Chapter 4

THE LEGAL

FRAMEWORK
Presented by Group 6
Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
01 Arbitration provisions

1. Definition

2. Example
01 Arbitration provisions

1. Definition
01 Arbitration provisions
1. Definition
An arbitration provision is a clause in a contract that requires disputes

between the parties to be resolved through arbitration instead of through

litigation in a court of law.

Arbitration is a form of alternative dispute resolution in which a neutral

third party, called an arbitrator, hears evidence and arguments from both

sides and makes a binding decision to resolve the dispute.

01 Arbitration provisions
2. Example
 01 Arbitration provisions
2. Example

1. All claims and disputes arising under or relating to this Agreement are to be settled by binding arbitration in

the state of Washington or another location mutually agreeable to the parties. The award of the arbitrator

shall be final and binding on the parties, and judgment may be entered thereon in an
 01 Arbitration provisions
2. Example

1. All claims and disputes arising under or relating 1. Tất cả các khiếu nại và tranh chấp phát sinh dưới

to this Agreement are to be settled by binding hoặc liên quan đến Thỏa thuận này sẽ được giải

arbitration in the state of Washington or another quyết thông qua trọng tài ràng buộc tại tiểu bang

location mutually agreeable to the parties. The Washington hoặc một địa điểm khác được đồng ý

award of the arbitrator shall be final and binding bởi các bên. Phán quyết của trọng tài sẽ là phán

on the parties, and judgment may be entered quyết cuối cùng và ràng buộc đối với các bên, và

thereon in any court of competent jurisdiction. phán quyết có thể được đưa ra tại bất kỳ tòa án có

thẩm quyền nào.

 01 Arbitration provisions
2. Example

2. If either party be dissatisfied with such default price or if the right at (a) above is not exercised and

damages cannot be mutually agreed, then the assessment of damages shall be settled by arbitration.
 01 Arbitration provisions
2. Example

2. If either party be dissatisfied with such default 2. Nếu một trong hai bên không hài lòng với mức giá

price or if the right at (a) above is not exercised and mặc định đó hoặc nếu quyền tại mục (a) ở trên không

damages cannot be mutually agreed, then the được thực hiện và các bên không thể thống nhất về thiệt

assessment of damages shall be settled by hại, thì việc đánh giá thiệt hại sẽ được giải quyết thông

arbitration. qua trọng tài.

Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
02 Time is of the essence

1. Definition

2. Example
02 Time is of the essence
1. Definition
02 Time is of the essence
1. Definition
“Time is of the essence” is a statement that may be included in

the language of the provisions of a contract to emphasize that

the parties must complete their obligations on time.

 02 Time is of the essence

2. Example

1. Except and to the extent there is a specific cure provision in this Agreement, each party understands

and agrees that: (i) time of performance is strictly of the essence with respect to each and every date,

term, condition, obligation and provision hereof imposed upon such party; and (ii) the failure to timely

perform any of the terms, conditions, obligations or provisions hereof by such party shall constitute a

material breach and a non-curable (but waivable) default under this Agreement by such party.
 02 Time is of the essence
2. Example
1. Except and to the extent there is a specific cure provision in this Agreement, each party understands and agrees that: (i) time

of performance is strictly of the essence with respect to each and every date, term, condition, obligation and provision hereof

imposed upon such party; and (ii) the failure to timely perform any of the terms, conditions, obligations or provisions hereof by

such party shall constitute a material breach and a non-curable (but waivable) default under this Agreement by such party.

1. Trừ khi có quy định khác trong hợp đồng này, mỗi Bên hiểu và đồng ý rằng: (i) thời gian thực hiện là rất quan trọng đối với từng

ngày, điều khoản, điều kiện, nghĩa vụ và quy định mà hợp đồng này áp dụng mỗi bên/mỗi bên bắt buộc phải tuân thủ; và (ii) nếu

một bên không đáp ứng kịp thời bất kỳ điều khoản, điều kiện, nghĩa vụ hoặc quy định nào trong hợp đồng này sẽ cấu thành vi

phạm nghiêm trọng và vi phạm không thể tha thứ (tuy nhiên bên còn lại có thể từ bỏ) của bên đó.
 02 Time is of the essence
2. Example
2. Time is of the essence with regard to the performance of the obligations of Seller and Purchaser under

this Agreement. If the date for any such performance falls on a Saturday, Sunday, or banking holiday,

the date of performance shall be extended to the next regular business weekday.
 02 Time is of the essence
2. Example

