Construction Law

1. Introduction
Chapter One
Lecture by: Andualem Endris (M.Sc)
School of Engineering and Technology
Construction Technology and Management Department
Madawalabu
University
Construction Law
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2. Introduction to Law
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3. What is Law?
• Law is the regime that orders human
activities and relations through:
– Systematic application of the force of
politically organized society, or
– Social pressure, backed by force.
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4. Application of Law
• Legislation
• Judicial precedents
• Accepted legal principles
• Body of authoritative grounds of judicial and
administrative action (the law of the land).
• Set of rules or principles dealing with a specific
area of a legal system.
• When negotiations for settlement of disputes
between parties fail, submit the dispute to the law.
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5. Kinds of Law
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6. Natural Law
• A physical law of nature (eg. gravitation)
• A universalized conception of human
nature or divine justice rather than from
judicial action.
• Moral law embodied in principles of right
and wrong (ethical teaching are based
on natural law)
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7. Canon Law
• Laws which were not compiled until the
12th to 14th centuries.
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8. Case Law
• The law to be found in the collection of
reported cases that form the body of law
within a given jurisdiction.
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9. Civil Law
• One of the two prominent legal systems in the
Western World (the Civil Law & the Common
Law).
• It deals with the rights of people rather than
with crimes.
• Originally administered in the Roman Empire
and still accepted in continental Europe, Latin
America, Scotland and Louisiana, among
other parts of the World.
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10. Common Law
• The body of law derived from judicial
decisions, rather than from statutes or
constitutions.
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11. Contract
and
Contract Conditions
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12. Contract Clauses
• A contract clause is simply a statement
contained in a contract.
– Clause: A statement or sentence that is
part of a legal document such as a
contract, a will or a legal pleading.
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13. Conditions
• A condition is a contract clause that
modifies the basic agreement between
the parties.
• It is perfectly legal –and very common—
for a contract to contain conditions.
• Conditions do not create rights; they
limit them.
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14. Distinguishing Conditions from
Promises
• A condition is different from a promise.
• A condition modifies, alters or even
rescinds the agreement.
• A promise is the party’s pledge to be
bound by the contractual agreement.
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15. Types of Conditions
• Conditions come in many different
forms.
• It is not necessary to actually label a
specific clause as a condition; it can be
implied by the actions or the intentions
of the parties.
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16. Implied Condition
• An implied condition is one that is
presumed to exist from the conduct of
the parties.
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17. Express Condition
• An express condition is one that is
stated in the contract.
• When an express condition exists,
courts will usually attempt to follow the
stated intentions of the parties.
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18. Condition Precedent
• A condition precedent is a condition that
must be met or performed before the
agreement takes effect.
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19. Limitations on Conditions
Precedent
• One party cannot prevent the other
party from meeting the condition.
• Courts do not favor conditions
precedent.
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20. Condition Subsequent
• Under a condition subsequent, the
parties agree to be bound by the
contract until a particular condition
occurs.
• Conditions subsequent always refer to
future events.
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21. Contract Exclusions
• An exclusion is a particular item or
subject that is not covered by the
contract.
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22. Specific Contract Provisions
• Specific conditions modify the general
conditions of contracts
• There are certain provisions that are
frequently seen in drafting contracts.
• When a contract contains a “time is of the
essence” provision it means that the date set
for the action contemplated in the contract is
fixed.
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23. Proving Contract Conditions
• When a contract contains a condition, it
is up to the judge to determine the legal
effect of the wording.
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24. Interpreting Contract
Provisions
• Judges (or juries) interpret contract
provisions.
• Judges have wide discretion in their
interpretations.
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