American Unions in the Twenty First Century

The number of people joining labor unions in the United States today is declining. Scholars offer several reasons for this decline. Globalization happens to be one of the reasons, seeing as international outsourcing has become common especially in the area of manufacturing. The most important reason, however, appears to be that the organization has begun to view the employees’ interests as its own, thanks to the budding field of organizational behavior. Introduction In the United States, union membership had peaked in the year 1954 with at least 28.3% of all employed workers joining labor unions. In the year 2003, however, only 11. 5% of employees were known to be union members. The number of employed workers in the U. S. who had joined labor unions was at a peak in the year 1979. There were approximately 21 million union members all across the country at the time. In the year 2003, on the other hand, there were only 15. 8 million union members in the nation. Labor unions were essentially important because they allowed union members to collectively demand higher wages and better working conditions.The demand for higher wages had to be curtailed in the face of globalization, however. Faced by global competition, American organizations began to demand concessions during the late 1970s. They could no longer listen to labor unions’ demands for very high wages seeing that expensive American products and services – due to the high price of labor in the country – could not be efficiently sold in the foreign markets. In the 1980s, there were â€Å"widespread manufacturing layoffs and plant closings† in the country.Another important aspect of globalization had showed up – that of hiring cheap labor in countries where new manufacturing plants could be set up by the American organization in order to cut its costs. As an example, â€Å"toys can be produced more cheaply in China than in the United States or France. This makes it ge nerally unprofitable to have toy factories employing workers in these richer countries (except for upscale toys); it also means American and French workers can enjoy the benefits of lower price toys. †In the year 1981, former President Ronald Reagan announced that air traffic controllers on strike as members of a union had to be fired. After all, strikes are costly for the economy as a whole. More than a decade later in 1992, when the United Auto Workers went on strike, the Caterpillar Corporation threatened to replace them all permanently, following the example of Mr. Reagan. The company was successful through this tactic in breaking the strike. Even today, Wal-Mart and other big corporations are known to stifle union efforts.What is more, the government is said to encourage employers in failing to listen to the demands of union members. The Washington Post reports that the government is known to â€Å"allow employers to block union-certification elections and use stalling t actics and threats to discourage organizing drives. † The main reason for this appears to be the fact that the American organizations have now found a better way to deal with employee grievances, and to essentially satisfy all employees. Union memberships that have the potential to create difficulties for businesses as well as the economy as a whole are being discouraged.The union method of strike, for example, costs a great deal to businesses in addition to the economy. Organizations had to find a more convenient way to make their employees more productive and to satisfy them at the same time. Thus came into being the field of organizational behavior. Organizational Behavior Removes the Need for Union Membership The most important reason for the diminishing role of labor unions in the United States appears to be the direct opposite of a labor strike: the satisfaction of the labor force.According to a federal publication published in the year 2004, â€Å"employers may have be come more sensitive to employee concerns, resulting in greater job satisfaction among nonunion workers and reducing the demand for unionization. On the other hand, management may have become more sophisticated in opposing attempts by workers to unionize† Indeed, both of the above reasons for the diminishing role of union membership are true. Employers have really become more sensitive to the concerns of the employees, thanks to organizational behavior.Moreover, the management of American companies has been improved, also thanks to organizational behavior. The twenty first century began with a great deal of excitement especially as the innovatory technologies of the twentieth century started to appear commonplace and every organization had already been supplied with tools through academic research to deal with additional organizational changes in the offing. The discipline of organizational behavior had been through its trials and tests, finally emerging as an indispensable are a of learning for all twenty first century managers to have gone through.Arthur P. Brief and Howard M. Weiss describe this relatively new field of applied psychology thus: â€Å"The organizations in which people work affect their thoughts, feelings, and actions in the workplace and away from it. Likewise, people’s thoughts, feelings, and actions affect the organizations in which they work. Organizational behavior is an area of inquiry concerned with both sorts of influence: work organizations on people and people on work organizations. † Organizations act as the engine of the American economy in our day.So, for the first time in the latter half of the previous century, the psychology of workers in an American organization became a focal issue in studying organizations. Employee development, organizational cultures, organizational citizenship, work attitudes, organizational attachment, job design, leadership, turnover, absenteeism, and employee work motivation turned ou t to be the centers of attention with advances in psychological theory and changes in the workplace. There were developments in the understanding of cognition, personality, and emotion, and their respective influences on work choices as well as goal striving.The entire human resources departments of the United States were revolutionized at the same time as technological, economic and organizational changes encouraged further research on the influence of socio-cultural in addition environmental factors on employee motivation. The emergence of new paradigms, theories, and organizational concerns did not only provide a rich matrix for the exploration of organizational behavior, but also provided firms with a rather attractive theoretical framework for organizational behavior modification, and in general, the art of running a firm with special reference to its people.As a matter of fact, organizational behavior turned out to be at least as important as computer technology to an American organization. In order to compete in foreign as well as domestic markets, the American organization was required to produce high quality products at low costs. This mission was most likely to be accomplished through satisfied and productive labor, rather than union members on strike. What is more, in order to deal with the organizational changes brought about through the introduction of new technologies, organizations had to learn the principles of organizational change through organizational behavior theories.Indeed, these theories performed their job rather well by helping organizations to introduce technological change effectively. The employees were pleased with the organizational efforts using theories to predict and manage their behavior in the organization. According to Fred Luthans: We found that Organizational Behavior Modification had an average increase of 17% in employee performance. We think that is pretty impressive, especially when you consider many technological inn ovations or some of the better known human resource techniques suchas goal setting do not have evidence of that big an impact. In addition, we also found through†¦meta-analysis some significant theory driven moderators. Specifically, we found that the type of organization and the type of contingent reinforcement intervention moderates the relationship between Organizational Behavior Modification and employee performance. For example, we found that Organizational Behavior Modification had a bigger impact in manufacturing organizations, approximately 33% average improvement, than in serviceorganizations at about 10%. However, it must be remembered that this 10% is still highly significant and can make a big difference in the labor intensive service industry. Whereas the manufacturing industry had traditionally been filled with union members, organizational behavior modification made it possible for the American manufacturing organization to satisfy its employees without a union, especially toward the end of the twentieth century when union membership was falling dramatically.This, indeed, is a big achievement for the field of organizational behavior. Organizations had learned to satisfy their employees without the need for unions to