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Business Law

Autor:   •  February 29, 2012  •  Essay  •  458 Words (2 Pages)  •  1,065 Views

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Business Law

Issue: CP liable for loss??

- $30 000 (salary)

- $170 000 (work stoppage)

- $150 000 (project fees)

Law: Breach of contract

- RDC concrete v. Sato kogyo

- Clearly does not provide for termination

- Either party renounces, condition breached or consequences are serious

- In this case condition is breached (warranty breached but consequences serious)

- Expressed terms – oral/written

- Implied terms (since it is not given in the context)

- Officious Bystander's test : used for implied terms

- Any breach/trivial consequences = can still claim for damages/

- If it is a warranty, ESN cannot terminate the contract, otherwise it would be in the position of breach of contract. (WHAT IF… SITUATION does not call for termination)

Issue: claim for $30000

Law: Causation/Reasonableness/Mitigation/Assessment

Causation – Hadley v. Baxendale

Limb 1:

Limb 2:



ESN: employment of staff due to breakdown of system

CP: not due to the breakdown that caused the employment of staff (simply YES/NO argument

)MITIGATION/ do we need this extra staff? Can we just pay existing staff? : CP: can make current staff work overtime

Given that they had given money to hire extra staff, is the presence of the extra staff due to the breakdown of the system (BUT FOR TEST)


ESN: natural result of the breach (LIMB 1) imputed knowledge

CP: did not know that extra staff would have to be employed

Issue: $70K




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