Contracts

Question 1

Methods of dispute resolution?

Answer 1

In order of least to most time consuming and expensive:
Mediation, Adjudication, Arbitration & Litigation

Mediation:

• Independent 3rd party brought in to help negotiations
• Best chance of success - relationship maintained
• PRIVATE

Adjudication:

• decision can take up to 28 days
• mandatory option in contracts
• adjudicator appointed in contract / by CIC
• PRIVATE
• legally enforceable, can be overturned by arb/lit

Arbitration:

• slower than adjud
• 3rd party or tribunal
• legally enforceable by lit
• still PRIVATE

Litigation

• essentially last resort
• most expensive, time consuming (months) + is a public process
• takes place in court

Question 2

Collateral Warranties

Answer 2

Privity of contracts act - protected contract from claims by those outside the contract.
this was ss by the Contract of third parties act - opened the contract up

now you must apply the P of contract act to the contract

AECOM day 1 T’s and C’s applies the privity of contract act

so to allow a specific third party to claim against the contract a Collateral warranty must be written into the contract

example of a CW = first tennant