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Navigating legal contracts
Look at the following extracts from contract clauses. In each, a navigation word has been underlined. Link the underlined word to its meaning.
| Contract clauses | Meaning | ||
| now it is hereby agreed .... | a | by the terms of this agreement | |
| subject as hereinafter provided | b | to that thing just mentioned | |
| you will find in the documents herewith attached | c | previously stated | |
| the first instalment becoming due one month from the date hereof | d | later in this document | |
| the failure of either party to exercise any right or remedy to which it is entitled hereunder | e | after that event | |
| by referring to the points mentioned therein | f | by means of this document or declaration | |
| as thereby stated | g | in that matter | |
| and for a period of 12 months thereafter | h | on that item | |
| the failure of either party to exercise any right or remedy shall not constitute a waiver thereof | i | of this event | |
| all statutory instruments or orders made pursuant thereto | j | for that item | |
| the Initial Fee together with any VAT thereon | k | with this document | |
| the cost of the product, and the monthly payments therefore | l | of or about that | |
| the aforementioned terms shall prevail over ...... | m | by means of or because of that |
Legal contracts are complex documents. Drafters use many specialist legal terms as well as particular words to navigate through the document and relate the different clauses together.
Standard Terms and Conditions of Sale
Below are the main paragraph titles from a Sale Agreement. Link the paragraph titles to the details of the contents of each paragraph.
| PRICE AND PAYMENT | a | The Buyer only receives title to the Goods once he has paid all sums due to the Seller. | |
| GOODS | b | This prevents a party from relying on something said in: pre-contract negotiations that is not excluded in the Agreement itself with the exception of deliberate misrepresentations (which are impossible to exclude). | |
| DELIVERY | c | The Goods are as specified in the quotation. | |
| ACCEPTANCE | d | Allows for defaults in the event of happenings outside the control of the Seller. | |
| TITLE AND RISK | e | The Price is the quoted price; if the Price is not paid on time the Seller is entitled to interest at 4 per cent above base. | |
| LIMITATION OF LIABILITY | This does not prevent the buyer suing for breach of warranty after the 7th day. It is intended to prevent rejection. | ||
| FORCE MAJEURE | g | Specifies which law applies and where the parties must sue. | |
| ENTIREAGREEMENT | h | Delivery is as shown on the quotation. | |
| GOVERNING LAW AND JURISDICTION | i | This is required when selling to consumers. To sell to a consumer without this phrase would be a criminal offence. | |
| RIGHTS OF CONSUMER | j | Tries to exclude and restrict the liability of the Seller to personal injury and death (the minimum allowed by law). It specifically excludes economic loss and limits the liability of the Seller to the price. There is a risk that these terms would be deemed unfair in a consumer transaction |
This document sets out the terms and conditions on which a business supplies goods and is drafted as far as possible to exclude the business's liability for any faulty products. However, statute usually decrees that when a business contracts with a consumer then certain rights cannot be contracted out of.
Letter of reminder
Collecting unpaid debts requires a mix of tact and persistence. Many companies have to send a stream of reminders before sending the final demand. And it is the last one which usually produces the desired result.
Here are the extracts from three reminders and a final demand. Organize the extracts into the correct letters.
1. We are concerned that this matter is still unresolved and would be grateful to receive your cheque in full settlement of the outstanding sum without further delay.
2. We would like to remind you that the sum of £3500 is still outstanding on your account.
3. Since we have received no replies to our earlier letters, we have no option but to inform you that unless we receive a cheque for the outstanding sum of £3500 within seven days of the date of this letter, we shall place the matter in the hands of our solicitors.
4. I wrote to you on 1st July regarding your unpaid account, amounting to £3500.
5. Clearly, this situation cannot be permitted to continue, and we must urge you to take immediate action to clear the indebtedness.
6. If you are satisfied with the goods supplied to you, we would ask that you kindly settle the account as soon as possible.
7. We have now reminded you twice regarding the outstanding sum of £3500 on your account, but to no avail.
| Reminder 1 | Reminder 2 | Reminder 3 | Final demand | |||
Date: 2015-01-12; view: 5297
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