Protection

Protection in United Kingdom

Minority protection in Company Law

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  • The statutory remedies

DO BUSINESSES NEED PROTECTING?

The approach taken in the Interfoto case is an unusual one in relation to a commercial agreement. This aspect of the rule of incorporation has tended to be used mainly as a means of protecting consumers, particularly in relation to exclusion clauses. Where parties are contracting at arm’s length, in a business context, it would more commonly be the case that the court would expect each party to take care over the obligations to which it was committing itself. If they agree to unfavourable terms, then that is their own fault. It is perhaps significant that the Interfoto decision has not so far led to many similar reported decisions. In Kaye v Nu Skin UK Ltd, the High Court, dealing with a preliminary issue, held that the Interfoto approach could be relevant in a commercial contract between an individual, inexperienced business person and a franchise company, which contained a provision requiring mediation of any dispute to take place in Utah, USA.

On the other hand, in a case involving the loss of transparencies, Photolibrary Group Ltd v Burda Senator Verlag Gmbh, the Interfoto case was distinguished on the basis that there had been a course of dealing between the parties, and the terms used were ones which were common in the trade. In AEG (UK) Ltd v Logic Resource Ltd a similar approach to that taken in Interfoto was adopted, but the majority Court of Appeal decision is strictly obiter on this point since it found that the clause was also unreasonable under the statutory test contained in the Unfair Contract Terms Act 1977. Indeed, given the statutory control of exclusion and other clauses by this Act and the Unfair Terms in Consumer Contracts Regulations 1999, there would seem to be little need to develop further a restrictive rule for incorporation under the common law.

Source: Richard Stone, The Modern Law of Contract, 2013, Routledge, London

English Law: Protection in the Past

A privilege granted by the king to a party to an action, by which he is protected from a judgment which would or be makeed against him. Of these protections there are several kinds. F. N. B. 65. [1][rtbs name=”history-of-english-law”]

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Notes and References

  1. Partialy, this information about protection is based on the Bouvier´s Law Dictionary, 1848 edition. There is a list of terms of the Bouvier´s Law Dictionary, including protection.

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Concept of Protection

Traditional meaning of protection [1] in the English common law history: A prerogative writ granted by the King to a person in his employ, making the latter quit of all suits for a certain time. [rtbs name=”history-of-english-law”]

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Notes and References

  1. Based on A concise law dictionary of words, phrases and maxims, “Protection”, Boston: Little, Brown, and Company, 1911, United States. This term and/or definition may be absolete. It is also called the Stimson’s Law dictionary, based on a glossary of terms, included Protection.

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