Table of Contents
Introduction ix
Prologue xiii
Chapter 1 Engineering contracts 1
1.1 The project and its engineering contracts 1
1.2 How contracts are formed 4
1.3 Express and implied terms of a contract 11
1.4 Avoidance of ambiguity 15
1.5 Breach of contract: conditions and warranties 17
1.6 The privity of contracts 20
1.7 Collateral contracts 21
1.8 Variations to contracts 22
1.9 Property in, possession of and ownership 25
Chapter 2 Contract legality, offers, acceptances and considerations 28
2.1 Legal requirements 28
2.2 The legality of contract subjects 29
2.3 Legal capacity of parties to act 30
2.4 Intention for contract to be subject to law 33
2.5 Mutual agreement: offer and acceptance 34
2.6 Consideration 41
2.7 Letter of Intent 42
2.8 Instruction to proceed 43
Chapter 3 Uncertainty, undue influence, misrepresentation, mistakes, frustration, etc. 45
3.1 Divisions of UK law: the right charge 45
3.2 Uncertainty 47
3.3 Undue influence 48
3.4 Misrepresentation 49
3.5 Mistakes 52
3.6 Frustration 54
Chapter 4 Agents and agencies 58
4.1 What is a legal 'agent'? 58
4.2 Scope of agent's authority 59
4.3 Authority for agencies 60
4.4 A known-principal agent 62
4.5 The agent with an 'undisclosed principal' 64
4.6 Payments of the contract price 66
4.7 The end of an agency 67
4.8 Agreements with so-called 'agencies' 68
Chapter 5 Authentication, agreements, bonds, guarantees and warranties 70
5.1 Authentication of documents 70
5.2 Engineering contracts and agreements 70
5.3 Bonds 74
5.4 Guarantees and warranties 78
5.5 Specific performance 81
5.6 'Quantum meruit' 82
5.7 Injunctions 83
5.8 Tort 84
5.9 'Force majeure' 85
5.10 Licences: patents, copyrights and designs 86
Chapter 6 Exports: shipments and payments 94
6.1 Exports 94
6.2 Methods of transportation 95
6.3 TIR facilities 97
6.4 INCOTERMS 1980: contractual requirements 98
6.5 Bills of lading: air consignment notes 100
6.6 Marine insurance 102
6.7 ECGD 103
6.8 The World Bank 106
6.9 Payment of the contract price 107
6.10 Letters of credit 110
6.11 Bills of exchange 111
Chapter 7 Subcontracts, preferred subcontracts, nominated subcontracts, prime costs, contract assignment and insolvency 115
7.1 Subcontracting, subletting 115
7.2 Preferred subcontractors 118
7.3 Nominated subcontractors 119
7.4 Prime costs 123
7.5 Contract assignment 125
7.6 Insolvency of contractors 127
Chapter 8 Quality assurance, reliability, the Limitation Acts, latent damage, strict liability, the Consumers Protection Act 1987, occupier's risks and arbitration 133
8.1 Quality assurance 134
8.2 Reliability 137
8.3 The Limitation Acts 140
8.4 The Latent Damage Act 1986 142
8.5 Strict liability: the Consumers Protection Act 1987 145
8.6 The Health and Safety at Work, etc. Act 1974 149
8.7 Occupier's liability to visitors to site 151
8.8 Disputes and arbitration 154
8.9 The International Chamber of Commerce 159
8.10 Commercial courts 160
Appendices
Appendix 1 Typical terms used in engineering contracts 163
Appendix 2 Equivalent terms used in some standard forms of conditions of contract 165
Appendix 3 Types of contract 166
Appendix 4 Terms often met in commercial transactions 168
Appendix 5 Terms used in overseas transportation of engineering goods 171
Appendix 6 Typical sets of Standard (or Model) Conditions of Contract found in engineering projects 172
Appendix 7 Typical contents of the Major Model Conditions of Contract used in the engineering industry 175
Appendix 8 Extract from Local Government Act 1933 178
Appendix 9 Declaration of bona-fide tender (example) 179
Appendix 10 Example of Warrant of Attorney by Resolution 180
Appendix 11 Typical collateral agreement between employer and intended nominated subcontractor 181
Appendix 12 Typical Bond of Guarantee by an approved surety 183
Appendix 13 Typical Instruction to Proceed 184
Appendix 14 The Copyright, Designs and Patents Act 1988: a brief synopsis 185
Index 189
