You have been asked to advise Defyn. You will need to compartmentalise (separate) each of the three contracts that Defyn has made and, then, advise Defyn. This will allow you to focus on each of the separate contracts and deal with the facts relating to each of the contracting parties. This approach will also support the structure and presentation of your work. The first contract is with Global Foods Ltd (GF). You will need to identify and explain the nature of clause ten in this contract to Defyn. You will need to explain the legal rules dealing with penalty clauses. You must explain what is meant by a liquidated damages clauses in the contract between Defyn and GF. You will need to draw upon related case law whilst explaining to Defyn the distinction between a genuine pre-estimate of loss and a penalty clause. Once you have done this you will need to advise Defyn on his legal position. The second contract is with High Quality Floors Ltd (HQF). You will need to discuss the legal rules dealing with breach of contract and how damages are calculated whilst dealing with the contract between HQF and Defyn. You must draw upon the related case law in your module materials and textbook whilst dealing with this section of the TMA. The third contract is with Express Meals Machinery (EMM). You will need to advise Defyn of his legal position with EMM. Defyn entered into a contract with EMM. They were to install machinery within five days of having access to the new premises.
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