Common Law

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Abstract
This assignment has been made in a report format and starts off by explaining the essential elements of a valid and legally binding contract and its role in a business context with specific reference to the Olympic Delivery Authority in view of its roles and responsibilities towards the 2012 Olympic Games in London.

The assignment also explains the significance of specific terms in a business contract, the role of the Law of Tort in business activities of the ODA while assessing particular forms of tortious liability.

Finally, the report explains the Tort of Negligence and implication of terms such as Breach of Duty and But for Test.

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Table of Contents
Abstract ............................................................................................................... 2 Table of Contents................................................................................................ 3 Introduction ......................................................................................................... 4 Main Body ............................................................................................................ 5 Task 1.a. The use of contract by deed and simple contracts; express and implied contracts; bilateral and unilateral contracts for ODA activities and the application of public policy and legality as essential elements of these contracts. ...................................................................................................... 5 Task 1.b. The formation of ODA contracts using the postal rule, instantaneous mode of Communication of Acceptance and the internet. ..... 7 Task 1.c. The rules on intention to create legal relations and consideration for ODA contracts. ........................................................................................ 8 Task 1.d. The application of rule on capacity on ODA activities. .................. 8 Task 2.a. The impact of a non compliance with specific terms of a contract applicable to ODA activities. ....................................................................... 10 Tasks 2.b. The law on standard form contracts applicable to ODA. ........... 10 Task 2.c. The importance of exclusion and limiting clauses in ODA contracts. Use examples to support your answer. ...................................... 11 Task 3.a. Performance of any contractual liability and tortious liability of ODA ........................................................................................................... 11 Task 3.b. The obligations of ODA over the Olympic premises, before and during the events ........................................................................................ 12 Task 3.c. The tortious obligations of ODA as an employer ......................... 12 Task 3.d. The distinguishing features of ODA strict liability in tort. Use case law to support your answer......................................................................... 13 Task 4.a. Essential Elements of Negligence based on Donoghue Vs. Stevenson .................................................................................................. 13 Task 4.b. Breach of duty of care and the But for Test rule on damages in an action in negligence and application to ODA ......................................... 14 Conclusion ........................................................................................................ 15 References......................................................................................................... 15

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Introduction
Olympic Delivery Authority (ODA) is a corporation set up by constitution to deal with the infrastructure, site and legacy of the Olympic game. Its key responsibilty is the construction of the Olympic Park for the main games which are going to take place in London in 2012. The head office of ODA is located in Canary Wharf at One Churchill Place.

The under given 6 factors provides strenghth and stability to ODA work : Design Employment Equality and inclusion Health Safety and Security Sustainability and Legacy

The ODA is also responsible for the development and improvisation of the residential areas, schools and healthcare facilities after the olympic games in 2012. It wants to develop such facility once the Olympic games has started so that the time period which it will have in between the games and after the games are put to use for the building and developing world class facilties.

Legal Status

In March 2006, ODA received the Royal Assent and got established by The London Olympic Games and Paralympics Games Act which permits it to: Purchase or sale or to hold land It can undertake construction of building projects and can develop transport and other infrastructure. The authority can plan transport projects in cooperation with other agencies to control traffic on the Olympic Road Network

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It has complete authority over the planning of Olympic Park infrastructure and site preparation.

However ODA is a public authority and hence it is answerable to Government, the Greater London Authority and other stakeholders.

Main Body
Task 1.a. The use of contract by deed and simple contracts; express and implied contracts; bilateral and unilateral contracts for ODA activities and the application of public policy and legality as essential elements of these contracts. If two or multiple parties enters into a binding agreement is called a contract. The legal rights and obligation presented in the contract for the parties involved are all legally enforceable. Different types of contracts are as follows:

