StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Business Law - Joseph and Clara v Marshall and Edward - Case Study Example

Cite this document
Summary
The paper "Business Law - Joseph and Clara v Marshall and Edward " is a great example of a law case study. Using relevant case law, this essay offers advice to Joseph and Clara regarding their legal rights and/or obligations and examines the probability of either Edward or Marshall succeeding in taking legal action against Joseph…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful

Extract of sample "Business Law - Joseph and Clara v Marshall and Edward"

Business Law - Case Study Name: University: Date: Business Law - Joseph and Clara v Marshall and Edward Introduction Using relevant case law, this essay offers advice to Joseph and Clara regarding their legal rights and/or obligations and examines the probability of either Edward or Marshall succeeding in taking legal action against Joseph. On 5th February 2017, Joseph placed advertised in the local newspaper seeking contractors with the best quote on relevant case law. He mentions that the deadline for submissions was 25th February 2017, three days after placing the ad, he gets a quote from Marshall, which categorically, states that the provider would not take any responsibility for workmanship defects. Joseph agrees to Marshall’s offer on 13th February 2017, whereby the agreed that he would commence the work the following day. Marshall started the work as agreed to cover 55% of the total work, but due to unforeseen events the floor collapsed because of flooding attributed to heavy rain. As a result of frustration, Joseph terminated the contract with Marshall and allowed Edward to complete the flooring. According to Joseph, Edward offered the cheapest quote, but had not received the email at the time he offered Marshall the contract. In this case, anticipatory breach comes about since there exists a contract but, before its completion date, it became clear to Joseph that Marshall cannot fulfil his side of the agreement. Argument The Australian contract law considers every contract as valid and applicable unless proven otherwise. In the contract between Joseph and Marshall is binding and valid because the offer made by the latter was definite and accepted. Furthermore, Joseph acceptance was clear, and he communicated in a timely manner to Marshall (offeror). Both Joseph and Marshall showed some intention of creating binding legal relations.1 The Australia contract law offers some remedies when contract breach happens. In this case, Marshall is the innocent party and could be entitled to damages. In the common law, the remedy for contract breach is considered as a performance‘substitute’, which can be made available for losses suffered after the termination of the contract. In White and Carter (Councils) Ltd v McGregor case, some members of the House of Lords mentioned that a party could continue carrying out their contractual obligations even during situations where the other part has evidently repudiated the contract.2 When repudiation is accepted by the innocent party, the termination of contract happens on account of anticipatory breach. However, when the innocent part (Marshall) rejects the overtures of repudiation, then as held by House of Lords, the contract will remain binding on the involved parties. For this reason, the parties must continue to perform their part of the agreement legally.3 In White and Carter case, Lord Reid established that there are some qualifications that could limit continued performance following repudiation. The ‘legitimate interest’ test is the first qualification, which inquires whether the party that is not repudiating has a ‘legitimate interest’ in continuing to perform their end of bargain despite the unequivocal repudiation of the other party. Commentators together with jurists have almost collectively criticised the White and Carter approach as well as legitimate interest test for the possible grounding of unjust and anomalous outcomes as well as creating a legal test where considerations are more concealed as compared to revelations.4 The second qualification is good faith, which is widely acknowledged and used by courts in Australia in both contractual performances of terms and pre-contractual. In the Australian contract law, good faith is considered as a sophisticated as well as a mature concept representing a well-adapted and viable legal tool for handling criticisms and shortcomings related to the legitimate interest test. Even though Joseph and Edward appear not to be having a binding contract, the Hochster v De La Tour case expands the contract breach notion to situations where the actual performance date is yet to arrive.5 The anticipatory breach was heralded from this case, and it requires one party (by deed or word) to terminate the contract. Regardless of whether the termination was by deed or word, the party repudiating must demonstrate a clear intent that the other party is unable or unwilling to fulfil their contractual obligations. Another requirement for anticipatory breach is that repudiation should be accepted by the innocent party; as a result, the contract is terminated before the completion data. Joseph as the repudiating party compelled Marshall, who is the innocent party to end the contract by insisting that he should never come back. In the case, Macmahon Mining Services v Cobar Management, the defendant (Cobar Management) contracted the plaintiff (Macmahon Mining Services) for designing as well as construction works at Cobar’s copper mine in New South Wales.6 After two years into the contract, Cobar Management terminated the contract. In this case, Macmahon Mining Services hold that the contract termination was not valid and emphasised that Cobar Management’s termination letter comprised contract repudiation. Subsequently, Macmahon Mining Services notified the Cobar Management the repudiation was accepted as the way of discharging the contract. Macmahon