contractual arrangement
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2022 ◽  
Vol 2022 (1) ◽  
pp. 143-158
Author(s):  
JC Sonnekus

According to the headnote attached to the most recent decision under discussion, the litigation turned on the quantification of the total loss suffered by M as alleged holder of a right of habitatio after S as reputed owner of the farm revoked the verbal agreement between the parties entitling M to occupy the dwelling ad infinitum on condition that he renovates the dwelling to a habitable state. Notwithstanding the conviction of the judges involved, it is clear that at no stage were any of the requirements for the acquisition or vesting of a limited real right of habitatio complied with. No limited real right was registered against the farm and S as the alleged grantor of the limited real right was at no stage the owner of the property. He could not have been entitled to burden the property of another with such limited real right. A contractual arrangement between the parties, however, did exist granting the claimant an entitlement to occupy the dwelling. The initially friendly relations between the litigants soured abruptly in February 2013 when S evicted M from the farm because of a supposed blasphemous comment by M. This happened after the claimant had already invested significantly in the restoration and modernisation of the old dilapidated dwelling. “The plaintiff regarded this as a repudiation of the contract between him and the defendant, accepted it as such and left the farm, effectively halting the renovation project” (par 14 read with par 5.4 of the 2016-decision). His claim for compensation of the loss suffered was held by the court to be limited to the amounts reflected in the receipts representing the cost of building material when it was acquired. It is submitted that the court should also have taken note of the loss suffered as positive interest, because the claimant forfeited the calculated benefit of life-long free occupation in the restored dwelling. Because of the underlying agreement between the parties to the litigation, the patrimonial benefit that accrued to the estate of the owner of the farm due to the objective rules of accessio cannot be classified as actionable unjustified enrichment. The principles of unjustified enrichment do not apply – the resulting detriment or loss of M was cum causa and not sine causa. The remarks of the court pointing to unjustified enrichment do not convince. Damages should have been calculated to cover the loss in positive interest of the claimant and not merely his negative interest, ie the amounts paid for the building material used in the renovation. The court, however, held: “I’m satisfied that the plaintiff has adduced sufficient evidence to prove his claim for the costs of renovating the farmhouse on a balance of probabilities” (par 23). The last mentioned mode of quantification of the loss suffered would have been more in place where merely a delict was involved, as eg where the damaged motor vehicle should be repaired to the state it was in before the accident occurred. Had the judges in this case done a correct assessment of loss upon cancellation for breach of contract, it would have led to a respect of the rule of law and would not have been to the detriment of the claimant. The legal principles that should have been applied had already been clearly formulated more than a century ago: “The sufferer by such a breach should be placed in the position he would have occupied had the contract been performed, so far as that can be done by the payment of money, and without undue hardship to the defaulting party …” Victoria Falls & Transvaal Power Co Ltd v Consolidated Langlaagte Mines Ltd (1915 AD 1 22).


2021 ◽  
Author(s):  
Joan Prats ◽  
Helen Harris ◽  
Juan Andrés Pérez

During the last three decades, Public Private Partnerships (PPPs) have emerged as a new contractual arrangement to provide infrastructure investment and services. Examining the evolution of PPPs contracts in emerging countries, this paper analyses the role played by political institutions and partisanship showing that: (i) PPPs are more used when governmental and legislative transaction costs increase; and (ii) political partisanship does not explain the use and consolidation of PPPs as a contractual arrangement. The paper also confirms the relevance of macroeconomic and institutional quality variability variables found in previous literature and sheds new light regarding the political economy of PPPs, especially on how political governance structures shape incentives for using PPPs as a contractual mechanism.


