Contract Law Report: Damages, Breach of Contract, and Legal Principles

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This report provides an overview of contract law, focusing on damages arising from breaches of contract. It delves into the essential elements of contract formation, including offer, acceptance, and consideration, and explores the concept of privity of contract. The report examines various scenarios where breaches occur, such as failure to perform duties or provide accurate information. It also discusses the implications of void contracts and the legal obligations of parties involved. Case studies like Robinson v Harman and Adams v Lindsell are referenced to illustrate key principles. The report further classifies different types of breaches, including breach of warranty and breach of condition, and how they impact the parties involved. The report emphasizes the importance of understanding the terms and conditions of a contract to mitigate risks and enforce legal obligations. It also discusses the role of the court and various laws in securing contracts from violation.
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CONTRACT LAW
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION:...............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Contract law refers to the body of law which is mainly imposed in respect of securing the
rights of the parties during entering into any contract. To enter into the contract, it carries various
essential such as parties must be competent to handle the contract, or they mutually agree with
all the terms and conditions, the agreement must be based on some consideration and also in case
of breach committed by any of the parties, the valid condition are imposed in respect of
compensation paid to plaintiff by the defendant (Beale and et.al., 2019). In this essay report, the
case is relating to facing damages either through mental distress in respect of breach committed
through any of the transaction.
MAIN BODY
Contract laws are mainly applied in respect of securing the rights and valuable things of
the parties in relation to entering into any agreement which is legally bound on parties to follow
it. As all agreements are formed to be the part of the contract but all contract are not agreements.
To enter into the parties there are certain and condition which the parties are bound to follow it
and then only it results to be the valid contract (Knapp, Crystal and Prince, 2019). In relation to
valid contract, the parties must be competent to handle the contract and also all the terms and
condition are mentioned under the contract regarding dealing in particular activity. The contract
is valid if it is based on some consideration money or exchanges of some valuable things.
In English contract various terms and conditions are mentioned under the contract
applicable law, 1919 in which it is legally enforceable upon the law regarding meeting and
achieving the objectives which is decided by the parties before entering into the contract. In this
essay the description is undertaken regarding the overview of the contract law. It also examines
the damages which is faced by the parties regarding breach in any of the conditions which is
mentioned in the contract. The issues are committed regarding not following the terms and
condition which is decided by both the parties when they are legally bound to follow the
agreement.
In respect of undertaking the matters which is related to doctrine of contract law is
relating to the legal principles which is mentioned in contract that it is bound upon the parties
who enter into the agreement. As this is one of the basic principle of the contract law that no
other parties can sue who not enter into the contract as the terms and condition are legally bound
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upon the parties who enter into the contract. Thus, in case of doctrine of privity of contract, this
is mainly imposed in respect of the securing the right of third person who is not the part of the
contract (Austen-Baker, 2017). As the rules which are mentioned under the contract act is not
bound upon the parties who not enter into any of the agreement with any of the parties. In
context of rules which is mentioned under the contract law is that the contract is carried with the
agreement which is made between the parties, and they are legally bound to follow it till the set
completion of date. The rule of contract law is said that when two or more person entered into
the business they signed the agreement regarding following the terms and conditions.
In respective of undertaking the principles of contract, it carries various perspective such
as in case of agreement if one party offers some valuable things to another party and in return the
another party accepts such offers, they agree to enter into the agreement in exchanges of some
valuable things or consideration. Consideration mainly refers to the promise which is made by
parties regarding following the agreement in better way. The another principal states that both
the parties are competent to handle the matters in right matter as the person are exempted under
the contract who not attains the age of majority or who is mentally of physically challenged in
accomplishing the contract or the person convicted by court regarding committing any such
offences.
