Legal Obligations in UK: Contract Law, Judicial Precedent, and Tort

This report discusses the legal obligations and remedies in UK law, including contract law, judicial precedent, and tort. It covers the conditions for making a contract, the Harbour Hotel and Design Developers case, and the rights and remedies provided. It also explains the doctrine of judicial precedent, its advantages and disadvantages, and the structure of courts. Additionally, it discusses the tort of negligence, its elements, and the case of Donoghue v. Stevenson.

UK-Legal Obligations

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
1. Contract law:...........................................................................................................................3
Contract..................................................................................................................................4
Conditions for making a contract-..........................................................................................4
Harbour Hotel and Design Developers case:..........................................................................4
Rights and remedies provided are: ........................................................................................5
...............................................................................................................................................6
2. Judicial Precedent:..................................................................................................................6
Generally there are two types of Precedents:.........................................................................6
Structure of courts: ...............................................................................................................6
Advantages of Judicial Precedent...........................................................................................7
Disadvantages of Judicial Precedent......................................................................................8
Question 3:..................................................................................................................................8
Tort-........................................................................................................................................8
Question 4:................................................................................................................................11
Explain and critique alternative dispute resolution- ...........................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Legal obligations are a certain set of rules which an individual is bound to perform and to
face the penalties in case one fails to perform the same. Generally, these are the postulates with
which subjects related to law are bound to conform. This report will include the various legal
obligations and remedies which an individual needs to abide by depending on the circumstance
and law applicable to the scenario(Abbasi and Parsa, 2019). The report will further address the
four questions along with the remedies available to the person with whom the wrong has been
done. The first question deals with contract law, the second one deals with the doctrine of
judicial precedent, the third deals with the tort of negligence its remedies and defences available
and the last deals with the various form of alternative dispute resolution.
TASK
1. Contract law:
A contract binds various companies, organisations and businesses with a type of
agreement which includes statement of terms and conditions making a promise and obligation
with the parties. Legally binding agreements of England and Wales are regulated by UK's
contract law. English law of contract includes a promise which is enforceable by law. A contract
happens or takes place when something of value is exchanged which ensures that the interest of
parties are protected by law(Della Negra, 2017). This statute law covers the case of Harbour
Hotel.

Contract
When two parties enter into a agreement that is known as a Contract. The contract binds
the parties with obligations which are enforceable by law. When an offer is made by a party and
it is accepted by the other party, it makes a contract between the parties. Business environment is
governed by these legal objectives of contract. A clear understanding of contract and the law
related to it helps in the smooth and effective running of the business away from legal
regulations.
Conditions for making a contract-
There are basically four conditions which lead to the fulfilment of a Contract:
 OFFER- A contract begins with an offer where offeror is the party which proposes the
terms of the agreement and offeree is the party to whom the offer is made (Gubaidullin
and Kurnosova, 2020). The party presents the offer by willingly expressing the terms and
conditions of contract to the other party so that they can agree to it and enter into the
contract that is the time when it can be called valid and will bind the parties.
 ACCEPTANCE- When the offer is accepted by the party it becomes a Contract. When
the party expresses acceptance to the conditions of contract it fulfils the second point for
formation of contract. It becomes effective when it is communicated to the offeror.
 CONSIDERATION- This factor binds the contract because it is an important element.
When a promise is enforced by giving “something of value” that is consideration. A
promise is fulfilled by promiser by giving a consideration in return.
 INTENTION- creation of a lawful relationship is a major component of contract making.
For a legally binding contract, legal intention is necessary. This is the reason that social
arrangements are not called a contract due to the very fact that they don't have a legal
intent. Thus lawful intention and purpose is very necessary for a contract.
Harbour Hotel and Design Developers case:
In this case, Harbour Hotel made an Invitation to Treat in the Press which basically
means that the party does not make an offer but invites other party to do that. It is a type of
inviting an offer to enter into contractual obligations. For example any advertisement or

promotion just like this Hotel who made an ad. After reading this tender of invitation to treat,
Design Developers made an offer to Harbour Hotel with a proposal of £1 million which fulfils
the first element of making a contract. After considering this detailed proposal, Design
Developers were telephoned by the hotel and they accepted the proposal by registering their
acceptance on telephone (Halberda, 2020). Thus second element was also fulfilled with the third
and fourth element of Consideration and Legal Intention. As it has been lay down in the contract
law of UK that written agreement is not an essential of a valid contract thus even if the written
statement was not sent the contract was still made with the party. Thus they are liable for all the
rights and remedies of a contract.
When Cheap and Cheerful contractors sent a proposal to the Hotel they could not accept
it until the contract with Design developers was not ended and thus they shall have all the
damages and remedies against the hotel if they appoint other contractors.
Rights and remedies provided are:
 A suit can be filed against the Hotel for going against the conditions because all the
factors of the contract were fulfilled which made it a valid contract.
 If the party without lawful excuse denies to perform the contract then a case can be filed
for breach of duties of contract. Because failure or refusal to perform when promise is
prima facie is a breach.
 If the party is unwilling to perform or repudiates itself from performance then they can
be sued for Anticipatory breach.
 If the Design Developers refuse to accept the breach as the injured party then he will be
entitled with the right to enforce the primary obligations of the work of the other party.
 When the obligation is not performed by the party and its defectiveness leads to injured
party's release from the contract and its obligations and remedy is given in various forms
which is termination for breach. This right of contract termination depends completely
on injured party.
 Remedies can be claimed by the injured party from the Harbour hotel for all the losses
and damages that he suffers if the contract is not fulfilled. Substantial damage must have
been caused to the party (Inna, 2021).

