Exploring Irish Law: Contract Formation, Email Agreements, Damages

This report provides an overview of Irish contract law, focusing on the essential elements required for a legally binding contract, including agreement, intention to create legal relations, and consideration. It examines the scenario where work is undertaken without a prior agreement on price, highlighting the importance of offer and acceptance under Irish Contract Law. The report also discusses the special rules applicable to agreements formed through email, referencing the Electronic Commerce Act 2000 and the receipt rule. Finally, it outlines the court's approach to calculating damages in case of a breach of contract, emphasizing the aim to place the aggrieved party in the position they would have been in had the contract been performed effectively. Desklib offers a wealth of similar solved assignments and study tools for students.

IRISH LAW and STATUTES

Table of Contents
1. Necessity for legally binding contract.....................................................................................................2
2a. Work undertaken but not having agreement on price.............................................................................3
2b. Agreement through email and applicable special rules..........................................................................4
2c. Calculation of level damage by court.....................................................................................................5
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1. Necessity for legally binding contract
There are certain elements of a contract, the presence of which helps in formulation of valid and
legally binding contract. The components of a contract the presence of which helps in
formulation of legally binding contract are:
 Something of value/ Consideration
 Agreement between two parties
 Intention of formulation of legal relations
One of the integral preconditions for the establishment of legally binding contract, under Irish
Contract Law is agreement. For the purpose of arriving to an agreement either of the party is
needed to be provided with an offer followed by its acceptance by the other party. The
acceptance of the provided offer is needed to be in the absence of any kind of qualification and
the provided offer is needed to be transparent, clear and unambiguous (Gorry, 2018). The
provided offer may be written or oral in nature that can be provided to one or more than one
individual. It may be terminated by its acceptance, rejection, counter offer or offer being
withdrawn prior its acceptance. The existence of an offer is not for unlimited period which lapses
followed by a reasonable period. An offer may be binding only when it is accepted. Similarly,
acceptance of an offer is needed to be clear, unconditional and unambiguous for the purpose of
its validity (Lawyersireland, 2016). An offer may be accepted orally, in written or made clear
from the conduct by the accepting party. Thus the presence of these two elements would result in
agreement of a contract.
An agreement may turn out to enforceable in nature only if the parties involved in the contract
have an intention of entering into legal relations. Social contracts or agreement are not legally
binding whereas business agreements are usually considered to be legally binding. Until the
involved parties agrees to the terms and conditions of the, it lacks intention of formulating a legal
relations.
An integral part for formulating a legally binding contract is consideration. The price an
individual pays for certain services may be considered as consideration (McKendrick, 2014). On
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the part of involved parties in a contract he/she needs to provide with certain consideration in
order to make a contract legally binding which is needed to have legal value.
The parties involved in are needed to have legal capacity for the purpose of entering in a
contract. Individuals like minor, individuals having mental issues, are considered to be lacking
capacity of entering in a legally binding relations.
Thus, the presence of the above discussed elements in a contract results it being legally binding
between the involved parties. In this context, the case of Carilion Construction Ltd v Woods
Bagot Europe Ltd & Ors [2016] EWHC 905 (TCC) (28 April 2016) is mentionable here
(Eversheds-sutherland, 2016). It dealt with the issue of extension of time, whether it is supposed
to continue since the existing data for the purpose of completion and if the agreement of the
contractor with employer associated with its liability for damage liquidation associated with
building contract eliminated its liability resulting prevention from any kind of claim against the
sub-contractors (Chen-Wishart, 2012).. In this context, the court provided with the declaration
that as per the terms of the contract the liability of the contractor to the employer was not
eliminated and the time extension is needed to be added. On the basis of the above discussed
case, the relevance of contractual terms and conditions, mentioned offer can be clearly observed.
2a. Work undertaken but not having agreement on price
For the validity of a contract, as already stated, agreement between the involved parties to refrain
from doing something or to do something is integral. For the purpose of ascertaining the validity
of a contract under Irish contract law, acceptance, offer and consideration is integral. In this case,
it may be observed that the offer provided on the part of one of the parties which consists of the
work to be performed and the price associated has been specified that has not been completely
agreed on the part of the other associated party in the contract (Irishstatutebook, 2018). The other
party, though have undertaken the work have not agreed on the price. This clearly reflects the
lack of acceptance of the offer specified in the contract. It is due to the fact that under Irish
Contract Law, it has been specified that for the purpose of formulation of a valid contract, the
presence of the aspect of agreement is essential wherein on the part of one of the party it is
required to provide with clear and specific offer (Poole, 2016). In this case it may be observed
that one the part of the offeror specifications associated with the works that the other party is
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needed to perform along with price that the offeror will pay for it has been specified in the
contract. Herein for the purpose of ascertaining the validity of the acceptance, in regards to the
offer provided on the part of the, offerer, it is essential for the offeree to provide with clear,
unconditional and unambiguous acceptance. In this case it may be observed that it is not that
case. The offer provided on the part of the offeror has not been unconditionally accepted on the
part of the offeree, having disagreement with the price for the work. In such a case, wherein
disagreement occurs with specific terms of the contract, it results in lack of agreement with the
contract on the part of the involved parties. In addition to that, on the basis of the mirror image
