Contract is a meeting of mind and legally binding agreement between two parties. There are four elements to form a contract, which is an offer, acceptance of the offer, a fairly consideration and the intention to create legal relations. Contracts are usually enforceable whether or not in a written form or oral, although a written contract protects all the parties. The remedy at law for breach of the contract is normally “damage” or monetary compensation. In equitable remedies, that can be specific expression of the contract or an injunction. Both of the remedies award the casualty the “benefit of the bargain” or expectation damage.
The key issue upon this case is whether Ravi has the right to claim or discharge his contract sign with MicroHard. Ravi engaged MicroHard to perform professional software services for his company software and we look into whether MicroHard had fulfilled the terms in the contract or not, to what extend had MicroHard breached the terms.
(a)State Relevant Law
A condition is a term that is very crucial and essential of the contract, it going to the very root of that contract (Poussard v Spiers ). A breach of condition allows the non-breaching party to discharge or either to claim the damages from the contract breaker. Whether a term is itemized as a condition upon many factors such as the initial attention of the party and whether past cases have become the term to be a condition.
(a) Apply relevant law to facts
According to Ravi, he wanted to have a professional software support services provided by MicroHard. Therefore Ravi and MicroHard signed a contract and one of the terms is that MicroHard warrants the Services shall be performed in a professional manner in accordance with generally accepted industry standard. But what really happen is that MicroHard employee was incompetent and unable to solve Ravi Software issues on the first occasion. Therefore, MicroHard did not suffice the condition of the contract.
Even though it is a condition of the contract, but there is an exemption clauses stand that whatever MicroHard did, the maximum liability for any breach of the term is a refund of the services fees. As a result, Ravi only can claim damages from MicroHard but cannot end the contract.