HEALTHY PLC & MEDIQUIP Ltd Contract: Clause & Risk Assessment

This case study analyzes the legal contract between HEALTHY PLC, a public company owning 50 medical clinics, and MEDIQUIP Ltd, a medical equipment provider, for the delivery of 10 MRI scanners. It focuses on key contract clauses such as confidentiality, consideration, force majeure, indemnification, and termination, highlighting the potential risks associated with each. The analysis underscores the importance of carefully drafting and adhering to each clause to avoid legal disputes and financial losses for both companies, ensuring the protection of confidential information and the fulfillment of contractual obligations. The study concludes that following these clauses is crucial for a lawful and beneficial contract, securing the interests of both HEALTHY PLC and MEDIQUIP Ltd.

Running head: ADVANCED CONTRACT LAW AND NEGOTIATION
ADVANCED CONTRACT LAW AND NEGOTIATION
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1ADVANCED CONTRACT LAW AND NEGOTIATION
Introduction:
A contract is a legitimately enforceable settlement between two or more then two
groups where each undertakes a legal commitment that must be accomplished. There are
various daily life aspects which involves contracts, such as buying a property, selling
something and with it agreeing to some terms and conditions linked to it. Legal matters
concerning contracts takes place when one fails to complete the authorized commitment1.
Contracts can sometimes be the reason behind the legal disputes when not written properly.
In this assignment, focusing on the legal contracts between HEALTHY PLC and MEDIQUIP
Ltd. the clauses and associated risks are highlighted.
Discussion:
Case study:
The HEALTHY PLC is a public company, owing 50 medical clinics throughout the
United Kingdom. It provides medical facility to the population which take in the diagnostic
tests such as CT scan, blood test and MRIs. As being the key player in the medical clinic
field, it wants to develop more. The company already has MRI scanners but wants to buy
more advanced MRI scanners for the clinics, in order to avoid competitors. The company
builds a contract with MEDIQUIP ltd. for the delivery of 10 MRI scanners. MEDIQUIP ltd.
is a company provides medical equipment and the maintenance services for the equipment.
The contract worth 50 million pounds and MEDIQUIP ltd. is interested in entering this
contract as it is a very high worth contract.
The contract clauses:
A contract clause is a definite establishment or unit in a written agreement. Every
clause in a contract statements a definite feature associated with the overall business matter.
1 Mullenix, Linda S. "Enquiring Minds Want to Know: What Law Governs Forum Selection Clauses." Jotwell:
J. Things We Like (2017): 1.

2ADVANCED CONTRACT LAW AND NEGOTIATION
Contract clauses are focused to clearly explain the rights, duties and privileges of each
company involved in the contract. Contract clauses is found to take any kind of form and take
cover aspects of any business and marketable benefits. A common sample is a non-disclosure
clause in a contract, where the firm agrees not to reveal any private information which is
belonging to the company2. Contract clauses are found to be enforceable along with the
contract below the state and national laws.
The list of contract clauses that are needed to be followed by HEALTHY PLC in
contract with MEDIQUIP ltd. are:
 Confidentiality clause: the clause in which definite information is
characterized as private and forbidden from being revealed or circulated to
anybody other than precisely recognized personalities or organisations3. Risks
that are associated with this clause is that, it might happen that the information
of the HEALTHY PLC gets accidentally disclosed by providing trade
information to anyone of the MEDIQUIP ltd without any confidentiality
contract. As MEDIQUIC ltd. was planning to put HEALTHY PLC company
logo in his website, this action also comes under confidentiality clause4.
 Consideration clause: this clause setting states that which a firm commences
to perform or not perform, which encourages the other firm to enter into the
contract. Consideration clauses normally set forward the terms of fee or the
price of the agreement5. Risk related to the clause is it may happen that the
2 Mullenix, Linda S. "Enquiring Minds Want to Know: What Law Governs Forum Selection Clauses." Jotwell:
J. Things We Like (2017): 1.
3 Ries, Nola M., and Kypros Kypri. "Government-funded health research contracts in Australia: A critical
assessment of transparency." Sydney L. Rev. 40 (2018): 367.
4 Perović, Jelena, and Marko Jovanović. "From confidentiality to transparency in business contracts concluded
by a state." Ekonomika preduzeća 66, no. 7-8 (2018): 446-456.
5 Donahue, Larry. 2019. "What Is Consideration In Contract Law? | Law 4 Small Business, P.C. (L4SB)". Law 4
Small Business, P.C. (L4SB). https://www.l4sb.com/blog/what-is-consideration-in-contract-law/.