 Specific performance and Injunction are also the remedies by which the injured party
can be compensated. In its discretionary power court can order specific performance of
certain conditions of the contract, if it seems to be appropriate in the favour of the injured
party.
Thus Design Developers can sue the Hotel if they appoint other party for the construction work
which is against the Contract conditions.
2. Judicial Precedent:
Judicial Precedent is a English theory playing a pre-eminent role based on the principle of
'stare decisis' which basically works on the principle that stand by the decision. Britishers started
it with a view of providing natural justice. It focuses on the point that when a court makes a
decision it is believed to be final and thus other courts below them are bound by that decision to
follow in the subsequent cases except for some special circumstances (Le Thu, 2021). It ensures
justice in the system by treating the cases which are similar and alike to each other in the same
way. It thus lays down that the courts should generally abide by precedent and should not disturb
settled matters.
Generally there are two types of Precedents:
 Binding Precedent- it makes a Precedent binding on the lower court even if it is
incorrect in the judge's eyes or he disagrees with it. It says that the future judge must
follow and abide by the previous decision of the higher court.
 Persuasive Precedent- it says that a court may take decisions from the courts of
neighbouring countries it is not compulsory to abide by it as they are not binding.
Structure of courts:
A clear and visible hierarchy of court is very essential for this doctrine to work
effectively. In the lower most end of the hierarchy there are Magistrates, Crown and county
courts which are governed by all the other courts. Thus these set of courts do not enjoy the power
to create or overrule precedent set in the earlier cases. The courts above the previous hierarchy
are the appellate courts which are high court, the court of appeal and at the apex level is the UK

Supreme court which enjoys ample amount of powers. Thus the other courts do not have the
power to make precedent and in some cases depart from it. When one point or decision has been
decided in a particular case, the future case must have the application of that law which contains
the same material facts (Naidoo, 2021).
Generally, higher courts don't have an oversight over the lower courts which makes them
unreachable and thus precedent cases act as path which the lower courts can follow in cases
which are alike and thus can give judgements for the same.
It also clearly states that the lower court cannot rule against a precedent which is binding
even though it feels that it is unjust, it can only hope for a reformation by the higher court in the
law in the future time.
Previous cases as the source of law is the clear agenda of this doctrine of Judicial
Precedent. For this principle to be effective, each jurisdiction must have a higher court and below
it lower court. It maintains a stability and continuity in law.
This doctrine is fundamental in the operating of common law. There are three reasons which
make it workable:
1. Idea of doing justice is the basic point for following Judicial Precedent.
2. It provides consistency in the fact that similar cases are dealt in similar way.
3. While following the reasoning and decisions of the higher courts it makes the law certain
and predictable(Nwokike, 2021).
This principle continues to apply until:
1. Another court takes a decision that the case being referred to was incorrectly decided.
2. The decision is overturned by a court higher in authority.
3. parliament takes the decision of changing the law by a new act which can alter or
overrule the previous decision of the court.
Advantages of Judicial Precedent
 It helps the courts to save time in the future cases and makes it convenient for them to use
a settled case in decision making.
 There is equality and fairness in the justice system because judges deal with a similar
case in a similar manner.

