For maintaining an exact and precise performance rate in an agreement so that an effective and appropriate range of objectives can be achieved, there are some aspects that are need to be ensured by both the parties. So, after making an agreement between two parties, it is essential to follow all the guidelines and rules so that the other party does not have to undergo any further complication or issue (Briggs, 2015). Also, there can be various issues occur as well that may restrict to provide a precise set of performance to the other ones but the fact that is to be ensured here is that for any such factor or breaching, the party also may have to face legal complications and that too at a huge extent. So, it is very important to perform as per the guidelines of the contract law so that it can result in an effective and appropriate processing. The report is about analysing different issues that restricts a precise performance rate and also preventive measures that can help the process to an efficient rate.
There are various factors that need to be focused 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 the 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 get disappointed. Also, in the contract if the organisation 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. It 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 the parties which can further help in preventing any further complication or issue. Some of the very important factors that are discussed before an agreement involves 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 organisation 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 reason 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 the parties should ensure the discussion about these factors before the agreement so that things can stay clear between both the parties. This can also help in reducing the rate of issues that happen because of this.
Consequences of non performance
For dealing with the 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 as the breach of contract because when one party does not receive the products or services till the deadline, they may have to face enormous number of issues (Kremen, 2015). Delay or lack of performance because of another party may throw 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 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 the 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 needs to be implemented by the parties while making an agreement because by such means, they can stay aware of the consequences they had to face in case of any delay or complication. It is because it helps in making the whole process much clear between the two parties so that they may stay aware of the consequences if because of some reason they were not able to perform the operation etc. It helps in providing a valid agreement to the people, so that the individual can have trust upon 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 are considered as the fact that if an agreement is made between two parties, it is the responsibility of both the parties to value the agreement so that the other party might not have to face any further issues. There are enormous number of factors that are to be valued by both the 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 in the given deadline. It is important because if the products or deliveries are late or delayed because of any reasons, then they might to 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.
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 the efficient delivery but due to some genuine reasons or factors, they have been 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 the parties should ensure that even if because of major issues or complications, some criteria's have not been fulfilled, but 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 failed to provide the requirements even after the agreement has been made. There is a smaller difference between the two. Breach of warranty is considered as 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 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.
Study has determined that duty of performance within many contracts is analysed as contingent upon the occurrence of a designated condition or promise. A contract is identified as legal document that contains all important terms and conditions that needs to be fulfilled 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 which they have mentioned in agreement and also needs to follow the terms and conditions. Further, a contract becomes discharged through the performance where both the parties to contract have fully performed their contractual obligations (Chen-Wishart, 2012). Moreover, If one of the party under the contract does not fully perform the contract then this will amount to the breach of contract and other party to contract can also have right to claim for damages unless the legal contract has been frustrated by the law. Moreover, if the non performance of contract account for 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 contract clearly prior to performance (Poole, 2016). Present contract is also based on analysis issues faced by parties for non performance of contract. Where the contract is analysed as one where the prices has been payable on the completion, the completion is generally needed in order to discharge the business contracts.
In addition to this, contract is often expressed within in the terms of contract being a situation precedent. Apart, the completion points out need of payment for non completion and non payment. This general rule was applied by court in case of Arcos v Ea Ronaasen &Son AC 470. Which clearly determine the consequence faced by seller for non completion of contract (Macaulay, 2018). In this case, the judiciary held that the buyer in the contract for sale was having the rights to demand the goods of certain specifications which is mentioned agreement. Also, the party is not legally bound for acceptance of goods which do not match the specification in contract merely due to them being merchantable or commercially equivalent to that important specification.
Moreover, the fact behind the judgement provides understand that there was an English buyer concluded a business contract for selling the staves of the timber wood from the English Agents of one Russian business enterprise (Managa, 2012). Buyers was purchasing the staves for creating of some cement barrels and he has also specified the seller in agreement that he want staves of Russian redwood and the white wood. It was also clearly specified by the buyers to company that staves must contains a thickness half one inch. Further, fact determined that contract is breached by the Russian company because some staves which they delivered to buyers were not having thickness of half one inch but they were slightly out.
Facts of case also states that large number of staves which is delivered was over the required thickness and buyers rejected those staves and returned to Russian company by saying that they did not match with the contract's requirements. For resolution, method of Arbitration was selected by the parties. After analysis of facts, Arbitration also identified that staves were presently commercially is 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, problem that occurred in the contract was whether buyer was having the rights to reject goods which do not conform terms and condition along with specification mentioned in agreement between parties under contract for sale or not because the goods were commercially within and marketable within contractual description (Forlatim, 2012).