took legal action against Cobar for damages.7 Cobar (the defendant) decided to depend on the exclusion clause of consequential loss, which states that irrespective of everything in this contract, both parties will not be liable to each other for any Consequential Loss. Consequential Loss can be defined as any profits or loss, losing a contract. Amusingly, the contract between the two parties also had a clause of termination for convenience that allowed Cobar to terminate the contract for any reason, whereby Cobar had to compensate Macmahon for 'loss of profits'. In view of this case, it is clear that contract between Joseph and Marshall did not have an all-embracing and clear clause that could be utilised after termination of the contract. The defendants, Joseph and Clara could argue that Marshall and Edwards (plaintiffs) are depending on asserted but non-existent breach of contract. Akin to Cobar Management and Macmahon Mining Services who had created a careful bargain, where they offered means of allocating liabilities, Marshall only relies on the workmanship defects clause that prevents Joseph from recovering losses brought about by defects in workmanship. This can be described in details by Iggleden & Anr v Fairview New Homes (Shooters Hill) Ltd case, which was attributed to construction-related defects. In this case, Fairview sold a new house to Iggledens, and clause 5 of their contract indicated that the house was supposed to be built in a workmanlike and proper manner.8 Numerous defects surfaced after Iggleden purchased the house, and although some defects were corrected, some remained. For instance, the driveway had some defects. (Andrews). The judge had to take into account whether the claimants were reasonable to prevent the defendant from coming back to the property in order to carry out some repairs. It was established that the defendant had originally failed to construct the property properly as agreed in the contract and but was willing to carry out complete remedial works that were deemed necessary. Therefore, it was not reasonable for the plaintiffs to state that after more than five years, the defendant was not welcomed to their property to carry out further remedial works. Certainly, the contract must allow the contractor to remedy the defects. The case of Joseph and Marshall is akin to that of Pearce & High Limited v John P Baxter and Mrs A S Baxter, whereby the judges in the Court of Appeal concluded that if the contractor (Marshall) is denied an prospect to remedial works then the employers (Joseph and Clara) will hardly recover the total costs they incur to employ another party (Edward) to perform the repairs and complete the work.9 That is to say, the failure by Joseph to allow Marshall to perform the repairs it would be more costly to hire Edward to complete the job. Still, Joseph can utilise the doctrine of frustration as a counterclaim since the performance of the contract was affected by heavy rain, which was unanticipated by both parties. Clearly, the courts would likely be sympathetic because of severe storm, made it impossible for them to receive Edward email and heavy rain destroyed the work that Marshall had done. Basically, both events were not anticipated and were not included in the contract.10 When defendants and plaintiffs were creating the contractual relationship, they were certain that all the parties would fulfil the contract’s terms and conditions.11 Joseph frustrations were justified and can be used as a counterclaim. Conclusion In conclusion, it is the obligation of the contractor to perform and complete the works in a workmanlike as well as proper manner. Whenever defects surface, the employer must allow the contractor to make repairs. The workmanship and materials were within the standards highlighted in the contract. A counterclaim against Marshall can be based on the doctrine of frustration whereby the contract nature changed due to an unforeseen event, and which could not be controlled by both contracting parties. Clearly, the agreement had to be terminated because of frustration since the obligations were radically changed by heavy rains to the extent that the main intent of the contract did no longer exist. Lack of contractual provision that handles unforeseen event such as severe storm and heavy rains resulted in Josephs’ frustration. Bibliography Articles and Books Andrews, Neil. Contract Law, Cambridge (University Press, 2011). Clarke., Julie 'Discharge by Frustration' Australian Contract Law (Online), 2010 . Dahdal, Andrew, 'Good faith and Post-Repudiation Conduct' 2015 40(1) University of Western Australia Law Review 73. Glover, Jeremy, Liability for Defects in Construction Contracts - who pays and how much? (Fenwick Elliott, 2008). Loel, James, 'Termination Of Contracts Due To Frustration' Lillas & Loel Lawyers (Online), 2 September 2015 . James Morgan-Payler, 'Exclusion of liability for consequential loss in infrastructure contracts' Mondaq (Online), 2 September 2014 . Toombs, Dan, 'Contracts In Australia' LawBuddy (Online), 8 August 2013 . Cases White and Carter (Councils) Ltd v McGregor [1961] UKHL 5 Hochster v De la Tour (1853) 2 E & B 678 Macmahon Mining Services v Cobar Management [2014] NSWSC 502 Iggleden v Fairview New Homes (Shooters Hill) Ltd [2007] EWHC 1573 Pearce & High Ltd v. John P Baxter and Mrs A Baxter [1999] BLR 10 Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Business Law - Joseph and Clara v Marshall and Edward Case Study, n.d.)
Business Law - Joseph and Clara v Marshall and Edward Case Study. https://studentshare.org/law/2087232-business-law
(Business Law - Joseph and Clara V Marshall and Edward Case Study)
Business Law - Joseph and Clara V Marshall and Edward Case Study. https://studentshare.org/law/2087232-business-law.
“Business Law - Joseph and Clara V Marshall and Edward Case Study”. https://studentshare.org/law/2087232-business-law.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business Law - Joseph and Clara v Marshall and Edward