In terms of contract, consent between the parties is necessary regarding taking any
actions such as in case of facing any issues regarding contractual negotiation, this decision is to
be agreed between both the parties (Zhang, 2019). The consent is to be undertaken in respect of
breach committed by any of the terms which is mentioned in contract. The issues relating to the
under influences or mistake or misrepresentation is identified that the compensation is already
decided by the parties who committed breach with other party. This is supported with the case
study of the Robinson v Harman (1848) 1 Ex Rep 850 in which the matters stated with the losses
of damages in respect of not completing the contract as per the decided facts. As the rule is
imposed in contract regarding not performing the contract than it is the duty of the plaintiff to
demand compensation for the damages which they occurred in respect of not performing the
contract (4 0 1 . R O B I N S O N V H A R M A N ( 1 8 4 8 ) 1 E X 8 5 0 , 2 0 1 8 ) .
In context of the contract issues which occurs through not familiar with the facts which is
mentioned in the contract or also manipulating any of the information or the terms which is the
basic priority of the parties to understand it. The issues also raised in respect of not keeping the
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confidentiality and privacy regarding the terms which they mentioned in the contract. The
another issues which is faced in contract is relating to not appointing the lawyer to whom they
can refer the cases in respect of facing any such issues in following the terms of the contract. As
usually the contract which are written are legally binding but the contract which is made orally
are also binding upon the parties either through email or approval of any offers or promise made
to follow it. Thus, in respect of not performing the contract orally, than the issues is raised
regarding violation of the terms of the contract.
Thus, after undertaking the aspects relating to the issues which is faced by parties during
entering into the contract, it examines the aspects regarding forming the contract. In such manner
the contract is formed in respect of undertaking three major aspects such as offer, acceptance and
consideration. It is necessary that contract must be valid and according to the terms which is
mentioned in the contract act. Contract is generally made regarding sale or purchase of any
goods or services or by offering any products and such contract must be made either oral or
written format (Campbell, Mulcahy and Wheeler, 2017). It is examined that before entering into
any agreement, the parties must fulfilled all the terms and condition which is mentioned in the
contract law regarding carrying the valid contract. In respect of formation of contract it is
supported with the case study of the Adams V Lindsell (1818) 106 ER 250, in this case the
matters is related to selling the wool and the acceptance is to be given through the letter which is
to be sent by post. In respect of not accepting the contract within the set stipulated time period, it
results in invalid of the contract (A d a m s v . L i n d s e l l , 2 0 2 0 ) . The contract is made through
communication and also offer is made regarding purchasing of wool but the acceptance is
delayed within the set time, thus it results in not binding upon the parties to follow the contract.
Implication which arises in contract is relating to performing the contract by both the
parties who enter into the agreement. If one party perform the duty and the other party not
perform the duty with the set norms, then it results in committing breach in terms of the contract.
The another implication which arises is relating to exchanging some monetary terms or other
valuable things during entering into agreement (Cartwright, 2016). It can be in any form such as
cash, goods, services or any pledge which is to be exchanged with these items. Thus, in respect
of not implying the terms of the contract in right way, it results in showing the void contract. The
situation in which the contract can be void is relating to the contract which is illegal or against
the public policy. As the terms which are mentioned under the contract are difficult to understand
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and also the terms are impossible to fulfil. In contract the fraud is committed between the parties
regarding not disclosing the relevant information which is necessary in fulfilling the contract. It
is also undertaken that contract is said to be void if they are entered with lack of consideration
which is one of the necessary elements to enter into the contract.
The matters related to contract obligation stated that the parties which offers the services
or valuable things to other party is obliged to perform the duty on true bases and the other party
who undertaken the duty must be liable to give accurate results. Thus, in such manner the legal
obligation which is assigned by the parties under the contract law is to be followed according to
the set instruction and guidances which make the contract valid and effective. Under the aspects
of obligation as every party had different aspects to perform the contract, some parties believe
that the contract is run as per the set term or condition or some feel that contract is made in
keeping the third party views (Khorooshi and et.al., 2017). This is beneficial in case of facing
any disputes in contract, the decision of third party is undertaken to advice the accurate
decisions. By undertaking the legal obligation, the conflict arises between the parties in respect
of not fulfilling the contract with the set time or any breach is committed in respect of not
disclosing the relevant information.
