Fun Film Plc Case Summary

Decent Essays

In relation to Fun Film plc’s current situation, the preliminary issue we must first identify is the preceding to look at other issues arising from this case, is whether there was an intention to be legally bound. The presumption of the intention to create legal relations refers to whether the parties, via their agreement, wish to be enforced by contract law. Therefore, in this case, the courts must determine whether this is an social/domestic agreements or a commercial arrangement. Firstly, we distinguish the difference between domestic/social agreements and commercial agreements in order to apply the precedents towards Fun Films plc’s case; courts are generally reluctant to hold a domestic/social agreement between two parties as legally binding …show more content…

Most of the provisions of the Act apply only to what is termed "business liability". This is defined by s1(3) as liability arising from things done by a person in the course of a business or from the occupation of business premises. The exceptions are s6 and 7 where the Act also applies to private contracts. The Act gives the greatest protection to consumers. Under s12(1) a person "deals as a consumer" if he does not contract in the course of a business while the other party does contract in the course of a business; and if it is a contract for the supply of goods, they are of a type ordinarily supplied for private use or consumption. But see cases Peter Symmons & Co v Cook [1981] 131 NLJ 758 and R & B Customs Brokers v United Dominions Trust Ltd [1988]. We know that the only reason Fun Film plc lost money was because, through the negligence of Goliath plc, there was a major delay in Film Fun plc receiving the film. Which means that the damages owed stem from a negligence act. Section 1 of the UCTA 1977 states that negligence means the …show more content…

In contract law damages are a legal remedy available for a breach of contract. Damages are used as an award of money to compensate the innocent parties. The primary function of damages in contract law is to place the injured party in the position they would have been if the contract been performed to its full agreement. Fun Film plc had lost money only down to the delay the film which they suffered entirely, and readily, foreseeable losses far in excess of the hire charge for the film. Example of damage in contract law is the case of Addis v Gramophone [1909] where the claimant had been employed as a manager. The defendant relieved him of his services and replaced him with someone else which was a breach of the contract. The claimant brought an action for breach of contract under which he claims that the level of damages should reflect the circumstances in which he was dismissed damaged his reputation and ability to find suitable employment.
Contract law seeks to put the parties in the position they would have been in had the contract been performed. He was therefore limited to claiming wages and loss of commission during the contractually agreed notice period. There was no right to exemplary damages or damage to reputation in contract claims. Such claims would have to be actioned in the law of

Get Access