Foot owed rawlings money for several debts. Rawlings was quite old and understood that the current agreement would make it difficult for him to profit from the money and therefore proposed a new agreement where the complainant would pay less money per month, as long as he delivered cheques a posteriori every six months over the next six months. If it did, the defendant would not file a complaint. The two parties signed this agreement on July 17, 1958. Foot followed this agreement, but after the November 1960 cheque was cashed, legal action was taken for the balance. The crucial question is whether what has been agreed is “totally incompatible” with the first treaty or whether it goes “to the root” of the first treaty to fully implement it; or if there has been an amendment that qualifies or modifies some of the provisions of the first treaty, but leaves the rest on foot. As Lord Sumner stated in British & Beningtons Ltd v North West Cachar Tea Co Ltd  AC 48, which is essential: in this case, it was found that the replacement agreement, which was totally incompatible with the original contract, implicitly terminated it. The original contract had therefore been lightened and was no longer applicable. The new treaty, although imposed in writing, was not written and, therefore, unenforceable. Neither agreement could be implemented: Graw S, An Introduction to the Law of Contract (1998), 3rd Ed, Lawbook Company Information Services, North Ryde, pp. 322-323. It is not uncommon for problems to arise with construction contracts, especially when the parties did not obtain legal advice at their first conclusion or when they are modified (and even replaced) by subsequent agreements.
This dispute could have been avoided if the parties had sought legal advice at the time of the conclusion of the subsequent agreement to replace the contract already signed. Contact Shire Legal if you have a question about a contract you wish to enter into or a contract that amends (or replaces) a contract you have already entered into. The court decided that it was not possible to reach an agreement for the Cost Plus contract to remain binding on the parties in one way or another. After careful consideration of the case law, the judge decides that the defendant waived his right of appeal when concluding the replacement agreement. The counterpart of the agreement was the complainant`s agreement to provide in advance the post-sealed cheques exclusively in favour of the respondent, so that he could benefit from the money before his death. In Morris v Baron & Co  AC 1, Morris agreed to sell 500 copies of Blue Serge to Baron & Company on the terms set out in the written contract (and thus to meet the written requirements of section 4 of the Sale of Goods Act 1893 (UK), the parties continued and their actions were ultimately affected by an oral agreement, according to which the Baron & Company should be compensated for defective deliveries already made. freely accept other deliveries at its discretion and have time to pay for unpaid bills. The question before the House of Lords was whether any of the agreements were applicable: Graw S, An Introduction to the Law of Contract (1998), 3rd Ed, Lawbook Company Information Services, North Ryde, pp. 322- 323.
An interesting situation arises when the parties to an agreement perform a contract and then perform another contract for the same subject matter. The question then arises as to which contract governs the relations between the parties. To answer this question, one must examine the terms of each contract. If the terms of the new contract are so inconsistent with the terms of the original contract that it must be considered that both parties intend to no longer bind the original contract, the Tribunal may be prepared to exempt the obligations arising from the original contract under the terms of the new contract. . . .