voice the employees’ concerns. By the commencement of the twenty first century, a modern field close to the heart of organization behavior had also been introduced by the name of organizational development.For the present century, organizational development consultants have pointed out the following trends: (1) The range of organizational development techniques is expected to expand, spurred mainly by the information explosion; (2) The number of employees involved in organizational development would increase, which implies that all members of the organization would have to show interest in all phases of organizational operation; (3) It will be increasingly important to improve organizational communication; and (4) The imp lications for organizational behavior – including stress, responsibility, and learning – would be repeatedly addressed.The United States has led the global research into organizational behavior, and there is new information about the field expected in the future with further research. The second prediction of the organizational development experts is that the American organization of the near future would give greater importance to all employees by involving everybody in virtually everything. By increasing the importance of employees in the perspective of the organization, the American firm would continue to lower union membership, seeing as the satisfied employee who participates in virtually all organizational efforts would not need the support of unions.Organizational communication is already very efficient through the use of new technologies. The latest software and Internet-based applications help to bridge communication gaps between employers and employees in all states of America and across the globe. As a matter of fact, Information technology has gifted the organization with new communications tools that allow collaboration in addition to cooperation in the form of wireless communications, electronic mail, shared electronic databases, videoconferencing, and various other groupware technologies.Lastly, the organizational development consultants understand that the organization would continue to take increasing interest in the wellness of its employees. Factors like stress and learning would continue to be addressed. By addressing stress, the organization shows its employees that it cares about their wellbeing. By addressing learning, the organization cares for their essential intellectual and professional growth. In point of fact, progressive organizational behavior theories that stress the need for greater organizational learning are uniquely significant in the twenty first century.In the fast changing business environment, successful Am erican organizations promote learning by getting everyone focused on a common objective; allowing easy communications between and among all members; and then allowing the system to self-organize and to reconfigure itself so as to deal effectively with the emerging new environment. Before the widespread application of organizational behavior theories, it must have been quite stressful to introduce change among union members. Today, if an employee is unhappy at the job, he or she may communicate with the employer in the matter of a few minutes using electronic mail.Perhaps the most important achievement of organizational behavior theories in the United States is that these theories have made the employers realize the true significance of their employees. Consider the following examples of organizational leaders that have tapped their human resources potential: Take Bill Gates, the ultimate techie but a great leader. A reason he has done so well is because he believes in the people par t of his leadership role. In fact, one of his quotes that I like is â€Å"My inventory, the value of my company, walks out the door every night.† I think Gates appreciates the human side of enterprise. He has reward systems, he has teams, he has all the things we talk about in Human Resources; you can find not only the most sophisticated technology in the world, but also textbook examples of effective Organizational Behavior/Human Resources at Microsoft. Gates is obviously the ultimate techie, but he is also appreciative, and an effective leader of human resources. So is Jeff Bezos, the cyber architect of Amazon. com. All of his top people have become millionaires through his HumanResources policies of sharing the wealth through pay for performance and stock ownership in this amazing e-commerce firm. Conclusion Who needs union membership when employers equipped with the new theoretical tools of organizational behavior are wiling to go out of the way to satisfy their employees ? This question leads all researchers to expect that union membership would continue to diminish in the twenty first century. New research into employee satisfaction would continue to enlighten employers.Moreover, employees will be quick to notice the changes brought about through organizational behavior tools, given the advancement in technology that makes it possible for organizational communication to take place at all levels within moments. Although the research for this paper encompassed a variety of reasons suggested for the decline in union membership across the United States in recent decades, organizational behavior appeared to have played the most important role in the diminishing role of labor unions. This is because of the employee satisfaction factor in the organization today.If employees were merely being discouraged by the government or the organization taking actions against union membership, or if they were truly unsatisfied only on the basis of lower wages as a res ult of increased competition and globalization, America’s economy would not have achieved a high rate of growth because employees would have found a way to disturb the organization as well as the economy as whole. However, this did not happen. Rather, employees grew to be satisfied, their productivity increased, and the principal reason why this happened was because employers began to take greater interest in the wellbeing of their employees.By addressing stress, for example, employers ensured that their employees would be mentally and emotionally well in order to perform their job functions most efficiently. Furthermore, employers were made to realize that their employees might have to be involved in the entire organizational process in order to be more interested in their work. Finally, employers who were learned in organizational behavior theories, for example, Bill Gates, appeared to make employees feel that they truly are an integral part of the organization. No more did employees have to be concerned about monetary payments alone.Instead, the workplace was made a truly satisfying and stimulating experience, thanks to organizational behavior theories. Employees could feel that they were a part of the organizational culture. The value of organizational citizenship was additionally recognized. Hence, once again, who needs to join labor unions in order to find more work satisfaction? The American worker has responded to the application of organizational behavior theories and found group satisfaction in organizational teams. The application of organizational behavior theories has been the major reason for the diminishing role of labor unions in the U.S. , and will continue to be the main reason for a decline in union membership in the twenty first century. There is no reason to believe in another direction that union membership might take in the twenty first century. Works Cited 1. â€Å"21st Century Organizational Development Consulting. † Mana gement 2006 (2001). Retrieved from http://www. manage2001. com/index. htm. Accessed 28 October 2006. 2. Brief, Arthur P. , and Howard M. Weiss. â€Å"Organizational Behavior: Affect In The Workplace. † Annual Review of Psychology, 2002. 3. Edsall, Thomas B. â€Å"Labor's Divisions Widen As Membership Declines.† Washington Post (7 March 2005), p. A02. 4. Hodgetts, Richard M. â€Å"A Conversation On Fred Luthans Leadership In The 21st Century. † Journal of Leadership Studies, 1999. 5. Kanfer, Ruth. â€Å"Work Motivation In The 21st Century: Mapping New Directions For Theory And Research. † Society For Industrial And Organizational Psychology Inc (2006). Retrieved from http://www. siop. org/. Accessed 28 October 2006. 6. Compa, Lance. â€Å"Labor Rights and Labor Standards in International Trade. † Law and Policy in International Business, Volume 25, Issue 1, 1993. 7. Mayer, Gerald. â€Å"Union Membership Trends in the United States.† Congressi onal Research Service (2004). Retrieved from http://digitalcommons. ilr. cornell. edu/key workplace/174. Accessed 7 April 2007. 8. Mowday, Richard T. , and Robert I. Sutton. â€Å"Organizational Behavior: Linking Individuals And Groups To Organizational Contexts. † Annual Review of Psychology, Vol. 44, 1993. 9. Peterson, John L. â€Å"Getting Ready For The 21st Century. † USA Today, Vol. 127, May 1999. 10. Walton, Michael. â€Å"Unions In A Global Labor Market. † The World Bank Group. Retrieved from http://www. worldbank. org/mdf/mdf1/index. htm. Accessed 7 April 2007.

