Contract Law Assignment BTEC Level 5 Unit 9

Issues

There are various factors that need to be focused on while achieving a precise rate of performance of a specific condition in a contract. It depends on the operations and capabilities of a party that to which extent, they can continue providing an efficient and appropriate rate of performance to the external party that is involved by means of a contract. There are various aspects that needs to be involved so that to a huge extent, the party can be able to insist on a precise and exact rate of performance (Mason, 2016). These aspects involve following proper contract rules and obligations, implementing substantial compliance, etc. There can be various issues occur because of which the party cannot be able to provide an exact and appropriate rate of performance in a contract and these are discussed as under :

Quality of performance of the condition

 It is important that the specified products or services that are to be delivered by the party are of quality and standard so that no customer can be disappointed. Also, in the contract if the organization makes a deal and contract with some other party, it is their responsibility to provide the quality range to them. These factors are already decided before the agreement can be made. This is because there are some essential factors that needs to be discussed before the agreement. It involves cost, quality, measures, and operations. It is because it helps in making the process clear enough for both parties which can further help in preventing any further complications or issues. Some of the very important factors that are discussed before an agreement involve discussing the cost, quality, etc. Also, it is obvious that the receiving party must be expecting a standard range after making the contract. So, if in case, the organization that has to deliver the products and services to the products fails in doing the same, then it can be considered as one of the major reasons for not insisting on a precise rate of performance while the delivery of the products and services to the other party (Payne and Howell, 2018). So, both parties should ensure the discussion about these factors before the agreement so that things can stay clear between both parties. This can also help in reducing the rate of issues that happen because of this.

Consequences of non-performance

 For dealing with non-performance in a contract, whether it is because of any party between the two, the one responsible for the non-performance, or any other complicated issue may have to face legal consequences because of the same. It can also be considered a breach of contract because when one party does not receive the products or services by the deadline, they may have to face an enormous number of issues (Kremen, 2015). Delay or lack of performance because of another party may have a very negative impact on the other one as they may have to face further complications because of this. Some well-known examples of it can involve the cancellation of a contract by the customer because of which the specified stuff can also be termed as a sort of loss. Therefore, legal actions can be taken in case of the contract being broken. It is effective enough as the party who has experienced a breach in contract can then get the proper amount for the loss and all the compensation they require by the firm that has breached the contract. So, it can be considered that for the parties to complete the deliveries, etc. in a particular amount of time so that no further operation or service can get delayed and also, no party has to face the legal consequences of the same.

Entire contracts rule

English contract law is considered as the regulation that involves some specifications that are to be followed while making an agreement. There are various regulations made and developed in the contract laws that need to be implemented by the parties while making an agreement because, by such means, they can stay aware of the consequences they have to face in case of any delay or complication. It is because it helps in making the whole process much clearer between the two parties so that they may stay aware of the consequences if for some reason they are not able to perform the operation etc. It helps in providing a valid agreement to the people so that the individual can have trust in that and can continue their operations. Also, in case of any breach, etc., the party might have to face legal consequences of the same.

Extent of respective obligations

The extent of the respective obligations is considered as the fact that if an agreement is made between two parties, it is the responsibility of both parties to value the agreement so that the other party might not have to face any further issues. There are an enormous number of factors that are to be valued by both parties so that the processing of the operations and services can be done in an efficient manner. A very common example of this can be considered as the fact that if one party has to deliver a range of services or products to the other one, they should ensure to provide and deliver the same by the given deadline. It is important because if the products or deliveries are late or delayed because of any reason, then they might face some sort of loss from the customer's end. This can also affect the image and popularity of the firm. So, managing such factors can help in maintaining and providing a precise rate of performance to the other party in a contract.

The doctrine of substantial compliance

It considers the fact of substantial performance. It means that if from one party's end, a successful attempt has been made to complete the requirements for efficient delivery but due to some genuine reasons or factors, they have failed to achieve all the specific criteria even in the final result as if the basic objective has been achieved but lacks some few criteria's due to some reasons, it will be treated as a completed agreement (Allen, Ellington and Yackenovich, 2016). Thus, both parties should ensure that even if because of major issues or complications, some criteria have not been fulfilled, the basic aim should be achieved.

Breach of contract vs. breach of Warranty

Breach of contract and of warranty can also be classified as major issues if any one of the two parties fails to provide the requirements even after the agreement has been made. There is a smaller difference between the two. Breach of warranty is considered a sort of failure when the promises and the claims have not been achieved by the seller. It is common enough that at the time of purchasing products etc., usually the seller provides a warranty for them as well. So, in case of any complication with the product, if the seller does not revert back, then it can be considered as a breach of warranty. Breach of contract means when a party even after making the agreement and contract, does not fulfil the obligations associated with the contract, then it can be termed as breach of contract. Both of these can also be considered as one of the major issues that can somehow have a poor influence on achieving a precise and exact performance rate with the other party involved.

Analysis of issues raised including evidence.

A study has determined that the duty of performance within many contracts is analyzed as contingent upon the occurrence of a designated condition or promise. A contract is identified as a legal document that contains all important terms and conditions that need to be fulfilled by parties after the agreement is enforceable by law (McKendrick, 2014). A condition is identified as an act or an event other than the lapse of time that usually affects a duty to render a promised performance which is specified in a contract. In a contract, parties are liable to perform the duties that they have mentioned in the agreement and also need to follow the terms and conditions.  Further, a contract becomes discharged through the performance where both the parties to the contract have fully performed their contractual obligations (Chen-Wishart, 2012).  Moreover, If one of the parties under the contract does not fully perform the contract then this will amount to a breach of contract and the other party to the contract can also have the right to claim for damages unless the legal contract has been frustrated by the law.  Moreover, if the nonperformance of the contract accounts for a breach of condition then the other party to the contract will be released from their obligations. As per the contract law, parties to the contract are required to communicate the terms of the contract clearly prior to performance (Poole, 2016). The present contract is also based on an analysis of issues faced by parties for non-performance of the contract. Where the contract is analyzed as one where the prices have been payable on the completion, the completion is generally needed in order to discharge the business contracts.