The court held that the staves should match with the contractual specification on the which the parties were agreed and contract will not be constructed as to add qualification to the commercial equivalence which is not otherwise being stipulated. Moreover, according to facts, contract for the staves of Russian timber wood was not provided elasticity within its terms and clearly specified the requirement of thickness of Russian wood. Judiciary conveyed that as the staves does not conform to the contractual specification, despite of the possibility of staves commercial equivalence and interchangeability within in the contract, the buyer has the right to reject the goods.
Along with this, Substantial compliance of contract implies the level of conformity with the requirements of participation just like any identified deficiencies that does not impose an y greater risk to the party health and safety that within potential of causing the minimal harm. Analysis of substantial compliance to contract also provides the understanding about the issues that related with the liability of parties under non compliance with the contracts (Ceil, 2015). Moreover, the compliance with the substantial or essential needs of contract of something that is satisfies within its purposes or the 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 which is formulated between the parties outline the obligations which is required each (Stone, 2013). As it was previously identified that there is major difference between the breach of contracts and warranty, therefore issues which 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 distinction is very clear because where the mutual covenants go towards the overall consideration for both the 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 which is not in relations with the plaintiff (Boone v Eyre (1779), 2013). Moreover, the facts of the case clearly provides 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 amount of £500 (Klein, 2012). Apart from this, defendant party in the contract has inclined that when the plaintiff engaged in contract, he was not having the legal possession of the slaves and therefore he does not have good title. Therefore, the defendant party has argued that he has the right to terminate the contract.
Both the cases clearly defines that issues that raised between the parties was legally correct and can be in favour of the defendant parties in contract. The contract must be discharged between the parties when the parties fully accomplish their obligations (Hervás-Oliver and Peris-Ortiz, 2014). In 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 high the extent both the parties to contract can insist on exact and precise performance of a condition in contract.
In this case law, it is clearly analysed that parties can only discharge from contract when the will accomplish their obligations. There are various factors that need to be focused while achieving a precise rate of performance of a specific condition in a contract. A contract can be enforceable when the parties in contract have clear understanding about terms and conditions. if the non performance of contract account for 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 in the given deadline. Moreover, the case of Arcos v Ea Ronaasen &Son AC 470 provides a clear understanding that buyer is entailed to reject the goods as they not conform the contractual specification, despite from their possibility of having commercial equivalence and merchantability under the contract. Analysis of substantial compliance to contract also provides the understanding about the issues that related with the liability of parties under non compliance with the contracts.
You May Also Like-
- Contract Law in Business - Features, Benefits and Limitations
- Contract Cleaning in South Africa Sample
- Allen, J. S., Ellington, B. M. and Yackenovich, J. E., ServiceNow Inc, 2016. Autonomic SLA breach value estimation. U.S. Patent 9,444,696.
- Briggs, A., 2015. Civil jurisdiction and judgments. CRC Press.
- Ceil, C., 2015. Interpreting S. 13 of the Sale of Goods Act 1979. Browser Download This Paper.
- Chen-Wishart, M., 2012. Contract law. Oxford University Press.
- Forlati, S., 2012. Reactions to Non-Performance of Treaties in International Law. Leiden Journal of International Law. 25(3). pp.759-770.
- Hervás-Oliver, J.L. and Peris-Ortiz, M. eds., 2014. Management Innovation: Antecedents, Complementarities and Performance Consequences. Springer Science & Business Media.
- Howells, G. and Weatherill, S., 2017. Consumer protection law. Routledge.
- Klein, C., 2012. Re-Examining the Mount Laurel Doctrine After the Demise of the Council on Affordable Housing: A Critique of the Builder’s Remedy and Voluntary Municipal Compliance.
- Kremen, G., Clean Power Finance Inc, 2015. Methods, systems and agreements for increasing the likelihood of repayments under a financing agreement for renewable energy equipment. U.S. Patent 9,031,874.
- Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and Society Canon (pp. 155-167). Routledge.
- Managa, A., 2012. Unfulfilled promises and their consequences: A reflection on local government performance and the critical issue of poor service delivery in South Africa.
- Mason, K., 2016. Liability for damage to classic car: breach of the bailment agreement: Piper v. Hales. Art Antiquity & Law. 21(2). pp.193-197.
- McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
- Payne, J. and Howell, E., 2018. Financial Sanctions for Breach of Shareholders’ Duties.
- Poole, J., 2016. Textbook on contract law. Oxford University Press.
- Stone, R., 2013. Q&A Contract Law 2013-2014. Routledge.