Assignment 01

Law and Contract

Law and Contract

An Individual Assignment 01

Acknowledgement
I would like to express my deep gratitude to Mr. Seevali Amithirigala my lecturer, for his
patient guidance, enthusiastic encouragement and useful critiques of this assignment. I
would also like to thank Mr.Chamikara, for his advice and assistance in keeping my progress
on schedule.
Finally, I wish to thank my parents for their support an encouragement throughout my study.

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Table of Contents

1.0

Introduction................................................................................................................................ 1

2.1

The court system in Sri Lanka ................................................................................................ 2

2.2

Formation of a contract ........................................................................................................... 5

2.3

Terminated of contract............................................................................................................. 9

2.4

Law of negligence and its defences .................................................................................... 10

2.5

Arbitration as an alternative dispute resolution method ................................................... 12

3.0

Conclusions ............................................................................................................................. 15

4.0

Recommendation ................................................................................................................... 16

3.0

References .............................................................................................................................. 17

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Executive Summary

This report is considering about the some part of the Law and contract. Through this report
discuss about how the legal system is created and how justice is dispensed in Sri Lanka.
Also this report contain with the formation of the contract, how are the contracts terminated,
the law of negligence and its defenses, arbitration as an alternative dispute resolution
method and finally role of property law in Sri Lanka.

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1.0 Introduction

Contracts are agreements signed by both parties with the purpose of producing a legal
contract law papers and contracts are very important and serious. However, most individuals
or business owners do not fully understand the implications of signing a contract or breach of
contract. Through this report we have discussed the elements of a contract and revisions of
a scenario of how a contract may be violated if one or more of the parties do not fulfill their
part of the agreement. Termination of broken contracts is also discussed in the form of
damages.

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2.1

The court system in Sri Lanka

In Sri Lanka Parliament makes the law and published in acts of Parliament. The term of
Ordinance is refer for legislation passed during the British rule and then term of Law or
Act is refer fore recent legislation. In some times Parliament is delegated the rule making
authority for the executive agencies. Then after making the rules or regulations by that
executive agencies, those rules and regulations published in the government gazette.
English common law is the base of the Sri Lankan law. Therefore principles of the English
law such as judicial precedent (lower courts follow the reasoning of the higher courts in
similar, subsequent cases) and reasons for judgment govern the explanation of the case
law. Thus, District courts hear the civil cases and Magistrates courts and High courts hear
the criminal cases. Then decision of these trail courts, an appeal lies to the appeal courts
and then to the Supreme court of the Sri Lanka.
The Primary court
In Sri Lanka, primary court is the lowest level of court. This primary court has the power to
hear the civil cases and deal with the civil actions which if the claim is below one thousand
five hundred rupees (150000.00Rs). Also, primary court has the power for deal with the
criminal proceeding in relation to exact low level of offences laid down by existing regulation
in the Sri Lanka. Thus, the civil and criminal cases there are high emphasis on agreeably
resolving disputes and grievances by the primary court.
The Magistrates court
The magistrates court has empowered with the power in related of the low serious of
criminal offences as provided for in the penal code which is the main statutory structure that
describe offences and punishments what including in the criminal law in Sri Lanka.
The District court
The district court hears the original civil jurisdiction, in all matters in which original jurisdiction
has not been belonging with any other court. Land partition, rent and ejectment of
occupants, declaration of ownership and rights of way and other rights over land are cases
which come up before the District Court. The court also deals with trust, revenue and debt
recovery, unfair loss caused by negligence and other insolvency matters. Thus, the District
court is deemed to be the family court and has power over marital matters such as divorce,
over custody and children adaptation and declaration of legitimacy or illegitimacy.

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The High court

The High court was introduced for empowering the original jurisdiction with matter to all the
more serious criminal offences. They were conferred with similar appellate and reversionary
powers as the court Of Appeal, in relating to orders of Primary and Magistrates courts and
labor courts of the province. The High court is the only place in Sri Lankan court system
where a trial by jury can take place.
Commercial High court
High Commercial Court is taking some of the workload of the District Court to promote and
increase efficiency in our legal system. The Superior Court of the Western Province is
assigned with exclusive jurisdiction over specific trade issues in terms of the Superior Court
of the Provinces. This court deals with the cause of action has arisen out of commercial
transactions, related to banking, export or import of goods, insurance, commercial agency,
commercial use and construction of any business document that debt, damage or demand
for a sum exceeding Rs.3 million. actions to release a company of the consequences of
breach of the conditions that constitute a private company, the actions to void and actions
irregular allotments to recover losses , damages or expenses.

