Introduction to Law and Development Practice

Question: Discuss about the Introduction to Law and Development Practice. Answer: Development Finance: Finance a core factor needed to build, plan or develop a property project in systematic way. Institutions who provide finance to property developers are Banks, pension funds, insurance companies and many others(Li, 2007). Finance sanctioned to project owner measures ones capability of taking loans and repaying them back with interest on time. The scope of development finance involves all finances that are involved in the construction or development of an infrastructure. Infrastructure can be residential, commercial or social in nature. While finances involved in building infrastructure of residential or commercial includes amounts that are generally funded by way of banks, in infrastructural projects involving roadways, dams or other projects finances are generally funded by countries or IMF (International Monetary Fund). Whether private or governments projects, every sector needs finance from outsourced places. Factors to be taken into consideration during loan sanction are; Foremost factor: Financial institutes examines overall internal capacity, strength, monopoly of a particular lenders before financing them. Proper documentation scrutinized by accounts and legal departments is second significant factor during process of sanctioning loan(Chugunov, 2009). Thirdly, documents or property mortgaged to lenders for financing large amount of loan. Finances can be short term, medium term and long term depending on the projects size, time and total cost of the project. Short-term loans generally ranges 3 years to 5 years and are financed by most of the banks to small residential property builders as well to commercial property builders, which they repay once the project is completed and ready for possession(Rutkauskas, 2008). Medium term loans are for 5 years to 10 years and long term loans are for more than 10 year. These types of loans are sanctioned to big commercial and residential ventures which involve purchasing a big areas and constructing a society. These types of -sanctioning involves high official from financiers involvement to understand the nature of borrowers and their planning to execute project(McMichael, 2011). Equity finance is another approach for loan especially for commercial projects. Financier makes a deal in agreement of loan partial fix percentage in profit and loss of the project, which might be optional in nature. This nature makes them more of an investor, rather than a lender. Whereas a Debt Financer acts purely lenders, simple principle nature is to provide loan on legal basis and to get the money back on given time. Loan or finance is a cycle and profit and loss too is interconnected. Economic development of country keeps changing financial nature as well as financing method. Finance acts as the backbone of any property development(Milder, 2007). Hence from the above you can decided the relevant finance source and resort to the same. Construction Method: Key Consideration for stages in FBL projects Equal effort of qualified experienced team of contractors, developers, financier, architects, engaged to project a contract of making residential buildings and commercials in a well-planned views for making it successful in terms of profit and branding(Pan, 2009). Construction methods have gradually progressed over periods of time and emerged as one of the primary business generating immense amounts of revenue worldwide. It has been estimated that majority of worlds labor-forces are involved in the construction business. The construction business provides ample work opportunities and high amounts of revenue generation. The scope of the current analysis deals in the construction of a building at the University at the Faculty of Business and Law. The ten stages that will form key elements for the project of FBL are discussed below. Gathering information on the operation or project: First step is to analyse and finalize a site for construction of any residential or commercial buildings, according to market requirements to sell a project to gain maximum profit. As in this case it is the University 3D building structure. Analyzing the information to find opportunities and problems: Construction Company faces many problems daily during projects, which can be lowered through many opportunities available in market like, extended finance from, outsources, labors from other construction sites facing problems from other builders. Constructions of large complex buildings and offices projects need overall knowledge of documentations to avoid conflicts during sell. Different constructions forms and contracts like (NEC, ICC, FIDIC, JCT and more) have similar principles of laws for construction above projects(Du, 2010). Overall production needs high potential and team work by highly qualified expertise with proper planning for best well designed construction of premises for launching in marketplace. The map of the university campus might form the opportunity whereas the 3D structure might pose to be a challenge. Preparing a list of operations/activities to investigate: Construction cannot start only with proper location and planning, to execute it needs raw materials, manpower and a proper inflow of money or strong finance. Therefore, a good lender like banks, financial institutions, who can lend money for required term with negotiable interest rates is necessary(Park, 2012). In this case the previous existing structure of the university needs to be understood in great detail. Considering resources to use: World of constant changing technologies especially in construction needs latest equipments and machines to work along with modern techniques by qualified architects. Modern methods can help to complete the project before time and result in extra revenue by saving electricity, water, time, labor charges and selling the properties before time specified to customers(Dori, 