Rules and Laws Adapted in Contract Forms - Assignment Example

Law Case Study Student’s Name Course code and name Professor’s name University name City, State Date of submission Law Case Study Question 1 Rules and laws adapted in any contract forms an essential base for economic activates and gives the two companies discussed in the case study certainty as well as predictability required to be able to trade with confidence. SCT company is hiring DB to manufacture a crane for them , which is to include some technological specifications. For example, use of a certain kind of software (Rutledge, Peter, Drahozal, and Christopher, 2013 p 63). The two companies should have consulted their IT/ST departments in order to be guided on the right procedures to follow to be able to make the contract effective. This contract required the two companies to check on the quality of the crane, language of the software , and financial rules for the contract to work out successfully. The two parties are from different companies and the system being manufactured was to be used by a number of parties(Abusharekh, & Shamisi, 2011 p 46). Therefore, all the legal requirements abiding to language barrier needed to be adopted. For example, for the contract to be successful the system made was required to have a software instilled in the crane to enable the one operating it have a variety of languages to choose for effective performance. However, all the specified languages were not included which was evident when the product was fully delivered to SCT. Another legal aspect that the two companies needed to adapt to was on financial grounds. According to the case study, SCT was required to pay 85% of the project to complete the other amount once the crane DB delivered the crane. Therefore, adopting to the necessary legal terms on the method and currency used was an important aspect to determine on the success of the contract(Abusharekh, & Shamisi, 2011 p 32). Finally, the final aspect on laws was on the choice of the law to adapt to between the two companies. Choice of law should be clearly specified on the contract otherwise DB legal rules would be adopted because the two companies reside in different countries. It would deem unfair to other company once the laws adopted are not favorable to them and my result in contract dispute be unfairly judged SCT has already suffered a big blow because it had invested in the project and had full trust on DB providing them with a crane that would turn their theories into profits. The two parties should also have made sure that their contract was done in writing .For example, the kind of project or contract they had signed was not to take some time and it required some writing according to fraud and federal laws(Jewels, & Albon, 2013 p 141). Another very important legal aspect was to ensure that the contract was legal(Lu, tiffany, 2013, p 729-750) .This was important because incase a contract breach occurred it would be enforceable by the court. Question 2 In this case study the two external contractors actions can be deemed unethical and SCT could have passed specific laws to govern the operation of the two contractors. The contractors were being paid handsomely well ,but their performance was not as required(Dimatteo, and larry, 2013 p 105- 158). According to deontological laws on ethics, laws are important because they ensured that the two contactors followed absolute rules whether they led to the success of the project or ill consequences of the contract. It was important to calculate the salary to be paid to the contractors only in line with the actual number of hours that they performed work on the project(Jewels, & Evans, 2005 p 90). It is clear that the contractors actions decreased the aggregate utility of the project therefore, strict job specifications were needed to be set to ensure that their performance was right meaning that it increased the aggregate utility of the company’s project. The contractors goes a head and gives secrets about DB contract to a certain client leading to the cancellation of DB contract later. This is unethically wrong because they take the responsibility of the management and gives wrong information to clients spoiling its customer loyalty. According to deltiologist, these contractors universality needed to be addressed with great concern. This meant ensuring that they followed behavior rules that are applicable to all people in the job environments. Another actions was on insisting on their rationality, that is ensuring that there was logical determination of ethical behavior among the two contractors. Finally, ensuring that the two contractors interacted well with all parties in the working environment(Matvos, gregor,2013 p 105- 158 ). For, example, the interaction between the two contractors and company clients is not the right one because it is initially lowering the aggregate utility of the company(Jewels, & Evans, 2005 p 67). It was very unethical because DB hired the two contractors having in mind that they were inexperienced and it was hard for them to deliver quality services according to what SCT had specified. DB company quality factors were questionable because its quality control department was not functional again making it very unethical to enter into a contract having in mind that they were not able to deliver quality products as expected. Question 3 The two broad legal issues in this case study are based on the international contract