Parties mainly put some condition in contract regarding securing themselves from breach
committed from any sides. Thus, the chances of breach are mainly raised in respect of contract is
formed and agreed to be carried within the set time limit (Graziano, 2019). As contract is legally
bound by the court and also various laws are imposed in securing contract from violation in any
of the terms. Thus, breach is mainly considered to be the civil wrong which is liable to be
penalized under the contract act and it carries various classification such as breach of warranty,
breach in condition or breach committed through any intermediate terms.
As breach in condition reflects the most important terms in which the defendant not fulfil
the terms or condition which is mentioned in contract. In that case the plaintiff can claim the
damages for the losses incurred. This is one types of mental stress which is incurred by plaintiff
regarding facing losses if the defendant neglected or refuse to follow the terms mentioned in
contract. This is supported with the case study of the Poussard V spiers (1876) 1 QBD 410, this
case stated that Madame Poussard entered into the contract with the Spiers regarding performing
the opera for three months. She became ill and for first five days she not performed the opera
which resulting in removing her from contract. Through this manner, it examines that she
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committed breach in condition, regarding not following the terms which is mentioned in contract
(P O U S S A R D V S P I E R S : 1 8 7 6 , 2 0 2 0 ) . As the judgment raised in respect of not ending
up the contract but with the set condition which is mentioned in contract, the first five days are
very crucial as lot of celebrity and top visitors are visiting to listen opera singers. Thus, the
presence of the Poussard is necessary to attend the opera night at that particular time period.
The another breach which is examined in respect of giving rise to the mental illness is
relating to the breach in warranties. It is the minor terms which if occurred in contract resulting
to paying damages for the losses incurred but it not result to ending of the contract. If the
plaintiff feel that there is breach in warranty in contract, they can demand the compensation for
the losses incurred but not dissolve the contract with any of such terms (De Franceschi, 2016). It
gives rise to mental stress as if affects the rights of the parties is respect of not fulling the
contract or any of the promise which is liable to be fulfilled within the set contract. It is
examined through the case study of Bettini V Gye (1876) QBD 183 in which the case is relevant
to the performing the contract as per the promise committed in respect of performing it. As
Bettini agreed the terms which is mentioned in contract regarding performing the opera singer
for three months. She became ill and missed the rehearsal for three months (B E T T I N I V
G Y E : Q B D 1 8 7 6 , 2 0 2 0 ) . The owners of the contract decide to remove Bettini from the
contract and replaced it with another persons. In such case the judgment is raised regarding not
ending up the contract as missing rehearsals not indicates that the contract must be end up.
Through this manner, the stress indicates in respect of loosing jobs due to illness.
The another breach through which damages are to be identified is relating to Innominate
terms as this is such types of breach which is not covered under the condition or warranties. It
mainly carries the particular time limit which is to be set in respect of performing the contract
and the issues is raised regarding not fulfilling the terms within the set time period. The damages
which the plaintiff may occurs through undertaking this breach is related to the stress and
incompetencies regarding accomplishing the targets within the set time period. This statement is
supported with the case study of the Hong Kong Fir shipping V Kawasaki Kisen kaisha [1962] 2
QB 26, this case stated that in these aspects the breach was committed regarding not delivering
the services within the set time limit (H o n g K o n g F i r s h i p p i n g V K a w a s a k i K i s e n
k a i s h a [ 1 9 6 2 ] 2 Q B 2 6 , 2 0 1 7 ) . As nothing is mentioned in the contract regarding the
defect which occurs in ship engine during the time of delivery. Thus, it reflects the breach of
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contract under the Innominate terms. The impact of mental illness through these aspects occurs
in relation to not getting timely delivery of the orders or the contract which they entered getting
further delivery is not to be ascertained within the set time period. Thus, in such manner the
damages had to be incurred by the parties regarding not getting timely delivery. In that case the
decision is raised regarding repudiate the contract which is to be made by again keeping
contractual obligation in mind and it is to be completed within the relevant time.