2008). Sequence of operations: According to law Building Act1984, United Kingdom, Construction of such big projects of building residential and commercial sites needs an approval from government. Permission notice too have to be submitted to local authority before builders start work processes. Information on the operation or projectis gathered by the management team of expertise, who are hired to gather information from market for proper operations of projects undertaken(Takahiro, 2007). Alternative ways to carry out operations: In order to project an appropriate plan, a well-designed structure for site is required by means of drawing by trained architects, with the equal collaboration. Making evaluations of alternative methods: A global challenge faced across construction business is in regards to health and safety norms. Workers employed in the construction business often faces accidents or injury which are life threatening. These workers constitute rotational workers and hence lacks expertise to handle workplace related hazards(Fellows, 2015). Deciding on best methods: Construction companies needs to devise ways and means such that any type of construction does not pose challenge to workers and comply with necessary environmental norms. Reviewing decisions made as more information becomes available on the project: Another major challenge facing the construction industry is in regards to environmental standards. While environmentally friendly materials are available at high prices, substitutes that pose threat to environment and society are available easily(Charmaz, 2014). Communicating decisions and producing documents such as method statements: All necessary and relevant part of the decision statement needs to be communicate well in advance such that there are no queries in regards to the same. Hence, construction companies often resort to low quality materials such that they can save costs pertaining to projects and make substantial profits. Contract Law: Contract is a mutual agreement between two or more parties and the legal method which binds the bond is called Law(Chen-Wishart, 2012). To conduct well planned business and make it work flawlessly, most important aspect is to deal according to law of contract. Different countries have different laws in all fields. Generally it is difficult for people to work and obey the laws with respect to all fields. In legal terms for property business the contract law refers to an agreement between promoter, builder, and financier for construction business(McKendrick, 2014). The creation of contracts involving offer and acceptance The Law of Contract is applicable and binding on parties that enter into a legal agreement to do or not to do something. A Contract that meets all essential elements is legally enforceable and binding upon the contracting parties(Anson, 2010). Creation of contracts involves an offer and its subsequent acceptance. An offer is an intention to create a contract which has to be accepted in order to complete the process of formation of contract. Who can make and who can sue under a contract In case a contract becomes valid and legal in becomes binding on either parties to the contract. To lay out a proper relation and benefits between builders and buyers of property and to safeguard their certain personal interest, Tort Law has been introduced by court. It is influential in solving civil cases in which persons have been damaged by wrongful, criminal or any harmful acts of others. Hence, any aggrieved parties to the contract can sue under a contract. The categories of terms contained in a contract and their relative importance The elements and terms contained within a contract are offer, acceptance, consideration, mutuality of consideration and competence to contract. Every contract has to have an offer and acceptance formed by parties who are legally capable for entering into a contract. Consideration is another crucial aspect of a contract that states the valid elements and factors which needs to be present while contracting. Contract law during financing for construction between lenders and contractors go through many legal agreements and proceeding to avoid frauds and failure of repayment of loans on specified time(Oman, 2007). This contract adds mortgages of properties against loan sanctioned. If a contractor fails to meet the legal proceedings in construction, governments or private bodies can file a case against them to deal with failure. Over all there is always a risk in any property or construction business, to deal or lower the risk, contract law is implemented by court to deal with. Legal busin ess has lower risk than the illegal contracts. The damages payable and time limits in which you can sue for breach of contract In case of damages incurred from a contract which has failed to abide by time limits, then parties to the contract can sue for such breaches. In case the contracting parties fails to comply by the law then the aggrieved party can claim for suit in court. In case of dispute the aggrieved parties can also refer to the court of law. The Law of Contract is the most basic type of law that is bindings and applicable on all laws and rules of the land. In any case the agreement between the parties has to abide by all the necessary elements that form the basis of such contracts. Property law in legal term is a law incorporated to fix the contract terms and conditions between two parties, buyers and sellers(Friedman, 2011). Construction law primarily deals with legal law, to pass through all the legal proceedings in documentation, permissions and engineering with the promoter and other government bodies, before work start without any future hurdles. Construction contract law deals with practical knowledge and solves disputes between contractor, promoters and builders. Law of Property Property law is legal term used in dealing of any types of properties(Stoebuck, 2007). Commonly known amongst people are two types of properties, namely