Simple contracts and Contract by deed: Classification of contracts based on their formality: Simple Contract: It is an informal contract as it is not made as per any deed. An under hand is a contract which is confirmed and signed by the ODA and the product/service provieder. However certain contracts are not signed as they are formed by certain assumed practises such as purchase of an entry ticket or purchased from store. Contracts by deed: Contract by deed or specialty contract which establishes greater legal obligations for the parties involved whether it is ODA or the product and service providers in comparasion with simple contract because it is in the form of a deed. For example a period of 12 years is granted for claim for damages in speciality contract whereas in simple under hand contract it is 6 years only. To treat a contract as a deed or not get signified by the contracts content. For example the Law of property Miscellaneous Provisions Act of 1989 says that the parties involved in a contract can confirm whether the contract is a deed or not.
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Express and implied contracts: Contracts can be classified as per the way they are formed:

Express Contracts: Such contracts can be formed either in writing or through verbal communication or by a combination of the two. However the important thing is that the ODA and product/service will have to validate all the terms and condition.

Implied Contracts: These types of contracts are formed by some terms which are not the part of agreement however they get formed or understood by the conduct and situation of parties involved in this case ODA and product/service provider.

Bilateral and unilateral contracts: Contracts can be classified base on the terms stated by ODA and product/service provider which could be Unilateral and Bilateral. The contract becomes Unilateral or Bilateral based on the number of parties making the promise. If the promise is made by either of ODA and product/service provider then it is unilateral else it is bilateral. In a bilateral contract both the parties involved has the responsibilty to fulfill the agreements. Herein the security factor is also high for both the parties involved. The following elements are of extreme importance to form a valid and legally binding contract. 1. The ODA representative or an outside party will have to make an offer of a particular demand 2. The offer should come from a representative of ODA or through an outside party. 3. That offer or demand have to be accepted by the other party or parties by agreeing its terms and by forming a contract. 4. The party or parties involved in the contract should form and agree the contracts term for the offer or demand to be accepted. 5. The ODA and product and service provider must enter into consideration or object of agreement.

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6. The parties involved in the contract should be competent enough to enter into the contract and fulfill their obligation. 7. If a contract is valid then only it is enforceable by law.

It is the reponsibility of the ODA and product/service provider to make sure that the demands made in contract are legal. For a valid and legally enforceable contract all of the above mentioned points have to be compulsorily met and fullfilled.

Task 1.b. The formation of ODA contracts using the postal rule, instantaneous mode of Communication of Acceptance and the internet.

Offer and acceptance are the two most imporatant point in any contract. We can see this through an example:

For the construction of sitting arrangement ODA makes advertisements in newspapers and accordingly diffrent suppliers makes their offers for the project. Therein they also mention the kind of terms and condition they want as well as the material they will supply. Based on these offers the ODA representatives will accept the one suitable for them.

As per postal rules a contract gets accepted as and when the acceptence letter gets posted. For instance if a supplier send a Contract X and and ODA accepeted it by an acceptance letter then its a valid contract from the time the letter is posted. However later on if supplier wants to change Contract X to Contract Y then Contract X can not be revoked.

Nowadays the advancement in technology has open up various other ways of communication like phone, fax and internet which can transmit the message instantenously. If the author chooses e-mail as its mode of accepting the offer then the contract is valid only when the supplier received the e-mail or he gets aware of the acceptance by the ODA. In these cases the offer and acceptance should be drafted carefully to avoid mistakes.

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There may be situation wherein due to technical problem the supplier is not able to read the mail. In these cases also the contract will be considered valid as it is well within suppliers sphere of influence and the suppliers should make sure that its internal systems are working fine. Task 1.c. The rules on intention to create legal relations and consideration for ODA contracts.

As the ODA and the supplier are forming a legally binding contracts it is essential that there is intention to create a legal relations before the contract becomes enforceable. The intentions can be understood by lookig at the consideration. However to understand it well the words used in contracts should be clear.

The essence of any contract is consideration and without it the contract is void. So the reasons of consideraion should be very clear to both ODA and supplier and if there consideration is met in the contract then they are bound to fullfill their obligation irrespective of considerations value. Task 1.d. The application of rule on capacity on ODA activities.

To form a legally binding contract both the ODA and the product/service provider must have requisite legal capacity.