2. Time is of the essence with regard to the 2. Theo hợp đồng, thời gian thực hiện các nghĩa vụ của

performance of the obligations of Seller and người mua và người bán là quan trọng. Nếu bất kỳ

Purchaser under this Agreement. If the date for any ngày thực hiện nghĩa vụ trùng vào thứ bảy, chủ nhật

such performance falls on a Saturday, Sunday, or hoặc ngày lễ, ngày thực hiện được kéo dài đến ngày

banking holiday, the date of performance shall be làm việc bình thường tiếp theo.

extended to the next regular business weekday.

Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
03 Modification of contract
1. Definition

2. Example
03 Modification of contract
1. Definition
A contract modification is a mutually agreed upon change to

the original contract. Its changes must fall under the scope of

the changes clause and leave the agreement's original purpose

and effect intact.

 03 Modification of contract
2. Example

1. This Agreement may be amended or modified only in writing signed by all parties. Any modifications to this

Agreement that do not alter the obligations concerning the Investment, the net increase in full-time

employees, or the minimum and average salaries will not require Committee approval. If Committee approval

is necessary, the modification of this Agreement will not be valid until the amendment is approved by the

Committee.
 03 Modification of contract
2. Example
1. This Agreement may be amended or modified only 1. Thỏa thuận này chỉ có thể được sửa đổi hoặc bổ sung

in writing signed by all parties. Any modifications to bằng văn bản có chữ ký của tất cả các bên. Nếu có bất

this Agreement that do not alter the obligations kỳ sửa đổi nào đối với Thỏa thuận này không làm thay

concerning the Investment, the net increase in full- đổi các nghĩa vụ liên quan đến Khoản đầu tư, mức tăng

time employees, or the minimum and average ròng của nhân viên toàn thời gian hoặc mức lương tối

salaries will not require Committee approval. If thiểu và trung bình thì sẽ không cần sự chấp thuận của

Committee approval is necessary, the modification of Hội đồng. Những thay đổi cần sự phê duyệt của Hội

this Agreement will not be valid until the amendment đồng, việc sửa đổi Thỏa thuận này sẽ không có hiệu lực

is approved by the Committee. cho đến khi việc sửa đổi được Hội đồng chấp thuận.
 03 Modification of contract
2. Example

2. An entity shall account for the contract modification as if it were a part of the existing contract if the

remaining goods or services are not distinct and, therefore, form part of a single performance obligation that

is partially satisfied at the date of the contract modification. The effect that the contract modification has on

the transaction price, and on the entity’s measure of progress toward complete satisfaction of the

performance obligation, is recognized as an adjustment to revenue (either as an increase in or a reduction of

revenue) at the date of the contract modification (that is, the adjustment to revenue is made on a cumulative

catch-up basis).
 03 Modification of contract
2. Example
2. An entity shall account for the contract modification as if it were a part of the existing contract if the remaining goods or services

are not distinct and, therefore, form part of a single performance obligation that is partially satisfied at the date of the contract

modification. The effect that the contract modification has on the transaction price, and on the entity’s measure of progress toward

complete satisfaction of the performance obligation, is recognized as an adjustment to revenue (either as an increase in or a reduction

of revenue) at the date of the contract modification (that is, the adjustment to revenue is made on a cumulative catch-up basis).

2. Đơn vị sẽ ghi nhận việc sửa đổi hợp đồng như một phần của hợp đồng hiện tại nếu hàng hóa hoặc dịch vụ còn lại không có sự khác

biệt và do đó, tạo thành phần nghĩa vụ thực hiện riêng được đáp ứng một phần vào ngày sửa đổi hợp đồng. Ảnh hưởng của việc sửa

đổi hợp đồng đối với giá giao dịch và đối với thước đo tiến độ của đơn vị trong việc hoàn thành nghĩa vụ thực hiện, được ghi nhận là

một khoản điều chỉnh doanh thu (hoặc tăng hoặc giảm doanh thu) tại ngày sửa đổi hợp đồng (nghĩa là việc điều chỉnh doanh thu được

thực hiện trên cơ sở cập nhật thông tin tích luỹ).

