In this report the author pertains and examines the bylaw on contract requisites by citing standard-form contracts in regards to a fictional scenario of a business called 'Budgburys Ltd'. Moreover, the author confers towards the outcome of exemption clauses and their effect towards prohibiting contractual liability. This report is part of the BTEC Higher National Certificate series by the author and relates to Unit 5 - Aspects of Contract & Tort Law in Business.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Scenario
- Standard form contract
- Terms in different Contracts
- Implied
- Express
- Innominate
- Exemption Clauses
- Inclusion
- Statute
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment aims to examine the legal principles of contract requirements with a particular focus on standard-form contracts. The assignment utilizes the scenario of Budgburys Ltd and their dealings with ICC Plc, a supplier of computer systems, to demonstrate the implications of exemption clauses and their potential to exclude contractual liability.
- Standard-form contracts and their implications for parties with limited bargaining power
- The application of the Unfair Contract Terms Act (1977) in assessing the reasonableness of exemption clauses
- The various types of contract terms, including implied, express, and innominate terms
- The criteria for the inclusion and enforceability of exemption clauses
- The role of relevant legislation, such as the Misrepresentations Act (1967) and the Sale of Goods Act (1979), in determining the validity of exemption clauses.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This section introduces the assignment's focus on analyzing contract law principles, particularly standard-form contracts and exemption clauses, within the context of the Budgburys Ltd scenario.
- Scenario: This section outlines the specific situation between Budgburys Ltd and ICC Plc, highlighting the standard-form contract and the exemption clause that excluded ICC's liability for the suitability of the computer system and its maintenance.
- Standard form contract: This section explores the characteristics of standard-form contracts, where one party dictates the terms and the other party has limited ability to negotiate. It discusses the UK's Unfair Contract Terms Act (1977) and its role in regulating such agreements. The section analyzes Budgburys' situation, emphasizing factors that suggest the contract was unreasonable, including Budgburys' limited choice of suppliers due to their specific needs and their lack of equal bargaining power due to their limited expertise.
- Terms in different Contracts: This section delves into the different types of contract terms, including implied, express, and innominate terms. Each type is explained with relevant case examples. Implied terms are those understood to be part of the contract without being explicitly stated, while express terms are explicitly stated within the contract. Innominate terms are those whose impact on the contract is determined by the severity of the breach.
- Exemption Clauses: This section introduces the concept of exemption clauses, which seek to limit liability in contracts. It emphasizes the criteria for their inclusion and acceptance, including clear notification, awareness, and statutory compliance. Case examples illustrate the principles of timing and competence in notification and the potential for misleading information to invalidate an exemption clause.
- Inclusion: This section specifically examines the inclusion of exemption clauses within a contract. It discusses the significance of adequate notification and its two main aspects: timing and competence. The section explores the implications of late notification and the necessity for clear and prominent presentation of the clause. Case examples demonstrate the legal consequences of insufficient notification.
- Statute: This section focuses on the role of relevant legislation in regulating exemption clauses. It examines the Unfair Contract Terms Act (1977) and its purpose of preventing unfair contractual terms that limit liability for businesses. It also explores the Sale of Goods Act (1979) and its protection of consumer rights concerning the quality of goods sold. Case examples illustrate the application of these statutes in determining the validity of exemption clauses.
Schlüsselwörter (Keywords)
Key terms and concepts explored in this work include standard-form contracts, exemption clauses, the Unfair Contract Terms Act (1977), implied terms, express terms, innominate terms, misrepresentation, breach of contract, statutory regulation, and the Sale of Goods Act (1979). The work focuses on analyzing the application of these legal principles within the context of the Budgburys Ltd scenario, highlighting the potential for unfair contractual terms and the legal mechanisms available to address them.
- Quote paper
- Amritpal Hayre (Author), 2012, Aspects of Contract and Tort Law: The Scenario of Budgburys Ltd, Munich, GRIN Verlag, https://www.grin.com/document/288165