2021 ◽  
Vol 58 (1) ◽  
pp. 5733-5738
Author(s):  
Sachin Mittal, Dr. Naaz Gorowara

EPC is a contractual arrangement in which the responsibility related to engineering services, procurement of raw materials, and construction lie with the contractor. Solar plants, infrastructure projects are some of the examples of EPC projects. With the need of rapid infrastructural development in developing countries like India needs scientific and better management strategies for the EPC projects.EPC projects are diverse requiring proper integration of knowledge of different fields of management and engineering.It is an accepted fact that when any term is understood conceptually it lasts long and is easier to integrate with other concepts.The workforce involved in the projects can share their knowledge with future projects which would lead to better knowledge integration. The problems of the EPC projects is unique therefore knowledge integration and better management strategies will go a long way in enhancing the efficiency of EPC projects. Thefocus of the paper is to identify the nature of EPC projects and understand conceptually the management strategies which can be used in the EPC projects for increasing the performance.The study is important for developing countries like India where EPC projects are gaining increased popularity. Keywords: EPC Projects, Management Strategies, knowledge integration.


Author(s):  
Nazmoon Naher Moon ◽  
Md. Emran Hossain ◽  
Md. Akhtaruzzaman Khan ◽  
Md Ataur Rahman ◽  
Sourav Mohan Saha

Access to land in Bangladesh is governed by the state rule but informal tenure arrangement is existing all over the country. Land productivity differs with the contractual arrangement between landlord and tenant. Inefficiency may arise due to sharecropping which is known as Marshallian inefficiency. This study investigated the productivity the productivity, profitability and efficiency of different tenure arrangement of Boro rice cultivation selecting 120 farmers from Rangpur district of Bangladesh. The stochastic frontier production function was employed to determine the efficiency. Moreover, t-test was performed to see whether any significant difference exist among tenure categories in terms of productivity, profitability and efficiency. Four types of tenure arrangements were identified as cash tenant, fifty-fifty input-output sharing arrangement, only output sharing arrangement and owner farmers. Result revealed that productivity and profitability was higher for owner and cash tenant compared to others. Significant productivity and profitability difference were found between owner farmers and cash tenants versus sharecroppers. Result also found that inefficiency level was significantly high for fifty-fifty input-output share tenant and only output share tenant compared to cash tenant and owner operator implying that Marshallian inefficiency exist due to sharecropping system in the Boro rice production.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edward Mitchell

Purpose The compulsory purchase of land forms the subject of much legal and urban regeneration research. However, there has been little examination of the contractual arrangements between local authorities and private sector property developers that often underpin the compulsory purchase process. This paper aims to examine local authority/private developer contractual behaviour in this context. Design/methodology/approach An empirical examination of property development contracts made for the “Silver Hill” project in Winchester, a small city in southern England, and the Brent Cross shopping centre extension in north London. Drawing on Macneil’s (1983) relational contract theory, the paper analyses key contract terms and reviews local authority documentation related to the implementation of those terms. Findings The contracts had two purposes as follows: to provide a development and investment opportunity through the compulsory purchase and redistribution of private land; and to grant the private developers participating in the projects freedom to choose if they wished to take up that opportunity. While the contracts look highly “relational”, the scope for flexibility and reciprocity is both carefully planned and tightly controlled. This exposes an asymmetric power imbalance that emerges in and is rearticulated by this type of contractual arrangement. Originality/value The empirical analysis of contract terms and contractual behaviour provides a rare opportunity to scrutinise the local authority-private developer relationship underpinning both property development practice and compulsory purchase.


2020 ◽  
Vol 50 (10) ◽  
Author(s):  
Lechan Colares-Santos ◽  
Aleksan Shanoyan ◽  
Sandra Mara de Alencar Schiavi

ABSTRACT: In Brazil, the conflict between cattlemen and the slaughterhouse industry is evident and historic in the beef cattle Agribusiness System, in which opportunistic behavior is commonplace. Accordingly, the role of trust is significant in trade decisions, which makes the analysis of trust in the construction process of governance structure an important factor. The present article aimed to identify the influence of trust in selecting the contractual arrangement in transactions between cattle ranchers and abattoirs. This qualitative and descriptive study used semi-structured interviews, done in loco, along with 30 beef cattle ranchers and five abattoirs in the west of São Paulo State. It was observed that transactions involve opportunistic behavior, and that trust is critical in selecting the contractual arrangement.