 Stability is maintained with the help of well established regulation of binding judicial
precedent.
 Works as a guideline for the decisions in the upcoming cases.
 It focusses on preventing mistakes from happening while taking decisions.
Disadvantages of Judicial Precedent
 It is considered as a rigid system to follow precedent because once followed it is difficult
to alter it.
 It adds to the complexity of the legal system.
 It imposes a binding foundation on the lower courts to follow it which can lead to harsh
decisions.
 It relies on the system of looking backward instead of looking in future.
 Difficult to apply the right precedent to the right case (QC, 2021).
The doctrine of Judicial Precedent makes it simple to make decisions for the courts when the
case which comes to them acts as a reflection of a previously decided case laws. It fills the gap in
the law and its statutes. It ensures speedy and effective decisions in the judicial process because
when facts are similar outcomes should also be similar. It saves the certainty and uniformity of
law and thus helps in its interpretation.
Question 3:
Tort-
Tort is a civil wrong where one person causes some harm or loss to the other person
resulting legal liability on the person who caused such act. Law of negligence is a new emerged
part of law of Tort seeing its requirement as a need of hour (Hann Nash and Heery, 2019) . The
word negligence in general sense means the carelessness on the part of person which means the
failure on his part to perform some basic care which any reasonable and prudent man must have
taken if he were at his place . The case of Donoghue v. Stevenson, gave the emergence to the
concept of tort of negligence. In this case, Lord Atkin gave some major changes which are,
 the claim for negligence can be asked even in absence of any contract,
 negligence in itself is a separate tort,

 duty of care and its remoteness must be established in order to constitute negligence,
 also the manufacturers of all sort of drinks owes a duty of care towards their consumers
with respect to contamination of such drinks.
Further in order to win the claim of negligence he is required to establish all the three major
elements of negligence which are as, the duty of care, breach of such duty and some damages
have been caused with such breach. Lets discuss all the elements in detail.
 Duty of care: The very first element which needs to be established is the fact that
defendant owe some legal duty towards the person who has been harmed. Similarly in
case of Grant v. Australian Knitting Mills of 1935, the manufacturers were held liable
for not performing their part of duty which resulted in some major skin diseases due to
composition of excess amount of sulphates present in woollen underwear which ere
purchased by the claimant.
 Breach of duty: In order to constitute tort of negligence is it very important for claimant
to establish that some breach have been caused on part of the defendant with respect to
the duty which he was obliged to fulfil. Here it is required to ascertain that, whether the
act or omission is of such nature which gives rise to liability and also whether the
defendant have met the criteria of required care when taking out the particular said
activity. The required duty of care differs from case to case based on its circumstances
and the persons involved. For instance experts are required to show high standards of
care rather than any layman(Islam, 2021).
 Damages caused: The burden to prove that some damages have been caused as a result
of breach lies totally on the claimant. In case of Johnston v. Nei International
Combustion Ltd., the assertion of the claimant was failed as he was not able to prove the
fact that the said damages have been occurred. Also if the occurred damages are of
remote nature then the claim for damages is also not entertained.
Further by looking at the facts of the case it can be ascertained that there exists a fault on the
part of terrific trucks under the general law of negligence. It has now became a well established
principle with the help of various precedents that the all the drivers owe a standard duty of care
towards the other drivers as well as pedestrians on the road.

Moreover along with liability of the defendant, claimant also have rights to certain remedies
which one can ask in case of negligence. The idea behind the concept of remedy is to put the
claimant into the same position which he would have been if the said tort has not been occurred.
Here lets discuss some of the remedies which are available under the law of torts. Majorly there
are two types of remedies which are available depending on the different situations of the case
are Judicial and extra Judicial remedies (Sinha and Jha, 2020).
In judicial remedies, it includes damages, injunction and specific restitution of property.
These are the remedies which are been provided by the courts to an aggrieved party(Harris,
2021). Here damages amounts to the the money which defendant needs to pay to the claimant in
order to bring back in his actual position as he was in before. Damages are considered as one of
the basic remedy which one can have in torts as a result of cause of action. Whereas, in case of
injunction court, on being satisfied by the facts grants the order to wrong doer party to do
something or not to do something in favour of claimant as asked by him. Last being the remedy
of restitution of goods, where a person who has wrongfully restored some goods or property of
the claimant is asked to restore the same to the claimant as part of the remedy (Jacob and Strath,
2019) .
Further, extra judicial remedies are said to be executed when the injured party wishes to take the
law in his hand. It is further bifurcated in five types. First, expulsion of trespasser, second, re
entry on land, third being, re caption of goods, fourth, abatement and the fifth and last being
distress damage feasant.
Similar to the given case study, in cases where there is personal injury to the claimant along with
some damage to his property lets say as in this scenario the car. The claimant is entitled to get
compensated for both pecuniary as well as non pecuniary losses. In case of pecuniary, the cost of
medical expenses for the severe leg injury and out of the pocket expenses for repair of car which
have been arose as a result of negligence of terrific trucks. Whereas in cases of non pecuniary,
damages for pain and mental sufferings.
The general defences given under law of tort also plays very vital role in deciding the liability of
the defendant. These are the set of excuses which one can ask in order to escape from liability if
he falls under any of the said general exceptions- Volenti non-fit injuria, private defence, act of
god, and necessity.

