sum of money in accordance with an Adjudicator's decision.
The judgment reinforces previous decisions, including Macob Civil Engineering -v- Morrison
Construction, and provides clear confirmation of the courts support for adjudication under the
Housing Grants, Construction and Regeneration Act 1996.
A & D was a sub-contractor for general building finishes in connection with building works
at a school. Pagehurst was the main contractor. A & D submitted a series of invoices for work
done, of which a balance of approximately £98,000 was not paid.
Disputes arose between the parties and between Pagehurst and its client. These
culminated in the main contract being determined by the client. On the same day Pagehurst
wrote determining A & D's sub-contract. Whilst these matters were being discussed, to make
matters considerably worse, a fire occurred causing extensive damage to the school. It was
reported by the client's loss adjusters that the cause of the fire was the 'negligent installation
of the boiler' which had formed part of A & D's sub contract works.
Some weeks later A & D sent a notice of adjudication claiming the balance of its outstanding
15/40/16
deadline for the final and arguably the most significant public consultation dealing with
implementation of Sir Michael Latham’s report on the operation of Part 2 of the Housing
Grants, Construction and Regeneration Act 1996. The 1996 Act was amended by Part 8 of
the Local Democracy Economic Development and Construction Act 2009 but consequential
amendments to the (overriding) Scheme for Construction Contracts (England and Wales)
Regulations 1998 are still required. This current consultation is therefore, primarily, focused
on seeking views on the Government’s proposed changes to the existing “Scheme” so as to
enable the 2009 Act to take effect. These so-called ‘consequential proposals’ are small in
number but raise significant conceptual issues (for example whether the payment process
should be ‘payer-led’ or ‘payee-led’ and whether these should be a stand-still period between
delivery by an adjudicator of a Decision and compliance by the parties of that Decision).
Case 01
The enforcement of adjudicator's decisions
The decision in the case of A & D Maintenance and Construction Limited -v- Pagehurst
Construction Services Limited delivered in the Technology and Construction Court on 23
June 1999, is the first judgment in which the court has given summary judgment for the
payment of a sum of money in accordance with an Adjudicator's decision.
The judgment reinforces previous decisions, including Macob Civil Engineering -v- Morrison
Construction, and provides clear confirmation of the courts support for adjudication under the
Housing Grants, Construction and Regeneration Act 1996.
A & D was a sub-contractor for general building finishes in connection with building works
at a school. Pagehurst was the main contractor. A & D submitted a series of invoices for work
done, of which a balance of approximately £98,000 was not paid.
Disputes arose between the parties and between Pagehurst and its client. These
culminated in the main contract being determined by the client. On the same day Pagehurst
wrote determining A & D's sub-contract. Whilst these matters were being discussed, to make
matters considerably worse, a fire occurred causing extensive damage to the school. It was
reported by the client's loss adjusters that the cause of the fire was the 'negligent installation
of the boiler' which had formed part of A & D's sub contract works.
Some weeks later A & D sent a notice of adjudication claiming the balance of its outstanding
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invoices. Unsurprisingly, Pagehurst responded to the effect that these invoices could not be
adjudicated upon in isolation, and its claims against A & D in respect of, amongst other
matters, the fire damage, would require to be taken into account. Pagehurst further argued
that the sub-contract had ended and that the process of adjudication would be inappropriate,
since it was primarily supposed to be used for minor disputes during the course of the
contract.
Nevertheless, the Adjudicator proceeded and gave his decision that Pagehurst should pay A
& D a sum of approximately £103,000. Pagehurst refused to comply with the decision of the
Adjudicator and accordingly A & D commenced proceedings for summary judgment
Conclusion
From all parties point of view the adjudication provisions of the Construction Act are to be
welcomed. There may be some issues to be tested in the courts over the next few months but
it is to be expected that a new profession of "Adjudicator" is about to be born. Two of our
partners, Peter Hall and Peter Rees, are trained Adjudicators and Christopher Hill is a
Chartered Institute of Building's trained adjudicator and a member of their panel. We are also
ready to help with the drafting of adjudication provisions. Certainly it looks as though neither
Employers nor main contractors will want to find themselves saddled with the Scheme for
Construction Contracts so bespoke adjudication provisions are going to be the order of the
day for the time being.