 03 Modification of contract
2. Example

2. An entity shall account for the contract modification as if it were a part of the existing contract if the

remaining goods or services are not distinct and, therefore, form part of a single performance obligation that

is partially satisfied at the date of the contract modification. The effect that the contract modification has on

the transaction price, and on the entity’s measure of progress toward complete satisfaction of the

performance obligation, is recognized as an adjustment to revenue (either as an increase in or a reduction of

revenue) at the date of the contract modification (that is, the adjustment to revenue is made on a cumulative

catch-up basis).
 03 Modification of contract
2. Example

2. Đơn vị sẽ ghi nhận việc sửa đổi hợp đồng như một phần của hợp đồng hiện tại nếu hàng hóa hoặc dịch vụ

còn lại không có sự khác biệt và do đó, tạo thành phần nghĩa vụ thực hiện riêng được đáp ứng một phần vào

ngày sửa đổi hợp đồng. Ảnh hưởng của việc sửa đổi hợp đồng đối với giá giao dịch và đối với thước đo tiến độ

của đơn vị trong việc hoàn thành nghĩa vụ thực hiện, được ghi nhận là một khoản điều chỉnh doanh thu (hoặc

tăng hoặc giảm doanh thu) tại ngày sửa đổi hợp đồng (nghĩa là việc điều chỉnh doanh thu được thực hiện trên

cơ sở cập nhật thông tin tích luỹ).

Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
04 Cancellation
1. Definition

2. Purposes

3. Example
04 Cancellation
1. Definition
 04 Cancellation
1. Definition
A cancellation clause is included in a contract or an

agreement to allow one or both parties to terminate the

contract before it expires as long as certain terms or

conditions can be met.

04 Cancellation
2. Purposes
 04 Cancellation
2. Purposes
The purpose of cancellation clauses is to allow insurance

companies to cancel customer policies for legitimate

reasons. Insurers can measure their risk and take swift

action to cut their losses.

04 Cancellation
3. Example
 04 Cancellation
3. Example
3.1. Gap filling

Either party may ___(1)___ this Agreement at any time in the event of a ___(2)__ by the other party that

remains uncured after: (i) in the event of a monetary breach, 10 calendar days following written notice

thereof; and (ii) in the event of a non-monetary breach, 30 days following written notice thereof. Such

termination shall be effective immediately and automatically upon the __(3)___of the applicable notice

period, without further notice or action by either Party. Termination shall be in addition to any other

remedies that may be available to the non-breaching party.

 04 Cancellation
3. Example
3.1. Gap filling

Either party may (1) terminate this Agreement at any time in the event of a (2) breach by the other party

that remains uncured after: (i) in the event of a monetary breach, 10 calendar days following written

notice thereof; and (ii) in the event of a non-monetary breach, 30 days following written notice thereof.

Such termination shall be effective immediately and automatically upon the (3) expiration of the

applicable notice period, without further notice or action by either Party. Termination shall be in addition

to any other remedies that may be available to the non-breaching party.

 04 Cancellation
3. Example
3.1. Translation

Either party may terminate this Agreement at any time in the event of a breach by the other party that

remains uncured after: (i) in the event of a monetary breach, 10 calendar days following written notice

thereof; and (ii) in the event of a non-monetary breach, 30 days following written notice thereof. Such

termination shall be effective immediately and automatically upon the expiration of the applicable notice

period, without further notice or action by either Party. Termination shall be in addition to any other

remedies that may be available to the non-breaching party.

 04 Cancellation
3. Example
3.1. Translation
Either party may terminate this Agreement at any time in the event of a breach by the other party that remains uncured after: (i) in the

event of a monetary breach, 10 calendar days following written notice thereof; and (ii) in the event of a non-monetary breach, 30 days

following written notice thereof. Such termination shall be effective immediately and automatically upon the expiration of the

applicable notice period, without further notice or action by either Party. Termination shall be in addition to any other remedies that

may be available to the non-breaching party.