First being, volenti non fit injuria, it is a Latin maxim which means to a willing person, it is not
a wrong. The concept behind this maxim is that any person who voluntarily an knowingly
accepts the danger and risks his life later cannot ask for any sort of damages resulting from such
injury. For instance , a player who has voluntarily consented to a football match later cannot ask
for damages if gets injured by the ball during the match. Second being, the Act done in private
defence, in case if there is impending threat to the life and property of any person, then in such
case he have right to safeguard the same. And the person is allowed to employ some reasonable
amount of force in order to protect the same. Third being the Act of God, at very first this
defence was considered as the most reasonable defence in the case of Rylands v. Fletcher. Some
of the examples for the same can be, heavy tides, rainfall, storms, etc.
Question 4:
Explain and critique alternative dispute resolution-
In simple terms, alternation dispute resolutions is a combined form of option which are
available to the parties to dispute to resolve the conflict in an amicable or friendly way outside
the court proceedings. This way of solving the disputes have a number of advantages where on
being the reducing the judicial burden of courts(Kardonya, 2021). Also because of its simpler
procedures and cost effective advantages, it is being widely accepted and similarly gaining the
acknowledgement at both internation and national level. In UK, majorly there are four types of
alternative dispute resolutions which includes-
Negotiation : It can be considered as one of the very first option for parties who are
going for the thought of ADR. As here parties enjoy the option of being settled by the friendly
talks even in absence of third party, which is called as the negotiator. But further if required by
the parties, then in such case they can ask for the negotiator to give instructions and helps them
to reach on some common settlement. Some of the advantages of negotiation are-
 it assist the parties in maintaining a friendly relationship,
 it gives maximum privacy as sometimes it takes place only between the concerning
parties,
 in comparison to litigation it provides more speedy resolutions,

 it provides a more flexible process as a result of it being an informal process as compared
to other processes,
 also this process is considered as one of most inexpensive and fastest form of alternative
dispute resolution.
Further taking about the drawbacks of the process, it does provide any assurance of resolution.
Also the decision or conclusion acquired by the parties is not legally binding.
Mediation: mediation is a mode where, the appointed mediator helps the parties to reach
to the decision in a friendly way (Ntuli, 2018). Similar to the process of negotiation it is informal
and flexible and hence the decision of the same is not binding in its nature. But if both the
concerning parties of the dispute agrees in prior that the decision of the process will be agreed by
both of them then in such case the decision given by the mediator becomes binding on both the
parties. Also as in this process, the job of mediator is to only acts a facilitator so it results as a
win win situation for both the parties. Some of the advantages of mediation are-
 parties enjoy control over the process,
 due process is kept confidential, and hence gives privacy,
 more flexible than the process of litigation and other process of ADR,
 parties have complete rights to choose their own mediator (Pandey, 2017).
Disadvantage of the process can be, that the enforcement by the court is required in order to
make the decision of the mediator binding. This can also at a later stage can become expensive.
Arbitration: in this mode of ADR, the parties are being sent to the allotted mediator in
order to resolve the disputes who have the specialization in the matter related to the concerned
dispute. This mode follows a proper process in order to reach the decision. It can be of both
voluntarily or mandatory on the part of parties. Also the decision of the arbitrator is said to be
binding on both the parties and once the matter have been submitted for arbitration withdrawal
from the same cannot be done (Virgo, 2020). Some of the major advantages of arbitration are-
 parties enjoy the privacy as similar to other forms,
 the award given by arbitrator is lot more easier to enforce,
 the process is easier and flexible as compared to the process of litigation,
 concerned parties are free to choose the arbitrator which have specialization in the matter
related to dispute.

Disadvantages can be, in some cases where it is mandatory for the parties, there it waives the
right of parties to move to courts. Also it can in certain circumstances take longer time than
usual, as it needs to be get executed through courts.
Conciliation: it is considered as one of the most common forms of alternative dispute
resolution which is being used for disputes related to employment. Here parties comes to the
settlement with the help of a conciliator who acts in an impartial way to resolve the dispute. Here
parties enjoys freedom to decide the contents and the process of conciliation proceedings. The
said conclusion or the decision by the conciliator is not binding on the parties till the time they
themselves decided to the sign the same. Some of the advantages of conciliation process are-
 being an in formal process it is flexible in nature,
 it is more affordable in terms of expenses as similar to other forms,
 if parties are not satisfied with the decision of conciliator, then are free to approach the
courts.
Drawbacks of the process can be, the decision is binding and there stand no option for further
appeal rather than directly going for courts.
CONCLUSION
It can be summarized from the report that all the questions relate to UK's various laws
ranging from Contract law, doctrine of Judicial Precedent, Tort and Alternative Dispute
Resolution. In the first case, it can be said that the contract was formed between the parties
which provided remedies to the party to sue the other party in case the obligations are not
fulfilled. Judicial Precedent is following the decisions of previous cases in subsequent cases. Tort
provides remedies for negligence in the performance of duty and ADR provides various methods
for dispute resolution.
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