Legal personality must exist between two or more person to form a contract i.e. natural persons, registered companies and the government. However below mentioned individuals and companies with mentioned qualities are incompetent to form a contract or can do so till certain limit

Bankrupt individuals or companies Any person below the age of 18 years Individuals of unsound mind Alien enemies Drunkeness at the time the party attempts to contract

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Unregistered organisations

companies

like

charities or any other voluntary

Companies with members and third parties Partnerships

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Task 2.a. The impact of a non compliance with specific terms of a contract applicable to ODA activities. The contracts terms can either be express or implied. If the terms are specifically brought forth and agreed upon by the ODA and the supplier then that is called an express contract which could be both verbal and written. Whereas Implied terms can be understood as: The terms which were not communicated however the ODA or the supplier had in their mind. Terms whose communication depends upon the matter bought into consideration. Terms which court consider fair or significant to the rule of law and are implied legally. So, if the ODA or the supplier violates these terms then either party can claim damages for the breach of relevant contract. Usually the offering party is the one who usually fails to fullfill its obligation is responsible for the brach of contract. Due to breach the accepting party can cancel the relevant contract in certain cases.

Tasks 2.b. The law on standard form contracts applicable to ODA.

The ODA and the supplier also recognies the Standard forms contracts which are printed and published by an authority: Being more economical the standard forms contract need not be drafted repeatedly for new terms. As there is no option of negotiation it helps in saving time because there would be either acceptance or rejection by the ODA or the supplier. A thorough discussion takes place between the ODA and the supplier before deciding upon the terms and condition of the contract. Through it the risk factor between the ODA and the supplier can balance well. Unnecessary legal disputes can be avoided through it.

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Task 2.c. The importance of exclusion and limiting clauses in ODA contracts. Use examples to support your answer.

In the ODA contract the exception claue inclusion is compulsory for its effectiveness. Under following situation exclusion clause can be read: The ODA and the supplier can successfully include the exclusion clause through consequent variation of terms. Both the ODA and the supplier have enough consideration in the contract and they belong to the same line of business as well hence they are very well aware of the contractual terms often used in business. Such terms can also be included through verbal contract. Some terms can only be included in the contract when both the ODA and the supplier has proper understanding of it depending upon the circumstances. A distorted interpretaion of clauses effect can effectively change or void the exclusion clause. An exclusion clause have to be incorporated if a term in the contract limits or excludes the legal obligation of the parties in case of a breach and negligence and the court also considerd it rational at the time of contract. Exclusion clause helps in limiting the liability of the ODA and the supplier in case if any issue arises with performance of the contract.

Task 3.a. Performance of any contractual liability and tortious liability of ODA Contractual liability Voluntary undertaking of the obligations presented in the contract by the ODA and the supplier. Tortious liability Herein the ODA and the supplier has their obligation legally imposed upon them.

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CONTRACTUAL LIABILITY
ODA and the supplier breaches an obligation taken up by them Totally voluntary Potential extent of liability is known to both the ODA and the supplier

TORTIOUS LIABILITY
Breaching a legally fixed obligation Involuntary transactions The potential extent of the liability is not known to both the ODA and the supplier

. Trial in the court can be held for both contractual and tortuous liabilities.

Task 3.b. The obligations of ODA over the Olympic premises, before and during the events

Obligations of the ODA being an occupier of the Olympic premises: It is the responsibilty of the ODA to take care of the individuals and their property entering into the Olympic premises. The ODA will also have to take care those individuals who are getting affected by project location, noise levels and traffic in and around Olympic stadium. Reasonable safety of the individuals and their product has to be ensured by the ODA. The ODA is responsible for the condition and the activities done in the Olympic stadium. The ODA will have to ensure that it hires competent contractors and their work is getting supervised as well. However the ODA is not responsible for the damages caused by independent contractors.

Task 3.c. The tortious obligations of ODA as an employer

The incorrect acts of the ODA employees can bring in strict liabilities to the ODA. 1. Negligent behaviour of the its employees within there period of employement is the responsibilty of the ODA.

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2. During its job if an emplyee had detoured then its responsibility falls upon the ODA. However it is fine if employee has done that in his own right without having any relation with the ODA. 3. It is ODAs responsibility in case if its employee commits any assault or battery.