Một trong hai bên có thể chấm dứt Thỏa thuận này bất kỳ lúc nào nếu bên còn lại vi phạm và không được khắc phục sau: (I) trong

trường hợp vi phạm tiền tệ, 10 ngày lịch sau khi thông báo bằng văn bản; và (ii) trong trường hợp vi phạm phi tiền tệ, 30 ngày sau khi

thông báo bằng văn bản. Việc chấm dứt như vậy sẽ tự động có hiệu lực ngay sau khi hết thời hạn thông báo áp dụng mà không cần

thông báo hoặc hành động khác từ bất kỳ bên nào. Việc chấm dứt sẽ bổ sung cho bất kỳ biện pháp khắc phục nào khác có sẵn cho các

bên không vi phạm.

 04 Cancellation
3. Example
3.1. Translation

Either party may terminate this Agreement at any time in the event of a breach by the other party that

remains uncured after: (i) in the event of a monetary breach, 10 calendar days following written notice

thereof; and (ii) in the event of a non-monetary breach, 30 days following written notice thereof. Such

termination shall be effective immediately and automatically upon the expiration of the applicable notice

period, without further notice or action by either Party. Termination shall be in addition to any other

remedies that may be available to the non-breaching party.

 04 Cancellation
3. Example
3.1. Translation

Một trong hai bên có thể chấm dứt Thỏa thuận này bất kỳ lúc nào nếu bên còn lại vi phạm và không được

khắc phục sau: (I) trong trường hợp vi phạm tiền tệ, 10 ngày lịch sau khi thông báo bằng văn bản; và (ii)

trong trường hợp vi phạm phi tiền tệ, 30 ngày sau khi thông báo bằng văn bản. Việc chấm dứt như vậy sẽ

tự động có hiệu lực ngay sau khi hết thời hạn thông báo áp dụng mà không cần thông báo hoặc hành

động khác từ bất kỳ bên nào. Việc chấm dứt sẽ bổ sung cho bất kỳ biện pháp khắc phục nào khác có sẵn

cho các bên không vi phạm.

Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
05 Liquidated damages

1. Definition

2. Example
05 Liquidated damages
1. Definition

Liquidated damages are presented in certain legal contracts as

an estimate of otherwise intangible or hard-to-define losses to

one of the parties. It is a provision that allows for the payment of

a specified sum should one of the parties be in breach of

contract.
 05 Liquidated damages
2. Example

1. Provided Party A has any one of the following behaviors, Party B is entitled to rescind the

contract, and Party A shall pay the liquidated damages to Party B according to the total annual rent

of the subsequent year to the year of contract rescission, where Party A’s payment of liquidated

damages cannot cover other direct or indirect losses of Party B, it shall still compensate the losses

beyond the liquidated damages.

 05 Liquidated damages
2. Example
1. Provided Party A has any one of the following behaviors, Party B is entitled to rescind the contract, and Party A shall pay

the liquidated damages to Party B according to the total annual rent of the subsequent year to the year of contract

rescission, where Party A’s payment of liquidated damages cannot cover other direct or indirect losses of Party B, it shall

still compensate the losses beyond the liquidated damages.

1. Nếu Bên A có một trong các hành vi sau đây thì Bên B có quyền hủy bỏ hợp đồng và Bên A sẽ thanh toán các khoản thiệt

hại ước tính cho Bên B theo tổng số tiền thuê hàng năm của năm kế tiếp đến khi hợp đồng bị hủy bỏ, trong đó khoản tiền

mà bên A bồi thường cho bên B không thể bù đắp các tổn thất trực tiếp hoặc gián tiếp khác của Bên B thì bên A vẫn phải

bồi thường các khoản thiệt hại ngoài khoản bồi thường thiệt hại đã được quy định.
 05 Liquidated damages
2. Example

2. The Company's obligations to pay any partial liquidated damages or other amounts owing under

the Transaction Documents is a continuing obligation of the Company and shall not terminate until

all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact

that the instrument or security pursuant to which such partial liquidated damages or other amounts

are due and payable shall have been canceled.