15/40/16
invoices. Unsurprisingly, Pagehurst responded to the effect that these invoices could not be
adjudicated upon in isolation, and its claims against A & D in respect of, amongst other
matters, the fire damage, would require to be taken into account. Pagehurst further argued
that the sub-contract had ended and that the process of adjudication would be inappropriate,
since it was primarily supposed to be used for minor disputes during the course of the
contract.
Nevertheless, the Adjudicator proceeded and gave his decision that Pagehurst should pay A
& D a sum of approximately £103,000. Pagehurst refused to comply with the decision of the
Adjudicator and accordingly A & D commenced proceedings for summary judgment
Conclusion
From all parties point of view the adjudication provisions of the Construction Act are to be
welcomed. There may be some issues to be tested in the courts over the next few months but
it is to be expected that a new profession of "Adjudicator" is about to be born. Two of our
partners, Peter Hall and Peter Rees, are trained Adjudicators and Christopher Hill is a
Chartered Institute of Building's trained adjudicator and a member of their panel. We are also
ready to help with the drafting of adjudication provisions. Certainly it looks as though neither
Employers nor main contractors will want to find themselves saddled with the Scheme for
Construction Contracts so bespoke adjudication provisions are going to be the order of the
day for the time being.
Law & contractual procedures QS/
15/40/16
Task 04
Task 4.1 Analyze the responsibilities of the Quantity Surveyor during the
construction process.
(Presentation)
15/40/16
Task 04
Task 4.1 Analyze the responsibilities of the Quantity Surveyor during the
construction process.
(Presentation)
Law & contractual procedures QS/
15/40/16
Task 4.2 Critically analyze a relevant decided case on professional
negligence related to the construction industry.
Introduction
A quantity surveyor (QS) is a professional person working within the construction industry.
The role of the QS, in general terms, is to manage and control contracts and costs within
construction projects. This involves the development of an extensive set of skills acquired
through specialized formal education, specific training and experience.
A quantity surveyor manages all costs relating to building projects, from the initial
calculations to the final figures. Surveyors seek to minimize the costs of a project and
enhance value for money, while still achieving the required standards and quality. Many of
these are specified by statutory building regulations, which the surveyor needs to understand
and adhere to.
A quantity surveyor may work for either the client or the contractor, working in an office or
on site. The title of the job may also be referred to as a construction cost consultant or
commercial manager.
Typical work activities of a Quantity surveyor
Managing costs on a wide variety of new building projects and structures, such as
residential developments, sports stadiums, roads and bridges, schools, hospitals,
offices and factories
Undertaking costs analysis for repair and maintenance project work
Assisting in establishing a client’s requirements and undertaking feasibility studies
Performing risk and value management and cost control
Advising on procurement strategy
15/40/16
Task 4.2 Critically analyze a relevant decided case on professional
negligence related to the construction industry.
Introduction
A quantity surveyor (QS) is a professional person working within the construction industry.
The role of the QS, in general terms, is to manage and control contracts and costs within
construction projects. This involves the development of an extensive set of skills acquired
through specialized formal education, specific training and experience.
A quantity surveyor manages all costs relating to building projects, from the initial
calculations to the final figures. Surveyors seek to minimize the costs of a project and
enhance value for money, while still achieving the required standards and quality. Many of
these are specified by statutory building regulations, which the surveyor needs to understand
and adhere to.
A quantity surveyor may work for either the client or the contractor, working in an office or
on site. The title of the job may also be referred to as a construction cost consultant or
commercial manager.
Typical work activities of a Quantity surveyor
Managing costs on a wide variety of new building projects and structures, such as
residential developments, sports stadiums, roads and bridges, schools, hospitals,
offices and factories
Undertaking costs analysis for repair and maintenance project work
Assisting in establishing a client’s requirements and undertaking feasibility studies
Performing risk and value management and cost control
Advising on procurement strategy
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Law & contractual procedures QS/
15/40/16
Preparing tender and contract documents, including bills of quantities
Identifying, analyzing and developing responses to commercial risks
Preparing and analyzing castings for tenders
Allocating work to subcontractors
Providing advice on contractual claims
Analyzing outcomes and writing detailed progress reports
Valuing completed work and arranging payments
Maintaining awareness of the different building contracts in current use
Professional negligence
Negligence forms the cause of action in the majority of cases brought in tort. The negligence
may refer to breach of duty of care, whether owed in tort or contract. If the plaintiff wants to
take action for negligence. Professional negligence means fault their duties and breach of
responsibility as a breach of contract. Professional negligence of the Quantity Surveyor are
take more time to prepare bills of quantity, not proper way of negotiation with parties, wrong
evaluation of cost planning and financial statement, giving our company secrets to other
competitive companies.