Pre Marital Counselling Essay

Premarital Counselling is therapy with two people prior to their marriage, to help give them more realistic ideas of what to expect and how to cope with living with another person as a spouse; relating to each other as a committed pair. By taking the time to explore the reasons you came together, your similarities, your differences, your hopes and your dreams, as well as your expectations of one another, it is sometimes possible to avoid the disappointments that many couples face with the passage of time. Pre-marital counseling offers the opportunity to explore your differences in a relatively safe, supportive, constructive environment. And while some couples may choose to postpone their union until key differences can be resolved, most couples find that pre-marital counseling helps to prepare them for the kind of life they would like to build together. Premarital counseling can help ensure that you and your partner have a strong, healthy relationship — giving you a better chance for a stable and satisfying marriage. Premarital counseling can also help you identify weaknesses that could become bigger problems during marriage. Through premarital counseling, couples are encouraged to discuss a wide range of important and intimate topics related to marriage, such as: Finances, Communication Beliefs and values Roles in marriage Affection and sex Children & parenting Family relationships Decision making Dealing with anger Time spent together. The initial period of any relationship is called the honeymoon period; and after that fairytale, marriage can be a rude reality check. In most cases, quarrels over money, family and trust break a couple apart. A pre-marital session helps partners accept each other better and avoid future complications or conflict. † Contrary to popular belief, pre marital counseling isn’t only for couples who are going in for an arranged marriage. It is also very important for couples who have had long courtships or have been living together. In arranged marriages, the people going to spend their life together are perpetual strangers, with no idea of what lies ahead of them. In India specifically, arranged marriages are sealed with just one word of advice for the bride â€Å"you HAVE to adjust, and you HAVE to compromise. Premarital Counselling ensures that the couple do not just â€Å"fulfill† the responsibilities of marriage for their family, but also participate in it wholly as individuals. In india marriages are seen as a ‘union of two families’ and the individuals who are supposed to spend the rest of their life together, they get lost in the entire plan. Pre Marital Counselling ensures that doesn’t happen. People who have had long courtships and have been living together, need it perhaps more than than people who’re going in on for arranged marriages . Why? Because once you’re living in with someone ,you think you know everything that there is to know about that person and marriage cant spring any surprises. But guess what? You WILL be surprised greatly by what surprises pre marital counseling will bring for you. Marriage changes the set of expectations two individuals have from each other. More issues have to be dealt with, like children, financial planning etc. Most couples spend more time planning their weddings than their marriages!. If you think about the amount of financial and emotional investment that goes into preparing for the wedding itself, doesn’t it make sense to invest a little in strengthening the relationship at the onset? Many couples preparing for marriage honestly believe they are strong going into the union – and they probably are in a lot of ways. Being caught up with all the loving feelings and other feel-good stuff going on ahead of nuptials, couples often don’t consider the potential pitfalls. Those â€Å"pitfalls† are often times what leads them into a therapist’s office some time down the line. Here six great reasons to get pre marriage counseling: 1) Strengthen Communication Skills:  Being able to effectively listen, truly hear and validate the other’s position is a skill that isn’t necessarily a â€Å"given† for many people. Couples that really communicate effectively can discuss and resolve issues when they arise more effectively. You can tune up your talking and listening skills. This is one of the most important aspects of emotional safety between couples. 2) Discuss Role Expectations:  It’s incredibly common for married couples to never really have discussed who will be doing what in the marriage. This can apply to job, finances, chores, sexual intimacy and more. Having an open and honest discussion about what each of you expect from the other in a variety of areas leads to fewer surprises and upsets down the line. 3) Learn Conflict Resolution Skills:  Nobody wants to think that they’ll have conflict in their marriage. The reality is that â€Å"conflict† can range from disagreements about who will take out the trash to emotionally charged arguments about serious issues – and this will probably be part of a couple’s story at one time or another. There are ways to effectively de-escalate conflict that are highly effective and can decrease the time spent engaged in the argument. John Gottman’s (www. gottman. com) research has shown that couples who can do this well are less likely to divorce in the end. 4) Explore Spiritual Beliefs:  For some this is not a big issue – but for others a serious one. Differing spiritual beliefs are not a problem as long as it’s been discussed and there is an understanding of how they will function in the marriage with regards to practice, beliefs, children, etc. ) Identify any Problematic Family of Origin Issues:  We learn so much of how to â€Å"be† from our parents, primary caregivers and other early influences. If one of the partners experienced a high conflict or unloving household, it can be helpful to explore that in regards to how it might play out in the marriage. Couples who have an understanding of the existence of any problematic conditioning around how relationships work are usually better at disrupting repetition of these learned behaviors. ) Develop Personal, Couple and Family Goals:  It amazes me how many married couples have never discussed their relationship goals – let alone personal or family. I honestly think it just doesn’t cross their minds! This is a long term investment together – why not put your heads together and look at how you’d like the future to look? Where do you want to be in five years? Approximately when would you like to have children? How many children? There are many areas that can be explored and it can be a fun exercise to do together. Pre marriage counseling doesn’t need to be a long process, especially if you feel you’re starting out with a very solid foundation and only need some clarifications and goal-setting. For some people who are poised to start out the marriage as a â€Å"higher conflict† couple or have deeper issues to contend with, the process could take a bit longer. Regardless, be sure to take the time to invest in your marriage as you might in the event itself. The return on your marriage investment has the potential to be life long What you can expect Premarital counseling typically includes five to seven meetings with a counselor. Often in premarital counseling, each partner is asked to separately answer a written questionnaire, known as a premarital assessment questionnaire. These questionnaires encourage partners to assess their perspectives of one another and their relationship. They can also help identify a couple’s strengths, weaknesses and potential problem areas. The aim is to foster awareness and discussion and encourage couples to address concerns proactively. Your counselor can help you interpret your results together, encourage you and your partner to discuss areas of common unhappiness or disagreement, and set goals to help you overcome challenges. Your counselor might also have you and your partner use a tool called a Couples Resource Map — a picture and scale of your perceived support from individual resources, relationship resources, and cultural and community resources. You and your partner will create separate maps at first. Following a discussion with your counselor about differences between the two maps, you’ll create one map as a couple. The purpose is to help you and your partner remember to use these resources to help manage your problems. In addition, your counselor might ask you and your partner questions to find out your unique visions for your marriage and clarify what you can do to make small, positive changes in your relationship. Keep in mind that you bring your own values, opinions and personal history into a relationship, and they might not always match your partner’s. In addition, many people go into marriage believing it will fulfill their social, financial, sexual and emotional needs — and that’s not always the case. By discussing differences and expectations before marriage, you and your partner can better understand and support each other during marriage. Early intervention is important because the risk of divorce is highest early in marriage. In Pre marital counseling, as couples you become aware of so many issues that you never thought existed earlier between you two. Premarital counseling is a way to pull the darkness out from its hiding places so that you can turn it over in the light and see it for what it actually is. Remember, preparing for marriage involves more than choosing a wedding dress and throwing a party. Take the time to build a solid foundation for your relationship.

