UNIT 1 DR: PRE-ACTION STEPS Flashcards
what does s14(2) SGA 1979 say about goods?
goods sold must be of satisfactory quality meaning no defects + must be fit for use
what about s14(3) SGA?
goods must be fit for purpose they’re sold for, especially if S knows how B intends to use them
what happens if goods are not of satisfactory quality or fit for purpose under s14(6)?
B can reject the goods + get full refund
what does s35(4) SGA 1979 say about accepting goods?
if B keeps goods for too long w/o rejecting them, they are considered to have accepted them
what happens if B accepts the goods?
once accepted, B loses right to reject goods + can only claim damages
how long does B have to bring claim for breach of contract under LA 1980?
6 yrs to bring claim, starting from when problem 1st occurred so when goods were delivered
what happens if there is breach of warranty under s53 SGA 1979?
B can claim damages for difference in value b/w what was delivered + what was expected
what is mediation in DR?
cost-effective way to resolve disputes, esp. when claim is relatively low eg £5k
what are arbitration + litigation?
methods to resolve disputes but more expensive than mediation
what happens if pre-action protocols are not followed under PDPAC?
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
what can happen if court finds that PAP were breached?
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
what is a cause of action?
set of facts that give someone the right to make a claim, eg if false statement leads to financial loss
what is the solicitor’s DOC?
solicitor must act carefully + skillfully for their client, ensuring things like contracts are properly prepped, or they may be liable for mistakes
what is the difference b/w partnership + LLP?
partnership: partners are personally liable for business debts.
LLP: partners are protected from personal liability for business debts
what are limitation periods?
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
what is the difference b/w mediation + arbitration?
mediation: quicker + cheaper, helping parties reach agreement, while arbitration results in binding decisions.
but both don’t set legal precedents
what happens if a party refuses to participate in ADR?
court may impose costs sanctions on party if their refusal to engage in ADR is unreasonable
what is arbitration?
voluntary process where parties resolve dispute outside of court, and decisions (award) is binding + enforceable like court judgment
what is the role of pre-action conduct + ADR?
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
concept of remoteness in legal claims?
remoteness concerns whether the loss was foreseeable at the time of the contract or BOD
what is mitigation of loss?
means injured party must take reasonable steps to reduce their losses + can’t claim compensation for losses they could have avoided
what is an express term in contract?
something verbally agreed upon in a contract like ensuring fabric matches sample provided
what is an implied term under SGA 1979?
legal requirement that goods supplied by sample must match sample in quality
what does s15(2)(a) SGA 1979 say?
says that when goods are sold by sample, bulk of goods must match sample in quality
s14(3)(a) SGA 1979?
if B specifies a particular purpose for the goods, there is an implied term that the goods must be fit for that purpose
what is frustration of contract?
frustration occurs when an unforeseen event makes the performance of the contract impossible or radically different.
when is negligence relevant in a contract for the sale of goods?
only relevant if goods were supplied negligently
what are damages in the context of a breach of contract?
damages are amount a party can claim to compensate for losses caused by breach
how are damages calculated?
difference b/w what was spent + what should have been spent
£100,000 for buying goods
£50,000 sourcing replacement goods
how do LPs work in breach of contract?
LP is 6 yrs, starting day after the breach + ending 6 yrs later
does C’s knowledge of breach affect LP in contract?
no, C’s knowledge does not affect LP in breach of contract claim, only matters in negligence claims
what is LP for tort of negligence involving PI?
3 yrs from date of injury
OR
when injury was 1st discovered
how does LP work for minors in negligence claims?
if C is U18, LP doesn’t start until they turn 18.
18 –> 21 (expires on their 21st bday)
what is LP for minor if PI happened on 7 sep 2020. C is born on 30 june 2022?
starts when C turns 18 on 30 june 2022 + expires on 21st bday so 30 june 2025
how should a party choose a DR method?
consider how quickly the resolution is needed
whether confidentiality is important
if binding decision is required
purpose of PDPAC?
encourages early resolution of disputes
helps reduce costs
aims to avoid unnecessary litigation before court proceedings start
does the PD affect the statutory limitation period for starting court proceedings?
no, PD does not change the statutory time limits.
if proceedings are filed after LP, D can use this as a defence
consequences of not following PD steps before starting court proceedings?
non-compliance may result in delays or penalties, but it does not extend LP
best approach re LP?
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
what does stay of proceedings mean?
temporarily stopping the proceedings to allow the parties to follow PD procedures while ensuring LP is not used as a defence