Real and Personal properties. Personal properties refer to movable properties of any individual in terms of money, copyrights and so on. But key discussion here refers to Real property. Real property is basically land which can be for construction or agriculture purposes. In modern world the real property are being used for construction of commercial and residential premises. When owner of a Real property make property deals, it may be between promoters and contractors or builders, they first go through legal proceeding, terms and conditions according to contract law and Law of property. Joint Tenancy and its distinction from tenancy in common Property Law is implemented in legal terms for an individual, company or government body to deal in future disputes arise against void of contract terms and conditions(Mossman, 2014). Joint tenancy is holding of property or an estate by two or more parties which can further be passed on after death. If any construction party fails to repay the loans to financial lenders like banks and other financial institutes, they can file a case against them to recover the debt by selling properties through auctions. Tenancy in common is a shared form of tenancy in which every owner has a distinct identity whose interests can be transferable. Every state has its own power and rules to fix and pattern of transfer of ones property(United States) upgraded law is to transfer the ownership in deeds(Singer, 2014)(Laws, n.d.). Covenant and its distinction easement Covenant is an agreement by virtue of a lease, deed or other necessary legal document which enables landlord capability to repair a property. Real property further has two diversification, Freehold estates and non-freehold estates. Freehold estates are inherited and non-freehold estates are tenements in other language, property deal between landlord and tenant for specified years mentioned in agreement. Easement provides right to another individuals land for a specific purpose. Freehold and its distinction from leasehold If a tenant fails to handover properties on time, landlord can file a suit in court to recover according to Common law. The term freehold estate provides right of title to a particular land which is immobile in nature and is for indeterminate period of time. Special Estates (United States 1961) are property in which a buyer becomes individual owner and partial holder in facilities available(Martin, 2009). Leasehold constitutes holding of a property within a period of lease term. An individual can file a case against contractor if fails to handover possession on any premises on time against law of property (Adverse possession). Property laws allow proper handling and conduct of properties and to solve cases in courts of law. Law and English Legal System The English legal system has evolved over the centuries to define and meet the needs of its users. English legal system and laws have been developed in England, to cater to individual power and rights of an individual or institutes. Legal system or English Law includes legislative body, legal norms by parliament and other judiciary to deal with any legal disputes during 18th and 19th centuries(McLeod, 2010). Today the English Laws and legal systems has evolved and transformed to cater to the varying needs of the society. Law or English Legal System has come out so well to deal with power rights of parliament, monarch, and other governmental bodies. As discussed above till 19th centuries full power in relation to legislation was in hand of crowned family and members, later it has been transferred to hands of parliament. But with the introduction of ELS (English legal system), the powers of Judges been completely separated from that of previously system under kings and parliament. This judiciary system has provided with much more transparent and ethical standards as well as means to handle cases. Democracy a modern word for todays political system has changed the countrys power and legal systems. Hence, in order to control democracy, English law system has been established by legal bodies. According to England legislatives, if an individual or an institution been given total rights to run the countrys legal matters then , it can be misuse and can prove harmful for the country as whole(Cownie, 2013). Many countries from world being inspired and has implemented the same or English Legal system to improve their own country. English Law system has been categorized into two Criminal Law: Which includes murder, can be seen as common law rather, been taken to parliament for its amendment and sentence. Person accused is taken to court for its act where the offender is charged and punished. Civil law: It is also known as common law, where disputes of properties are solved. Cases related to civil law tends to take longer durations compared to criminal laws. Parliament is a governmental body which deals in passing bills and legislation to support legal system. It plays key role to govern the entire countrys legal system(Rembar, 2015). Well defined English Legal system has changed the political scenario of England by diversifying powers among different legal bodies, which has inspired other countries to run in a systematic way. Earlier there was not a separate identity for legislature or judiciary but it has gradually evolved and transformed to form a separate role of duty. This enables better and smoother establishment of laws and dealing with cases. The English laws and legal system presents an advanced body of knowledge and systems that is followed across globally. Multiple countries that were previously colonized by the British Empire have English laws and legal system as guiding principles. Reference Anson, W.R., Beatson, J., Burrows, A.S. and Cartwright, J., 2010.Anson's law of contract. Oxford University Press. Charmaz, K., 2014.Constructing grounded theory. Sage. Chen-Wishart, M., 2012.Contract law. Oxford University Press. 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