Basketball Coaching

Have you ever imagined not having a coach for your sports team? Or why your coach is so successful? Even though they are very demanding, they’re essential for any team’s success. â€Å"I demand a lot out of my players, but we have fun and I give them room to learn and make mistakes,† said Coach Mike Bates. They provide structure and are the heart and souls of each team. Coaches have to love the game. The team reflects the coach, if he’s successful so will you be. The coach needs to be disciplined and teach the fundamentals of the game. They should instill moral values into the team. Basic basketball will make the team better. Basic basketball includes ball handling, proper form, offense, and etc. It may seem boring and stupid but it really makes you a better team and player. Players want a coach who will teach them the game. If the coach is a stickler for defense, your team can beat anyone. The fundamentals of defense can make a good team great and lower tier teams competitive. The defense will lead to offense and things will come easier for your team. Once you’ve mastered the basics the goals that have been set for the team will seem reachable and easier. The confidence of the team will sky rocket and results will follow. â€Å"I teach the kids every aspect of the game and the basics that will make them successful,† said Coach Mike. Your coach needs to be dedicated and love the game. â€Å"I’m a gym rat, I’ll do anything to get into the gym and help the girls,† continued Coach Mike. You need to make touch decisions and sacrifices to be successful. Nothing comes easily especially in this profession. You have to outwork your opposition and be prepared. Being in the gym and loving the game gives you many advantages over other coaches. Being around the game teaches you more and makes you aware of every situation. Yelling isn’t the only way to motivate players. There are many other ways to do so. Sometimes yelling may do more harm than good and hurt the teams psyche. Players will start to resent the coach and start to distance themselves. Once the morale and confidence is broken down the team will start to suffer the consequences. There are certain times when yelling is appropriate but it shouldn’t be used all the time and coaches should never single players out in front of the entire team. The coach should yell for a purpose, but also bring your confidence up at the same time and encourage you to do better. There shouldn’t be false hope put into player’s heads because of the coach’s ego. Players would start to lose respect for him. They really listen to what the coaches have to tell them and take it to heart. It really means a lot to them what you tell them. One of the reasons John Wooden was successful as a basketball coach was because he was the best teacher at the sport and taught his players life skills. He didn’t win ten national championships because he had talent. He won because he taught fundamentals and basic basketball. He instilled in his players that fundamentals is the key to success. To this day his players still use what he taught them and take that with them as they move on with their lives. He was a coach and a father to the players. He always compared how life was like basketball and the players understood what he meant. John Wooden made the Pyramid of Success. The Pyramid of Success consists of twenty-five behaviors that Wooden felt you needed to be successful in not only basketball, but also in life. The top two behaviors are faith and patience. He followed those behaviors and taught his players those behaviors until his dying days. Phil Jackson is also another great coach. He is unique just like John Wooden. They never felt the need to yell. Jackson is the Zen Master and isn’t a yeller. He’s unique because unlike most coaches he trusts his team and lets them play instead of calling timeouts when his team gets into ruts. Most coaches would be infuriated and quickly call a timeout but not him. He sits back and lets them play through difficult periods. He doesn’t coach every player the same and understands the needs of what each player needs to succeed. Jackson knows his players and all their strengths and weaknesses. Another wonderful thing is he taught the two best players the game has ever had to offer: Michael Jordan and Kobe Bryant, that playing within the concept of the team is the only way to win. An excellent leader leads to an excellent coach. With the confidence and swagger that they have to offer it rubs off on the team. The team needs someone to follow and look up to. Players have to respect the coach. Respect is a major aspect of the game. The team should want to live and die by the coach. Conducting a great practice is a great aspect of any coach. Practice should be conducted with the needs of the team and show progress throughout the year. It is a way for coaches to see what you can bring to the team. Practice makes perfect and for every coach they live and die by that saying. All in all the coach is the catalyst to the team. They are everything to the team and the team thrives off their energy. The personality of the team reflects the coach. Coaches that drill the basics and fundamentals into the team are very successful. The team will succeed as a whole and improve as the season moves along.

Chinese Culture Essay Example | Topics and Well Written Essays - 1000 words

Chinese Culture - Essay Example It was therefore only to be expected that it would also make the usual transition from a feudal to a capitalist society much before Europe. However, that was not to be. China's feudal system lasted for about three thousand years - almost three times that of Europe - and when the last dynasty, the Qing, collapsed in the early 20th century, it was largely because the weakened political system, still feudal in nature, could not recover from the successive blows dealt to it by the extraneous capitalist powers that were intent on exploiting the country politically and economically. What is the reason behind such an extraordinary fall from a glorious past From its position as perhaps the earliest mature and technologically advanced civilization in the world, how did China become the 'sick man of Asia', as it was being called by the end of the 19th century Many explanations have been forwarded for this great longevity and continuity of traditional cultural and socials models in China. First, there is the fact that the succession of Chinese dynasties, though they were often established by minority groups or derived from external origins, caused little disruption in the inherited cultural life of the people. The peaceful traditional Chinese way of life always proved to be more powerful than the military might of the conquerors, and conquered them in the end. This gave rise to a great inertia in the lives of the people which was very difficult to break. Consider the Yuan Dynasty, established by Mongols who invaded from the steppe regions in the late third quarter of the 13th century. The native Chinese population was thoroughly intimidated by this warlike tribe. A peace born of resignation and fear, sometimes known as Pax Mongolica, ruled the country. It has been said that so thorough was the conquest that a naked maiden on horseback could ride the length of the country without fear of molestation. Yet even this indomitable tribe finally embraced the Chinese way of life and even their religion. Similarly the Manchu-s in the middle of the 17th century. Secondly, the recalcitrance described in the last point was an obstacle not only to cultural change, but also economic change. Technology is one of the underpinnings of capitalism, and in this respect China was far ahead of the West until the coming of the European renaissance. The Chinese had the world's first hydraulic clock in the 8th century, and by the 11th century their advanced metallurgical industry was producing vast quantities of military grade iron. Yet the successive governments never wavered from the theory that agriculture was the key to the economy. All their economic and fiscal policies favored agriculture to the detriment of industry. Consequently, a proper industrial infrastructure never emerged. Even a market-oriented agriculture can be the basis of a capitalist transformation. But Chinese agriculture was inward-looking. Farmers were not particularly interested in selling products, but lived off the harvest. So a vast portion of the country's production was never involved in the market. The religion of Confucianism, first embraced by the Han emperors of the third century BCE and continuing as the 'state religion' until the fall of imperialism, preached a political and social ideology that instilled a complex retrospective attitude in the populace. Many scholars think that it was one the

