The Law of Obligations and Evidence

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1. Brief introduction to the scenario

1.1 Significant facts found between Barnard Building (BB) and Happy Construction (HC)

  1. HC negotiated with BB and was successful in winning the contract.
  2. BB sent the offer letter to HC with detailed term and conditions via post.
  3. HC sent a counter offer via post. No communication is made from BB afterwards.
  4. HC signed a contract with Edward Building Specialists (EBS), and sent a letter to BB to withdraw their acceptance.
  5. BB threatened to take legal action against HC.

1.2 Significant facts found Between EBS and HC

  1. HC signed the contract with EBS.to build steel structure for a high rise building.
  2. HC emailed a scanned version of the signed contract documents to EBS.
  3. Also HC sent the original signed documents to EBS via courier.
  4. Contract Clauses 5 and 10 are related to employees’ health and safety and milestones of the project in order as given in the scenario.[1]
  5. HC circulated EBS’s health and safety procedures among all employees. All the employees did not read but signed a document confirming they have understood the policies.
  6. Wearing safety harness and being clipped on the safety rail is one of those procedures while working at height.
  7. One of HC’s employees fell down from the height and became paraplegic, as it was second fall and most serious. As the result EBS decided to terminate HC.

1.3 Significant facts found Between Susan and HC

  1. Susan is HC’s employee working as a steel welder.
  2. Health and safety procedures were circulated to her as well.
  3. Always she unclipped her from the safety rail while moving one section to the next, as being clipped while moving was impractical.
  4. She did not inform to anyone about that or did not listen her colleague’s advice.
  5. She fell down while unclipped and became paraplegic.

2. Advice to HC by considering events occurred between BB and HC

A negotiation is a formal discussion between people who are trying to reach an agreement.[2] While two parties are engaged on negotiation there will be a lot of bargain on the offer until the “meeting of minds” is reached. Parties can halt the negotiation at any levels, either initial or matured stage, if the meeting of minds is not reached. Sometimes this will cause disputes, because one party may think that other party has agreed a contract with them while other party will be thinking that they are still negotiating on the offer.[3] In the given scenario, there is no such misunderstanding from BB, because the scenario says “HC was successful in winning the contract and BB prepared the offer letter with detailed terms and conditions of the proposed contract.”[4] A contract is a legally binding or valid agreement between two parties.

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