 05 Liquidated damages
2. Example
2. The Company's obligations to pay any partial liquidated damages or other amounts owing under the Transaction

Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages

and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial

liquidated damages or other amounts are due and payable shall have been canceled.

2. Nghĩa vụ của công ty trong việc thanh toán bất kỳ khoản trả góp khoản thiệt hại ước tính nào hoặc những khoản nợ

khác theo các chứng từ giao dịch là nghĩa vụ liên tục của Công ty và sẽ không chấm dứt cho đến khi tất cả các khoản trả

góp của khoản thiệt hại ước tính chưa được thanh toán và các khoản tiền khác đã được thanh toán, mặc dù theo công cụ

hoặc bảo đảm mà những khoản thiệt hại ước tính trả góp hoặc các khoản tiền khác đến hạn và khoản phải trả sẽ bị hủy bỏ.
Outline
01 Arbitration provisions 04 Cancellation

02 Time is of the essence 05 Liquidated damages

03 Modification of contract 06 Attorneys' fees

07 Case study
06 Attorneys' fees
1. Definition

2. Example
06 Attorneys' fees
1. Definition
06 Attorneys' fees
1. Definition
Attorneys' fees are the fees charged by lawyers for their legal

services. In the context of business contracts, it refers to a

provision in the contract that outlines the responsibility for

paying for legal fees in the event of a dispute or litigation.

06 Attorneys' fees
1. Definition
Attorneys' fees are the fees charged by lawyers for their legal

services. In the context of business contracts, it refers to a

provision in the contract that outlines the responsibility for

paying for legal fees in the event of a dispute or litigation.

Attorneys' fees provisions are crucial in business contracts as

they help to establish clear expectations for legal fees in the

event of a dispute. They provide a level of predictability and can

also act as a deterrent to frivolous lawsuits.

06 Attorneys' fees
2. Example
 06 Attorneys' fees
2. Example
1. If any action, suit or proceeding is brought to enforce or interpret any provision of this Agreement, the

prevailing party in such action, suit, or proceeding shall be entitled to recover from the other party all

reasonable costs, expenses, contingency fee and attorney's fees incurred in connection with such action, suit,

or proceeding, including any appeal or petition for review.

 06 Attorneys' fees
2. Example
1. If any action, suit or proceeding is brought to 1. Nếu bất kỳ hành động, kiện tụng hoặc thủ tục nào

enforce or interpret any provision of this Agreement, được đưa ra để thi hành hoặc giải thích bất kỳ điều

the prevailing party in such action, suit, or proceeding khoản nào trong thỏa thuận này, bên thắng kiện trong

shall be entitled to recover from the other party all hành động, kiện tụng hoặc thủ tục đó sẽ có quyền thu

reasonable costs, expenses, contingency fee and hồi từ bên còn lại tất cả các chi phí hợp lý, phí điều kiện

attorney's fees incurred in connection with such và phí luật sư đã phát sinh trong liên quan đến hành

action, suit, or proceeding, including any appeal or động, kiện tụng hoặc thủ tục đó, bao gồm bất kỳ phúc

petition for review. khảo hoặc đơn yêu cầu xem xét lại nào.
Outline
01 Arbitration provisions 04 Cancellation

02 Attorneys' fees 05 Liquidated damages

03 Modification of contract 06 Time is of the essence

07 Case study
07 Case study
1. Overview
2. Arguments of Defendant Barneys Corp.
3. Arguments of Plaintiff Jane Smith Inc.
4. Judgment of the Arbitrator
5. Learnable tips
 07 Case study
1. Overview

Barneys Corp. is a large multinational corporation that provides engineering and

construction services. They entered into a complex contract valued at $10,000 with

Jane Smith Inc., a global energy company, to design and build a new offshore oil

platform in 2 years.

The contract included an arbitration clause stating that any disputes arising from the

contract would be resolved through binding arbitration. Additionally, the contract

included a modification clause

 07 Case study
1. Overview

The construction of the offshore oil platform was divided into three parts: above the

seawater, splash areas, and submerged parts.