Recomendation letter Essay Example | Topics and Well Written Essays - 250 words

Recomendation letter - Essay Example ons, immense attention to details, commitment and apposite ethical behaviors, who cares on the implication of medical practices on the environment and individuals, that are quite germane in the radiological field. He excellently interacts with patients and professionals in the workplace and all those who had the opportunity to associate with him can testify the elation and happiness that he brought to them. Similarly, he undertook an informal leadership role offering help to his co-workers who incessantly sought his support and advice. He proved to be a distinguished problem-solver, a trait that can be put to proper utilization in the MRI field and save many lives. Given the chance to pursue the MRI degree, Nabil will surely blossom to be a reputable professional and an imperative asset to the entire community; his brilliance in the field will not be a shocker to me and anybody who knows him. It is for the aforementioned reasons that I unequivocally and without any hesitation recommend Nabil Kafal for the MRI program at Providence

Sport and the Media Essay Example | Topics and Well Written Essays - 250 words

Sport and the Media - Essay Example Furthermore, because of the evolution of the mass media, there is an emergence of sports stars (Raney, 2006). Examples include Tiger Woods, Christiano Ronaldo, David Beckham, etc. These people normally occupy the front pages of newspaper organizations, and other forms of mass media. They are popular because of the media, and as a result, they are able to earn a lot of money from sponsorship deals and agreements. Without such kind of reporting, these sports personalities cannot get the popularity that they have. Furthermore, sports organizations normally get a lot of money, by charging media rights. These are fees that the media pay to sports organizations, for airing their matches. Billings (2011) explains that this money is usually huge, when compared to the gate collections that these sports organizations are able to collect. Based on this fact, sports heavily rely on the media, as sources of revenues, and for advertisements. Without the media, it is impossible for sports to become a multi-billion dollar industry. In as much as sports rely heavily on the media, the media also relies on sports. This is because they are able to attract male viewers, who love sports. Furthermore, newspaper organizations have sports sections, and this helps them to increase circulation, hence revenues (Raney, 2006). Despite the importance of the media, in the industry, there are numerous issues that have arisen. Some of these issues include the quality of reporting by journalists, and their professionalism. Furthermore, controversy exists, on whether journalists are serious about their reporting, or they are motivated by the fun, of being sportsmen. In conclusion therefore, the media plays an influential role in sports management, and it is a source of revenue for sports team. On the other hand, the media also benefits from sports, and this is because it relies on it, for increased sales, and circulation. It is therefore prudent to

Presentation critique Essay Example | Topics and Well Written Essays - 750 words

Presentation critique - Essay Example The 18th century saw great movements to abolish the trade stem up and grow. In the early years of 19th century however, Britain as well as US declared the trade illegal and in 1833, the entire British Empire consented to the abolishment of the trade. The slave trade thrived in the Atlantic regions as was necessitated by the various commodities that were exchanged between Europe, Africa as well as America. The African continent offered Africans as slaves in exchange of commodities and in often times without any gain to America. The American continent on the other hand provided Europe with cotton, Tobacco and sugar. Africa then benefited through textile, rum as well as manufactured goods from the Europeans. The concern here would be how literature would reveal the mutual benefit between the three continents while in actual sense the Africans lost as slaves were fetched from them through disguise. Spain, France, Portugal, Norway, Netherlands, Sweden as well as England were the major cou ntries from Europe, which participated within the slave trade. The main merchandize of trade from the European continent were Brass utensils, beads, pewter, guns, gunpowder, spirits as well as food commodities. Trading nations were identified through hoisting of the flag and a specific slave trader would be stationed there for maintaining good relations with the African correspondences participating in the trade. Slaves were obtained through negotiations with the natives as well as by raids that were organized periodically by the Europeans. It is worth noting that the Africans played the two roles of perpetrators and victims to the slave trade. The Portuguese were strategic in the trade by targeting the African countries that were at war and they would side with one side and acquire slaves from the loosing country. The Africans therefore were wittingly used to capture and trade fellow Africans for trade under the disguise of collaboration while in other instances, Europeans would ra id Africans for such supplies. The actual journey in trade involved the transport of the slaves through water where depending on the number of slaves on board, the terms ‘loose-packing’ and ‘tight-packing’. Loose packing meant that few slaves would be packed together with large quantities of cargo. Tight packing on the other hand had a higher percentage of live to dead slaves on board was bigger to that of loose packing. Tight packing however dominated much of the slave trade. The slaves suffered extreme conditions of heat, congestion in docks, sexual harassment, staying in chains as well as exposure to unhealthy conditions. In extreme cases, the slaves on transit would rebel and this would result too many deaths through suicide and violence. Nevertheless, there were exceptional cases where slaves received fair treatment from their captors as shown by the case of Olaudah Equiano who was capture at age 11 and received good treatment all through. The second p resentation however covers much of regulations and laws that were crafted to address the slave trade at different regions. For instance, in America, slavery was a common feature though existing policies and laws inhibited the rights of citizenship of the slaves there. The Northwest ordinance provided the boundary between states that adopted slaves and those that abolished it. Indentured servants were the commonly used aids instead of slaves within the Free states. There was a noted

Analyzing the Efficiency and Competiveness of Operational Structures & Essay

Analyzing the Efficiency and Competiveness of Operational Structures & Information System in Argos - Essay Example The paper tells that Argos is one of the largest brands that Home Retail Group boasts of. Argos is a unique multi-channel retailer that has made a special place with the consumers because of their varied choice, strong values and convenience. Apart from having over 700 stores across the UK and the Republic of Ireland, they also sell products online, over the telephone, via a tele-partner – Vodafone, a special mobile website and so on. With their 33,000 employees, they are one of the biggest organizations and consumers seem to love them. Their website was the most visited high-street website in UK in 2008. What probably separates Argos from competitors is the commitment they show in their work. They indulge in what they call ‘Responsible Retailing’, better known as Corporate Responsibility to the layman. By taking various measures, they do much more for the economy and the environment than many other organizations in their category. They play a great role in preser ving the environment by dealing with issues such as waste management and energy consumption. They take steps to ensure that the consumer also is being environmentally-friendly. To do this, they ensure that they provide the consumer with information about their sources of timber, and so on. They also play a very important role in supporting the ecology, by giving back to the community that they are a part of. They believe in recycling and ensure that it is a strictly-followed policy in all of their stores. Another important thing that they have done is: taken measures to ensure that people with disabilities can have an easy shopping experience in their stores. (argos.co.uk) From all this we can see how much Argos is a part of the community. They are not only taking from the community, but are doing the best they can to ensure that whatever they take, they return more to the community. By being supportive of the ecology, they are also showing that they are not a corporation that just cares about profit, they care about the planet and the people on it! Operations Management Operations Management is a function that basically is responsible for managing the operating core of an organization. This includes various activities such as ‘creation, production, distribution and delivery of the organization’s goods and services’ (iiml.ac.in).  This means that Operations Management revolves around all the activities that are involved in the daily functioning of an organization. Let us take a retail chain for instance. Here, Operations Management would revolve around the designing, production, distribution and delivery of the products to the different stores, or even directly to the consumers if need be. Operations Management is very essential for any organization, as it gives direction and a structured plan to follow. Without it, we’d probably be lost. (mitsloan.mit.edu). One can only imagine the amount if chaos an organization, especially a ret ail store, could be in, without a properly designed Operation Management system. Take for instance

