Thursday, July 25, 2019
How do the courts deal with the battle of forms, where parties to an Essay
How do the courts deal with the battle of forms, where parties to an intended contract exchange forms containing mutually inconsistent terms - Essay Example ten negotiate through exchanging correspondence, with a series of counter offers as to price and the contract terms; this has been referred to as the ââ¬Å"Battle of the Formsâ⬠(Beale, 2007). In considering this Beale in Chitty on Contracts underlines this problem and concludes: ââ¬Å"Thus it is possible by careful draftsmanship to avoid losing the battle of the forms, but notâ⬠¦Ã¢â¬ ¦.. to win it. The most that the draftsman can be certain of achieving is the stalemate situation where there is no contract at allâ⬠(Beale, 2007). In order to address this legally, the courts have adopted the ââ¬Å"last shot principleâ⬠, which was established in the case of Butler Machine Tool Co ââ¬âv- Ex Cell-O-Corp ((1981) 24 BLR 94). According to this principle, the presumption is that the last offer which has been accepted without qualification will be determined as covering the conditions of the contract. This was confirmed in the recent case of Tekdata Communications Ltd v Amphenol Ltd ([2009] EWCA CIV 1209), which confirmed that there the general principle of the ââ¬Å"last shotâ⬠wins was applicable unless there was unequivocal evidence of contrary intention. For example, in the Tekdata case itself the parties were in a production chain involving four companies producing aircraft components and at first instance, the trial judge departed from the last shot doctrine on the basis that the parties were part of a complex supply chain where prices were non-negotiable and the defendant did not suggest that its own terms and conditions were incorporated into the contract. However, the Court of Appeal rejected this rationale and held that ââ¬Å"the context of a long term relationship and the conduct of the partiesâ⬠may in certain circumstances be sufficiently strong to displace the usual ââ¬Å"last shot winsâ⬠rule. Therefore, whilst the general principle is that the last shot wins, the course of dealing between parties may sometimes negate this and result in the terms and conditions
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