Compensation In Case Of Breach Of Contract -Myassignmenthelp.Com

Question: Disuses About The Compensation In Case Of Breach Of Contract? Answer: Introducation The ACL is a body of laws that was created in 2010 to protect business traders and consumer needs. Basically, it was started by the Australian government in joint with the ACCC, ASIC and the State and Territory consumer protection agencies. a) From the ACL information that was published on 19th December 2014, the following law sections were breached (https://www.accc.gov.au/): Prohibition of an individual in trade or in commerce from engaging in misleading or in deceptive conduct, e.g. in marketing or advertisements (Dina et al, 2014). Prohibition against making false or misleading representations anywhere about the consumers rights, e.g. consumer refunds Prohibition against false or misleading information about the products or services the trading individual or group does, whether its the prices, quality, quantity etc. (https://www.accc.gov.au/about-us/australian-competition-consumer-commission/legislation). Prohibition of unreasonable changes in the contracts made between the consumers and the trading individual or group. For instance, changing the terms and conditions of the contract without notifying the consumers. b) The ACC took action against ACL simply because the organization had broken the laws that it was supposed to uphold. Being an organization that is responsible for taking care of consumers under the ACCs rules and regulations, the ACL failed to follow those laws and now had to be checked out. ACL did not uphold the laws relating to consumer rights, product/service they offered and the terms and conditions guidelines. The ACL failed to follow the guidelines in the ACC laws that dealt with consumer transactions for goods and services, the law that banned specific unfair practices in trade and commerce among other things. c) The ACC was trying to uphold the following consumer protections: Protection from being misled and deceived by ACL, e.g. false product/service prices, false refund promises. Protection from being mistreated and ignored, e.g. changing the terms and conditions agreed in a contract between ACL and the consumer. ACC and ACL undertaking Summary ACL promised never to engage in unfair practices during its trading operations, e.g. false and misleading consumers about product prices and characteristics and failing to follow the laws that governed consumers rights. ACL promised to adhere to the laws that governed their trading operations and transactions with their customers. For instance, follow the rule that governs voucher purchasers in relation to refunds being given. Communicate effectively and efficiently to their loyal consumers or rather subscribers regarding updates or possible changes to be made, that are related to its terms and conditions, communication should be done through emails as early as possible. Develop and implement an internal system that will help it to identify possible risks as early as possible and also reduce the risk of breaching the ACC laws. Provide a display of all the costs on a product or service including all mandatory additional charges if any. However, ACL should follow the rule and regulation on the exception of the delivery fee and the minimum charge at the time of publication when need be. ACL should use the comparison pricing statement that are clear, simple and easily understood when it comes to comparison of the savings to be received. Damages to the principles property This damage can includes things like demolishing and defects after construction. This damage can be mitigated by insuring all the property owned by the principal. For instance, insurance against theft, fire, invasions and other occurrences that may cause property loss (Issa, 2015). Damage to the Work under the Contract (WUC) This damage refers to all the activities and responsibilities being carried out during the construction. These includes the decisions being made and the consequences or effects caused by those decisions. This kind of damage can be mitigated by insuring the WUC as well as by seeking legal advice before entering into the contract. Damage to persons i.e. the contractor The contractor is the person in charge of the contract or rather the person supervising the contract. This damage can be reduced by insuring the contractor (e.g. taking up life assurance against upon death or injury) and insuring that there is legal counsel before the contractor enter the contract. Damage to the principal This is the person who funds the contract or basically the owner of the contract. Damage to the contractor can be mitigated through insuring themselves or their property e.g. life assurance or property against loss, fire, theft etc. Ways of Terminating a Contract Termination by insolvency. When one party informs the other concerning the terminations e.g. when the party funding the contract cannot fund any more. It is realistic to say that no contract can continue without having funding. Therefore, when the funding is cut off, a contract can be terminated without breaching the contracts terms (Al-Tawil, 2013). Termination for convenience. This is when the principal decides to terminate the contract when he/she deems best for them. Also, the contractor can be instructed by the principal to terminate the contract at whatever time he/she thinks is convenient for them. If the time period for the contract has reached. Every contract has a time schedule that is set for it to be completed (Dief et al, 2016). Therefore, when that time reaches, the contract is deemed to end automatically. Termination by frustration. This is when the parties realize that the contract has no hope of completion or success and therefore they end up terminating it. Clauses Dealing with Contract Termination Any party can terminate the contract when the contract period is reached. The principal should terminate the contract in case they realize that no funding is available Any party can terminate the contract if they realize that it has no hope for success or completion. The principal can terminate the contract whenever they feel like, but should ensure all payment is made to the contractor. Steps to resolve a dispute A dispute between the principal and the contractor should be resolved within a period of 28 days. Steps to follow (Mohamed et al, 2014 Chaphalkar and Patil, 2012): Purpose Tenure of the board Disclose the statement Selection process Provision of contract copy by the contractor and principal Conduct meetings and visits Review disputes Conduct deliberations Recommend for the resolution Acceptance or rejection of the dispute Clarification and reconsideration if resolution is not reached Admissibility Resolution fee payment References https://www.accc.gov.au/ https://www.accc.gov.au/about-us/australian-competition-consumer-commission/legislation Al-Tawil, T., 2013. Damages for the Breach of Contract: Compensation, Cost of Cure and Vindication.Adel. L. Rev.,34, p.351. Chaphalkar, N.B. and Patil, S.K., 2012. Decision support system for dispute resolution in construction contracts.KSCE Journal of Civil Engineering,16(4), pp.499-504. Dief, M.I.A., Almedalah, K.Y. and Elwan, A.S., 2016. Practical Guide for termination of construction projects: Hands on application in FIDIC and NEC3 Contracts. Dina, M, Dover, Y and Chevalier, J. 2014. Promotional Reviews: An Empirical Investigation of Online Review Manipulation. American Economic Review, 104(8): 2421-55 Issa, M.R., 2015. Damages and Compensation in Case of Breach of Contract.International Journal of Social Science Research,3(1), pp.190-201. Mohamed, H.H., Ibrahim, A.H. and Soliman, A.A., 2014. Reducing construction disputes through effective claims management.American Journal of Civil Engineering and Architecture,2(6), pp.186-196.