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Contract law assignment - Essay Example

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Every business or commercial relationship requires that a legal document outlining the respective responsibilities of each party to the transaction should be drawn; and this document is usually referred to as the Commercial Contract1. But sometimes there is a certain clause in…
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Download file to see previous pages On most occasions, this clause tends to be unfair, partial and one-sided as the weaker party in the agreement could not lay claim to damages or extra-contractual compensations when the Contract is somehow broken.
There are some legal cases that tend to demonstrate how the weaker parties, in recent years, have at least tried to see that such exclusion clauses are incorporated into the contracts: this report would investigate how such a clause may be included in a typical Irish legal case that involved disagreement over the commercial contract. A legal case study is used to better explain how this phenomenon works out: Analog Devices BV & ors v Zurich Insurance Company & anor.
This case study is necessary in order to highlight the seriousness of exclusion clauses in contractual agreements. Which of the parties would feel cheated or be left to bear the huge losses? What is the nature and scope of the clause being excluded? Does it contain an element of insurance coverage or health benefits scheme or pension system?
The legal case of Analog Devices BV & ors v Zurich Insurance Company & anor2, decided upon at the Irish Supreme Court, is a typical case to prove how exclusion clause could result in a monumental loss for one of the parties involved.
This is factual background to this case as presented by Baillii3: Analog Devices BV & ors had had engaged in the commercial activities of manufacturing, researching and designing of high performance linear mix signal and digital integrated circuits that are used for several signal processing applications. These activities were carried out at Raheen Industrial Estate in County Limerick. It is a known fact that twice a year the usual manufacturing operation is shut down in order to allow the maintenance team to work on the manufacturing plants. These annual maintenance arrangements often occur in the summer ...Download file to see next pagesRead More
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