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Default and Liability Clause and Notice clarification.
Hello,
I’m working through Module 4 and Module 4b, Accept a Public Offer to Contract.
I feel as though I understand most of the “Default and Liability Clause and Notice”, however I’m struggling to work out the rationale for including the following paragraph in the contract terms and conditions.
What is being achieved with the inclusion of the following paragraph in the completed and accepted contract?
Any thoughts are most welcome. Thanks in advance.
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“Any default when attending to matters concerning bills of exchange or promissory notes that the sum payable by a bill of exchange or promissory note is a sum certain[1] and similarly includes a ‘sum payable’ even though it is to be paid:
a. with stated interest, or
b. by stated instalments, or
c. by stated instalments, with a provision that upon default in payment of any instalment the whole shall become due: or
d. with stated different rates of interest before and after default, or
e. a specified date, or
f. with a stated discount or addition if paid before or after the date fixed for payment, or
g. with exchange or less exchange, or
h. according to an indicated rate of exchange, or
i. according to a rate of exchange to be ascertained as directed by the bill of exchange, or
j. whether at a fixed rate or at the current rate, or
k. with costs of collection or a lawyer or attorney’s fee or both upon default[2],”
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Thanks again.
Craig
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2 Replies
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It sounds to me like it is listing all of the conditions under which a ‘sum certain’ and a ‘sum payable’ are still relevant, just in case the adversary tries to bring up any of those arguments to claim they are not relevant. So it sounds to me like it is stopping any claims like that in advance, by making it clear it is still valid under all of those conditions.
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Thanks Morag, much appreciated.