proceeding and contractual disputes like the ones that have showed up between SCT and DB companies. The two companies resides in different areas therefore, there is production of non abiding model contacts and lack of uniform mandatory rules governing the international community(Jewels, & Albon, 2013 p 89). In this case breach of contract is evident. The contract agreement is not fully met leading to the product delivered to SCT by DB be deemed as of low quality. It is note able from the case study that most of the software functionalities that were agreed upon when signing the contract were not included in the software. The other legal evidence is on financial aspect. SCT was to complete paying the remaining 15% once they received the device dually completed with all their specifications included. However, DB quality performance section is fully functional and they are not able to deliver what they had agreed on with SCT(Jewels, & Albon, 2013 p 109). This automatically brings contractual disputes requiring for legal consultations procedures. In this case one of these two companies will find its rights under the governance of foreign law which adds to the legal risk. Some of these legal risks and issues that are evident in this case study are on cultural environment and unfamiliarity of the law, stipulations of foreign contract laws among others. A contract breach has already been experienced in this case and as a result litigation can extremely be costly giving the company’s undesired bad exposure to especially in high profile cases. Question 4 The first step that SCT can take to ensure that the project does not fail is by trying and finding out whether DB can be forced by the court to abide to the contract terms and deliver a crane / fork that they had agreed upon. The contract that the SCT had signed with DB had all valid elements (Fishbein, & Ajzen 1975 p 45). That is, they had agreed on the crane/ fork specifications. Another feature of this contract is that it was a legal contract and SCT had met all the requirements and what remained was for them to complete the 15 % pay that had remained .The contract of producing a crane with all the agreed specifications was to be successful because DB was able to deliver a quality product ,but failed in the process.Finally, the contract was also under writing, this makes it clear that SCT would have sought court assistance to have DB forced to include all the crane specifications that lacked in order to be of the required quality. The other important legal step would have been for SCT to determine whether DB could have been sued for a contract breach (Fishbein, & Ajzen 1975 p 23). In order to determine this some steps would have been effective. For example, find out whether DB had performed substantial performance in the manufacture of the wrong crane/ fork. That is to define whether they performed their obligation. The other area is to find out whether the production of poor quality crane was a material one or not(Rosenberg, anat,2013). For example, DB had agreed to include a software in the crane that had a variety of languages , but failed and instilled a software that was only in English language.SCT can also try and determine whether DB had suffered some loss which forced them not to deliver or provide them with a quality crane or not. Therefore, with these steps ,SCT can be able to force DB to manufacture the quality crane or folk that they had specified. SCT can also try and find out if DB was liable to damages as a compensation for failing to comply with the contract terms. This may force DB to reverse and seek for ways to improve on the quality of the product and in the long run SCT would loose on the project. Reference List Ayotte, kenneth; hansmann, henry, 2013 Michigan law review: Legal entities as transferable bundles of contracts. , vol. 111 issue 5, p715-758. 44p. Dimatteo, larry a, 2013 American business law journal: Fifty years of contract law scholarship in the American business law journal. vol. 50 issue 1, p105-158. 54p. Doi: 10.1111/ablj.12006. Fishbein, M., & Ajzen, I. 1975. Belief, Attitude, Intention and Behaviour: An Introduction to Theory and Research. Boston MA: Addison-Wesley. Jewels, T., & Albon, R. 2013. Implications of Cultural Differences in International Projects. International Journal of Information Technology Project Management, 4(1), 58-71. Jewels, T., & Evans, N. 2005. Ethical IT Behaviour as a Function of Environment. Issues in Informing Science and Information Technology Journal, 2, 383-393. Jewels, T., Al-Rawshdi, A., Abusharekh, R. N., & Shamisi, A. S. 2011. Organisational Culture and its Effects on Innovation within ERP Systems. In C. de Pablos Heredero (Ed.), Open Innovation at Firms and Public Administrations: Technologies for Value Creation. Hershey PA: IGI. Lu, Tiffany, 2013, Fordham journal of corporate & financial law. The "obtaining or retaining business" requirement: breathing new life into the business nexus provision of the fcpa. , vol. 18 issue 3, p729-750. 22p. Matvos, Gregor,2013, Review of financial studies: Estimating the benefits of contractual completeness. , vol. 26 issue 11, p2798-2844. 47p. Rosenberg, anat. Sep2013, Mcgill law journal: Contract's meaning and the histories of classical contract law. , vol. 59 issue 1, p165-207. 43p. Rutledge, Peter B.; Drahozal, Christopher R, 2013, Brigham Young University Law Review: Contract and Choice. Vol. 2013 Issue 1, p1-63. 63p. 11 Charts. Read More