In addition to this, a contract is often expressed within the terms of the contract being a situation precedent.  Apart, the completion points out the need for payment for non-completion and non-payment.  This general rule was applied by a court in the case of Arcos v Ea Ronaasen &Son[1933] AC 470. Which clearly determines the consequence faced by the seller for non-completion of a contract (Macaulay, 2018). In this case, the judiciary held that the buyer in the contract for sale had the right to demand the goods of certain specifications which is mentioned agreement. Also, the party is not legally bound to accept goods that do not match the specification in the contract merely due to them being merchantable or commercially equivalent to that important specification. 

Moreover, the fact behind the judgment provides an understanding that there was an English buyer who concluded a business contract for selling the staves of timber wood from the English Agents of one Russian business enterprise (Managa, 2012). The buyer was purchasing the staves for creating some cement barrels and he has also specified the seller in agreement that he wanted staves of Russian redwood and white wood. It was also clearly specified by the buyers to a company that staves must contain a thickness of half one inch. Further, facts determined that the contract was breached by the Russian company because some staves that they delivered to buyers did not have a thickness of half one inch but they were slightly out. 

The facts of the case also state that a large number of staves which is delivered were over the required thickness and buyers rejected those staves and returned to the Russian company by saying that they did not match the contract's requirements.  For resolution, the method of Arbitration was selected by the parties. After analysis of facts, Arbitration also identified that staves were presently commercially within and can be merchantable under the contractual terms because they are considered and remained actually fit for the purpose of creating the cement barrels, thus the buyers cannot reject them. 

Moreover, a problem that occurred in the contract was whether the buyer had the right to reject goods which do not conform to terms and conditions along with specifications mentioned in the agreement between parties under contract for sale or not because the goods were commercially within and marketable within the contractual description (Forlatim, 2012).

The court held that the staves should match with the contractual specification on which the parties agreed and a contract will not be constructed as to add qualification to the commercial equivalence which is not otherwise being stipulated. Moreover, according to facts, the contract for the staves of Russian timber wood did not provide elasticity within its terms and clearly specified the requirement of the thickness of Russian wood. Judiciary conveyed that as the staves do not conform to the contractual specification, despite the possibility of staves commercial equivalence and interchangeability within the contract, the buyer has the right to reject the goods.

Along with this, Substantial compliance with the contract implies the level of conformity with the requirements of participation just like any identified deficiencies that do not impose any greater risk to the party's health and safety than within the potential of causing minimal harm.  Analysis of substantial compliance to contracts also provides an understanding of the issues related to the liability of parties under non-compliance with the contracts (Ceil, 2015). Moreover, the compliance with the substantial or essential needs of a contract of something that is satisfies its purposes or objectives also when its formal needs are not effectively complied with substantial compliance.

Rather, parties also faced various issues for breach of contract and warranty in contract for sale of goods and services. Contracts are formal agreements that are formulated between the parties and outline the obligations that are required for each (Stone, 2013). As it was previously identified there is a major difference between the breach of contracts and warranty, therefore issues that are raised will also be different. Moreover, the issues of contract can also be considered in case BOON v. EYRE (1779) 96 ER 767) which is concerned with the concept of condition which is precedent. In this, the court held that the distinction is very clear because where the mutual covenants go towards the overall consideration for both parties then they held as mutual conditions, the one precedent towards the other (Howells and Weatherill, 2017).  Moreover, the parties can only move to a part, where the breach of contract may paid in for the damages and the defendant party in the contract has the remedy to claim payment for damages and shall which is pleaded as condition precedent. If this plea is required to be allowed any one person who is not in relation with the plaintiff (Boone v Eyre (1779), 2013). Moreover, the facts of the case clearly provide an understanding that the plaintiff party has sued the defendant party for non-payment of £160 annuity amount for the plantation in the West Indies which has come with the group of slaves after the initial payment of the amount of £500 (Klein, 2012).  Apart from this, the defendant party in the contract has inclined that when the plaintiff engaged in the contract, he did not have legal possession of the slaves and therefore he did not have a good title. Therefore, the defendant party has argued that he has the right to terminate the contract.

Both cases clearly define that issues that were raised between the parties were legally correct and can be in favor of the defendant parties in a contract. The contract must be discharged between the parties when the parties fully accomplish their obligations (Hervás-Oliver and Peris-Ortiz, 2014). In the first case, the obligation was not completion was not completed by the party therefore the company faced damages against the non-compliance of contract terms and conditions. Thus, it can be said that up to the extent, both the parties to the contract can insist on exact and precise performance of a condition in the contract.

In this case law, it is clearly analyzed that parties can only discharge from a contract when they will accomplish their obligations. There are various factors that need to be focused on while achieving a precise rate of performance of a specific condition in a contract. A contract can be enforceable when the parties in the contract have a clear understanding of terms and conditions.  if the non-performance of the contract account for a breach of condition then the other party to the contract will be released from their obligations. A very common example of this can be considered as the fact that if one party has to deliver a range of services or products to the other one, they should ensure to provide and deliver the same by the given deadline. Moreover, the case of Arcos v Ea Ronaasen &Son[1933] AC 470 provides a clear understanding that the buyer is entitled to reject the goods as they did not conform to the contractual specification, despite their possibility of having commercial equivalence and merchantability under the contract. Analysis of substantial compliance to the contract also provides an understanding of the issues related to the liability of parties under non-compliance with the contracts.

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