The payment clause was based on the progress of construction.

 07 Case study
1. Overview

On January 1, 2023, Barneys Corp. commenced the construction of the offshore oil

platform. The first part - above the seawater was estimated to take six months, with

the second part to follow immediately after.

Barneys Corp. encountered some challenges because of delays due to inclement

weather and difficulties in obtaining necessary materials lead to some delays in the

progress of the construction of the first part. Consequently, the first part took 2

months longer than expected.

 07 Case study
1. Overview

Inc. discovered that the structure of the
After 11 months, on 10/11/2023, Jane Smith

splash areas part of the offshore oil platform did not meet the agreed-upon

specifications. Specifically, the steel plates used were thinner than the required

thickness, which would make the splash areas less durable and potentially unsafe.

Jane Smith Inc. immediately notified Barneys Corp. of the noncompliance and

requested a modification to the contract to include penalties for noncompliance with

specifications. However, Barneys Corp. refused to agree to the modification, arguing

that it was not a minor change but a substantial alteration of the contract.
 07 Case study
1. Overview
As a result of Barneys Corp.'s refusal to
agree to the modification and failure to

comply with the agreed-upon specifications, Jane Smith Inc. withheld payment due to

the breach of contract. This led to the arbitration case to resolve the dispute.
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2. Arguments of Defendant Barneys Corp.

Barneys Corp. argued that the modification requested by Jane Smith Inc. was not a minor
change but a substantial alteration of the contract.
They claimed that the contract clearly specified the requirements for the offshore oil
platform, and any changes to these requirements would require a renegotiation of the
contract.
Barneys Corp. also argued that the delay in construction was due to unforeseeable
circumstances such as inclement weather and difficulties in obtaining necessary materials.
They claimed that they were working diligently to complete the project on time and meet the
agreed-upon specifications.
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3. Arguments of Plaintiff Jane Smith Inc.
Jane Smith Inc. argued that the noncompliance with the agreed-upon specifications for
the splash areas was a clear breach of contract.
They claimed that they had provided clear specifications for the offshore oil platform
and had paid Barneys Corp. based on the progress made.
Jane Smith Inc. argued that the requested modification to the contract was a
reasonable solution to ensure that Barneys Corp. complied with the agreed-upon
specifications.
They also claimed that the delay in construction was partly due to Barneys Corp.'s
failure to provide timely updates and resolve issues promptly.
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4. Judgment of the Arbitrator
The legal status of the modification clause:

The arbitrator noted that the contract included a modification clause, which allowed for changes to
be made with the written agreement of both parties. The arbitrator found that this clause was legally
binding and enforceable and that both parties had agreed to it when they entered into the contract.

In this case, the arbitrator found that the modification requested by Jane Smith Inc. was a reasonable
solution to ensure that Barneys Corp. complied with the agreed-upon specifications. The arbitrator
found that the modification did not substantially alter the original contract, but rather added a
penalty clause for noncompliance with specifications.
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4. Judgment of the Arbitrator
Compensations raised by the Plaintiffs

Jane Smith Inc. claimed that the delay in construction was partly due to Barneys Corp.'s failure to
provide timely updates and resolve issues promptly. As a result, Jane Smith Inc. requested additional
compensation for the delays caused by Barneys Corp.'s negligence.
The arbitrator agreed with Jane Smith Inc. and ordered Barneys Corp. to pay additional
compensation for the delays caused by their negligence. The arbitrator noted that while some of the
delays were due to unforeseeable circumstances such as inclement weather and difficulties in
obtaining necessary materials, Barneys Corp. was also at fault for failing to provide timely updates
and resolve issues promptly.
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4. Judgment of the Arbitrator

Compensations raised by the Plaintiffs (cont)

The amount of compensation was not specified in the judgment, as it likely would have depended on
the extent of the delays and the impact on Jane Smith Inc.'s business operations. However, the
arbitrator made it clear that Barneys Corp. was responsible for compensating Jane Smith Inc. for the
delays caused by their negligence
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5. Learnable tips

1. Clarity in contract terms

2. Use arbitration clauses

3. Contract monitoring
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