Standard contracts are of two main types, and each category raises different questions for contract law students. In Schroeder Music Publishing Co Ltd v. Macaulay (1974), Lord Diplock set out to describe the first category: if there are no specific requirements for amending the contract, do so by an act of amendment to avoid any dispute over the absence of consideration; Some argue that in a competitive market, consumers have the opportunity to look for the supplier that offers them the most favorable conditions and, therefore, are able to avoid injustice. In the case of credit cards (and other oligopolies), for example, while the consumer has the opportunity to look around, he can still have access to only entering into contracts with similar terms and no possibility of negotiation. As mentioned earlier, many people do not read or understand the terms, so there may be very little incentive for a company to offer favorable terms, as this would only generate a small amount of business. Even if this is the case, some argue that only a small percentage of buyers should actively read model contracts so that it is worthwhile for companies to offer better terms if this group is able to influence a larger number of people by affecting the company`s reputation. The terms of standard contracts also often benefit the party with the greatest bargaining power. This kind of unequal purchasing power exists between businesses and consumers. If there are inequalities in the ability to negotiate, this leads to an agreement that works economically against the consumer. In these cases, the courts defend the consumer. If the contract does not really take into account the best interests of all parties, the courts will intervene.
Model contracts aim to make joint agreements between suppliers and consumers more efficient and cost-effective. You can find some of these forms (p.B, leases, construction contracts, and divorce documents) at your local office supply store or online. Make sure you understand the following facts about model contracts: In Canada, you cannot rely on the exclusion clauses of a standard contract if a seller knows or has reason to believe that a buyer is wrong about its terms (Tilden Rent-A-Car Co.c. Clendenning). Many of the reasons for the development of model contracts are positive. In the area of business partners, they can be established as examples negotiated by professional associations or professional associations on behalf of parties with roughly the same bargaining power over a longer period of time. The cif international purchase agreement and the YCW form of the construction contract, which are discussed below, are good examples. These types of contracts are presumed by the courts to be fair and proportionate. However, this does not mean that standard contracts are without problems. The “forms battle” is an example of the problems that arise when both parties use standard form contracts.
While model contracts may represent the intentions of the parties, it is clear that people often proceed without reading the details contained in a standard form. A standard contract should leave the price to the parties for negotiation. While you can`t immediately ask for a cheaper price, you should ask for a provision to renegotiate the price at a later date. Reserved or adapted contracts are often considered discouraged because there is a risk that they will not provide adequate or equitable care for all circumstances and will not be supported by a history of jurisprudence. However, their continued use reflects how some parts of the industry perceive standard contract forms as inflexible. On the one hand, they undeniably play an important role in promoting economic efficiency. The standard contract significantly reduces transaction costs, as it eliminates the need for buyers and sellers of goods and services to negotiate the many details of a purchase contract every time the product is sold….