Law of Contract II Essay Example | Topics and Well Written Essays - 2000 words

Law of Contract II - Essay Example Whether CBL can claim for breach of contract against Ricky for non – payment of money for the work completed. Rule of Law A false statement of fact, during the formation of a contract, by one of the parties to the contract, constitutes misrepresentation. As per the provisions of the Misrepresentation Act 1967, the representor is liable for fraudulent misrepresentation, despite his not having made the statement fraudulently.1 The party to the contract that undergoes loss due to this misrepresentation can either revoke the contract or claim damages.2 Application Ricky’s contract with CBL involves the construction of a new conservatory. Lawretta, a director of CBL, assures him that they are the best in constructing conservatories and that he was at liberty to make relevant enquiries. Ricky believes her statement and agrees upon a cost of ?20,000 for constructing the conservatory. After the completion of half the work Ricky discovers that CBL had never constructed conservat ories. In addition, he comes to know that some of CBL’s former customers are claiming damages for defective and poor workmanship. Ricky refuses to pay CBL for the work completed and the latter decides to claim for breach of contract. ... ordships ruled that in such cases, it was sufficient if the plaintiff could establish that the defendant knew or was convinced that his statement was not factual.3 In Redgrave v Hurd, the plaintiff had made a statement regarding his firm’s income, while attempting to induce the defendant to become a partner, in his business. Hurd discovered that the statement was wrong and sought to rescind the contract. The lower court ruled in Redgrave’s favour, but the appellate court set aside this decision and held that Redgrave’s statement constituted innocent misrepresentation. Thereafter, it upheld the revocation of the contract by Hurd.4 A plaintiff is not liable for breach of contract if he had been unaware of the misrepresentation, at the time of the contract. This was the ruling in Horsfall v Thomas.5 Moreover, in Smith v Chadwick, the court ruled that there was no liability if the plaintiff had been aware of the misrepresentation and it was established that this know ledge could not have influenced his judgement.6 Finally, it was held in Peekay Internmark Ltd v Australia and New Zealand Banking Group Ltd that there had to be actual knowledge of the misrepresentation and that constructive knowledge was insufficient.7 It is essential for some relationship to exist between the misrepresentation and the inducement for the claimant to form the contract. Thus, in Attwood v Small, the defendant had relied upon his agents’ report regarding the productivity of the mines and steelworks offered to him by the plaintiff.8 As he had not relied on the plaintiff’s statement, he was not permitted to rescind the contract. Conclusion The fraudulent misrepresentation made by CBL induced Ricky to hire the former to construct a conservatory. CBL had misrepresented to Ricky about its

The IMFs Approach to Economic Stabilization Essay

The IMFs Approach to Economic Stabilization - Essay Example In order to truly diagnose the situation, and properly understand the IMF and its current position in the world, we must ask the following questions: Founded in the turbulent era of the 1940s to stabilize the world economy, and based in Washington, D.C., the IMF (International Monetary Fund) is "an organization of 184 countries, working to foster global monetary cooperation, secure financial security, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty." ("IMF", 2006). The IMF's original purpose was "to establish a code of conduct that would enhance economic cooperation, and avoid the 'beggar-thy-neighbor' policies that led to the economic turbulence of the thirties." (Babb & Buira, 2005). In short, the IMF is a multilateral institution that lends money to governments in order to stabilize currencies and maintain order in international markets. Since the IMF was established its purposes have remained unchanged, but its surveillance, financial assistance and technical assistance operations have developed regularly in order to "meet the changing needs of its member countries i n an evolving world economy." ("IMF", 2006). The IMF "plays a key role in defining how much governments can spendThe Fund's view of what defines the macro economic stability of a country is the authoritative one for all development partners." ("Eurodad", 2003). What are the Main Components of the IMF's Approach to Economic Stabilization Particularly so in recent years, the IMF's quantitative approach to economic stabilization "has been the subject of considerable controversy." ("Survey", 1999). Considered as "the creator of the 'moral hazard'," (Monsod, 1998), the IMF consists of many programs which are often characterized as being "unnecessarily damaging to growth, harmful to the poor, unduly inflexible and unresponsive to the differing needs and circumstances of member countries, and based on rigid application of outmoded and discredited economic principles." (Mussa & Savastano, 1999). In order to understand the IMF's approach to economic stabilization and how it functions in all aspects, one must first understand the process of an IMF supported program: typically an IMF supported program is not permanent or 'set in stone' at the beginning of operations, but rather begins with the seemingly simple a request of a member. It is only then that the IMF staff prepares a blueprint of a program that is used for the actual basis of negotiations. After this, when an agreement is reached, the arrangement is cleared by IMF management and then approved by the IMF Executive Board. Disbursements proceed immediately after this if all performance