Answer # 1 Any provision forming the part of the contract is regarded as contractual term ( Martin, 2006).

Such provision which is formulated by the parties is defined as e xpress term. Thus written contract is presumed to contain all the express terms agreed by the parties. Provision of an Express Term: General conditions of contract is standard format & part of the full tender documents which is used for the assignment of the contra ct to a contractor in Kuwait. One of the express terms mentioned in the document is regarding the programme of work-14(1). It requires that after the signing of the contract, the contractor has to submit the project execution programme in t he form of Critical Path Method within 30 days for the approval and suggest puniti ve action in case of contractors failure to do so. It also requires for the fulfi llment of completion percentage as per particular conditions of the contract. Exemption Clauses: These are the conditions which exempt totally the contracting party from the liability for the breach of contract or limit the liability to a stated financial amount. Exemption clauses are thus divided into An exclusion of liability clause: Clause 22(1) Damage to persons and property st ates that contractor will indemnify the employer against all losses and claims f or injuries or damage to any person or any property whatsoever which may arise o ut of or in consequences of the construction and maintenance works. (General Con ditions of Contract, 1997) Limitation of liability clause: There is no relevant clause in this cont ract indicating the limitation of liability of owner because the contract is rel ated to activities of construction for which mostly contractor is held responsib le and owner enjoys full indemnity. Price variation clause: Clause 52 (2) states that price variation can on ly occur if the variations requested by the owner results in an increase or decr ease exceeding 25% of any kind of work.

Answer # 2 Unfair Contract Terms Act 1977 states that business includes a profession and the activities of any government department or local or public authority (S14 - Unfa ir Contract Terms Act , 1977) The courts approach to the regulation of exclusion and limitation clause s in business contracts is markedly different from contracts involving consumers . While deciding the reasonableness of the exclusion terms courts consider that: a) Bargaining parties in commercial contracts are of equal strength and cap able of making contracts according to their choosing. (St Albans City & District Council v International Computers Ltd, 1995)

b) The contracting parties expressly have considered the clause(s) and took it/them into account in fixing the other terms including the price. Also the ev idence of existence of similar clause(s) in previous dealings is considered. c) Contracting parties have full knowledge of the exclusion terms enforced

d) It is presumed that business parties have considered expressly to the pa rticular risks associated with the specified goods and should be held to the exp ress terms of contract. (Edmund Murray Ltd v BSP Int. Foundations Ltd (1992) 33 Con LR 1 ) e) The courts will regard a limitation of liability clause with more sympat hy, provided of course that the limit is objectively justifiable.

Answer # 3 Alternate form of dispute resolution is basically a collective term used for dif ferent ways and processes to bring the disagreeing parties to an agreement witho ut litigation. Commonly following methods are used for the dispute resolution 1. Mediation 2. Conciliation 3. Expert determination 4. Adjudication 5. Arbitration In construction industry adjudication and arbitration are the preferred methods for resolving construction disputes. Adjudication: It is a method of dispute resolution in construction and engineeri ng industry and was introduced by The Housing Grants, Construction and Regenerati on Act 1996. It is now the standard method of resolving differences between parti es to a construction contract. It is not possible to contract out of the adjudic ation provisions of the Act. Section 108 of the act provides parties to the cons truction contract with right to refer disputes arising under the contract to adj udication. It sets out certain minimum procedural requirements which enable eith er party to a dispute to refer the matter to an independent party who is then re quired to make a decision within 28 days of the matter being referred. If the co nstruction contract does not comply with these requirements, a statutory default scheme, called the Scheme for Construction Contracts will apply. Arbitration: This is a method of settling disputes by independent third party kn own as arbitrator. The arbitrator can be appointed by as a result of arbitration agreement that already exist between the parties. Arbitration process is regula ted by a consolidating Act introduced in 1996 known as the Arbitration Act 1996. A rbitration is speedy in the sense that arbitrator selected is always an expert i n his field hence less need for the use of lawyers or formal procedures conseque ntly costing less money compared to litigation process. Confidentiality is also important factor for which parties like to arbitrate and maintain the sensitive business relationship. (CEM, 2011)

