Using English Law to Resolve Contractual Disputes

Contractual agreements need proper method of resolving available disputes. This paper will look the importance of having the English law as the proper law of solving contractual disputes. Additionally, the paper will analyze the merits of these laws and why they have to be preferred for a surveyor. In addition, the paper will look at the circumstances when the English law will be applied. Moreover, the paper will also analyze the important parties who will be involved in the solving of the disputes using the English law. Also, when damage occurs unto a property, claims are requested by the parties, this paper will analyze the process of resettling those claims. For the surveyors, damage can occur while their vessels are under construction. In this section, the paper will analyze the standard procedure of claiming a resettlement when damage has been caused by a third party. In addition, analysis of the important persons who are involved in the resettlement process for the damage caused to the surveyor will also be done. Most important, this section will look the process which the surveyor can follow to claim resettlement under the insurance agency of the third party and also the process of claiming compensation on his or her own insurance. Lastly, this paper will provide a standard work plan for the next six month for the surveyor while repairing the damages caused. The section will look at key insurance covers which will be needed. These covers will be analyzed in details of the specific overheads which will be covered and need to be compensated within such periods. The covers will be provided to ensure that the cash flow of the company is not affected while covering for unbudgeted expenses in this period.

Task 2

In resolving contracts disputes, English law is considered to be one of the best laws to address relevant issues which may arise. For a law to be considered the best, it must provide different alternatives of resolving disputes. English law gives priority to Alternative Dispute Resolution (ADR) methods in order to help the parties settle the cases outside the court (Slapper & Kelly 2010). Even after failure of the other mechanisms and the case has to be resolved in court, the English law holds high priority to the mediation confidentiality (Wild, Weinstein, Smith & Keenan 2013). The confidentiality means that even after the parties are unable to resolve the dispute outside the court and the court process is reactivated, the content of mediation proceedings are not disclosed to the judge. In addition, the development of the contractual law in English law is based on the common law. The high legal knowledge in the commercial courts concerning the use of common law in a commercial way makes the English law the best in resolving contractual disputes.

Importance of Transparency and Predictability

In addition, when using a method to resolve disputes, it is important to choose a law which is transparent and predictable. The English law has these major characteristics and it will be perfect for the client in this case to choose the English law (Slapper & Kelly, 2017). English law was developed from the combination of statute and case law which are used to determine cases using the common law. The law therefore offers guideline in every step and any issues arising between the parties. Through the guidelines and proceedings, the parties can therefore be able to predict with greater certainty on the outcome of the cases and therefore opt to use the best mechanism to resolve the disputes (Riley & Sours, 2014). Many civil laws are unpredictable and thus cannot be preferred for this case.

In addition, the English law is more flexible and is able to allow different arrangements unlike many civil law systems (Pollock 2015). The English law is based on the principle of freedom of contracts and therefore allows more flexible arrangements. The key principle which is used is the freedom of contracts where the different parties are bound only to their terms of agreements and which are attractive to commercial parties. Under the English law, the parties have the freedom to make agreement whereby each party will be able to gain and therefore giving them the flexibility of arrangements (Anson 2015). This is not a common practice of many civil codes and therefore makes the English law best suited in this case.

Lastly, the English law supports the needs of modern commerce. Through this, the law is able to look at the current needs in the market and evolve with them. This means that the decisions which are made are based on current practices (In Burrows, 2015 and Forsyth,  Wade, & Wade 2014). According to the common law system which the English law uses, the judge is required to decide what the law is when there is no other authoritative statement in the law. The decision of an appellate court binds future decisions of the same appellate court on similar cases and binds all power courts. Nevertheless, a review by high court or legislature may overturn the decision and bring new meaning under the common law (In Garner 2014). Therefore this legal system means that a law can evolve more than the statute law in order to adapt to current trends, practices and behaviors in the modern society. Any disputes on the content of the contract can be therefore resolved with the previous cases and also use of the current contractual practices.

Flexibility in English Law

Task 3

Since handing over of vessel A had not been done, the ownership is technically still under the contractor and he or she is most responsible to make the claim against vessel B against the damage caused. The handing over of vessel A as per the case had not taken place and therefore the contractor has the main obligation to file the claim against vessel B. When contracted to carry out the works, the contractor assumes the ownership of the vessel until the handing over of the vessel is done.

