UNIT 1 DR: PRE-ACTION STEPS

Question 1

what does s14(2) SGA 1979 say about goods?

Answer 1

goods sold must be of satisfactory quality meaning no defects + must be fit for use

Question 2

what about s14(3) SGA?

Answer 2

goods must be fit for purpose they’re sold for, especially if S knows how B intends to use them

Question 3

what happens if goods are not of satisfactory quality or fit for purpose under s14(6)?

Answer 3

B can reject the goods + get full refund

Question 4

what does s35(4) SGA 1979 say about accepting goods?

Answer 4

if B keeps goods for too long w/o rejecting them, they are considered to have accepted them

Question 5

what happens if B accepts the goods?

Answer 5

once accepted, B loses right to reject goods + can only claim damages

Question 6

how long does B have to bring claim for breach of contract under LA 1980?

Answer 6

6 yrs to bring claim, starting from when problem 1st occurred so when goods were delivered

Question 7

what happens if there is breach of warranty under s53 SGA 1979?

Answer 7

B can claim damages for difference in value b/w what was delivered + what was expected

Question 8

what is mediation in DR?

Answer 8

cost-effective way to resolve disputes, esp. when claim is relatively low eg £5k

Question 9

what are arbitration + litigation?

Answer 9

methods to resolve disputes but more expensive than mediation

Question 10

what happens if pre-action protocols are not followed under PDPAC?

Answer 10

failure to follow pre-action protocols can lead to financial sanctions, including paying the other party’s costs or reduced interest on the recovered amount

Question 11

what can happen if court finds that PAP were breached?

Answer 11

court may order losing party to pay other party’s legal costs, possibly on an indemnity basis +

also reduce or remove interest on amount recovered for specific period

Question 12

what is a cause of action?

Answer 12

set of facts that give someone the right to make a claim, eg if false statement leads to financial loss

Question 13

what is the solicitor’s DOC?

Answer 13

solicitor must act carefully + skillfully for their client, ensuring things like contracts are properly prepped, or they may be liable for mistakes

Question 14

what is the difference b/w partnership + LLP?

Answer 14

partnership: partners are personally liable for business debts.

LLP: partners are protected from personal liability for business debts

Question 15

what are limitation periods?

Answer 15

time limits for making claims in court, eg having 3 yrs to sue for PI from when injury happened or when it was 1st discovered

Question 16

what is the difference b/w mediation + arbitration?

Answer 16

mediation: quicker + cheaper, helping parties reach agreement, while arbitration results in binding decisions.

but both don’t set legal precedents

Question 17

what happens if a party refuses to participate in ADR?

Answer 17

court may impose costs sanctions on party if their refusal to engage in ADR is unreasonable

Question 18

what is arbitration?

Answer 18

voluntary process where parties resolve dispute outside of court, and decisions (award) is binding + enforceable like court judgment

Question 19

what is the role of pre-action conduct + ADR?

Answer 19

parties are encouraged to consider settlement options throughout dispute, including after starting court proceedings.

refusing ADR w/o good reason: may lead to financial penalties

Question 20

concept of remoteness in legal claims?

Answer 20

remoteness concerns whether the loss was foreseeable at the time of the contract or BOD

Question 21

what is mitigation of loss?

Answer 21

means injured party must take reasonable steps to reduce their losses + can’t claim compensation for losses they could have avoided

Question 22

what is an express term in contract?

Answer 22

something verbally agreed upon in a contract like ensuring fabric matches sample provided

Question 23

what is an implied term under SGA 1979?

Answer 23

legal requirement that goods supplied by sample must match sample in quality

Question 24

what does s15(2)(a) SGA 1979 say?

Answer 24

says that when goods are sold by sample, bulk of goods must match sample in quality

Question 25

s14(3)(a) SGA 1979?

Answer 25

if B specifies a particular purpose for the goods, there is an implied term that the goods must be fit for that purpose

Question 26

what is frustration of contract?

Answer 26

frustration occurs when an unforeseen event makes the performance of the contract impossible or radically different.

Question 27

when is negligence relevant in a contract for the sale of goods?

Answer 27

only relevant if goods were supplied negligently

Question 28

what are damages in the context of a breach of contract?

Answer 28

damages are amount a party can claim to compensate for losses caused by breach

Question 29

how are damages calculated?

Answer 29

difference b/w what was spent + what should have been spent

£100,000 for buying goods
£50,000 sourcing replacement goods

Question 30

how do LPs work in breach of contract?

Answer 30

LP is 6 yrs, starting day after the breach + ending 6 yrs later

Question 31

does C’s knowledge of breach affect LP in contract?

Answer 31

no, C’s knowledge does not affect LP in breach of contract claim, only matters in negligence claims

Question 32

what is LP for tort of negligence involving PI?

Answer 32

3 yrs from date of injury

OR

when injury was 1st discovered

Question 33

how does LP work for minors in negligence claims?

Answer 33

if C is U18, LP doesn’t start until they turn 18.
18 –> 21 (expires on their 21st bday)

Question 34

what is LP for minor if PI happened on 7 sep 2020. C is born on 30 june 2022?

Answer 34

starts when C turns 18 on 30 june 2022 + expires on 21st bday so 30 june 2025

Question 35

how should a party choose a DR method?

Answer 35

consider how quickly the resolution is needed
whether confidentiality is important
if binding decision is required

Question 36

purpose of PDPAC?

Answer 36

encourages early resolution of disputes
helps reduce costs
aims to avoid unnecessary litigation before court proceedings start

Question 37

does the PD affect the statutory limitation period for starting court proceedings?

Answer 37

no, PD does not change the statutory time limits.

if proceedings are filed after LP, D can use this as a defence

Question 38

consequences of not following PD steps before starting court proceedings?

Answer 38

non-compliance may result in delays or penalties, but it does not extend LP

Question 39

best approach re LP?

Answer 39

issue proceedings to protect C’s cause of action before LP expires, then seek a stay to allow PD steps to be followed

don’t write to D or ask for ADR –> risk of LP expiring –> D uses it as defence

best approach: issue proceedings then request a stay

Question 40

what does stay of proceedings mean?

Answer 40

temporarily stopping the proceedings to allow the parties to follow PD procedures while ensuring LP is not used as a defence