What will happen to traditional books and why Essay

What will happen to traditional books and why - Essay Example Contrarily, e-books can be saved in CDs and DVDs, and can be read on the internet. One does not have to carry them around all the time, if they are on the internet, and this makes them much more convenient than traditional books. â€Å"E-books are infinitely more portable than paper books when carried with you on a PDA† (Singh 247). I remember myself carrying loads of books in college, and I hated it. Catone (para.3) counter-argues that holding a book in hand can never be matched with viewing it through pixels on a screen. But, I believe that it is just a matter of habit, which can be changed. Traditional books also prove to be much more expensive than e-books, and so, not everyone is able to purchase them. Contrarily, digital forms are very cheap, since people can read them on the internet and their PCs. This makes e-books affordable. Publishers of e-books state that â€Å"they offer e-books to students and bookstores at prices lower than those of traditional textbooks† (Howle 44). I used to spend all my pocket money in buying fairy tales when I was young, the ones which young kids can read online today, in free. Breslin (2) counter-claims that since writers put a lot of effort in writing books, they must be paid fairly. But, I believe that the affordability of books by common people is more serious an issue than writer’s payments. Traditional books use a lot of paper resource, and thus, they do not play role in making the environment green. A lot of paper is used in compiling and publishing books. In contrast, e-books are much resourceful as they do not consume paper. â€Å"The useful functions of an e-book are the replacement of traditional paper, reducing tree cutting, and increasing environmental protection† (Hesselbach and Herrmann 67). I remember my favorite trees were cut down by a company, for paper manufacture. Mims (para.7) counter-argues that â€Å"after just 10 minutes of

Securitization and Swaps Essay Example | Topics and Well Written Essays - 3750 words

Securitization and Swaps - Essay Example Hence the firms in the financial services industry attach more importance to the risk management in their organizations. Risk management in the financial services organizations is necessitated due to various reasons. The most important reason is the potential economic losses to which the firms will be exposed in case they had to meet with some unforeseen risk and it may erode the entire capital of the firm. There are other reasons for undertaking risk management in these firms like the tax implications of the transactions, movement in the capital and stock markets and the persistent fear of the people managing the financial services businesses that their decisions may be proved wrong by the course of business events. In any risk being faced by the financial service firm there is the potential danger of the firm losing profits which in turn would result in the decline of the firm value for some of the stakeholders. Similarly all or any of these reasons for managing the risk may force the management of the firm to make an assessment of the risks involved and take necessary corrective or preventive action to protect the firm against the risks identified. In this article the different kinds of risks to which the financial institutions are exposed and the ways in which the firms can protect them against these risks are discussed. The financial Methods to Protect against Risks The financial institutions adopt several ways of protecting them against the risks associated with their businesses. In general the organizations can find out the best business practices in the industry with respect to risk management and adopt them in their own organizations. Alternatively the organizations can find convenient ways of transferring the risks to other players in the market or the organizations can employ specialized risk management programs at their organizational level to protect them against any financial loss resulting from the risks. The best practices in the industry is the normally adopted risk management procedure by most of the organizations in which the organizations take actions like underwriting and reinsurance of risk so that the risks will be spread among the operators which have the effect of reducing the risks of apparent risks associated with the business. In addition the financial institutions may undertake hedging of their balance sheet items to protect any possible financial risks due to change in interest rates or exchange rates if the assets and liabilities are held in foreign companies. The basic objective behind these measures can be seen from the fact that the organizations do not want to carry the risks which are part of the businesses undertaken by them and also to maintain the level of total risks under controllable levels. There are systemic risks that can be eliminated by a proper assessment of the risks and taking risk protection programs to safeguard the financial interests of the organizations. Similarly in the case of risks that the organizations may face due to the frauds committed by the staff and employees, losses arising out of oversights and mistakes of the employees due to limited control by senior level management - known as operational risks - the organizations can find suitable ways to minimize these risks. In any case it must be noted that the organizations would suffer from possible erosion of profits due to

Leadership in early childhood Essay Example | Topics and Well Written Essays - 2500 words

Leadership in early childhood - Essay Example This study shows how leadership is viewed and the five concepts involved. A leadership situation can be described where the children go out for a morning break to play with their peers and in the process some of them go play inside their class disturbing other and breaking toys and furniture. Among their peers there was one child who was an immigrant and so could not play with the rest as they were avoiding her because of her skin color. The teacher who was responsible in monitoring the children during in the play ground was not present at the moment but was talking to a colleague. As the head teacher passed near the classroom, the children were involved in an activity where they were about to break furniture but the damage was prevented when the head teacher interrupted the situation. The teacher in charge was questioned for not being present and for not monitoring the children. This kind of situation shows how leadership skills had been neglected by the teacher in charge where they are to guide the children on how to play and lead them out of the classr oom. This type of concept can be used in early childhood leadership which includes the pedagogical leadership which ensures that children receive quality care and support. It also enhances a child development thus helping them in growth and better learning. Monitoring children is also necessary as it reveals to the entire community the need for early childhood leadership. This leadership is able to avoid a child from destructive behaviors or in adopting habits such as being discriminating peers. The other aspect is conceptual leadership which enables children to come up with new ideas of innovation which enables them become professionals (Jorde- Bloom, 2004). The major styles used in leadership include the authoritarian or the autocratic, participative or democratic and delegative or free reign. Cater (2001) show as a good leader; it is important to use all these