The process of making the claim starts with reporting of the damage made to the relevant areas. This helps to make sure that the relevant bodies and organs who are involved in this case are made aware of the incident (Dougherty, 2015). The owner of the vessel B, the insurance agency a surveyor vessel A insurance and the owner of vessel A are the main parties who are notified of the accident. Since the owner of vessel B has insurance, the insurance agency for vessel B has to be notified. The first step the contractor will take is to notify the insurance of the accident involving the vessels. This is the start of the journey of making a claim for settlement. In addition, the contractor may appoint a surveyor who will make a claim to the insurance.

 The surveyor will be able to file the claim to the owner of vessel B. After that the owner of the vessel will file the claim involving the damages on the third part. The next step is sourcing of evidence by the surveyor and insurance agency. After that confirmation of the accident will be reported and the demonstration of loss occurrence be recorded. Then, the insurance agency will survey to access the damage. Different parties will be involved in the assessment of the damage. This will ensure that the proper settlement claim is paid. After the analysis, the insurance will analyze the possibilities which can be used to settle the claim. This will involve different options such as monetary repayment for the vessels or repair of the vessels. The insurance agency will also determine the legitimacy of the claim filled and whether it is covered under the insurance contractual terms (Volume 5, 2015). Different risks are insured differently and the insurer has to make sure that the claims raised are legit and covered according to contract agreement. After confirming that the claim is legit and covered, the insurance agency will choose the perfect method for compensation. The insurance agency will therefore notify the insurer of the preferred method of settling the claim. In addition, the insurance agency will file a report concerning the payment of the claim (Dougherty, 2015). After the process, the insurance agency will settle the claim. In settling the claim, the agency will compensate the owner of vessel A and the vessel B owner according to the damage they were able to experience due to the incident.  

Supporting Modern Commerce

In addition, if the contractor has an insurance cover for the vessel while under construction, he or she can make a claim to be compensated for the loss. The same process will be used to make the claim under the owner’s insurance agency. The contractor will start by reporting the accident to the insurance agency or appoint a surveyor to follow the claim resettlement process (Volume 5, 2015). He or she will file the claim with the insurance agency who in turn will take the responsibility to analyze and investigate the legitimacy of the claim and determine whether it was covered. If they found the claim is legit and were covered, the insurance agency will determine the correct method of settlement for the loss incurred. After war they will settle the clam according to the agreement made.

Task 4

Having experienced the delays in the construction of the vessel A for six months, the company is set to reschedule its work plan. For the first one month, the company will take off the wreckage and determine the key areas which need to be repaired and the amount of repair needed. At the same time, the compensation program will be done to ensure that important materials are procured within the next two months. The resettlement of the damage claim will be taken for three months. Procurement of materials will be also carried in the first three month after the extension is provided. In the fourth month, repair works will be made and it will be carried for the fourth and fifth month. Testing of the vessel will be carried on the beginning of the sixth month. The sixth month will be also used to analyze whether all the details are met and then the handing over of the vessel will be carried at the end of the month.

Insurance against the damages while the vessel is under construction is important for the contractor. They will ensure that any damage experienced on the vessel will be compensated for. The insurance agreement will be taken on specific causes such as destruction by other third parties without their will (Taylor 2009). Third party public liability insurance will be important in this section. This insurance cover will ensure that all losses caused to third party while the vessel is under construction and testing will be compensated by the insurance agency. This cover will ensure that the contractor does not bear the costs of compensating third parties or the public who they experience damage while the surveyor is carrying his or her duties.

Resolving Damage Claims as a Surveyor

In addition, professional indemnity insurance will be important to ensure the contractor is covered against errors which may occur while correcting the damage caused (United States 2014). This cover will ensure that future errors will not be experienced directly by the contractor and that the insurance agency will compensate them. The errors and omissions will be mostly likely type of cover which this part of vessel will be taken against. This is because the contractor may miss some details during the repair of the vessel.

Moreover, the employer’s liability insurance cover will be taken by the contracting company. This cover will ensure that the company does not experience much loss during the six months without much income (Worku 2010). This cover will be used to compensate for any challenges experienced with workers while they are performing their duties for the company. Mostly, this cover will be able to take care of the safety of the employees and cover for their health expenses in case they are ill while at work. In addition, this cover will ensure that the works for the repair of the vessel is well maintained. Income protection cover will also be taken by the company (Joshi 2018). This will ensure that in case of any illness or injury, the company will not experience the loss of paying the wages of an employee who is not at work. This cover will ensure that the insurance company covers the income need of such employees.

References

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