These refer to be the major damages which is faced by plaintiff and also the mental
distress occurs regarding undertaking the matters such as not getting timely delivery or not
fulfilling the terms or condition or not maintaining confidentiality in contract. Through this
manner the issues are raised regarding anxiety, depression or trauma which affects the mental
condition of the people (Heidemann, M. and Lee, 2018). In case of compensatory damages, the
losses are incurred to the plaintiff regarding losses in property or negligent in medical care which
is occurred through defendant misconduct. This is presented in case study of Ruxley Electronics
and Construction Ltd V Forsyth, in this case the issues is raised regarding not constructing the
pool as per the set norms and also money is decided in respect of performing the contract as per
the given guidelines (RUXLEY ELECTRONICS AND CONSTRUCTION LTD V. FORSYTH
[1995] 3 ALL ER 268, 2 0 1 5 ) . Thus, Forsyth claimed the breach regarding loss of amenity
which reflect the compensatory damages of income.
Another damages are examined in relation to the general damages which not carries the
major impact in context of the compensatory damages. In this, it carries the damages relating to
pain, suffering any perspective or inability to perform any such function which is mentioned in
the contract. In case of Farley V Skinner [2001], this case reflect the issues which is faced by
Skinner regarding the aircraft noise. As this reflect the mental illness of the Skinner regarding
facing intolerable noise from aircraft at 6am (F A R L E Y V S K I N N E R : H L 1 1 O C T 2 0 0 1 ,
2 0 2 0 ) . After claiming the suit against such aspects, the judgement is given in respect of not
having major damages and thus, the settlement is done by general damages in respect of
awarding £10,000 for distress and discomforts to the parties.
The next damages which is examined is relating to the punitive damages in which serious
consequence is faced by the plaintiff regarding any misconduct activities committed by
defendant. This largely affects the metal illness in respect of causing harm by not fulfilling the
condition imposed in contract. In case of Watts V Morrow [1991], the issues is raised regarding
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negligent in surveying or showing the accurate information of their research. As plaintiff
purchase the property regarding viewing the judgement of the defendant about the purchase of
building. But after getting repair of such building, it is identified that it carries higher expenses to
manage the building (W A T T S A N D C O V M O R R O W : C A 3 0 J U L 1 9 9 1 , 2 0 2 0 ) .
Thus, the damages are raised under the punitive category.
Thus, in these aspects, the statement which reflect the situation that under English
contract law, the claim for damages regarding mental distress are not clear is not agreed. As
various laws and regulation are clear under the contract law regarding the damages which is paid
by the defendant in respect of not performing the task in right way (Beale and et.al., 2019). As
various damages are examined in this essay in which the impact of mental occurs regarding not
accomplishing the task within the set time limit. Thus, in this report it is examined that it carries
various structure in respect of filling suit.
As the contract is formed when one party offer some valuable thing to other partway and
other party accepts such things. They enter into the agreement in context of some consideration
and must be legally bound by the court to follow it. If any of the parties not fulfil any of the
terms it results in committing breach in contract.
CONCLUSION:
From the above report it is concluded that damage occurs through breach in any of the
terms which affects the health and mental illness of the parties resulting to be recovered from
defendant. This results in giving rise to legal argument in writing regarding imposing laws and
regulation in respect of securing the right of the parties during the existence of the contract under
the contract act.
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REFERENCES
Books and Journals
Austen-Baker, R., 2017. Implied terms in English contract law. Edward Elgar Publishing.
Beale, H and et.al., 2019. Cases, materials and text on contract law. Bloomsbury Publishing.
Campbell, D., Mulcahy, L. and Wheeler, S. eds., 2017. Changing Concepts of Contract: Essays
in Honour of Ian Macneil. Springer.
