Several terms and common clauses are used in contracts to refer to time, including usage in reference to the time at which, or the length of the period during which, a contracted activity is to be undertaken.
"Time is of the essence" is a term used in contract law in England and Wales (a legal jurisdiction within the United Kingdom), Canada, Australia, New Zealand, other Commonwealth countries and the United States, expressing "the need for timely completion", [1] i.e. indicating that one or more parties to the agreement must perform by the time to which the parties have agreed if a delay will cause material harm. However, in the case of Foundation Development Corp. v. Loehmann's Inc. 788 P.2d 1189 (Arizona 1990), in which the lease included a Time is of the essence clause, the court ruled that a minor delay did not cause material harm and thus no breach of contract occurred. [2]
"Time is of the essence" may be contrasted with "reasonable time", where a delay in performing may be justified if it is reasonably required, based upon subjective circumstances such as unexpected weather, [1] and with the phrase time at large, which describes a situation where there is no date for completion, or where the date for completion has become invalid or unenforceable. [3] The contractor is then no longer bound by the obligation to complete the contract by a certain date.
"Time is of the essence" may also be contrasted with an "express condition", where a specific contract term must be performed to avoid breach, such as in the Court of Appeals of Indiana's decision in Dove v. Rose Acre Farms, Inc. 434 N.E.2d 931 (Ct. App. Ind. 1982). [4]
"Time at large" is a common law principle [5] which is covened by a large body of case law. [6] It can arise in four types of situation:
The case of Holme v Guppy (1838) confirms the "prevention principle", which states that "if the party be prevented by the refusal of the other contracting party from completing the contract within the time limited he is not liable in law for the default". [8]
Where time is "at large", there is an implied term obliging the contractor to complete the work within a reasonable time. [6] The facts of the case will determine what is a reasonable time. [7] It is generally agreed that it is not in the interests of either an employer or a contractor to move into time being "at large", [6] and Bellhouse and Cowan note that most forms of contract now have "adequate extension of time procedures", so it has become difficult to argue that an "at large" situation has arisen in most situations. [5]
"The principle in Bramall & Ogden" (referring to the case of Bramall & Ogden v Sheffield City Council (1983) 29 BLR 73) [9] established that confused legal drafting can give rise to a situation where time is "at large" due to the absence of agreement on contractual time for performance. In this case, Sheffield had contracted for the construction of 123 houses, which were completed on various dates. The contract provided for liquidated damages applicable on the number of houses incomplete, and stated a date for completion as 6 December 1976. The contract did not provide for sectional completion and the court held that the sectional basis on which the liquidated damages clause was to operate was inconsistent with the single end-date for anticipated completion, meaning that Sheffield were unable to enforce a damages claim for delay. [10] [5]
"Time at large" arguments may also be utilised in a civil law context. [5]
Standard form contracts such as the Joint Contracts Tribunal (JCT) contract and the New Engineering Contract (NEC) family include various mechanisms for extending contracts to account for delay but still retain the need for the works to be completed by an agreed date. [11]
Adjudication is the legal process by which an arbiter or judge reviews evidence and argumentation, including legal reasoning set forth by opposing parties or litigants, to come to a decision which determines rights and obligations between the parties involved.
Breach of contract is a legal cause of action and a type of civil wrong, in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party's performance. Breach occurs when a party to a contract fails to fulfill its obligation(s), whether partially or wholly, as described in the contract, or communicates an intent to fail the obligation or otherwise appears not to be able to perform its obligation under the contract. Where there is breach of contract, the resulting damages have to be paid to the aggrieved party by the party breaching the contract.
In employment law, constructive dismissal occurs when an employee resigns due to the employer creating a hostile work environment. This often serves as a tactic for employers to avoid payment of statutory severance pay and benefits. In essence, although the employee resigns, the resignation is not truly voluntary but rather a response to intolerable working conditions imposed by the employer. These conditions can include unreasonable work demands, harassment, or significant changes to the employment terms without the employee’s consent.
False imprisonment or unlawful imprisonment occurs when a person intentionally restricts another person's movement within any area without legal authority, justification, or the restrained person's permission. Actual physical restraint is not necessary for false imprisonment to occur. A false imprisonment claim may be made based upon private acts, or upon wrongful governmental detention. For detention by the police, proof of false imprisonment provides a basis to obtain a writ of habeas corpus.
A subcontractor is a person or business which undertakes to perform part or all of the obligations of another's contract, and a subcontract is a contract which assigns part of an existing contract to a subcontractor.
Quantum meruit is a Latin phrase meaning "what one has earned". In the context of contract law, it means something along the lines of "reasonable value of services".