The Appeal court

The Appellate court hears the all appellate cases again and writ jurisdiction as now usually
hears by the High court. Appellate court has reversionary power of the cases over the
original orders of the High court. Also, in some problems, litigants can appeal High court
firstly and then to the Appeal court. If the litigants are not satisfaction with the order of the
Appeal court, then they can reach to the final court, it is the Supreme Court.

The Supreme Court

In Sri Lanka, Supreme Court is the highest court. It is the final court of appeal. It is the final
forum in the country. The Supreme Court is vested with exclusive powers as violations of
fundamental rights by executive or administrative action, the interpretation of the
Constitution, the inconsistency of a bill with the Constitution and any legal proceedings in
connection with the election of President and the validity of a referendum. In a case of
violation of the privileges of Parliament, the Supreme Court may punish people. Note that
our Supreme Court is also empowered with advisory jurisdiction.

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The President may refer issues of public importance to the Supreme Court for its opinion. In
a situation of impeachment against Chief Justice may be called to investigate and report to
Parliament on the charges against the President. The Supreme Court has the power to
make rules relating to aspects of the administration of justice, rule of appeals, as well as
matters of admission and removal and conduction hearing attorneys - law.

Chart 2.1.1: Court System in Sri Lanka

Supreme Court

Appeal Court

Primary
Court

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Magistrate's
Court

District
Court

High
Court

Commercial
High Court

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2.2

Formation of a contract

A contract can be defined as an agreement between two or more parties that is intended to
be legally binding. The first requisite of any contract is an agreement (which is an offer and
acceptance). At least two parts are required; one of them, the offeror makes an offer that the
other affected accepts.
Offer
An offer is an expression of willingness to contract made with the intention that it will become
binding on the offeror as soon as it is accepted by the recipient.
A genuine offer is different from what is known as an "invitation to treat", ie, when a party
merely inviting offers, he is free to accept or reject. The following are examples of invitations
to treat:
1. Auctions
In an auction, the call of the auctioneer to bid is an invitation to treat, a solicitation of offers.
Tenders submitted by people in the auction are offers, the auctioneer may accept or reject
as he pleases. Similarly, the bidder may withdraw his bid before it is accepted.
2. Display product
The display of products with a price ticket attached to a window or on a supermarket shelf is
not an offer for sale but rather an invitation to customers to make a purchase offer.
3. Ads
Used goods for sale are usually interpreted as invitations to treat.
However, ads can be interpreted as offers if unilateral, that is to say, open to everyone to
accept (e.g., offers for rewards).
4. Mere statements of price
A statement that the minimum price at which a party may be willing to sell not amount to an
offer.
5. Tenders
Where goods are advertised for sale by tender, the statement is not an offer but an invitation
to treat; i.e., it is a request by the owner of the goods for offers to purchase them.
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ACCEPTANCE
Acceptance is a final and unqualified terms of bid acceptance. To make a binding contract
acceptance must exactly match the offer. The recipient must accept all terms of the offer.
However, in certain cases, you may have a binding contract without an offer of comparison
and acceptance. As well, the following guidelines have been developed by the courts with
respect to acceptance:
1. Offers against
If your response to an offer, the recipient introduces a new term or varies the terms of the
offer, then the answer may not amount to an acceptance. Instead, the response is treated as
a "counter" as the original offeror is free to accept or reject. A counter-offer is also equivalent
to a rejection of the original offer, which can then be subsequently not accepted.
A counter offer must be distinguished from a simple request for information.
If A makes an offer on your standard document and B agree on a document that contains
your standard conflicting terms, a contract is made in terms of B if A acts on B
communication, for example, by delivering goods. This situation is known as the "battle of
the forms".
2. Conditional acceptance
If the recipient makes a condition of acceptance, then it will not be binding.
3. Tenders
An offer is an offer, acceptance of which leads to the formation of a contract. However,
difficulties in inviting tenders for providing periodic load arise:
a) If X advertised for bids for the supply of a certain quantity of goods to be supplied for a
certain time, and Y has to be delivered, the acceptance of the offer and create a
contract, under which Y is obliged to supply the goods and the buyer X is bound to
accept and pay for them.
b) Where X advertises for bids for the supply of goods, up to a maximum established for a
certain period, the goods to be delivered as and when required, the acceptance by X of
an offer received and does not create a contract. Instead, acceptance of the offer X Y
becomes a standing offer to supply the goods to the maximum indicated in the price
declared as and when so requested by X. The standing offer is increasingly accepted an
order X, so there are a number of separate supply of goods contracts.
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4. Communication of acceptance
The general rule is that acceptance must be communicated to the offeror. Until and unless
the acceptance is so communicated, no contract comes into existence:
The acceptance must be communicated by the recipient or a person authorized by the
recipient. If someone accepts on behalf of the recipient, without authorization, this will not be
a valid acceptance:
The offeror cannot impose a contract on the recipient against their wishes to be considered
that his silence must amount to an admission:
When an instantaneous method of communication, e.g. telex, which will take effect when
and where it gets used.
5. Exceptions to the rule of communication

