(A) Remedies are entitlements given to parties who are affected by a breach of contract. There are a few remedies under the common law but the most common is damages – contractual and tortious damages. (Wright 2010) To determine if State Trains is entitled to any remedies, we must first substantiate if the contract was frustrated or if this was a case of breach of contract. It has been established that there is a legally binding contract between the two parties. An agreement exists between the two wherein Snacks Ltd is to provide food catering services to State Trains in exchange for a fixed payment as stipulated on their contract terms. However, due to unforeseen events, Snacks Ltd is claiming that the contract between them and State Trains …show more content…
On the other hand, a breach of contract occurs when a promisor fails to discharge a contractual obligation without lawful excuse after the performance is due or when there is an anticipatory breach before the promise is due. (Carter, Peden & Tolhurst 2007) Applying this to the sample case, we can deduce that the two separate events – increase in costs and damage to the company’s factory – would have resulted to a breach in …show more content…
Assuming that the company is not protected by a force majeure clause, then, if they don’t deliver their obligations as agreed upon, they would be in breach of contract regardless of the circumstance. In conclusion, assuming that hardship and force majeure clauses were not included on the terms, then, according to common law, this case would be considered a breach of contract due to Snacks Ltd refusal to honour the contract. With this, since they are breaching an essential condition, State Trains has an option to terminate their agreement and sue for damages. (B) The terms according to the case specifically prohibits any increases in price in the duration of the contract. Assuming that Snacks Ltd’s contract with State Train is still in force, then, State Trains is under no obligation to pay more than what they were originally paying for the same
Facts: Frigaliment Importing Company sued B.N.S. claiming that B.N.S. had breached warranties in two contracts that they had entered. In the first of the two contracts Frigalimnet had agreed to sell 75,000 pounds of 2.5 to 3 pound chickens and 25,000 pounds of 1.5 to 2 pound chickens. The second contract consisted of 50,000 pounds of 2.5 to 3 pound chickens and 25,000 pounds of 1.5 to 2 pound chickens. ( smaller chickens where priced slightly higher in this contract vice the first agreement) Both contracts were signed by the parties on May 2nd, 1957. BNS shortly after made 2 shipments to meet the requirements of the first contract , of these two shipments the first was not delivered in full, but the shortage was made up with the later shipment. After receiving the shipment, Frigaliment came to the conclusion that the larger chickens delivered were not young chickens suitable for the purpose of frying or broiling. The older chickens commonly known as fowl were only suitable for stewing purposes. Frigaliment then requested to B.N.S. to stop the second contract shipment of chickens and sued BNS, claiming that under the contract B.N.S. was to only ship young chickens. BNS in turn responded that the obligation was simply to ship chickens that met the description in the contract; this was not exclusive to young chickens per the contract.
Aldo shipped 10 refrigerators to Rafael pursuant to a sales contract under which title to the goods and risk of loss would pass to Rafael upon delivery to Fleet Railroad. The agreed price was $5,000. When the refrigerators were delivered to Rafael, he found they were damaged. An estimate for repairing them showed it would cost up to $1,000, and an expert opinion was to the effect that they were defective when shipped. Rafael put in a claim to Aldo, which Aldo rejected. Rafael then wrote to Aldo, “I don’t like to get into a despite of this nature. I am enclosing my check for $4,000 in full payment of the shipment.” Aldo did not reply, but he cashed the check and then sued Rafael for the $1,000 balance. May he recover? Explain.
v Consolidated Edison Company of New York, Inc., Joc Oil is suing for the right to cure. This right happens between merchants when there has been an issue with items purchased, shipped, or received incorrectly. In this case Joc Oil has contracted to purchase low-sulfur oil from one refinery and to sell that oil to Edison. The oil arrives at Edison and is offloaded into Edison’s storage facility, only to find that the oil exceeds the low-sulfur requirements set in the contract. In past transactions Joc Oil has delivered nonconforming goods, or goods that do not meet the requirements under the contract. Edison has previously allowed Joc Oil to cure by allowing them to deliver conforming goods within the contracted time frame. “A cure may be attempted if the time for performance has not expired and the seller or lessor notifies the buyer or lessee of his or her intention to make a conforming delivery within the contract time” (Cheeseman, 2013). In this case we assume that the testing by Edison that reported the goods as nonconforming is accurate. There are some questions that would need to be answered in order to fully and accurately deliver a verdict on this case. The largest question is: Joc Oil has a cure for the shipment expected to arrive within two weeks, is this within the contract timeframe? If this question is a yes then Joc Oil has the rights to cure the issue at hand. If the answer is no, then a breach of contract may be in the works. Due to the fact that Joc Oil has been allowed to cure the issue in the past, there is a pattern of behavior by Edison, to allow Joc Oil the ability to cure. This would put Joc Oil in a position where there is no breach of contract. Joc Oil in this case has the ability and rights to cure for two reasons. The first being the past history, and the second being the right to cure as guaranteed under the
If a breach of contract is both material and opportunistic, the injured promisee has a claim in restitution to the profit realized by the defaulting promisor as a result of the breach. Liability in restitution with disgorgement of profit is an alternative to liability for contract damages measured by injury to the promisee.
