Menu

Business Environment and the English Legal System

0 Comment

Notice of any exclusion clause must be given well ahead of time, before or during the contracting process.3 As stated by Lord Hodson in the case of McCutcheon v MacBrayne:4 the course of dealing on earlier occasions is often relevant in determining contractual relations but does not assist when, as here, there was on the part of the respondents, a departure from an earlier courseā€¦.. Moreover, Iggins will also be bound by the contractual principle of being bound by a document that one has signed5. There is a requirement of reasonableness by the courts in judging breaches of contract6, however this is evaluated on the basis of what the knew or ought to have known when the contract was made.Therefore, unless Iggins Ltd had specified an exclusion clause in its contract that the event could be canceled anytime, it will be liable for nonperformance of the contract, and for pecuniary and nonpecuniary losses that may be caused to the 28 players through its failure to perform the terms of the contract, since such losses will be directly attributable to a failure to perform.7 The mitigating factor in reducing damages could be the fact that a greater degree of foreseeability of cancellation of the event and resultant damages would be required under contract than under tort.8Due to the fact that all the players are well-known players, they could have canceled other potentially lucrative arrangements in order to fulfill their contractual obligation with Iggins. Under the circumstances, there would be losses accruing to the other 28 players, not only for the expenses they may have incurred in traveling to Birmingham but also in other opportunities they may have missed, which will give rise to a cause of action for compensatory damages, apart from the restitutory damages that will be due under the breach of contract.