a) In unilateral contracts, the normal communication of acceptance to the offeror rule does
not apply. Perform the task stipulated is sufficient to constitute acceptance of the offer.

b) The offeror may expressly or impliedly waive the need for communication of acceptance
by the recipient, for example, when goods are sent in response to a tender offer.

c) The Postal Rule - Where a request accepted by mail or in which it is a means of

communication between reasonable and appropriate parties, then acceptance is
complete as soon as the letter of acceptance was issued, even if the letter is delayed,
destroyed or lost in the mail so you never reach the offeror. The rule applies to postal
communication of acceptance by cable, including telegram, but not instantaneous, such
as telephone, telex and fax modes. The mail rule does not apply:

i.

When the acceptance letter has not been properly published, as in Re London and
Northern Bank (1900), where the acceptance letter was delivered to only authorize
postman to deliver the mail, not to collect it.

ii.

When the letter is not addressed properly. There is no authority on this point.

iii.

Where the express terms of the offer excludes postal rule, i.e., if the offer specify that
the acceptance must reach the offeror.

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6. Method of acceptance
The offer may specify that the acceptance must reach the offeror in which case the actual
communication is required. If a method is prescribed without made it clear that no other
method will suffice then it seems that an equally advantageous method would suffice.
7. Knowledge of the offer
A recipient can perform the act which represents the acceptance of an offer, to the
knowledge of the offer, but for a reason other than the acceptance of the offer. The question
then is whether the act constitutes a valid acceptance. The position seems to be that:
a) An acceptance that is entirely driven by factors other than the existence of a bid has no
effect.
b) Where, however, the existence of supply plays a part, however small, to induce a person
to do the required act, there is a valid acceptance of the offer.

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2.3

Terminated of contract

1. Acceptance
Once the offer has been accepted, a binding contract is made and the offer ends.
2. Rejection
If the recipient refuses the offer, that is the end of the contract.
3. Revocation
Offer may be revoked by the offeror at any time until it is accepted. However, the revocation
of an offer must be communicated to the recipient (s). Unless and until the revocation is
communicated as it is ineffective.
The revocation has to be communicated by the offeror personally, is sufficient if it is done by
a trusted third party.
When an offer is made around the world, it seems that may be revoked by the adoption of
reasonable measures.
Once the recipient has begun the performance of a unilateral offer, the offeror cannot revoke
the offer.
4. Time lapse
When an offer is said to be open for a specific period of time, then the offer automatically
terminates on expiry of that period. Where there is no express time limit, an offer is normally
open only for a reasonable time.
5. Lack of condition
An offer may be subject to conditions. Such a condition can be explicitly stated by the offeror
or implied by the courts of the circumstances. If the condition is not met the offer is not
capable of being accepted.
6. Death
The recipient cannot accept an offer after notification of the death of the offeror. However, if
the recipient does not know of the death of the offeror, and no element involved, then he
may accept the offer.

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2.4

Law of negligence and its defences

A person is negligent if he fails to exercise usual care to abstain damage to others or their
property. In other words, if he could not do something that a reasonably careful person
would do or did something that a reasonably prudent person would do under the similar
circumstances. As example, if someone causes a car accident as he or she was driving fast
than was safe for existing conditions, then the resulting can be likely include a claim of
negligence.