Task 3.d. The distinguishing features of ODA strict liability in tort. Use case law to support your answer Strict liability in Tort law is the ODAs liability wherein the ODA will be held responsible even if there is no vicarious/negligent or tortious intent. Herein the supplier will have to prove the exixtence of tort and accordingly the ODA will be held responsible for that. Generally dangerous situation which are essential are accused by strict liabilty. The objective of strict law is to compel the ODA to look after all necessary precautions so that irresponsible conduct and unnecessary loss can be avoided. An example of strict liability will make the concept clear For instance if the Olympic stadium stands are constructed by some independent contractor and it get damaged or breaks or causes injury then the ODA will be held responsible for it as the responsibility stands with it. However if that independent contractor has hired some sub contractor who happens to have insufficient insurance for the job then that independent contractor will be held responsible for the damages or injury or break.

Task 4.a. Essential Elements of Negligence based on Donoghue Vs. Stevenson

It was held in the case of Donohue vs Stevenson that the contractual relationship is not an important factor to determine liability of negligence. Therein Stevenson had a duty of care to avoid any probable injuries to Donohue as a manufacturer. Here the duty is owed and Stevenson failed to obey it which caused injuries to Donhue.

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ODA has to fullfill three elements of negligence to avoid any legal troubles. It has the responsibility to look after athletes, viewers to make sure that 1. It tried to mitigate any forseeable risk by taking appropriate preparation for expected emergency. 2. With the purchase of ticket viewers automatically becomes the ODAs client which results in proximity between ODA and these parties. 3. Safey of its employees, viewers and athletes are the responsibility of the ODA and a public policy against it may not be present.

ODA should manage high degree of safety standard at its facilties to avoid any incidents and if it fails to do so then that will be considered as a breach. The only defence ODA can use is the voluntary assumption of risk by parties which is applicable to every transaction i.e. the parti.es are aware of such risks and were willing to bear that Task 4.b. Breach of duty of care and the But for Test rule on damages in an action in negligence and application to ODA

Required legal consideration for Breach of Duty of Care are: - ODA owes duty of care to a party - That duty of care is breached by ODA - That breach caused damage to the party The only recourse with ODA is to prove the inherent risk in the partys act and the party undertook the action willingly as outlined in Civil Liabilty Act. However the ODA can be held liable for any negligent misstament like

describing the act to be free of danger whereas it was not.

It is the responsibilty of the ODA to take care its athletes, employees, and viewers in realm of its every action it. ODA must also take required action if it identifies any probable risk.

For instance, it is the responsibilty of the ODA to have a authoried medical team on site during the games. In case if any non medical team provides support during any unfortunate accident then the ODA will have to defend
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itself as a good Samaritan under the civil act however it will continue to be held liable for the negligence as there were no offical safety rescuers onsite.

If it gets proved that damage is caused under above stated situtaion and because of ODAs negligence then the ODA would be susecptible to lawsuits. However the test or proximate cause is defines as An act from which an injury results as a natural, direct, uninterrupted consequence and without which the injury would not have occurred. But for or sine qua non test have to be consider to determine whether the proximate cause of damages is Negligence or other tort cases or whether the same could have been avoided or not. If courts establishes the fact that the damage could have been avoided but for ODAs action that could not be then ODA will be held liable. However the ODA liability could not fructify as there may be other elements and variables to look after in tort case.

Conclusion
So we can understand that London 2012 Olympic Games brings in great opportunity for all of us along with enormous legal and ethical responsibilities for ODA in numerous transactions which it would undertake with all parties. These responsibilities include honouring the contracts for supplies of products and services with the vendors, inherent and unambiguous responsibility towards the athletes from world over and to those audience and visitors who will come to enjoy the games.

To enable ODA successfully hold the 2012 Olympics games and bring pride to the entire United Kingdom understanding of common law is required. The entire world eyes are set upon ODA to see the Olympic Games in action.

References

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ODA Website (2011) "The Olympic Delivery Authority" Available at : http://www.london2012.com/about-us/the-people-delivering-the-games/theolympic-delivery-authority/ [Accessed 10th April 2011]

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