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LAW AND CONTRACT

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LAW AND CONTRACT

 Task 1 (PAC 2.1 and 2.2)

In case of Butler Machine Tool v. Ex-Cell-O Corp 1979 UK, their lies an essence of modern ways of doing business.  As per the case, both buyer and seller dealt with each other according to the standard form for doing a business that is thinking about the details of the transaction unless something uncertain takes place. That is in case of any uncertainty, each appeal of their forms tries to settle the matter in a legal manner (Azhar, 2017). The case of Butler Machine Tool v. Ex-Cell-O Corp 1979 UK, Ex-Cell-O wished to purchase a machine from Butler and there were required communication made for the quotation of £75,535 and their standard terms of sales. However, throughout their legal communication emphasis was made in terms of a price variation clause and a term that seller's term, would prevail over any of the submitted terms by the purchaser. There was a clear disagreement made by the purchaser for the consideration of price variation clause. However, there was a slip being sent to the Butler for his signature expecting the slip to be returned back to the Ex-Cell-O. The slip also underpinned the fact of accepting the contract as per the aid terms and conditions. Thus, creating a communication misunderstanding, Butler delivered the machinery with the extra demanded price variation clause of £2,893 (E-lawresources.co.uk, 1979).

According to the traditional analysis, the quotation was an offer; the order was made through purporting the acceptance, whereas, the rejection of the offer was accepted as a substitute for a counter-offer. This counteroffer kills the original offer and gets accepted as the counteroffer by the seller. Therefore, the reconciliation made by the court for the above analysis was done by overlooking the traditional analysis. As the above case is a ‘battle of forms', there is a contract of forms being sent without objection (Poole et al. 2017). In order to decide the actual terms, one can accept the first, last or both the form as a final one and continue their business activities. However, the court reconciles a different trial judge. They considered the documents as a whole taking the last document as a decisive one. This made a clear conclusion for the fact of sale for the buyer and not the seller terms that was also devoid of any price variation clause (Poole, 2016). The very fact of a battle of forms should be conducted as per the set rules that have been known for the over 130 years (O'Sullivan and Hilliard, 2016). In case of Butler v. Ex-Cell-O, the quotation clause was killed by the counter offer though there was a letter referred to the quotations. This quotation only sheds light on the identification of machinery and its piece instead of terms and conditions mentioned earlier in the quotation. Therefore, through this cases analysis, the very fact of a battle of forms has been concluded by the buyer and not the seller by making the buyer to pay the price variation clause along with the quotation marked for the machinery.

Task 2 (PAC 2.1 and 2.2)

As per the mentioned case situation, the No problem Ltd agreed to install some air-conditioning in the accounts office of CM. The agreement was made £50,000, however, the workers walked out last month leaving the job half completed. The reason for leaving the job incomplete has been stated for the refusal made by the CM for the extra £20,000 along with the £50,000. In addition to the discussion, the above scenario falls under the ‘Breach of Contract’. However, the Breach of Contract highlights the situation where one party breaks in the case by not meeting the held contract and its conditions (McDermott, 2017).

In order to support the above case scenario, The No problem Ltd’, conducted an Acceptance of partial performance. The acceptance of partial performance is the condition where one party freely agree to accept partial performance and then a sum is payable for the work completed (Schmidt and Silkens, 2015). The above conclusion can be supported by the case of ‘Sumpter v Hedges (1898)’, that marks a clear agreement to build two houses and stables for the defendant. In this case, the claimant commenced performance and ran out of money leading to leave the job in an incomplete situation. Therefore, the claimant sought to recover £333 as the value of work he had completed.  The defendant thereby accepted the partial performance and paid for the partial completion of the tasks (E-lawresources.co.uk, 1898).

 

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