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Introduction
Chapter One
Lecture by: Andualem Endris (M.Sc)
School of Engineering and Technology
Construction Technology and Management Department
Madawalabu
University
Construction Law
CoTM 4241
Introduction to Law
2
CoTM 4241
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.
3
CoTM 4241
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.
4
CoTM 4241
Kinds of Law
5
CoTM 4241
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)
6
CoTM 4241
Canon Law
• Laws which were not compiled until the
12th to 14th centuries.
7
CoTM 4241
Case Law
• The law to be found in the collection of
reported cases that form the body of law
within a given jurisdiction.
8
CoTM 4241
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.
9
CoTM 4241
Common Law
• The body of law derived from judicial
decisions, rather than from statutes or
constitutions.
10
CoTM 4241
Contract
and
Contract Conditions
11
CoTM 4241
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.
12
CoTM 4241
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.
13
CoTM 4241
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.
14
CoTM 4241
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.
15
CoTM 4241
Implied Condition
• An implied condition is one that is
presumed to exist from the conduct of
the parties.
16
CoTM 4241
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.
17
CoTM 4241
Condition Precedent
• A condition precedent is a condition that
must be met or performed before the
agreement takes effect.
18
CoTM 4241
Limitations on Conditions
Precedent
• One party cannot prevent the other
party from meeting the condition.
• Courts do not favor conditions
precedent.
19
CoTM 4241
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.
20
CoTM 4241
Contract Exclusions
• An exclusion is a particular item or
subject that is not covered by the
contract.
21
CoTM 4241
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.
22
CoTM 4241
Proving Contract Conditions
• When a contract contains a condition, it
is up to the judge to determine the legal
effect of the wording.
23
CoTM 4241
Interpreting Contract
Provisions
• Judges (or juries) interpret contract
provisions.
• Judges have wide discretion in their
interpretations.
24
CoTM 4241
CoTM 4241 25

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Chapter 1 [compatibility mode]

  • 1. Introduction Chapter One Lecture by: Andualem Endris (M.Sc) School of Engineering and Technology Construction Technology and Management Department Madawalabu University Construction Law CoTM 4241
  • 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. 3 CoTM 4241
  • 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. 4 CoTM 4241
  • 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) 6 CoTM 4241
  • 7. Canon Law • Laws which were not compiled until the 12th to 14th centuries. 7 CoTM 4241
  • 8. Case Law • The law to be found in the collection of reported cases that form the body of law within a given jurisdiction. 8 CoTM 4241
  • 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. 9 CoTM 4241
  • 10. Common Law • The body of law derived from judicial decisions, rather than from statutes or constitutions. 10 CoTM 4241
  • 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. 12 CoTM 4241
  • 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. 13 CoTM 4241
  • 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. 14 CoTM 4241
  • 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. 15 CoTM 4241
  • 16. Implied Condition • An implied condition is one that is presumed to exist from the conduct of the parties. 16 CoTM 4241
  • 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. 17 CoTM 4241
  • 18. Condition Precedent • A condition precedent is a condition that must be met or performed before the agreement takes effect. 18 CoTM 4241
  • 19. Limitations on Conditions Precedent • One party cannot prevent the other party from meeting the condition. • Courts do not favor conditions precedent. 19 CoTM 4241
  • 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. 20 CoTM 4241
  • 21. Contract Exclusions • An exclusion is a particular item or subject that is not covered by the contract. 21 CoTM 4241
  • 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. 22 CoTM 4241
  • 23. Proving Contract Conditions • When a contract contains a condition, it is up to the judge to determine the legal effect of the wording. 23 CoTM 4241
  • 24. Interpreting Contract Provisions • Judges (or juries) interpret contract provisions. • Judges have wide discretion in their interpretations. 24 CoTM 4241