Yes. Under the Uniform Commercial Code, when a non-breaching seller cannot reasonably resell the breached goods on the open market, he is entitled to damages in the amount of the full profit that he would have made from full performance by the buyer. Ordinarily, the seller would be entitled to the difference between the market price for the breached goods and the unpaid contract price, together with incidental damages and less the expenses saved because of the breach. However, if this measure of damages is inadequate to put the seller in as good a position as performance would have, the measure of damages is the profit that the seller would have made from full performance, plus incidental damages. If the seller cannot sell the breached goods
"A contract is a legally enforceable promise or set of promises. In other words, when promises have the status of contract, the contracting party harmed by a breach of the contract is entitled to obtain legal remedies against the breaching party" (Mallor et al., 2015, p. 320)
A legal discussion of the contractual breaches and their related legal elements will be examined in this section. Some of the legal issues surrounding the contractual breaches include, the legal implications of the Uniform Commercial Code (U.C.C.), the defendant’s engagement in and outputs contract while under a requirements contract with my company, the doctrine of estoppel, and the issues of good faith and fair dealing. The definitions and some of the legal implications of the implied and requirements contracts were discussed in the preceding sections. An implied contract is defined as a “contract that is established by the conduct of a party rather than by the party’s written or spoken words” (Kubasek, Brennan, & Browne, 2015,
The scenario I have been given highlights the main complexity of contract law. It touches on issues such as unilateral contracts, revocation as well as advertisement. I will be advising Mick (claimant) answering: Whether Yummy chocolate is liable to give a year supply of chocolate as advertised?
may face is economic loss. This is because Acme Underground Ltd. owes a duty of care to provide correct report of the sub-surface conditions to Mr.Sharp and the Municipality. Yet, they breach such duty when Subsurface Wizard determined that Acme Underground has made a significant error by not fully testing the soil. This caused the Municipality 350 thousand dollars extra to build the revised design [6]. However, this is not possible for the Municipality to pay because they stated to Mr.Sharp that it is not economically feasible for them to build the bridge if it costed more than 1.8 million dollars [6]. Since the Municipality contracted ABC Construction, they cannot breach the contract to stop the construction either. The 1982 precedent case, Junior Books Ltd. v. Veitchi Co. Ltd. [5], displays another example of how someone’s negligence can cause economic damages. In the precedent case, a negligently laid floor, not dangerous, caused the plaintiff to suffer numerous losses such as replacing the floor and business disturbance [4]. The defendant was later found liable and must pay the plaintiff for the profit loss of the time [4]. It is evident from this case that one can be found liable because of his/her negligent act. This is clearly displayed by Acme Underground as their negligence with the sub-surface conditions report caused the Municipality to suffer an economic loss. Therefore, Acme Underground Ltd. is highly
The engineer breached the duty of care through failing his/her duty to warn by providing insufficient warning on the limitation of the application. His/her software application caused the structural firm to designed a defective bridge and was the direct cause of many deaths. The junior engineer should be held liable for his/her product due to the principle known as product liability. This is evident in the case study because deaths and injuries due to defective product as a result of the software were foreseeable. Looking at the 1971 case of Lambert v. Lastoplex Chemicals Co. Limited et al., the manufacturers must not only instruct the user how to properly use the products but also warn the user the consequences of misuse []. This precedent case proves that the engineer failed to warn the structural firm of the limitation of the application as well as failed to warn the consequences of using the application beyond its capabilities. However, the information technology firm may be held vicariously liable for the mistake of the junior engineer as he/she developed the software application during his/her employment. The reason being the employer generally has deeper pocket than the employee [] and the collapse was a result of the junior engineer developing the application under the authority of the employer. Thus, the junior engineer is one of the tortfeasor to which the information firm maybe vicariously liable for his/her
S.6(2) states that as against a person dealing as consumer, liability for breach of the obligations arising from ss.13, 14 or 15 of the Sale of Goods Act 1979 (seller's implied undertakings as to conformity of goods with description or sample, or as to their quality or fitness for a particular purpose) cannot be excluded or restricted by reference to any contract term.
The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.
The issue in this case is whether Saito Sdn. Bhd. can unilaterally withdraw current benefits from Roslan? When an employer breaks an employee's contract, then constructive dismissal happens. The employee has the entitlement to leave his work and claim that the employer's actions amount to a dismissal when the employer breaches the contract. If the claim is brought to the Industrial Court, the employee should make a claim which provides sufficient evidence to prove that the employer had breached the terms of the employment contract.
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
Neglecting contracts and agreements can cause serious injury to someone’s property, reputation or livelihood. In a business format vicarious liability happens all the time where an employee defaces a company via tampering with their products or establishing misconduct under the company name and brand outside of the company’s presence (company property).