For a negligence claim, a plaintiff must establish four elements:

Duty of care

Breach of duty

Causal connection; and

Actual loss or harm

Duty of Care
A duty of care is owed to all foreseeable plaintiffs, meaning that a reasonable person would
have foreseen the risk of injury to the plaintiff in the circumstances. If there is such a duty,
the standard of care is that of a reasonably careful or prudent person.

In certain circumstances, a person may be subjected to a high standard of care. This arises
when a person has the skills or techniques or training. As example, in making a medical
decision, a physician must exercise the degree of care that a reasonably careful physician
would do under similar circumstances.

Except for children, this rule does not ratchet down to accommodate the deficiencies and
lack of mental experience of a person.

In the context of business, a company may owe various duties of care to their clients,
strangers and neighbors. These duties of care can arise when an electrician entering
company premises when an employee with a company car drives entertain clients or even
when a stranger passes through the parking lot of the company.

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Defences to negligence
A company can defend a negligence claim to attack any of the four elements of negligence.
Possible defenses include, challenging the status of the applicant and the corresponding
duty of care, the claim that it acted in accordance with the required standard of care, attack
causation between action and inaction and the harm or injury or questioning whether the
plaintiff with any actual loss. some jurisdictions allow a party to escape another negligently
some or all of its liability if it can prove that the injured party was also negligent.

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Arbitration as an alternative dispute resolution method

Arbitration is an alternative dispute resolution in which two or more parties undertake to

adopt their disagreement with a neutral impartial person of their choice to settle disputes out
of court. This person(s) may be a lawyer or a panel (usually three) who are experts in the
field of a particular dispute.

The court, having heard both arguments and decide to make a final and binding decision
called an award over who is responsible for the loss. This decision may be enforced as a
court judgment.

When considering the construction companies, they are normally decided on arbitration
method because there have several reasons.

I.

Expenses are less than litigation fees and the cost of arbitration are divided amongst
all.

II.

Arbitration can be held at a time and place convenient to all concerned.

III.

Time can mean saving money this includes speedy out of court settlements.

IV.

Confidential and commercial matters are not debated in court and are confined to the
tribunal

V.

All parties agree on how their disputes are resolved.

VI.

All parties agree to be bound by the terms of the hearing and the final decision.

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2.6 Role of property law in Sri Lanka

Unlike real estate, intellectual property is not tangible because it originates in the human
mind which involves the human intellect. Therefore, it is said to be the "fruit of the human
intellect." In the process of development of the world as it stands today, the human mind: the
intellect plays the important role that nobody can deny. Therefore, all countries have given
prominence to this special branch of law for economic development and move from
technology for the next generation instead.

Real Property law

- Any property transferred to a licensed bank at auction by such bank in carrying a mortgage
for that property.
- Any property transferred to a financial institution Leasing recorded on a purchase made by
the institution in which the property has been mortgage at that institution as security for the
lease, or to execute a lease and an agreement to sell or loan and an agreement to sell .
- Any property transferred to a licensed bank or a financial institution registered Leasing
under a court order in an action for recovery of a debt.
- Any property transferred to a licensed bank or financial institution registered Leasing to
continue their banking business or finance lease of such property.
- Any land transferred to a company authorized by the Board of Investment of Sri Lanka (BOI
) to setup on such land -

(A) A project to build no less than a hundred residential homes on a piece of land not
exceeding ten hangers for each such unit or registered condominium property not less than
one hundred units of residential accommodation or residential , if the value of the land is met
by inward remittance of foreign currency.

(B) A project for the construction and operation of a hospital or a hotel where the investment
is not less than ten million dollars and the consideration for the purchase of the land meets
inward remittances of foreign currency.

(C) A project involving infrastructure development or any other development approved by the
Minister of Finance and where investment is not less than fifty million and the consideration
for the purchase of the land meets remittances to inside the foreign currency.
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(D) A project exclusively for the manufacture of non -traditional export , to establish its
manufacturing plant , office , storage facilities, products , and dormitories for workers, where
the investment is not less than one million US dollars and the purchase consideration for the
land meets remittances into the foreign currency.
- Any unit condominium located in or above the fourth floor of a condo approved, if the value
of the unit met by inward remittance of foreign currency.
- Any property acquired before October 5, 2004 by a company and transferred to another
company in the dissolution of the transferor company as a result of a merger of the
transferee company to the transferor.