Answer # 5 Legal Liability of Premier Homes Ltd. Albert is a subsequent purchaser of house built by Premier Homes Ltd. which is a local building company. Purchase took place in January 2009 with valuation surv ey by a reputed firm Dalton & Co. where as it is not clear from the scenario in which year the house was built. Albert discovers some external cracking to supporting wall in 2010 which substantially increases by the end of the year and it is established that the c racking is due to the defect in foundations. Legal Liability of Premier Homes Ltd.: Although Albert is the third owner of the house and does not have any direct contract with Premier Homes Ltd but he can b e sued for his negligence under the law of tort because a) Premier Homes Ltd owes a duty of care to the Albert (Donoghue v Stevenso n, 1932) & (Bryan v Maloney, 1979) b) Since Premier Homes have acted against his duty of care thus resulting i n the defective foundations of house. c) Defective foundations can cause a serious damage to house which can be foreseeable by a reasonable man. Thus Albert can sue Premier Homes under the law of negligence provided that he b rings the actions within three years from the discovery of the cracks.(Latent Da mage Act 1986) In another scenario If the 15years time has passed since the construction of the house then Albert cannot recover his damages from Premier Homes Ltd. Legal Liability of Dalton & Co. : The Dalton & Co. specialized in carrying the valuation surveys was not able to report the cracks in the building due to negli gence of their surveyor and further they wrongly over valued the house. In this scenario professional negligence and negligent statement has occurred by the Dalton & Co. Although the survey was done for the Easylend Building Society but House of Lord s held that the valuer did owe a duty to the prospective purchasers (Yianni v Ed win Evans & Sons, 1982)

Dalton & Co. over valued the house by the negligent statement (Hedley Byrne v He ller, 1964)

Answer # 6 The requirements for liability under the rule are: Escape. This must be from land which the defendant controls to land which he doe s not control. Therefore, in Read v Lyons & Co Ltd (1947), the House of Lords denied a remedy t o a munitions inspector who had been injured by an exploding shell (a dangerous object) while inspecting the defendants factory. The shell had not escaped from t he factory to land not controlled by the defendant. Land. A person in possession of land who accumulates dangerous objects and a lan downer not in possession who has authorised the accumulation are potentially lia ble should they escape. Accumulation. This must be of an object not naturally on the land. Trees are nat urally on the land but not trees deliberately planted. If there is an accumulati on it is assumed to be for the accumulators benefit. Mischievous. Since the action will only arise if the object has escaped and caus ed damage, the courts generally treat the accumulated object as likely to do mis chief if it escapes. Non-natural user. This has been interpreted to mean use of the land which is unu sual and which carries exceptional risks. In consequence, even mines and factori es may be natural users in the appropriate areas. (CEM 2011) The law casts an absolute duty on a person who lawfully brings on his land somet hing which though harmless while it remains there will naturally cause damage if it escapes. Photo World Ltd. is prima facie answerable for all the damage which is the natural consequence of its escape. The claimant Peter, Audrey and Kirsty does not have to show negligence. The Photo World Ltd however can use as a defe nse a showing that the escape was due to the strangers fault on which he did not had any control. Bibliography Atkinson, D. (2001, August 31). Atkinson Law. Retrieved September 23, 2011, from http://www.atkinson-law.com Bryan v Maloney (1979). CEM. (2011). Introduction to Law. Dispute Resolution .

Chris Field, W. A. (2011). The Terms of a Contract. Retrieved from The Law Handb ook: http://www.lawhandbook.org.au/handbook/ch12s01s03.php# Donoghue v Stevenson (1932). Edmund Murray Ltd v BSP Int. Foundations Ltd (1992) 33 Con LR 1 . Hedley Byrne v Heller (1964). Martin, E. [. (2006). Oxford Dictionary of Law . Ministry of Public Works - Kuwait. (1997). General Conditions of Contract. Kuwai t: Ministry of Public Works. S14 - Unfair Contract Terms Act . (1977). S14. Smith v Eric Bush and Harris v Wyre Forest DC (1989). (1995). St Albans City & District Council v International Computers Ltd. Yianni v Edwin Evans & Sons (1982).