3ADVANCED CONTRACT LAW AND NEGOTIATION
price of the MRI scanners changes, but as the contract has been made, so the
fee that is to be paid or received cannot be changes.
 Force majeure: this clause is planned to defend in contradiction of failures to
achieve contractual duties initiated by inevitable events beyond a firm’s
control, such as natural disasters or wars6. Risk involved is that if any natural
cause leads to any kind of effect on the contract, neither of the company can
do anything, it may lead a massive loss for either HEALTHY PLC or
MEDIQUIC ltd.
 Indemnification clause is an establishment in an agreement in which one
company settles to be economically accountable for definite types of
compensations, loss or dues. In such divisions, one firm promises to
compensate the other company in the incident, if any claims are conveyed7. In
any case if either if the HEALTHY PLC or MEDIQUIC ltd. faces any kind of
loss in the business, the other one is bound to pay the compensation.
 Termination clause is put forward when or under which situations, the
agreement may be ended. It can happen, that due to some situation and or
issue the agreement can be ended by either of the firms and it can lead to a
major loss8.
6 Alshammari, Saud, Khalid Al-Gahtani, Ibrahim Alhammad, and Nuhu Braimah. "A Systematic Method to
Analyze Force Majeure in Construction Claims." Buildings 7, no. 4 (2017): 115.
7 Aiken, Jeffrey P., Hala Nassereddine, and Awad S. Hanna. "Implications of an Indemnification Clause in
Construction Contracts." Journal of Legal Affairs and Dispute Resolution in Engineering and Construction 10,
no. 3 (2018): 04518016.
8 Srinivasan, Varun. "Enforceabilty of Termination for Convenience Clauses in India." Livelaw, November
(2017).

4ADVANCED CONTRACT LAW AND NEGOTIATION
Conclusion:
In order to conclude, it can be stated that, the HEALTHY PLC should follow each
clause linked to conduct a lawful contract, so that the company does not face any kind of loss
or error in the business. It will also provide security to the company’s confidential
information. And these clauses will also be beificial for MEDIQUIC ltd. to increase its
business and reputation in the market of medical facility.
Bibliography:
Aiken, Jeffrey P., Hala Nassereddine, and Awad S. Hanna. "Implications of an
Indemnification Clause in Construction Contracts." Journal of Legal Affairs and Dispute
Resolution in Engineering and Construction 10, no. 3 (2018): 04518016.

5ADVANCED CONTRACT LAW AND NEGOTIATION
Alshammari, Saud, Khalid Al-Gahtani, Ibrahim Alhammad, and Nuhu Braimah. "A
Systematic Method to Analyze Force Majeure in Construction Claims." Buildings 7, no. 4
(2017): 115.
Donahue, Larry. 2019. "What Is Consideration In Contract Law? | Law 4 Small Business,
P.C. (L4SB)". Law 4 Small Business, P.C. (L4SB). https://www.l4sb.com/blog/what-is-
consideration-in-contract-law/.
Mullenix, Linda S. "Enquiring Minds Want to Know: What Law Governs Forum Selection
Clauses." Jotwell: J. Things We Like (2017): 1.
Perović, Jelena, and Marko Jovanović. "From confidentiality to transparency in business
contracts concluded by a state." Ekonomika preduzeća 66, no. 7-8 (2018): 446-456.
Ries, Nola M., and Kypros Kypri. "Government-funded health research contracts in
Australia: A critical assessment of transparency." Sydney L. Rev. 40 (2018): 367.
Srinivasan, Varun. "Enforceabilty of Termination for Convenience Clauses in India."
Livelaw, November (2017).