Ethical Issue

Now more than ever, contemporary society expects sustainability, responsibility, and sensitivity to societal needs from companies and this challenges business to go beyond the predominantly economic view to take into account the wider context (Morschett, 2010, Pp.... This dissertation "Ethical Issue" perfectly describes that this dissertation presents the results of an effort to examine if corporate social responsibility policies can offset the impact of activities that present harm to the environment and society....
30 Pages (7500 words) Dissertation

The Ruby Ridge Incident: Abuse of Force or Standard Operating Procedure

marshall were killed, over 450 armed police... The Ruby Ridge incident presents a challenge to law enforcement officers in the United States and the world relating to the proper response and show of force in regard to the apprehension of terrorist subjects.... The use of special operations and military force in police operations can lead to “stand-off's” and “sieges” like the Ruby Ridge incident in which innocent civilians died, wrongly targeted by law enforcement....
9 Pages (2250 words) Research Paper

Role of Supreme Court under the direction of John Marshall

John marshall was a nationalist.... Role of Supreme Court under the direction of John marshall John Marshal, chief judge in the Supreme Court, made several rulings with regard of protecting business.... John marshall was a nationalist.... McCulloh, the Supreme Court through marshall's verdict asserted that the federal government retains the power to tax the new national bank since its powers are constitutionally right.... In 1810, marshall made a ruling between Fletcher v Peck insisting that businesses should avoid breach of contracts if they are to succeed....
2 Pages (500 words) Essay

The First African American Justice in the US Supreme Court

Thurgood marshall INTRODUCTION Thurgood marshall was the first African American Justice in the US Supreme Court.... Thurgood was named Thoroughgood marshall by his parents after his great-grandfather who was a former slave in the Civil War for Union Army (United States Postal Service, “Thurgood marshall”).... His father, William Canfield marshall was a railroad porter and a chief steward in a club of white people of America....
7 Pages (1750 words) Research Paper

Thurgood Marshall

Instructor Date Thurgood marshall Thurgood Mershall left behind a notable legacy of shaping and transforming the American society.... It was through marshall that the American courts eradicated slavery and destroyed racist segregation systems.... Later in his life, President Johnson Lyndon recognized marshall Position to defend equality and thus, gave him the position to defend the civil right of all Americans.... In 1967, the President nominated marshall to be the associate judge in the Supreme Court....
5 Pages (1250 words) Research Paper

The Marshall Plan Today

The marshall plan which was officially known as the European Recovery Program(ERP) was an initiative developed by America at the end of WWII whose aim was to help the European economies to recover hence overcoming the soviet communism which threatened to take over(DeCONDE, 2002,....
5 Pages (1250 words) Research Paper

George C. Marshall by Mark Stoler

marshall by Mark Stoler' the author analyzes a compact biography of American soldier George C.... marshall.... In this book, Stoler covers the distinguished career of George marshall in detail.... In his book Stoler presents a great historical work on George marshall.... Pogue, who was marshall's official biographer.... Book review on George C marshall by Mark Stoler Insert Insert Insert Insert Book and introduction This book is a compact biography of American soldier George C....
1 Pages (250 words) Book Report/Review

The U.S. Marshals Service Law Enforcement and Policing

Marshals Service law Enforcement and Policing" describes the many facets of the U.... Marshal Service as a local law enforcement agency.... It also aims to present facts that would help people from different nations compare USMS to their own local law enforcement agency, thus providing a venue for process and implementation enhancements.... Marshals Service is the nation's oldest and most versatile federal law enforcement agency....
7 Pages (1750 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us