University of Suffolk BA Business Law: Contract Breach Essay

This essay delves into UK contract law, specifically addressing breach of contract and the remedies available. It begins with an introduction to contract law, outlining essential elements such as agreement, acceptance, intention to create legal relations, and consideration. The essay then explores different types of contract breaches, including breach of condition, warranty, and intermediate terms, illustrated with a case study involving Raymond and Samantha. The analysis examines the legal implications of the breach, emphasizing monetary compensation and the importance of pre-action protocols and mitigation of losses. Furthermore, the essay considers the ethical aspects of the situation and provides advice for Samantha, highlighting the benefits of ethical behavior and potential settlement options. The essay concludes by emphasizing the significance of sound contract law in today's business environment and the role of ethics in avoiding disputes. The essay also provides a list of references including books and journals to support the arguments and points made in the essay.

INDIVIDUAL ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Contract Agreement……………………………………………………………………………….3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
The study is about UK law regarding contracts breach and the remedies to it. This gives a
practical understanding of how the law is implemented and pertains to company and business
law. The ethical issues are addressed by the legal system and helps in corporate governance. The
study elaborates on the contract law, conditions, terms and agreement between parties obliging
the contract. The study also takes a case of breach contract in consideration where it discusses
remedies in case of breach contract and the recommendations on the possibilities within the cases
and necessary actions.
Before taking up the case of contract breach, here is a look at what contract is and what are the
types of breach of contract.
Contract Agreement
A contract to be valid has presence of three elements:
a) Agreement: It has to be between two parties in which one party is offering something to
the other party. This may be an offer to sell goods and services or offer goods and
services.
b) Acceptance: The offer should be in acceptance to the party offered and the terms of the
offer clearly understood (Andenas and Della Negra, 2017).
c) Intention to create legal relations: The parties intention for the contract should be
legally binding.
d) Consideration: Each party should be offering something as a form of good or service to
other. It is generally one party serving goods or services and the other giving money to
the other.
It will be thus called a legally binding contract. Although it is not necessary that contracts have
to be in written form except a contract of sale of land or property which has to be in written form
to be legally enforceable.
Talking about the time when contract becomes effective there should be firstly acceptance of
offer and consideration i.e. payment has transferred from one person to another. The acceptance
of offer is there when the offer is agreed in words or by conduct (Eller, 2020).

Certainty of terms
Speaking of a legal contract, the terms of the contract should be clear to the parties. If a condition
is not settled between the parties then the agreement will not be considered as a contract in law.
Breach of contract
It occurs when a party does not comply with the terms and conditions of the contract or leaves
the contract in between. In this case the innocent party can lay claims for damages against the
other party.
Types of Breach of contract
It may be a breach of
a) Condition: The innocent party may claim damages for breach of condition or terms by
another party and can also terminate the contract. This is known as repudiatory breach of
contract.
b) Warranty: The innocent party may claim damages by breach of contract although they cannot
terminate the contract (Eller, 2020).
c) Intermediate term: The contract can be terminated depending upon the nature of the
consequences of the breach of the term.
Considering the case presented here, Raymond had agreed to a contract of 800 euros and
was paid only 200 euros by Samantha. This can be termed a breach of contract as the
consideration paid is lesser than agreed at the time of making contract. The remedies in this case
entitles Raymond to a right of monetary compensation that is damages for failure to perform the
contract. That means Raymond should be getting back the promised money. However, the
consequences of breach not only depends on the terms of the contract but also what the affected
or innocent party does at the breach of contract. It may be argued that the party had accepted the
sum offered at the breach of contract as full and final settlement. Although that was done in the
case of Samantha not being able to pay money that time but now the financial position has
changed. The breach of contract here stands of defective performance which states that the
contract is partly performed and not performed up to the standard requirement. Raymond can go
for repudiation against Samantha for breach of contract. Raymond will have to show on the
balance of probabilities that there has been a breach of contract which has caused loss to him.
Before bringing the breach of contract claim, Raymond should comply with the pre-action