What is professional negligence? Who, for that matter, is a 'construction professional' and
what are their obligations in contract and their obligations in tort? In what circumstances
might the difference between the obligations be important? These questions are of crucial
importance to contractors, architects, quantity surveyors, engineers, project managers, and
multi-disciplinary practices, and not simply to construction lawyers. It is brief and simple,
and yet solidly authoritative. It should also be helpful to lawyers and to students in
construction and in law. However, the emphasis in the book is on the practical aspects of
professional negligence in the construction industry and it is not primarily intended to be a
'legal practitioner' work.
In strict legal analysis, negligence means more than heedless or careless conduct, whether in
omission or commission; it properly connotes the complex concept of duty, breach and
damage thereby suffered by the person to whom the duty was owing”.
If quantity surveyors are breach the contract (professional negligence), then they can’t
achieve their professional. Any one does not response them. After construction, Preparation
15/40/16
Preparing tender and contract documents, including bills of quantities
Identifying, analyzing and developing responses to commercial risks
Preparing and analyzing castings for tenders
Allocating work to subcontractors
Providing advice on contractual claims
Analyzing outcomes and writing detailed progress reports
Valuing completed work and arranging payments
Maintaining awareness of the different building contracts in current use
Professional negligence
Negligence forms the cause of action in the majority of cases brought in tort. The negligence
may refer to breach of duty of care, whether owed in tort or contract. If the plaintiff wants to
take action for negligence. Professional negligence means fault their duties and breach of
responsibility as a breach of contract. Professional negligence of the Quantity Surveyor are
take more time to prepare bills of quantity, not proper way of negotiation with parties, wrong
evaluation of cost planning and financial statement, giving our company secrets to other
competitive companies.
What is professional negligence? Who, for that matter, is a 'construction professional' and
what are their obligations in contract and their obligations in tort? In what circumstances
might the difference between the obligations be important? These questions are of crucial
importance to contractors, architects, quantity surveyors, engineers, project managers, and
multi-disciplinary practices, and not simply to construction lawyers. It is brief and simple,
and yet solidly authoritative. It should also be helpful to lawyers and to students in
construction and in law. However, the emphasis in the book is on the practical aspects of
professional negligence in the construction industry and it is not primarily intended to be a
'legal practitioner' work.
In strict legal analysis, negligence means more than heedless or careless conduct, whether in
omission or commission; it properly connotes the complex concept of duty, breach and
damage thereby suffered by the person to whom the duty was owing”.
If quantity surveyors are breach the contract (professional negligence), then they can’t
achieve their professional. Any one does not response them. After construction, Preparation
Law & contractual procedures QS/
15/40/16
of final accounts and agreeing the total with the contractors quantity surveyor. If any mistake
of QS there are professional negligence. That time senior QS are vicarious liable. Because
senior QS should be check all details.
If a professional (architect or consulting engineer) makes fault while designing or instructing
within their professional capacity that will be treated as professional negligence. If they
providing the consultancy service within employment relationship (Contract of service) then
the professional negligence will be treated as breach of contract, because employment
contract is there. If the consultant committed negligence to a third party, the employer
(client / contractor) and employee (consultant) are jointly liable for that negligence. This is
known as vicarious liability. This is arising because of the employment relationship.
Negligence is not a tort in itself but a basis of liability in tortuous actions. It may be defined
as the failure to exercise towards another, in given circumstances, that degree of care which
the law considers that a reasonable man should exercise in those circumstances. A reasonable
person is expected to take steps to prevent fore seeable harm. Negligence in the construction
field would mean that the QS professional failed to give up to the standard of care reasonably
expected of a professional. The specialist is held higher standard of care than a non-specialist.
The tort of negligence has three ingredients & to succeed in an action the plaintiff mush
show.