rule it is essential on the part of the offeree, to accept the offer as it is, which may not be
observed in this case (Poole, 2014).. In such a case, wherein the acceptance of the offer does not
reflect the provided offer it may lead to counter-offer wherein no agreement is present. Thus the
absence of the agreement in the contract would result in considering the particular contract to be
unenforceable contract by the court. Due to considering the contract as unenforceable one, the
courts will not implement the contract which mainly occurs due to missing or absence of certain
aspect of the contract (Smits, 2017). In mentioned case, it may be observed that the aspect of
agreement of a contract was missing which will result in considering it to be an unenforceable
contract leading to non-implementation of the contract by the court.
2b. Agreement through email and applicable special rules
The increased development of technology and its increased use in our day to day life has resulted
in increased impact on the business functioning and the process of contract formation in this
process (Arthurcox, 2011). It is due to the ease and speed at which information with the help of
email may be disseminated have resulted in considering email and chin of email correspondence
as a legally binding way of agreement (Irishstatutebook, 2018). Thus any agreement that has
been provided with the help of email will be considered to be legally binding.
In case of agreement in a contract with the help of email receipt rule is the prime rule which is
applicable in Ireland. However there are certain exceptions as well, wherein postal rule is
mentionable one.Under postal rule, if acceptance is sent with the help of telegram or post, is only
considered to be effective when it has been dispatched or communication of telegram to the
desired individual (Law, 2018). From the moment of dispatch of information, withdrawal of
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offer, even if it has been sent previously will not be considered to be effective. Even if the
offeror do not receive a telegram or letter, the acceptance of the offer will be considered to be
effective followed by the conclusion of the contract. The contract will be considered to be
concluded unless in its delay or loss the offeree is in no way at fault. Conclusion of the contract
may be prevented with the help of sending an overtaking withdrawal of the acceptance. The
postal rule is only applicable in those cases wherein the use of post is reasonable. In case of
acceptance which has been made with the help of immediate means of communication as
observed in this case, the means of communication is email, in such cases the main rule is
applicable wherein it is essential on the part of the offeror to receive the acceptance from the
offeree. In such cases Electronic Commerce Act 2000 is also needed to be taken into
considered. Under this act, agreement sent with the help of email will be considered to have been
sent only when the information enters the first information system as specified under section
21(1) of the act (Heinonline, 2007). This section of the act also specifies that when information is
sent through email wherein postal rule is not applicable, the time when email is received will be
taken into consideration rather than that time when it was sent. Thus, in case of agreement with
the help of email the above discussed rules and legislations will be applicable.
2c. Calculation of level damage by court
In case of breach of contract when the aggrieved party makes a claim, on the part of the court,
the amount of monetary damages needed for placing the plaintiff in a position which he/she
would have been occupied in the effective performance of the terms of the contract. When it is
established that a valid contract existed, on the establishment of its breach, the plaintiff is
provided with the complete recovery of the loss (kwlaw, 2017). The method of calculating the
extent of damage is based on the details associated with argument and the nature of breach. In
certain cases the contract mentions a method of loss assessment. In other cases the Court relies
market value of the associated items. In such cases, the court entitles to the aggrieved part for the
complete compensation of the loss which may include reimbursement for any kind of expenses
due to the breach of the contract along with costs of mitigation for the continuing loss. The direct
and natural impact for the breach of contract will be compensated that is ensured on the part of
the court (Businessandlegal, 2016). However, on the part of the court no damages will be
awarded which have not association with the wrongful act of the defendant.
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In awarding compensation, the behavior of the defendant will also be considered wherein
aggrieved party will be awarded for punitive or aggravated damages along with the
compensation awarded to the aggrieved party for the breach of the contract (Businessandlegal,
2016).
References
Arthurcox. (2011). Construction Law Briefing Something to Reply Upon? Formation of
Contracts. [online] Available at: http://www.arthurcox.com/wp-content/uploads/2014/01/Arthur-
Cox-Formation-of-Contracts-April-2011.pdf [Accessed 16 Apr. 2018].
Businessandlegal. (2016). Damages in Civil Actions in Ireland. [online] Available at:
https://businessandlegal.ie/tag/general-damages [Accessed 16 Apr. 2018].
Chen-Wishart, M. (2012). Contract law. Oxford University Press.
Eversheds-sutherland. (2016). Top three construction cases: June 2016- Publications -
Eversheds Sutherland. [online] Available at:
https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/
Construction_And_Engineering/Top_three_construction_cases_June_2016 [Accessed 16 Apr.
2018].
Gorry, T. (2018). Contract Law in Ireland-the Essentials. [online] businessandlegal. Available
at: https://businessandlegal.ie/contract-law-in-ireland-the-essentials [Accessed 16 Apr. 2018].
Heinonline. (2007). The Effect of the Electronic Commerce Act 2000 on the Operation of the
Postal Rule 1 Irish Business Law Quarterly 2005-2006. [online] Available at:
http://heinonline.org/HOL/LandingPage?handle=hein.journals/iblq1&div=31&id=&page=
[Accessed 16 Apr. 2018].
Irishstatutebook. (2018). electronic Irish Statute Book (eISB). [online] Available at:
http://www.irishstatutebook.ie/ [Accessed 16 Apr. 2018].
kwlaw. (2017). Damages for Breach of Contract. [online] Available at:
https://www.kwlaw.net/damages-for-breach-of-contract/ [Accessed 16 Apr. 2018].
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Law. (2018). Section 2 Offer and Acceptance. [online] Available at:
https://www.law.kuleuven.be/personal/mstorme/c2-2.pdf [Accessed 16 Apr. 2018].
Lawyersireland. (2016). Contract Law in Ireland. [online] Available at:
https://www.lawyersireland.eu/contract-law-in-ireland [Accessed 16 Apr. 2018].
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK).
Poole, J. (2014). Casebook on contract law. Oxford University Press, USA.
Poole, J. (2016). Textbook on contract law. Oxford University Press.
Smits, J. M. (Ed.). (2017). Contract law: a comparative introduction. Edward Elgar Publishing.
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