Intellectual property law

Intellectual property is a fact that the power of thought and the power of the mind cannot be
stolen by a powerful third, the fact remains that intellectual property rights " are being
violated worldwide. Intellectual Property Law is the branch of law that establishes provisions
for the protection of this valuable asset: the result of human activity. Intellectual Property
Law No. 36 of 2003 provides the framework within which intellectual property rights are
currently protected within the island of Sri Lanka, which is a member state of the World
Intellectual Property Organization (WIPO) and a party International agreements / treaties.

Intellectual property is classified in several games in the Act , ie : Copy the appropriate rights
and related industrial designs, patents, trademarks and marks, collective marks , certification
marks , trade names and design of integrated circuits to be given the protection of the law.

The National Intellectual Property Office of Sri Lanka is the only governing body established
for the total control of IP-related issues including registration and administration of industrial
designs, patents, trademarks and any other matter.

Any nonresident individual or legal entity incorporated outside Sri Lanka can register their
IPR in Sri Lanka through an attorney / agent registered with the National Intellectual Property
Office and the Office needs a local postal address for correspondence.

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3.0 Conclusions

Through this report reader can get the idea about the Design principles and applications.
This report is describing about how to use design strategies and how to design according to
the client requirements for the new construction project.
Also through this report we have discussed how to select building materials for wall with
considering the environment efficiencies, recyclability, durability and cost effectiveness. As
well we have to consider about the weather and climate condition in that area for past 10
years.
During the construction works, there can be produce the construction waste, therefore there
must have proper and safe way to dispose those waste. Thus, through this report I have
described about the several methods for dispose those construction wastes safely.
For the interior floors for this this house is hope to use terrazzo or floor tiles. In that case,
there must be doing the cost study for selecting one material for the interior floor of this
house because maximum budget is 8.5% of total budget is allocated for floor works for this
house.
The one of major factor is health and safety during the construction phase. Therefore this
report has described about the roles and responsibilities of all parties involved in the design
and planning process of the building project.

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4.0 Recommendation

When the construction works going on, there can be occur the unexpected obstacles such
as heavy rain, floods and etc. so it will be cause for the construction delay. But that delay
ought to be avoided. So have to change the planning and design process of this project that
suitable for the current situation after that should follow that edited design and planning
process.

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5.0 References

1) Nelson, W 1976, compressed earth blocks, habitat for Humanity International, United
States of America, viewed on 14th September 2014, Available from
http://www.networkearth.org/naturalbuilding/ceb.html
2) National Engineering research and development centre of Sri Lanka 2014,
compressed earth blocks, department of civil Engineering, viewed on 14th
September 2014, Available from http://nerdc.lk/en/sub_pgs/1_dept_2_civil.html
3) Traditional oven 2014, fire bricks, KangaRado Hand, viewed on 14th September
2014, Available from
http://www.traditionaloven.com/articles/84/firebricks-heavydense-fire-clay-bricks
4) World weather online 2014, Kandy weather Sri Lanka, viewed on 14th September
2014,
Available
from
http://www.worldweatheronline.com/Kandy
weather/Central/LK.aspx
5) Landfilltmchs 2014, land fills, team one , viewed on 15th September 2014, Available
from http://assets.inhabitat.com/wp-content/blogs.dir/1/files/2011/01/construction01537x358.jpg
6) YIFAN 2012, YIFAN vigorously promote the construction waste recycling,
Zhengzhou, viewed on 15th September 2014, Available from http://www.recyclingconcrete.com/uploads/allimg/pro/construction-waste-recycling.jpg
7) Google. (2014). [online]. Last accessed 15th September 2014, Available from
http://www.packer2000.com/Residential%201D_files/image008.gif
8) Google. (2014). [online]. Last accessed 15th September 2014, Available from
http://wood-shredder.com/wp-content/uploads/2012/11/plywood-recycling.jpg
9) GovHK 2014, construction waste, Hong Kong, viewed on 15th September 2014,
Available from http://www.gov.hk/en/about/aboutus.htm
10) Projen 2014, CDM Regulations, PROjEN House, United Kingdom, viewed on 18th
September 2014, Available from http://www.cdm-regulations-uk.co.uk/
11) Dissanayake, S 2014, intellectual property law in Sri Lanka, HG.org legal resources,
viewed
on
19th
September
2014,
Available
from
http://www.hg.org/article.asp?id=21205

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