Conflict Case Analysis of Transatlantic Financing Corp. v. U.S

Undoubtedly, however, both parties expected that this would be the lane used as this was the usual and usageary route for shipping to Iran. But, more signifi tushtly, the appellate move stated that at that place were no provisions in the bargain from which it could infer "that the keep availability of Suez was a condition of performance. Nor is there anything in custom or trade usage, or in the surrounding flock generally, which would support our constructing a condition of performance." Thus, the court reasoned that the promise submitd shipping of the cargo to Iran and there was no reduceual language that conditioned much(prenominal) shipping. In fact, the court referred to some(prenominal) cases that indicated that the Cape route was generally regarded as an ersatz mean of performance.

However, this does not specifically address the question of whether Transatlantic whitethorn recover the added expenses of such shipment from the unite States. In addressing this question, the court was required to determine to which contracting party the risk of the Canal's windup had been allocated. The court first maintained that most business pot with interests in the region were aware of the volatility of the situation. Thus, Transatlantic could need foreseen the possibility of disturbances to its shipping routes. Therefore, the court determined that the "surrounding circumsta

Automatic follow up procedures should be written into the new contract administration procedure. At the pen up of severally fiscal year, the company should review the correlation betwixt contracted expenses and actual expenses. This would allow the management to determine if the redundant cost of the new procedure are worthwhile and profitable. It would also help the management to determine any problem areas, such as specific types of contract that systematically fail to confront costly alternative performances.

This product line of action may require the hiring of more staff to draft, analyze and interpret the new contracts.

The contract administrators must work closely with the managers and laborers who actually perform the contract to determine what elements may affect performance so that they can be included in the contractual language. These contracts should be as uniform as possible, of course, in the interest of keeping be to a minimum. However, before each contract is signed, those most learned about the circumstances of its performance should be consulted to ensure that each contract is complete.

Another possible alternative is that the company hold to perform in any alternative manner the costs for which they have not contracted. In Transatlantic's case, the company more than believably lost all of its profits in performing the alternative route. In addition, it probably lost any goodwill it had with the United States once it sued for the additional costs of performance.

Upon review of the above depth psychology and alternative, the first alternative remains the most desirable course of action. The court has assigned to the performing company the obligation to hear out for its own interests, namely expenses and profits.

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