Herd Behavior in Financial Market Essay Example for Free

Herd Behavior in Financial Market Essay Definition of herding On Friday 14 September 2007, when Northern Rock in the UK opened it branches, many customers wanted to withdraw their savings and à ¯Ã‚ ¿Ã‚ ½1 billion, about 5% of the total bank deposits were withdrawn that day. And on Monday 17 September, a similar situation happened in front of Northern Rock branches in the UK. Even though every customer does not have the same amount of information, they all decided to behave in the same way and some were following the others on the following days without any clear plan. People thought that they were going to lose their bank deposits and that type of bank customers behavior caused liquidity problem and made the situation even worse. However, none of the clients who kept their deposits lost due to the fact the British Government and the Bank of England would guarantee the safety of the deposits. How can we explain that kind of behavior? Originally Herding is a term meaning animal flocking behavior. And according to the definition of Wikipedia Herding is the act of bringing individual animals together into a group (herd), maintaining the group and moving the group from place to place-or any combination of those. Apart from this bank run case, Herd behavior describes how individuals in a group can act together without planned direction. POSSIBLE EXPLICATION AND MECHANISM OF HERD BEHAVIOR Animals Herd Behavior According to evolutionary biologist W. D. Hamiltons theory animals are forming a group to reduce the danger of being hunted by predictors. As a unit, they are moving together to the same direction. Animals are behaving in the same way to minimize the risk on the behalf of self-protection. Maybe this kind of behavior sounds rational if the result is always optimistic but copying your neighbor can be the worst decision sometimes. When something goes wrong and someone leads the group to the wrong direction, the whole group is going to be in danger. Human Herd Behavior However, human herd behavior is much more complicated than animals one and several scholars tried to explain it. Friedrich Nietzsche referred it as herd morality and the herd instinct which explain the phenomena when a lot of people are behaving in the same way at the same time. And according to Thorstein Veblens theory, some people imitate the other people with higher status. Human beings are continuously competing with others in order to survive or surpass others, and they try to move faster in order to take advantage of the others. As the proverbs says the early bird catches the worm, they think the faster they make the decision or do whatever they can, the better it is. However, this does not always lead to success. Those decisions are based on the sources they have and the sources are Sanctions upon deviants dictators put their rivals in the prison (opposition is not allowed) Preference interactions some people are wearing Burberry coats just because the majority is wearing it while others prefer to wear coats with the colors they like Direct communication someone from your reference group or someone with credibility says that s/he likes certain products Observational influence you observe the consequences of others actions Based on such sources, people make decision whether to herd or disperse, but people are herding for different reasons and their behavior is classified into several models. Herding Models Payoff Externalities Models (also called Network Externalities) If more people are using facebook, it will attract more people to use facebook. In this case, people feel like they have to participate in the same situation so that they can have the same benefits. Information Cascade Models When you have a flood of information coming in, it is much more difficult to make a rational decision. Nowadays there are too many sources to consider and you can barely judge if information is true or false. In this kind of situation, people are getting irrational and they tend to make decision based on the decision of the majorities, and this situation is called information cascade which occurs when people observe the actions of others and then make the same choice that the others have made, independently of their own private information signals. They are seen in groups under immediate stress from external forces, such as herd behaviour. A cascade arises naturally when people usually see what others do but not what they know. Because it is usually sensible to do what other people are doing, even this can be against what the individual believes to be true. This behavior is independent from their own private information or opinion. Concept of information cascade is based on observational and social learning. People learn from their environment. Generally, people are oriented to avoid negative consequences of their decisions or behaviors. They wish to have positive results or effects. Thats why their behavior is related to social and observational learning. People subconsciously have the idea of It is more likely that I am wrong than that all those other people are wrong. Therefore, I will do as they do. Examples of Herding Behavior Bank runs: depositors running on banks when they observe other depositors doing so. More specifically, First; investors can observe in long run when others are running on banks. Second, forcing long-term projects to liquidate early possibly leads to shortfall of funds. From the payoff externalities models view, people are withdrawing their deposits because they feel like they are losing their money if they keep their money on the bank account. And from informational cascade models view, some people may think they are not going to lose their money on their bank account but they are following the others because they think they are not wise enough and others are withdrawing their money. In real case, Argentina experienced such a run in the last two days of November 2001, with total deposits in the banking system falling by more than 2 billion (US) dollars, or nearly 3 percent, on the second day of the run alone.1 Such runs were a common occurrence in the United States in the late nineteenth and early twentieth centuries and have also occurred in recent times in several developing countries, including Brazil in 1990 and Ecuador in 1999. Asian crisis of 97-98, herding and speculation infection The Asian crisis of 1997-98 that led to a regional economic fall in East Asia can be traced to overexpansion and under-regulation. The center of the Asian crisis was Thailands careless macroeconomic management that featured a fraudulent financial sector. The Asian expansion of the crisis was a due to the existing global financial integration (and similar export dependencies), current account inequities and attached exchange rates all mixed with the damaging effect of speculation and herding spreading all over the region. Resulting structural reforms and adjustments in Thailand and other damaged Asian nations came from the International Monetary Fund. A major result was a balanced exchange rate regime now prevalent in much of East Asia. Facts: During 1995 a number of experts started to wonder if the countries of Southeast Asia might be vulnerable to a macroeconomic crisis do to the poor administration of its financial procedures and to the volatility of their related economies. The main indicator was the rise of very large current account deficits among several Asian countries. Closer examination also revealed that several of the countries had developed some financial weaknesses: heavy investment in highly speculative real estate ventures, financed by borrowing from badly informed foreign sources or by credit from non regulated domestic financial institutions. Its now known that during 1996 officials from the IMF and World Bank actually began warning the governments of Thailand, Malaysia, and other countries of the existing risks by their financial situation, and asked them to apply corrective policies. However, those governments rejected the warnings. On July 2 1997, after months of declaring that it would not happen, the government of Thailand abandoned its efforts to maintain a fixed exchange rate for its currency, the baht. The currency was quickly depreciated by more than 20 percent so within a few days most neighboring countries fell like Thailand. What forced Thailand to devalue its currency was the massive speculation against the baht, assumptions that over a few months had consumed most of what initially seemed as a large war of foreign exchange. And why were speculators betting against Thailand? Because they expected the baht to be devalued, of course. This kind of circular logic in which investors escape a currency because they expect it to be devalued, and much of the pressure on the currency comes precisely because of this investor shortage of confidence is the defining actor of a currency crisis and is known as Bank Run theory. In the context of a currency crisis, such behavior could mean that a wave of selling, whatever its initial cause, could be magnified through complete imitation and turn, into a rush out of the currency. Bank run in Thai currency devaluation can be viewed in two main behaviors. First; investors run when other investors are running the bank; a magnified opinion of a certain group starts to be spread in some others by just herding or imitation. Second, when banks that were investing in long-term projects were forced to liquidate early (because of the invertors running away), there was a potential lost of funds. Consequently, the last depositors to withdraw were left empty-handed (first-come, first-served limitation). BUBBLES Bubbles are sort of mass errors caused by the nature of herd. Even though there is a convincing evidence of bubbles, people are still overly convinced by their belief that market is efficient and rational. Therefore people are optimistic of their investment and they take part in the bubble. Some people may doubt the situation and find some evidence of bubbles but they still invest their capital in the market because others are doing it which is a sort of informational cascade. However, the bubble collapses and that sort of herding behavior makes the impact of the collapse much significant. The Dot-com Bubble The dot-com bubble (also referred to as the Internet bubble) was a speculative which had its climax on March 10, 2000, with the NASDAQ hitting up to 5132.52 but closing at 5048.62 in the same day. During the dot-com bubble period mostly the developed countries experienced the growth in the Internet sector and related fields. Companies such as Cisco Systems, Dell, Intel, and Microsoft were the dominant player of NASDAQ. And related to the Internet business a group of new Internet-based companies commonly referred to as dot-coms were founded. Just because of the fact that Companies had a name with an e- prefix to their name and a .com the stock price was going up. Investors were overly confident of their future profits due to the advancement of technology and individual speculation while they overlooked traditional stock market value until the bubble was collapsed. Conclusion As we can see massive herding behavior turned out to be a cause of crisis at the end, and herd behavior is seen as something very negative to the market. As we have seen bank runs, bubbles, and several forms of crises. However, we cannot prevent from herding because it is a sort of instinct and it is closely related to psychological factors. Partially, individuals can make profit of their herding behavior as they are following famous investors such as Warren Buffet but the fact is that no investor can really avoid bubbles and forecast the coming crises. What we have to remember is the financial market is a complex of rational and irrational behavior and we can barely categorize them before the disaster happens. We have to be prepared of the consequence the herd behavior and be rational when the irrationality happens. Works Cited BIKHCHANDANI, S., 1998, Learning from the behavior of others: conformity, fads, and informational cascades BIKHCHANDANI, S., D. HIRSHLEIFER and I. WELCH, 2001. Informational Cascades and Rational Herding: An Annotated Devenow, Andrea and Ivo Welch, 1996, Rational Herding in Financial Economics, European Economic Review 40, 603-615 Ennis, Huberto M. and Todd Keister, 2009, Bank Runs and Institutions: The Perils of Intervention. Hirshleifer, David and Teoh, Siew Hong, 2011, Herd Behavior and Cascading in Capital Markets: A Review and Synthesis, MPRA Paper No. 5186