The existence of a duty of take care which was owned to him the defendant
Breach of such duty by the defendant
Resulting damages to the plaintiff
Lack of skill amounts to negligence as professional negligence. The negligence does not
consist in the lack of skill but in undertaking the work without skill. Where a person has
engaged in a profession or occupation which calls for special skill, the degree of skill which
is required of him is that reasonably to be expected of a person engaged in such profession or
occupation. In deciding what is reasonable the court will have regard to the general level of
skill & diligence possessed & exercised at the time by the members of the branch of the
profession to which the practitioner belongs.
15/40/16
of final accounts and agreeing the total with the contractors quantity surveyor. If any mistake
of QS there are professional negligence. That time senior QS are vicarious liable. Because
senior QS should be check all details.
If a professional (architect or consulting engineer) makes fault while designing or instructing
within their professional capacity that will be treated as professional negligence. If they
providing the consultancy service within employment relationship (Contract of service) then
the professional negligence will be treated as breach of contract, because employment
contract is there. If the consultant committed negligence to a third party, the employer
(client / contractor) and employee (consultant) are jointly liable for that negligence. This is
known as vicarious liability. This is arising because of the employment relationship.
Negligence is not a tort in itself but a basis of liability in tortuous actions. It may be defined
as the failure to exercise towards another, in given circumstances, that degree of care which
the law considers that a reasonable man should exercise in those circumstances. A reasonable
person is expected to take steps to prevent fore seeable harm. Negligence in the construction
field would mean that the QS professional failed to give up to the standard of care reasonably
expected of a professional. The specialist is held higher standard of care than a non-specialist.
The tort of negligence has three ingredients & to succeed in an action the plaintiff mush
show.
The existence of a duty of take care which was owned to him the defendant
Breach of such duty by the defendant
Resulting damages to the plaintiff
Lack of skill amounts to negligence as professional negligence. The negligence does not
consist in the lack of skill but in undertaking the work without skill. Where a person has
engaged in a profession or occupation which calls for special skill, the degree of skill which
is required of him is that reasonably to be expected of a person engaged in such profession or
occupation. In deciding what is reasonable the court will have regard to the general level of
skill & diligence possessed & exercised at the time by the members of the branch of the
profession to which the practitioner belongs.
Law & contractual procedures QS/
15/40/16
Negligence is by far the most important of torts, for several reasons. It forms the cause of
action in the majority of cases brought in tort: its scope is very wide: and it may also be an
element in liability for other torts such as nuisance. The term negligence is also found in the
context of breach of cont5ract, for example, where an architect is alleged to have carried out
negligence heard in the courts is that between two or more drivers involved in a road
accident. In such cases it is not infrequent for all parties to be held to be negligent in some
degree.
Professional Negligence in Construction industry
The breach of a professional person’s obligations to his client is habitually referred to as
professional negligence. Allegations of professional negligence are, by their very nature, a
serious matter and have to be properly pleaded
The Civil Procedure Rules incorporate a Pre-action Protocol which needs to be followed in
respect of any Professional Negligence Claim (except where it concerns an architect,
engineer of quantity surveyor in which case the Pre-action Protocol in relation to
Construction and Engineering disputes should be followed). The aim of this, as with all Pre-
action Protocols, is to facilitate a settlement of the claim without the need for court
proceedings. This provides for a detailed Letter of Claim setting out the facts on which the
claim is based, the allegations of negligence and an estimate of the financial loss suffered.
The letter requests that the matter is referred to the professional’s insurers. The
professional/his insurers will then have three months to investigate the claim and indicate
whether liability will be admitted. If liability is not admitted, consideration should be given to
alternative dispute resolution.
Cases Related with professional negligence in the construction industry
Case 1– (Quantity Surveyor’s Negligence): Antony Edwards-Stuart QC and Michael Curtis.
City & General (Holborn) v AYH [2006] BLR 55
15/40/16
Negligence is by far the most important of torts, for several reasons. It forms the cause of
action in the majority of cases brought in tort: its scope is very wide: and it may also be an
element in liability for other torts such as nuisance. The term negligence is also found in the
context of breach of cont5ract, for example, where an architect is alleged to have carried out
negligence heard in the courts is that between two or more drivers involved in a road
accident. In such cases it is not infrequent for all parties to be held to be negligent in some
degree.
