Law-Legal Issues

Law-Legal Issues

Introduction

Today, knowledge and understanding of contract law is very important. Legal and physical person just needs to know the basic aspects of the contractual relationship. Contract law is not formed as an industry; it is regulated by civil law and is a sub-sector is the civil law. Therefore, it mostly shows the need for high-quality and professional approach to issues related to treaty law. This paper will be focusing on different scenarios in which different legal jurisdictions will be applied.

Discussion

Scenario1: A ship was chartered for five years from December 2005 to December 2010 and used to carry oil. During the First World War in 1914, the ship was requisitioned by the Admirality, extensively altered, and used to carry troops. The charterers were willing to continue paying the freight, but the owners, who wished to receive the higher amount paid by the Admirality, claimed that the contract was frustrated and was therefore at an end. Were the owners correct?

From the study of the scenario it has been observed that the owners are not correct, because if there had been a contract among charterers and the owner was there and they are still willing to continue paying freight then the owners are not legally at the right position to notify that contract was frustrated. On the other hand, the owners have legal right to breach the contract but under the stated conditions. If the ship is still in the contract than charterers can appeal for the legal jurisdictions.

At the end of the period for which the contract was made of the charter of the ship, the charterers, to properly discharge duties under the contract, has the right of priority over other persons to enter into the contract agreement for the continuation of the agreement. Charterers, who are going to use pre-emptive right to use the ship, if they are willing to pay continuously. The letter-post on the resumption of ship adds the additional agreement. Upon renewal of ship agreement its conditions may be modified by agreement of the parties. If no agreement on the rent and other essential terms of the contract-emptive right of the owner to enter into the ship contract is terminated (Riordan, 2004).

Owner within a month considering the tenant left a letter of notification to draft additional agreement, checks it for compliance with the law, agrees with the tenant (charterers-if necessary) significant terms of the contract and, in the absence of objections, decides to renew the agreement of the ship rent (relative of state and municipal property), concludes with the tenant (charterers) an additional agreement on the resumption of ship contract. If there are objections to the owner on the renewal of a ship, charterers can send a letter of notification of the decision by the owner. It is important in terms of the contract to determine the penalty, and a method for determining losses to be recovered. Fines can be expressed as a fixed amount or a percentage of the total value for the breach of ...