Author(s):  
Oleh Belko

The article focuses on the creation of credit organizations network by the Poltava provincial local council to support and develop handicrafts, in particular pottery, and the production of ceramic refractories. The article looks at several ways of obtaining funds for the development of handicraft industry, especially the pottery industry which was distinguished by the Poltava provincial local council in a separate category, and for raising its production and artistic level. Here belongs the bank industrial loan which was allocated by the state bank, although not all manufacturers could use it. The second way is a well-established mechanism of state financing of pottery educational institutions, in particular the Opishnenskaia, Postavmutskaia workshops, the Mirhorod Art and Industrial School named after Mykola Hohol, as well as provincial tile workshops and tile-and-brick factories, whose network was increasing with each passing year. One more way was formation of mutual benefit funds, credit societies. Their active growth was observed in Romenskyi, Kostyantynohradskyi, Hadyatskyi, Zinkovskyi and Mirhorodskyi counties. Such forms of financial support solved the production problems of most potters of the province. Credit societies were regarded by the zemstvo not only as financial mutual assistance but also as a guarantor of their members’ activity. Poltava provincial zemstvo could act as a guarantor of fulfillment by its member of obligations to organizations-manufacturers of tools for artisanal production. The positive thing was also the fact that financial capability of the credit societies were not limited to their own funds. They could borrow from banks under a contractual arrangement or get the State Bank loans for development of handicraft business. The formation of the credit organizations network by the zemstvo contributed to the development of handicrafts, pottery in particular, as well as to the intensive production of environmentally friendly ceramic refractory materials and to an increase in the economic potential of the province.


Indian road network is one of the largest road network in world and need huge funding for maintaining and construction of new project. And in India time and cost overrun on infrastructure project are very common. BOT was one of the most successful model from PPP type. But from last couple of years BOT model is lagging behind to achieve financial closure within budget. Most of the BOT project fails due to not generating minimum revenue. Government modifies the MCA (Model Concession Agreement) time to time to eliminate lacunas from existing model. Recent modification of PPP is HAM (Hybrid Annuity Model). Hence to overcome from this type of difficulty government of India introduce the new PPP model called Hybrid Annuity Model (HAM) in 2016. This model was introduce to reduce the financial burden from the contractor. HAM model is a contractual arrangement made by government to overcome the limitations from BOT model. The financial strategy of HAM model is different than BOT model. In HAM model 60% funding made by authority during construction phase and remaining 40% is on annuity basis. In this paper the strength and limitation of HAM model is found out and identified most influencing factor for success of HAM model by using Relatively Importance Index (RII) technique. And schematic representation of financial model of HAM is generated by using Model concession Agreement (MCA)


2019 ◽  
Vol 9 (1) ◽  
pp. 1-22
Author(s):  
Katrina Michelle Simon-Agolory

Learning outcomes By the end of the case and class discussion, students will be able to estimate project costs and benefits, both tangible and intangible, analyse enterprise environmental factors that may impact a project, identify the complexities of managing a multinational project and evaluate a project status and determine if continuation or cessation is the best option. Case overview/synopsis This case narrates the story to connect landlocked Botswana’s rich coalfields with the Namibian coast. In 2005, the Governments of Botswana and Namibia started discussions to bring forth a 1,500-km railway that traverses the two countries to the Port of Walvis Bay. In total, 10 years and many lengthy negotiations later, the Trans-Kalahari Railway (TKR) Project Management Office finally opened in Windhoek in April 2015. The project is expected to cost US$14.2bn and will be developed via a public-private partnership approach based on a DBOOT contractual arrangement, whereby a developer undertakes the financing, design, construction, operation and maintenance of the project. This case illustrates the complexities of managing a multinational project. After much slower than expected progress, the viability of the project is questioned. Complexity academic level This case is intended for post-graduate business students and MBA students who are studying in a management curriculum. It is primarily written for students in a project management course but may also be used for other courses, such as a negotiation class. The case can be used with undergraduate students by modifying the case questions. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 7: Management science.


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