Unfair Terms in the Contracts and Exclusion of Liabilities Essay

Unfair Terms in the Contracts and Exclusion of Liabilities - Essay Example This may be due to the lack of a precise definition of the term ‘reasonableness’ under the provisions of the Act, the lack of which   that gave enormous freedom to the courts to decide on the reasonableness depending on the particular circumstances of the individual cases. Moreover the courts distinguished between the business transactions and the goods or services supplied to the consumers to decide on the reasonableness of the cases which enhanced the complexity of the issues arising from the operations of the Act. But it is certain that the Unfair Contract Terms Act 1977 considers the invalidation of the limitations and exclusions of the liabilities arising out of the operation of the standard written terms of business in case they are found to be unfair or unreasonable. This would leave the contractors facing an unlimited liability with respect to any issues arising during the course of construction process with the developers or the employers as the case may be. T he Court of Appeal has recognized the reasonableness of the claim for exclusion of the liability of an IT supplier in the case of Watford Electronics v Sanderson. In this case Lord Justice Chadwick observed that â€Å"where experienced businessmen representing substantial companies of equal bargaining power negotiate an agreement, they should be taken to be the best judges of the commercial fairness of that agreement. The court should in these circumstances be slow to intervene to substitute its own judgment.†Ã‚   Thus the decision of the Court of Appeal had acted.

Liberalization of International Currency Mobility Essay

Liberalization of International Currency Mobility - Essay Example These factors include; the removal of credit limitations, privatization of majority of banks previously owned by governments and lower interest rates for borrowers (Quiggin, 2005). The banking sector has also experienced reduced or total withdrawal of entry barriers, liberalization of the security market and capital account. This free-flow of currency across borders has been facilitated by worldwide free-trade, occasioned by globalization. The privatization of capital flows has also seen a surge of capital movement within and across borders. Private organizations have been in a rush to provide financial assistance to people in need of money for business, investment, or otherwise. When the liberalization of capital movement was starting off, it seemed like a most lucrative idea that would see the soaring of economies in different countries. However, over the years, different financial crises have made a lot of people have a different opinion regarding free capital mobility. This essay is going to discuss the positives and negatives of capital flows in the international arena in regard to economic augmentation. In the field of free capital flow, it is hard to distinguish a certain factor as being advantageous and another as a limitation. All aspects have a positive and a negative side. Accordingly, the essay will focus at a factor at a time and weigh its benefits against its cons. Since the 1980’s neo-liberalists have been very strong proponents of liberalized currency mobility in the international field. Proponents of the neoliberal theory are of the opinion that only free markets can help achieve international economic growth. According to Grabel &Chang (2004) neoliberal theorists place prime importance on the function of markets in enhancing easy movement of currency and goods. Advocates of the neoliberal theory also hold that privatization of state-owned organizations is of prime importance to free capital mobility. Neoliberal ideas have proved to be v iable to some extent, based on the results of the past twenty years. Globalization in the 1970s brought about transformations in the international financial system in terms of increased capital mobility and international trade. The advent of globalization made most countries to relax limitations to free flow of capital in the international field. Globalization means the opening up of borders to both goods and capital flows for the purpose of foreign investment. Private Banks Among the achievements of neoliberal ideas is the promotion of the private sector in both developing and developed countries. Private capital flows has over the years come to overtake public mobility of capital. Public movement of currency consists of governments exchanging capital, either through direct lending or through multilateral corporations such as the International Monetary Fund (IMF) and World Bank (Grabel & Chang, 2004). Rise in loaning institutions, foreign investment and portfolio capital mobility h ave all led to the promotion of private currency mobility. National banks cannot accommodate the high demands of local and overseas investors. Accordingly, many foreign classified banks have sprung up in order to facilitate borrowing and loaning of capital, especially to domestic investors (Frank, 1990). Considering that most governments do not have adequate lending power, these alien private banks source for finances in international lenders.