Business Law: Man U Break Clause Rooney

Topics: Contract, Manchester United F.C., Contractual term Pages: 3 (1165 words) Published: February 9, 2013
'Manchester united Footballer Wayne Rooney signs new contract worth £30 million'. Discuss the essentials of such a contract with particular reference to the function and efficacy of the 'break clause' and 'confidentiality agreement' it contains. 1,500 words.

Guidance: You do not have to discuss Wayne's actual contract; you do have to discuss the essentials of a contract. You must discuss express terms.
What is a 'break clause'? What is a 'confidentially agreement'? What is the purpose of such clauses?
Do they protect the parties to the contract?
Do not forget to cite case law.
The issue that will be discussed in this essay is the break clause/exemption and confidentiality agreement with regards to Wayne Rooney’s contract with Manchester United. An exemption clause, like any other term, will be incorporated into a contract if it is contained in a signed document; this was shown in the case of L’Estrange v Graucob (1934) where the purchaser of a vending machine was bound by a very wide exemption clause contained in the small print on the order form which she had signed. A break clause is a term in a tenancy agreement that allows a tenant to leave before the tenancy period comes to an end, without incurring any financial penalty. It is not unusual for a contract clause regarding proprietary information to also be included in many types of agreements. Break clauses are inserted as standard in contracts in Spanish football, and are generally related to the total wages the player will earn throughout his contract. The insertion of a break clause gives the player (Rooney) the freedom to move if his valuation is met, but it also protects the club against players who try to force cut-price deals’. In terms of Wayne Rooney and Manchester United FC, ‘Wayne Rooney is thought to have negotiated a break clause in his new five-year contract with Manchester United’ says an article in the Times. The striker can leave for as little as £30 million if certain targets are...
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