Contracts are agreements that are legally enforceable by law. Contract law is the branch of law concerned with the formation, interpretation and enforcement of agreements. It offers remedies for both parties if one breaches the terms of a contract.
Contracts are about apportioning responsibility and risk. Contracts for the engagement of contractors to design or produce something will typically define the standards to which the contractor has to operate. A problem can arise if the contract requires the contractor to comply with more than one standard where such standards Read more…
As mentioned in an earlier article (Good faith and the exercise of discretion in contracts) English law does not impose a general obligation of good faith in the performance of contracts. This contrasts with the position under many other legal systems including the United States. Developments over recent years now Read more…
Parties seeking to reach a compromise or settlement frequently mark correspondence “without prejudice” with the intention that such correspondence be off the record and not used in evidence in any legal proceeding. As one judge has stated, ” I have no doubt that busy practitioners are acting prudently in making Read more…
The “NEW FLAMENCO” was a small cruise ship built in Genoa in 1972. She was chartered to Globabia for a term due to end on 28 October 2007. The Owners and Charterers reached an oral agreement to extend the charter party term for a further two years so as to Read more…
In recent years there has been an increasing frequency of commercial contracts that include provisions requiring disputes to be the subject of amicable discussion before being the subject of arbitration or litigation. Such provisions may in part be intended to reflect the tone of the relationship between the parties at Read more…
The English Court of Appeal has issued a recent judgement[1] that may assist future applicants for an interim injunction (a court order prior to judgement) to restrain breach of a contract. The judgement appears to clarify an issue that has arisen where the contract concerned includes provision limiting or excluding Read more…
Wording excluding liability for “indirect or consequential losses” frequently appear in contracts. The familiarity of such wording tends to encourage acceptance and to obscure the fact that its meaning may be uncertain. What exactly does “indirect” or “consequential” mean in legal terms and how are they to be distinguished from Read more…
Guarantees are frequently used in connection with commercial and shipping transactions. A recent decision of the English Court of Appeal1 has revisited the important distinction between guarantees and demand bonds under English law. What is a guarantee under English law? Under what is properly called a guarantee the guarantor or Read more…