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing.
De Franceschi, A., 2016. European contract law and the digital single market. Cambridge:
Intersentia.
Graziano, T.K., 2019. Comparative contract law: cases, materials and exercises. Edward Elgar
Publishing.
Heidemann, M. and Lee, J., 2018. ˜ Theœ Future of the Commercial Contract in Scholarship and
Law Reform: European and Comparative Perspectives. Springer.
Khorooshi, A and et.al., 2017. Basis of Contract Clause in the UK and the Necessity for
Reforming Insurance Law in Iran. J. Pol. & L., 10, p.156.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2019. Problems in Contract Law: cases and
materials. Aspen Publishers.
Zhang, M., 2019. Chinese Contract Law-Theory & Practice. Brill.
Online
4 0 1 . R O B I N S O N V H A R M A N ( 1 8 4 8 ) 1 E X 8 5 0 . 2 0 1 8 . O n l i n e . A v a i l a b l e
t h r o u g h : < h t t p s : / / c h a r t e r p a r t y c a s e s . c o m / c a s e / 4 0 1 - r o b i n s o n - v -
h a r m a n - 1 8 4 8 - 1 - e x - 8 5 0 > .
A d a m s v . L i n d s e l l . 2 0 2 0 . O n l i n e . A v a i l a b l e t h r o u g h :
< h t t p s : / / w w w . c a s e b r i e f s . c o m / b l o g / l a w / c o n t r a c t s / c o n t r a c t s - k e y e d - t o -
m u r p h y / t h e - b a r g a i n - r e l a t i o n s h i p / a d a m s - v - l i n d s e l l / > .
B E T T I N I V G Y E : Q B D 1 8 7 6 . 2 0 2 0 . O n l i n e . A v a i l a b l e t h r o u g h :
< h t t p s : / / s w a r b . c o . u k / b e t t i n i - v - g y e - q b d - 1 8 7 6 / > .
F A R L E Y V S K I N N E R : H L 1 1 O C T 2 0 0 1 . 2 0 2 0 . O n l i n e . A v a i l a b l e t h r o u g h :
< h t t p s : / / s w a r b . c o . u k / f a r l e y - v - s k i n n e r - h l - 1 1 - o c t - 2 0 0 1 / > .
H o n g K o n g F i r s h i p p i n g V K a w a s a k i K i s e n k a i s h a [ 1 9 6 2 ] 2 Q B 2 6 . 2 0 1 7 .
O n l i n e . A v a i l a b l e t h r o u g h :
< h t t p s : / / w w w . c a s e m i n e . c o m / j u d g e m e n t / u k / 5 a 8 f f 8 7 8 6 0 d 0 3 e 7 f 5 7 e c 1 0 8 8
> .
P O U S S A R D V S P I E R S : 1 8 7 6 . 2 0 2 0 . O n l i n e . A v a i l a b l e t h r o u g h :
< h t t p s : / / s w a r b . c o . u k / p o u s s a r d - v - s p i e r s - 1 8 7 6 / > .
RUXLEY ELECTRONICS AND CONSTRUCTION LTD V. FORSYTH [1995] 3 ALL ER 268.
2 0 1 5 . O n l i n e . A v a i l a b l e t h r o u g h :
< h t t p s : / / d o y l e s c o n s t r u c t i o n l a w y e r s . c o m / n e w s - b o a r d / r u x l e y -
e l e c t r o n i c s - a n d - c o n s t r u c t i o n - l t d - v - f o r s y t h - 1 9 9 5 - 3 - a l l - e r - 2 6 8 / > .
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W A T T S A N D C O V M O R R O W : C A 3 0 J U L 1 9 9 1 . 2 0 2 0 . O n l i n e . A v a i l a b l e
t h r o u g h : < h t t p s : / / s w a r b . c o . u k / w a t t s - a n d - c o - v - m o r r o w - c a - 3 0 - j u l -
1 9 9 1 / > .
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