Contractual Rights and Obligations - Assignment

Added on - 21 Apr 2020

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IssueWhether Andrew and Bob can initiate any legal action against National Indore StadiumRulesA contract is an agreement between two or more parties, the terms of whichaffects the respective rights and obligations of the parties to the contract, which areenforceable in the court of law. The rights and obligations of contracting parties aredetermined by establishing the terms and interpreting such terms (Poole 2016). Afterdetermining the contract, the court applies the objective test for interpreting the meaningof such terms.The terms of a contract includes warranties, conditions or innominate(intermediate) terms. It is essential to classify the terms to determine, in the event of abreach of the contract, whether the innocent party may discharge or terminate thecontract. Conditions, warranties and other innominate terms are three essential terms ofthe contract, but the level of significance of these categories differs with conditionsbeing the most important contractual terms and warranties being the least importantcontractual terms.Conditionrefers to the terms that the parties to the contract must perform asthey are essential terms. If a party fails to perform a condition, the other party is entitledto cease the contract. When a breach of a condition is established, the innocent partymay both cease the contract and initiate legal proceedings against the breaching partyor the innocent party continues to perform his/her contractual obligations but claimdamages. The party may pursue other remedies against the infringing party such asspecific performance or injunctions (McKendrick 2014).Awarrantyrefers to the terms that are considered as less important terms of thecontract. In case of a breach of warranty, the innocent party may claim damages for theloss suffered but the party is not permitted to end the contract.
Innominate termsare contractual terms which, if is considered as an importantterm, the breach of which would be so serious that it might deprive the innocent party ofthe entire benefit that he was entitled to receive from the contract, the innocent partymay terminate the contract (Poole 2016). If the term is considered as less importantterm, the breach of which shall not deprive the innocent party of the benefits that he wasentitled to receive from the contract, the innocent party may not end the contract. Theparty may claim damages for the loss suffered and obtain other remedies such asspecific performance.There is another form of contractual terms in a contract, which is known as theexclusion clause that aims at exempting a contractual party of his liabilities. InSingapore, the exclusion clause is incorporated in theUnfair Contract Terms Act(UCTA).The exclusion clause may be incorporated in the unsigned documents such asnotice or a ticket. Under such circumstances, sufficient and reasonable notice of theexistence of the exclusion clause should be provided. There are three essentialrequirements that fulfill this requirement, which are as follows:a)The clause must be provided in the contractual document that is, a documentwhere any prudent person would assume to include contractual terms as washeld inParker v SE Railway Co [1877] 2 CPD 416 and Chappleton v BarryUDC [1940].b)The existence of the exclusion clause must be brought to the knowledge of theother party before or at the time when the person is entering into a contract aswas ruled inOlley v Marlborough Court [1949] 1 KB 532;c)Reasonably sufficient notice of the clause must be provided and actual notice isnot required as was observed in theThompson v LMS Railway [1930] 1 KB41;In contract law, there is a common proposition that once a ticket or document ishanded to a ticket and the person retains the same, it is considered that such person isbound by the terms of the ticket (Hunter 2017). It is immaterial whether such person hasread the terms or not as the ticket becomes equivalent to a signed document. However,inMcCutchon v MacBrayne [1964] 1 WLR 125, it was held that where there has been
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