Civil Engineering & Surveying - Assignment
Added on - 21 Apr 2020
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QUESTIONSQuestion 1IssueWhether a contract was formed between John and Chris, or not? If a contract was formed,whether the same was breached and the possible remedies which can be cited? Whether acontract was formed between John and Peter, or not? If a contract was formed, whether thesame was breached and the possible remedies which can be cited?LawA contract is a promise made to create legally binding relations where one party promises to door not do a particular task, for which the other party agrees to pay the value of consideration. Acontract can be formed in an oral manner, by exchanging the terms in spoken manner, and canalso be formed in a written manner, by writing the terms of the contract on a document andgetting the same signed (Roach, 2016). In order to create a contract, there is a need for thecontract to have some requirements like offer, its acceptance, consideration, capacity, clarityand intention. The presence of all these elements is essential to create a contract (Mau, 2010).Once a contract has been formed, it becomes crucial to uphold the terms of the contract or elsethe contract would be discharged through termination. And in such cases, the innocent partycan apply for different remedies. These remedies can take the form of damages, specificperformance, injunction, etc (Mulcahy, 2008). In the case ofAddis v Gramophone AC488, the court stated that the plaintiff had to be awarded damages so as to put him in a placewhere he would have been in case the contract had been properly performed, instead ofdamages being awarded as a punishment. Hence, the damages are awarded for compensatingthe innocent party instead of a punishment. The damages can be awarded for thedissatisfaction or the disappointment caused to the plaintiff in case the contract had beenentered for a specified reason, which was of enjoining or being entertained and a leadingexample of this isJarvis v Swan Tours 3 WLR 954 case (Poole, 2016).
QUESTIONSIn cases of breach of contract, the plaintiff can apply for damages, and another option whichcan be availed by them is specific performance, particularly when the damages fail to prove asan adequate compensation for the breach of contract. Specific performance is an order of thecourt where the court orders a person to do a particular task and is used usually in the casessurrounding the sale of land (Miller and Cross, 2015). When it comes to the personal servicescontract, the same is not awarded as a person cannot be forced to do a particular task in theirpersonal capacity.Page One Records v Britton 1 WLR 157 provides clarity in this matter.In this case the court did not grant the injunction order which was sought out as the same wasdeemed to specific performance order. This was because the impact of this order would havebeen to force the person to work for the plaintiff or not work at all, which was deemed as anunfair proposition by the court (E-Law Resources, 2017).Where both damages and specific performance fail to prove as adequate remedies, theaggrieved party can apply for an injunction order through which an individual can be stoppedfrom doing a particular act.Lumley v Wagner(1852) 42 ER 687 proves to be a good example forthis. In this case, the court allowed the injunction order which resulted in the defendant beingstopped from performing for a competitor as she had promised to perform for the plaintiff(Davies, 2015).A contract can also be discharged through frustration. When it such happens that thecommercial purpose of the contract is deprived, where none of the party is at fault, thecontract is deemed to be frustrated. And in such cases, the parties cannot sue each other for abreach of contract. When the terms covered under the contract are fulfilled, the contract isdeemed to be discharged through performance. In order to discharge the contract throughperformance, it is crucial that the promise made under the contract is fulfilled by all thecontracting parties. When a contract covers a condition that it would be completed uponpayment, the completion of the contract would require payment to be made (Andrews, 2015).InCutter v Powell EWHC KB J13, the plaintiff’s husband had entered in a contractwhereby he had to perform certain duties at a ship for a period of eight weeks and as per thecontract, he was to be paid when the voyage was completed, and that too after ten days.However, just six weeks into the voyage, he died and this led to the plaintiff making a case
QUESTIONSbefore the court for getting the pay of six weeks for which her husband performed thepromised tasks. The court denied the claim of the plaintiff on the grounds that it was acontractual condition that the payment would be made only after the ship reached itsdestination. As the same did not happen, the claim of the plaintiff was denied by the court(Rush and Ottley, 2006).ApplicationThe facts given in the case study show that a contract had indeed been created in betweenChris and John as a promise had been made where Chris had promised to do the redecorationwork and John had promised to pay the consideration of £60,000 for this work to Chris. AfterChris finished up his part of the promise, John raised an issue that the redecoration had notbeen done as per the standards. The case now revolves around the manner in which thiscontract has to be discharged.In order for the contract to be discharged through performance, there is a need for both theparties to fulfil their contractual obligation. Here, John can make a claim that this contract is stillpending and is not completed owing to the work not been completed as per the standards.Another claim which can be raised by him is that he still has to make the payment which meansthat the contractual promise is not fulfilled, thus not completed. He can highlight that only theadvance payment has been made and the remaining payment would be paid on completion ofwork as per the standards.Cutter v Powellfurther strengthens this stand as the contract has tobe completed for discharging it through performance. So, an option available before John is tostate that the contract is pending completion owing to the work not being as per the standards.Though, these claims have high chances of being a flop. This is because the contact had beencompleted and the work of Chris had been completed. The only thing which was pending in thiscontract was the payment of Chris by John. By not paying the amount of consideration, Johncannot claim that the contract had not been completed as it would actually be a breach ofcontract on part of John for not fulfilling his contractual obligations. It was a contractualobligation on part of John to pay the promised sum. For the breach of contract by John, Chrishas the option of making a claim of breach of contract and can apply for remedy of damages.