Professional Negligence in Construction industry
The breach of a professional person’s obligations to his client is habitually referred to as
professional negligence. Allegations of professional negligence are, by their very nature, a
serious matter and have to be properly pleaded
The Civil Procedure Rules incorporate a Pre-action Protocol which needs to be followed in
respect of any Professional Negligence Claim (except where it concerns an architect,
engineer of quantity surveyor in which case the Pre-action Protocol in relation to
Construction and Engineering disputes should be followed). The aim of this, as with all Pre-
action Protocols, is to facilitate a settlement of the claim without the need for court
proceedings. This provides for a detailed Letter of Claim setting out the facts on which the
claim is based, the allegations of negligence and an estimate of the financial loss suffered.
The letter requests that the matter is referred to the professional’s insurers. The
professional/his insurers will then have three months to investigate the claim and indicate
whether liability will be admitted. If liability is not admitted, consideration should be given to
alternative dispute resolution.
Cases Related with professional negligence in the construction industry
Case 1– (Quantity Surveyor’s Negligence): Antony Edwards-Stuart QC and Michael Curtis.
City & General (Holborn) v AYH [2006] BLR 55
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Law & contractual procedures QS/
15/40/16
This is the hearing of an arbitration claim in which the claimant seeks the appointment of an
arbitrator pursuant to section 18 of the Arbitration Act 1996. The claimant is City & General
(Holborn) Limited (``CG''). The defendant is AYH plc (``AYH''). The present dispute arises
out of a building project in which Kier Regional Limited (``Kier'') was the main contractor.
In the course of this judgment I shall refer to the Arbitration Act 1996 as ``the 1996 Act''.
Section 18 of the 1996 Act provides:
The parties are free to agree what is to happen in the event of a failure of the procedure for
the appointment of the arbitral tribunal.
Judgment
This action concerns the development of Phase 1 of new buildings for the Royal Brompton
and National Heart and Lung Hospitals in Chelsea, London, SW3. Planning began in the
1970s. The NHS entity responsible for the majority of the time was the Board of Governors
of the Royal Brompton and National Heart and Lung Hospitals, a Special Health Authority
(SHA). The present plaintiff or claimant is its successor. I shall refer to both as RBH. RBH
retained a number of well-known and reputable consultants: its architect was Watkins Gray
International (WGI); its quantity surveyor was Northcroft Neighbour and Nicholson (NNN) -
mainly its Cambridge office; its structural engineer was Clarke Nichols and Marcell (CNM);
its mechanical and electrical services engineer was Austen Associates (AA). Later it retained
a project manager, Project Management International (PMI). Annex 1 to this Judgment
contains extracts from the contracts of engagement between RBH and the various consultants
who are the present defendants to this action and other relevant documents. The contract with
WGI was dated 8 May 1975; that with AA was dated 18 August 1984; that with PMI was
dated 21 January 1986.
Conclusion
The above mentioned cases are clearly stating about the negligence cases in the construction
industry. Professional negligence is one of the major issue that must be controlled in all
professionals and especially who are working in the construction industry such as Engineers,
Architects and Qs etc., because they deal with big sum of money.
15/40/16
This is the hearing of an arbitration claim in which the claimant seeks the appointment of an
arbitrator pursuant to section 18 of the Arbitration Act 1996. The claimant is City & General
(Holborn) Limited (``CG''). The defendant is AYH plc (``AYH''). The present dispute arises
out of a building project in which Kier Regional Limited (``Kier'') was the main contractor.
In the course of this judgment I shall refer to the Arbitration Act 1996 as ``the 1996 Act''.
Section 18 of the 1996 Act provides:
The parties are free to agree what is to happen in the event of a failure of the procedure for
the appointment of the arbitral tribunal.
Judgment
This action concerns the development of Phase 1 of new buildings for the Royal Brompton
and National Heart and Lung Hospitals in Chelsea, London, SW3. Planning began in the
1970s. The NHS entity responsible for the majority of the time was the Board of Governors
of the Royal Brompton and National Heart and Lung Hospitals, a Special Health Authority
(SHA). The present plaintiff or claimant is its successor. I shall refer to both as RBH. RBH
retained a number of well-known and reputable consultants: its architect was Watkins Gray
International (WGI); its quantity surveyor was Northcroft Neighbour and Nicholson (NNN) -
mainly its Cambridge office; its structural engineer was Clarke Nichols and Marcell (CNM);
its mechanical and electrical services engineer was Austen Associates (AA). Later it retained
a project manager, Project Management International (PMI). Annex 1 to this Judgment
contains extracts from the contracts of engagement between RBH and the various consultants
who are the present defendants to this action and other relevant documents. The contract with
WGI was dated 8 May 1975; that with AA was dated 18 August 1984; that with PMI was
dated 21 January 1986.
