Madawalabu

University
Construction Law
CoTM 4241

Chapter One

Introduction
Lecture by: Andualem Endris (M.Sc)

School of Engineering and Technology

Construction Technology and Management Department
Introduction to Law

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 What is Law?

Law is the regime that orders human

activities and relations through:
Systematic application of the force of
politically organized society, or
Social pressure, backed by force.

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 Application of Law
Legislation
Judicial precedents
Accepted legal principles
Body of authoritative grounds of judicial and
administrative action (the law of the land).
Set of rules or principles dealing with a specific
area of a legal system.
When negotiations for settlement of disputes
between parties fail, submit the dispute to the law.

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Kinds of Law

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 Natural Law

A physical law of nature (eg. gravitation)

A universalized conception of human
nature or divine justice rather than from
judicial action.
Moral law embodied in principles of right
and wrong (ethical teaching are based
on natural law)

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 Canon Law

Laws which were not compiled until the

12th to 14th centuries.

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 Case Law

The law to be found in the collection of

reported cases that form the body of law
within a given jurisdiction.

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 Civil Law
One of the two prominent legal systems in the
Western World (the Civil Law & the Common
Law).
It deals with the rights of people rather than
with crimes.
Originally administered in the Roman Empire
and still accepted in continental Europe, Latin
America, Scotland and Louisiana, among
other parts of the World.

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 Common Law

The body of law derived from judicial

decisions, rather than from statutes or
constitutions.

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 Contract
and
Contract Conditions

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 Contract Clauses
A contract clause is simply a statement
contained in a contract.
Clause: A statement or sentence that is
part of a legal document such as a
contract, a will or a legal pleading.

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 Conditions
A condition is a contract clause that
modifies the basic agreement between
the parties.
It is perfectly legal and very common
for a contract to contain conditions.
Conditions do not create rights; they
limit them.

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Distinguishing Conditions from
Promises
A condition is different from a promise.
A condition modifies, alters or even
rescinds the agreement.
A promise is the partys pledge to be
bound by the contractual agreement.

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 Types of Conditions
Conditions come in many different
forms.
It is not necessary to actually label a
specific clause as a condition; it can be
implied by the actions or the intentions
of the parties.

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 Implied Condition
An implied condition is one that is
presumed to exist from the conduct of
the parties.

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 Express Condition
An express condition is one that is
stated in the contract.
When an express condition exists,
courts will usually attempt to follow the
stated intentions of the parties.

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 Condition Precedent
A condition precedent is a condition that
must be met or performed before the
agreement takes effect.

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 Limitations on Conditions
Precedent
One party cannot prevent the other
party from meeting the condition.
Courts do not favor conditions
precedent.

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 Condition Subsequent
Under a condition subsequent, the
parties agree to be bound by the
contract until a particular condition
occurs.
Conditions subsequent always refer to
future events.

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 Contract Exclusions
An exclusion is a particular item or
subject that is not covered by the
contract.

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 Specific Contract Provisions
Specific conditions modify the general
conditions of contracts
There are certain provisions that are
frequently seen in drafting contracts.
When a contract contains a time is of the
essence provision it means that the date set
for the action contemplated in the contract is
fixed.

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 Proving Contract Conditions
When a contract contains a condition, it
is up to the judge to determine the legal
effect of the wording.

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 Interpreting Contract
Provisions
Judges (or juries) interpret contract
provisions.
Judges have wide discretion in their
interpretations.

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