protocols concerned to the CPR. CPR means the civil procedure rules used by the courts of
appeal in England and Wales (Howells, 2017). There is also a clause of mitigation of losses to
reduce the impact of the breach of contract so that the other party cannot claim that the innocent
party could not mitigate the loss.
Yes, the answer would have been surely different if Samantha had paid 200 euros earlier with
agreement of Raymond because here is a verbal agreement between the two concerned parties. If
Raymond had accepted in full faith the amount mentioned , then Samantha also would have been
assured that an agreement has been done. As the parties agree to a consensus, breach of contract
would not have occurred. The contract would have been surely altered but with the consideration
money being agreed to. Later on, claim could not have been made for extra payment as the payer
would have stood relieved of her duties.
It would certainly be a different situation if Raymond had asked for 400 euros as payment as full
and final settlement. It would have to be Samantha’s take now as to how she would have
responded. As she did not have money then, she may have declined but then if she had agreed to
pay later, then she would have a statement of agreement that the sum was decided later to be 400
euros with Raymond in agreement. Then Raymond could not have put a claim of 600 euros as
the sum to be paid would have been agreed by him as full and final settlement and the amount
asked of 400 euros would have been from Raymond’s side. Thus Raymond’s claim for 600 euros
would have been weakened and it would have gone against him to claim monetary
compensation.
The advice for Samantha is that she should be ethically considerate in giving the remaining
amount back to Raymond as she is in a better financial position now and can afford to give back
the money. This would save her from being charged with breach of contract and also save her
reputation. Both the parties can come together to a settlement by a mediator, this would save
time for both instead of filing a case. The image of Samantha has been built of a promising artist
which could get tarnished by any suit filed.

CONCLUSION
It can be concluded that the contract is a day to day component in today’s business environment.
As many businesses are interrelated with each other in today’s global era, contracts keep
occurring in today’s corporate world. It is therefore very necessary to have a sound contract law
which caters to the needs of the parties whether it may be the terms, conditions, the legal binding
of the contract etc. The contracts made in good faith are covered by law and categorisations of
breach of contract with its own remedies to follow has made it easier for innocent parties to
claim their damages. The contract should be made as such that there is no ambiguity between the
parties as this will help to wade off any disruptions coming in business and will prove beneficial
for the economy. The cases can be avoided if simple business ethics are implemented and parties
fulfil their contract conditions.

REFERENCES
Books and journals
Andenas, M. and Della Negra, F., 2017. Between contract law and financial regulation: towards
the Europeanisation of general contract law. European Business Law Review, 28(2017),
pp.499-521.
Eller, K.H., 2020. Comparative Genealogies of “Contract and Society”. German Law
Journal, 21(7), pp.1393-1410.
Giliker, P., 2018. Examining English contract law in the light of Brexit–an end to the European
dream?. In Essays in Memory of Professor Jill Poole (pp. 14-32). Informa Law from
Routledge.
Howells, G.G., 2017. The European Union's Influence on English Consumer Contract Law. Geo.
Wash. L. Rev., 85, p.1904.
Hsiao, J.I., 2017. Smart Contract on the Blockchain-Paradigm Shift for Contract Law. US-China
L. Rev., 14, p.685.
Lehmann, M. and Zetzsche, D., 2016. Brexit and the consequences for commercial and financial
relations between the EU and the UK. Eur. Bus. L. Rev., 27, p.999.
Poncibò, C., 2017. Book Review: Research Handbook on EU Consumer and Contract Law,
edited by Christian Twigg-Flesner.(Cheltenham (UK) and Northampton (US): Edward
Elgar Publishing Limited. 2016.). European Review of Private Law, 25(4).
Renaudin, M., 2019. The consequences of Brexit on the regulatory competition and the
approximation of commercial contract law in Europe.
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