An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old master-servant law, used before the 20th century. Employment contracts relies on the concept of authority, in which the employee agrees to accept the authority of the employer and in exchange, the employer agrees to pay the employee a stated wage.
Fundamental breach of contract, is a controversial concept within the common law of contract. The doctrine was, in particular, nurtured by Lord Denning, Master of the Rolls from 1962 to 1982, but it did not find favour with the House of Lords.
Penal damages are liquidated damages which exceed reasonable compensatory damages, making them invalid under common law. While liquidated damage clauses set a pre-agreed value on the expected loss to one party if the other party were to breach the contract, penal damages go further and seek to penalise the breaching party beyond the reasonable losses from the breach. Many clauses which are found to be penal are expressed as liquidated damages clauses but have been seen by courts as excessive and thus invalid.
The Joint Contracts Tribunal, also known as the JCT, produces standard forms of contract for construction, guidance notes and other standard documentation for use in the construction industry in the United Kingdom. From its establishment in 1931, JCT has expanded the number of contributing organisations. Following recommendations in the 1994 Latham Report, the current operational structure comprises seven members who approve and authorise publications. In 1998 the JCT became a limited company.
The law of contract in Australia is similar to the contract law of other Anglo-American common law jurisdictions, but differences from other jurisdictions have arisen over time because of statute law and divergent development of common law in the High Court, particularly since the 1980s.
The Employment Rights Act 1996 is a United Kingdom Act of Parliament passed by the Conservative government to codify existing law on individual rights in UK labour law.
English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the Industrial Revolution, it shares a heritage with countries across the Commonwealth, from membership in the European Union, continuing membership in Unidroit, and to a lesser extent the United States. Any agreement that is enforceable in court is a contract. A contract is a voluntary obligation, contrasting to the duty to not violate others rights in tort or unjust enrichment. English law places a high value on ensuring people have truly consented to the deals that bind them in court, so long as they comply with statutory and human rights.
In English law, implied terms are default rules for contracts on points where the terms which contracting parties expressly choose are silent, or mandatory rules which operate to override terms that the parties may have themselves chosen. The purpose of implied terms is often to supplement a contractual agreement in the interest of making the deal effective for the purpose of business, to achieve fairness between the parties or to relieve hardship.
Frustration is an English contract law doctrine that acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract. Historically, there had been no way of setting aside an impossible contract after formation; it was not until 1863, and the case of Taylor v Caldwell, that the beginnings of the doctrine of frustration were established. Whilst the doctrine has seen expansion from its inception, it is still narrow in application; Lord Roskill stated that "the doctrine is not lightly to be invoked to relieve contracting parties of the normal consequences of imprudent commercial bargains."
A changes clause, in government contracting, is a required clause in United States government construction contracts.
Autoclenz Ltd v Belcher [2011] UKSC 41 is a landmark UK labour law and English contract law case decided by the Supreme Court of the United Kingdom, concerning the scope of statutory protection of rights for working individuals. It confirmed the view, also taken by the Court of Appeal, that the relative bargaining power of the parties must be taken into account when deciding whether a person counts as an employee, to get employment rights. As Lord Clarke said,
the relative bargaining power of the parties must be taken into account in deciding whether the terms of any written agreement in truth represent what was agreed and the true agreement will often have to be gleaned from all the circumstances of the case, of which the written agreement is only a part. This may be described as a purposive approach to the problem.
Alfred McAlpine & Son (Pty) Ltd v Transvaal Provincial Administration is an important case in the South African law of contract, heard in the Appellate Division from 18 to 21 February 1974, and decided on 20 May. The case concerned a contract to build a portion of a national road, into which contract an exceptional number of variations was introduced. The result was disruption. Because the contract had not lapsed, the court determined that there was no new agreement in terms of which the contractor was entitled to reasonable remuneration instead of the contract price, and there was no implied term stipulating that the owner must introduce the variations "at reasonable times."
A notice period or period of notice within a contract may by defined within the contract itself, or subject to a condition of reasonableness. In an employment contract, a notice period is a period between the receipt of the letter of dismissal and the end of the last working day. This time period does not have to be given to an employee by their employer before their employment ends. The term also refers to the period between a termination date or resignation date and the last working day in the company when an employee leaves or when a contract ends.
In law, wrongful dismissal, also called wrongful termination or wrongful discharge, is a situation in which an employee's contract of employment has been terminated by the employer, where the termination breaches one or more terms of the contract of employment, or a statute provision or rule in employment law. Laws governing wrongful dismissal vary according to the terms of the employment contract, as well as under the laws and public policies of the jurisdiction.