Topics: Contract, Contract law, Contractual term Pages: 3 (2000 words) Published: October 28, 2014

a. Identify the relevant legal issues/ problems.
For case (a): The relevant legal issue of case is limitation and exclusion of liability. A clause may be inserted into a contract which aims to exclude or limit one party's liability for breach of contract or negligence. However, the party may only rely on such a clause if (a) it has been incorporated into the contract, and if, (b) as a matter of interpretation, it extends to the loss in question. Its validity will then be tested under (c) the Unfair Contract Terms Act 1977 and (d) the Unfair Terms in Consumer Contracts Regulations 1999. When negotiating technology contracts, a customer may require that liability for negligence be excluded from the general contractual exclusions and limitations of liability. In this situation it is common, especially when dealing with technology suppliers or service providers based overseas or who are part of a global operation, for a suggestion to be made that only "gross negligence" or "willful default" should fall outside the liability exclusions and caps. For case (b): The relevant legal issue of case b is the relative importance of contractual terms. A contract for a sale of goods between businesses or between a business and a consumer may contain many terms that have important legal implications. Two commonly used types of contract provisions are conditions and warranties. While both conditions and warranties have important implications for the rights of the parties to the agreement, there are important differences between the two. In a contract of sale, a condition is something that must occur for the contract to take effect. If a condition is violated, the contract loses its force and becomes void. Warranty is a guarantee by the seller or manufacturer of a product that a particular factual claim about a product is valid. A warranty might read "this umbrella is guaranteed to not tear, rip or break for two years from the date of its purchase." This is known as...
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