Conclusion
The above mentioned cases are clearly stating about the negligence cases in the construction
industry. Professional negligence is one of the major issue that must be controlled in all
professionals and especially who are working in the construction industry such as Engineers,
Architects and Qs etc., because they deal with big sum of money.
Law & contractual procedures QS/
15/40/16
Conclusion
This report briefly explains Law principles related to construction industry in terms of
Consideration in the light of law, implied terms and types of them. Further details about
exemption clauses, unfair contract terms, alternative dispute resolution methods, arbitration,
duties of quantity surveyors and negligence of them is covered in the report.
Quantity Surveyors profession provides the parties involved in construction advice and
services associated with procurement, value and cost of projects from inception to
completion, contract administration, project management, costing and other aspects
concerning land development and building construction. The various areas of work involving
the Quantity Surveyors require quite a substantial knowledge of various disciplines of law to
meet the clients’ expectation of the service offered by quantity surveyors and this coupled
with greater competition both internally (from the profession) and externally that has resulted
in a challenge to their professional status.
To meet these challenges quantity surveyors need to enhance their professionalism and status
in order that practitioners can maintain a competitive advantage. Legal knowledge is an
important key feature of the surveyor's portfolio and therefore can help to improve their
expertise. So these make this module vey important.
15/40/16
Conclusion
This report briefly explains Law principles related to construction industry in terms of
Consideration in the light of law, implied terms and types of them. Further details about
exemption clauses, unfair contract terms, alternative dispute resolution methods, arbitration,
duties of quantity surveyors and negligence of them is covered in the report.
Quantity Surveyors profession provides the parties involved in construction advice and
services associated with procurement, value and cost of projects from inception to
completion, contract administration, project management, costing and other aspects
concerning land development and building construction. The various areas of work involving
the Quantity Surveyors require quite a substantial knowledge of various disciplines of law to
meet the clients’ expectation of the service offered by quantity surveyors and this coupled
with greater competition both internally (from the profession) and externally that has resulted
in a challenge to their professional status.
To meet these challenges quantity surveyors need to enhance their professionalism and status
in order that practitioners can maintain a competitive advantage. Legal knowledge is an
important key feature of the surveyor's portfolio and therefore can help to improve their
expertise. So these make this module vey important.
Law & contractual procedures QS/
15/40/16
References
Lecturer Notes
John Uff. Construction Law. 5th ed, Sweet & Maxwell
http://www.lawhandbook.org.au/handbook/ch12s01s03.php
http://caselawquotes.net/T/
Terms_of_contract_condition_warranties_innominate_terms.html
http://netk.net.au/Contract
http://www.bing.com/search?
FORM=UP97DF&PC=UP97&q=restriction+to+the+adjudicator+to+settle+the+c
onstruction+disputes+under+the+housing+grants+construction+and+regeneration
+act+1996.
http://www.leoabse.co.uk/professional-negligence/construction-negligence
http://www.lawontheweb.co.uk/Article_Directory/Professional_Negligence
www.kmco.co.ke/.../Adjudication%20Procedure,%20The%20Housing%...
http://netk.net.au/Contract
15/40/16
References
Lecturer Notes
John Uff. Construction Law. 5th ed, Sweet & Maxwell
http://www.lawhandbook.org.au/handbook/ch12s01s03.php
http://caselawquotes.net/T/
Terms_of_contract_condition_warranties_innominate_terms.html
http://netk.net.au/Contract
http://www.bing.com/search?
FORM=UP97DF&PC=UP97&q=restriction+to+the+adjudicator+to+settle+the+c
onstruction+disputes+under+the+housing+grants+construction+and+regeneration
+act+1996.
http://www.leoabse.co.uk/professional-negligence/construction-negligence
http://www.lawontheweb.co.uk/Article_Directory/Professional_Negligence
www.kmco.co.ke/.../Adjudication%20Procedure,%20The%20Housing%...
http://netk.net.au/Contract
1 out of 37
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