The Unfair Contract Terms Act 1977 is misleadingly named. It only Essay

The Unfair Contract Terms Act 1977 is misleadingly named. It only deals with a tiny subset of terms, and does nothing to make sure that contracts are fair - Essay Example Every member in the contract is expected to play his or her relevant obligation in ensuring that the contractual terms and conditions are not breached. The contracts also define the consequences associated with breaching of the terms and conditions that sustains the contract. This act is always deployed in conjunction with the unfair terms in consumer contacts regulation (UTCCR) 1999, the Sales Goods Act 1979 and the supply of goods and services Act 1982. The three enactments are inseparable .However; the enactment has manifested a lot of weaknesses that makes it unfair to the individual members of the contract. This includes the following. Negligence, which is one of the factors in the enactment, has given freedom the insurance companies to deny the liability in case of a tragedy subscribed for in the insurance contract (Eaglestone,2004). Insurance companies are expected to compensate individual or company in case ofan accident. Always individuals subscribe to the service periodically in order to be protected during the times of crisis. Inmost cases these companies take an excuse of reckless nesses to evade the liability. This is common in vehicles indulged in accidents. It is unfair todeny responsibility in which somebody is paying for. Under such a situation, the client is fixed falsely for falling into tragedy. The act does not give consumers the right to take part in solving problems arising from their contracts (Kidner,2005). The business is the only party mandated to provide the solutions based on its own interest. For instances, in case a customer defaults to clear the loans, the institution itself is the only party that sets the penalties without involving the customers in such decisions. Also, the kind of penalties sometimes imposed on the consumers are very heavy to be cleared easily. In most cases the states force people, especially the government workers to join such contracts. In facts several nations have made it one of the

Interest Rate Options Essay Example | Topics and Well Written Essays - 1000 words

Interest Rate Options - Essay Example As the paper delcares a common example of this bond is, the Treasury Bond Futures Option. Others are Treasury Notes Futures Options and Eurodollar Futures Options. The Treasury Bond Future Options is priced at 1/64th of 1% of the Treasury Bond face value; the Eurodollar Futures Bond is calculated at 0.01 basis point value being equivalent to $25. It is to be noted here that the interest rate futures prices are indirectly proportional to the bond price increases or decrease. This report discusses that Black’s model is a mutation from the Black Scholes Model, which uses the rate of interest as the base for pricing the options. The most important factor is that it functions on the assumptions that â€Å"a key market variable will be lognormally distributed at a future time†. When Black's model is used to value the price of European interest rate options, the worth of future price of V for a contract maturing at time T, is usually set equal to the forward price of V rather than its futures price. This is more theoretical than practical since in this case you will have to assume that the rates of interest also remain constant while discounting over the same period of future, which is definitely not the case. This is an option which has pre-determined selling price and time. This value is determined based on the Black’s Model assumptions, that the price is lognormal at the pre-fixed time in the future. The value of the bond option can be worked out with the following equations using the Black’s model which sets Fo equal to the forward bond price.