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Trong trường hợp thứ hai của kịch bản, Macmahon khai thác dịch vụ và quản lý Cobar sống bên một thiết kế và xây dựng hợp đồng cho sự phát triển của Cobar đồng ở Edinburg mỏ và hợp đồng được ký kết với hai năm. Tuy nhiên, ít hơn hai năm hợp đồng, Cobar thông báo rằng họ sẽ chấm dứt vì Macmahon vi phạm điều kiện.As task 1.3, it discussed term of contract. From that, express term in the contract between Macmahon with Cobar is that has to design and construct agreement for the development of Cobar’s copper mine in Edinburg in two years (scenario, p.4). It is shown those terms of contract were clearly and specific includes of content and time. Therefore, there was a valid contract. However, less than two years into the contract term, ‘Cobar issued a notice for termination to Macmahon, relying on contractual provision entitling the party to terminate forthwith for breach, if the breach was a breach of condition’. The reasons in order to Cobar terminate the contract is unclearly. Cobar did not present specific what contractual provision is a breach of condition. Because of the breach of Macmahon also can be a breach of warranty. Breach of condition and breach of warranty are different elements. As the case of Poussard v Spiers 1876 (Aspect of Contract and Negligence for Business, 2007, p.111), the breach is a breach of condition, because the singer was not to sing on the opening night, which night was very important for the producer, so that this action causes to damages. But, in the case of Bettini v Gye 1876 (Aspect of Contract and Negligence for Business, 2007, p.112), this case is different with the case of Poussard v Spiers 1876. Even though they also were not to sing, Bettini did not sing before the opening. Thus, she just breach of warranty. Depending on cause the breach is breach of condition or breach of warranty. Therefore, Cobar cannot terminate the contract because of contractual provision that is not clearly. This evidence is not enough to bound Macmahon is breach of condition, lead to terminate the contract immediately. Thus, Macmahon has the right to claim compensation. Because Cobar’s action about terminate forthwith, cause damages for Macmahon ‘loss of opportunity to earn profit’. The time of contract is two years, but less than two years, Cobar notified termination of contract. Thus, ‘Macmahon claims that had the contract continued to completion it would have made substantial profits. It is therefore suing for £67,000,000 loss of profit’. This is reasonable for the damage of Macmahon.However, Cobar dismissed the claim by Macmahon for loss of opportunity to earn profit because of base on clause 18.5 of the contract which provides: ‘Despite anything else in this contract, neither party will be liable to the other for any Consequential Loss.’ This clause is not mention to the term of termination. Moreover, Cobar had never discussed or negotiation with Macmahon about the terms of termination and legal liability of two parties when termination of contract in the Consequential Loss. Therefore, Cobar uses the clause 18.5 is void. According to onerous term in exclusion clause, the case of Interfoto Picture Library Ltd v Stiletto Visual Programmes Ltd 1988, the term was not incorporated into the contract, because this term was not highlighted before. Cobar was not highlighted for that Consequential Loss allowed applies in the circumstances that any party when unilateral termination of contracts. Moreover, Cobar had never negotiation with Macmahon that if termination of contract by any party, it can exempt the liability about compensation for damage. Thus, this term is void. In addition, the Consequential Loss mentioned that ‘One of the exceptions this overall limit on liability was wilful misconduct.’ Cobar issued a notice of terminate forthwith for breach and did not explain detail about breach. Cobar’s action can understand is wilful misconduct, cause the damages for Macmahon ‘loss of opportunity to earn profit – £67,000,000’. This is exception and no belongs to Consequential Loss. Hence, Macmahon must claim for this damage. According to the Unfair Term in Consumer Contracts Regulations 1999, there is a concept of unfair that: any term which cause a significant imbalance in the parties’ right and obligation under the contract to the detriment of the consumer (Aspect of Contract and Negligence for Business, 2007, p.129). Consequential Loss will be term unfair with Macmahon. Because of the termination of contract of Cobar cause many damages for Macmahon. It may lead to bankrupt, so that this term is imbalance. Apply the Unfair Term in Consumer contracts regulations 1999, this exclusion clause is invalid. Thus, the liability of Cobar must compensation for damage with Macmahon. Moreover, Cobar terminated the contract before the time limit of contract from two years down less than two years. This is also breach of contract. According to (Aspect of Contract and Negligence for Business, 2007, p.125) that in the Unfair Contract Terms Act 1977, the Act applies to clause that attempt to limit liability for breach of contract. Therefore, the loss of opportunity does not belong to Consequential Loss, so that Cobar must compensation for Macmahon is £67,000,000.
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