The issue being raised by the facts that have been presented is whether Jimi Hendricks is supposed to cater for the increased costs of the material as per the supplier. As it has been noted the supplier claims that the first e- mail that was sent to Jonathan to sign was just an estimate and that the value of the goods and services he wanted had increased. It is important to note that before the electrical company changed ownership the suppliers began work as soon as the client signed the e- mail. Therefore, Jimi should try and explain to the court why he thinks that the job should have begun as soon as he returned the signed document. The other issue which the court will be trying to get to at the bottom of is whether the management of the electrical company had failed to act as per the contract since they claimed failed to deliver its services within the specified time. Jim had agreed on the terms that were being offered by the company and had sent a letter by mail to the company of which delayed as a result of an ongoing strike by the post office employees. As a result of the same Jimi would have to incur other costs due to a closing in deadline on his project. It is therefore up to the court to decide whether the costs that should be incurred by Jimi as a result of the delays that will be experienced should be covered by the electrical company or Jimi himself.
There are a number of rules of law that will need to be applied to the issue in order to solve it. One of the rules that will be applied in this case is that of the postal rule. The postal rule states that when communicating through the post office, the offer is assumed accepted as soon as the mail is deposited at the post office (McKendrick, 2014). This is one of the issues that have been identified since the management of the electrical firm claim that they had not yet received the mail due to an ongoing post office workers strike.
The other rule that the courts will be trying to get to understand is that of the contractual terms. It is essential to try and understand that the contractual terms of the contract had a term whereby the supplier was supposed to cater for the costs incurred as a result of their failure (Watnick, 2004). However even though there was no contractual term that clearly stated the same, the concept of innominate term can be applied. This doctrine ensures that damage that is as a result of a breach of contract can be liquidated in order to cater for the costs (Elliot & Quinn, 2007).
The other rule that will be looked upon is whether the contract was there was a chance to make changes on the contract. The electrical suppliers claim that the first draft that was just a draft and that there were changes that were to be made, however Jonathan accepted the terms as they were only to be notified later that was not the contract.
Application
In this case one of the issues that as arisen is that of a delay in the delivery of the mail due to the post office strike by workers. The Company had stated that it had not started working on the order due to the fact that it had not received the acceptance mail by Jonathan. According to the postal rule doctrine however, it is assumed that one as accepted the offer as soon as they deliver their mail at the post office (Posner, 2004). Therefore the electrical supplier will be deemed to have to have breached the contract in case he would not have delivered the services as it was required.
The concept of innominate terms can also be applied in this scenario. The concept highlights that incase of any damages recorded as a result of one party failing to honor their part of a contract damages will be liquidated to the other party (Eisenberg, 2006). In this case, Jonathan is more likely to face damages as a result of the costs he will have to incur to the failure of the electrical supplier company owned by Eminem to supply and install the required material within the stated time. Therefore due to the fact that the failure to act on time was due to the failure by the electrical company to act on time the damages should be channeled to them (Whincup, 2006).
Jonathan can also argue that he assumed that by signing the document that was e- mailed to him was the contract and final estimate of the cost he was too incur as it was the case. This is because that is how the company used to conduct its business with the clients (Lindgren, 2016). Custom is one of the factors that the court considers when trying to identify whether a contract is binding or not.
It is important to understand that there are a number of doctrines that guide contract law (Khan, 2014). The doctrines ensure that some of the issues that arise as a result of contracts to are dealt with. The doctrine of postal rule is one that predominantly surfaces in the case. The doctrine aims at ensuring that the issue of acceptance that is very essential in contract law is dealt with effectively (Koffman & Macdonald, 2010). The postal rule doctrine assumes that when an acceptance mail is deposited at the post office, it is assumed that one as accepted an offer and therefore the process to act on the same begins immediately. Therefore, any damages that may arise as a result of the breach of contract as a result of the post office delay will be remitted. It is also important to note that by the time the services required would be delivered the time that Jonathan would have to incur extra costs due to the delay of the project. Therefore the same should be remitted to the electrical suppliers (Beale et al., 2007).
There are a number of differences between personal property and real property. One of the differences that can be noted among the two is the fact that personal property things that one owns and are movable. Good examples of personal properties are vehicles and furniture. Real property on the other hand describes immobile things such as land and buildings. However it is essential to note that personal property can become real property if they are permanently attached to the real property. In this case the personal property is referred to as a ‘fixture”. There are a number of aspects that are considered in deciding whether a personal property is a ‘fixture’ or not (Worthngton, 2000). One of the factors that are considered is the method of attachment. If something has been built to permanently stay on a real property such as land, the same becomes part of the property and cannot be detached from it. Crops are also considered to be real property since they grow on the land and are expected to be part of the same until they are harvested. The adaptability of the item is also another factor that is considered while determining whether a movable object is a fixture is the adaptability. If the object was built to fit in a certain space within the real property then the same is assumed to be a fixture. Intention of the fixer is the other factor that should be considered before assuming that a personal property is a fixture (Bradbrook et al., 2002). If the owner had the intent of having the personal property to permanently be part of the real estate then the same is assumed to be a fixture.
In real estate property interest to estates. It is important to understand that there is several interest that are protected by the interests and claims in and against real property registration that are not protected in the PPSA. An example of these interests is the fee simple interest. In this type of interest the owner has the power to solely dispose their property. However in case of anything the property automatically transferred to their heirs. The joint tenancy on the other hand requires that the owners receive the instruments if power equally. This is important since it showcases the equality that comes with the joint ownership of the property. All these factors are not considered in the personal property law.
Reference
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK).
Watnick, V. (2004). The Electronic Formation of Contracts and the Common Law Mainbox Rule. Baylor L. Rev., 56, 175.
Elliott, C., & Quinn, F. (2007). Contract law. Pearson Education.
Posner, R. A. (2004). The law and economics of contract interpretation.
Eisenberg, M. A. (2006). The disgorgement interest in contract law. Michigan Law Review, 559-602.
Whincup, M. H. (2006). Contract law and practice: the English system with Scottish, Commonwealth, and Continental comparisons. Kluwer Law International.
Lindgren, K. (2016). A time difference between Australia and England: Urban 1 (blonk street) Ltd v Ayres. Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia, 30(2), 10.
Khan, H. (2014). Contract Law: Contract Law-A Level Cambridge International Examination. Learncom Ltd.
Koffman, L., & Macdonald, E. (2010). The law of contract. Oxford University Press.
Beale, H. G., Bishop, W. D., & Furmston, M. P. (2007). Contract. Oxford University Press.
Worthington, S. (2000). Personal property law: text and materials. Hart Publishing Limited.
Bradbrook, A., MacCallum, S., & Moore, A. (2002). Australian real property law. Australia.
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