Speech Act Theory

Speech Act Theory Introduction Speech act theory is a technical term in linguistics and the philosophy of language. The contemporary use of the term goes back to J. L. Austins doctrine of locutionary, illocutionary, and perlocutionary acts. It is developed by the great philosopher J.L Austin in the 1930s and set forth in a series of lectures, which he gave at Harvard in1955. These were subsequently developed in 1962 as How to Do Things With Words. He founded the modern study of speech acts. The approach has been greatly developed since by the philosopher J.R.Searle (Austins pupil). The central insight of the speech act theory which is attributed to Austin, Searle and other philosophers is that speech is action and language is used to perform things not only to describe a state of affairs. Moreover, Austin pointed out that many utterances do not communicate information, but are equivalent to actions. When someone says, I apologize. , I promise , or I name this ship. the utterance immediately conveys a new psychological or social reality. Many scholars identify speech acts with illocutionary acts, rather than locutionary or perlocutionary acts. As with the notion of illocutionary acts, there are different opinions on the nature of speech acts. The extension of speech acts is commonly taken to include such acts as promising, ordering, greeting, warning, inviting someone and congratulating. Definition of speech act with elaboration A speech act is an act that a speaker performs when making an utterance. To Jennifer Spenader, speech act theory is: A theory where the effect of an utterance is analyzed in relationship  to the speaker and listeners behaviour. Speech act theory can also help us examine utterances from  the perspective of their function, rather than their form. Austin pointed out that when people use language, they are performing a kind of action. He called these actions speech acts. Traditionally, philosophers have distinguished between actions and speaking on the basis that speaking about something is quite dissimilar from doing it. Austin challenged this by demonstrating that utterances can be regarded as events in a similar way to other actions. The below lists are samples of speech acts which Austin reckoned that this sort of list could be extended further. Statement I live in Edinburg for five years Order Pay this bill immediately Question Where are you from? Prohibition No right turn Greeting Hello Invitation Help yourself Felicitation Happy new year (grudging) apology I hereby apologize as required by the magistrate (Griffiths, 2006:148) We can say that each utterance on the right is based on single sentence and the sentence is the level of language. Here, the language is used to accomplish actions as Austin stated. The above sentences are not used just to say things, that is to say describe states of affairs, but rather actively to do things. Further, one cannot assess such utterances as true or false. Moreover, most speech acts are not so official but they rely on the speaker using an utterance to signal his/her intension to achieve some action and the hearer inferring that action from the utterance. One can say that speech act cannot only be done in speaking but also in writing. The clue is the example number (7) in which it would be equally appropriate printed in a card or spoken. As a matter of fact, there are purposes behind any utterance. Consider these examples A-Somebody has broken my leg. In the above sentence, the following purpose appears The first one is to describe things which are not the basic purpose and the second purpose is to complain which is the basic purpose as it doesnt describe things. B-I love you. The purpose here is to please or to assure somebody. C-Watch out, the gun is loaded. The purpose is to warn someone. D-She is a fool. The purpose is to insult or to ease. Thus, the gist idea of speech act theory is to do acts (things) and not simply to describe because description is not the important function of language. Dichotomies (constative and performative) Many writers, in their books, define the dichotomy constative (descriptive) and performative clearly. Riemer in his books Introducing Semantics that an utterance is constative if it describes or states facts about a situation. Whereas performative is one which does not describe or state any facts, but which itself constitutes the performing of an action. The following pair of examples serve the above point A-I promise to visit tomorrow. B-She promised to visit tomorrow. In the first example, you promise to visit but if you dont visit it, the person you said it can complain that you broke your promise. Sentences which perform actions are known as performatives while other sentences are called constatives. Although constatives perform actions. The example (b) serves this point which performs the action of reporting her promise. Thus, the difference between the two (constatives and performatives) may not be as significant as the idea that all sentences can be used to perform actions of various sorts. Broadly speaking, all utterances are performative in the sense of constituting a form of action rather than a matter of saying something about the world. Ultimately, a single utterance can have both aspects constatives and performative elements; they are all sayings and doings simultaneously. Typical examples of performative verbs are ask, beg, beseech, command, congratulate, deny, deplore, declare, implore and warn. Only certain forms of the verb count as performing the speech act, mainly first person simple present active and third person present passive. Furthermore, a performative verb in a performative use can typically be accompanied by hereby. See the following A-I hereby declare the bridge open. B-I hereby command you to surrender. While in the below instances using hereby is not possible with non-performative verbs speaking. A-I hereby persuade you to accompany me. B-I hereby tell the truth. As we said earlier, the performative use of performative verbs is extremely restricted grammatically. They must be first person simple present active and third person present passive. Consider, first, active uses I hereby promise to pay you next week. Not: I herby promised you pay him the following week. Similar contrasts are possible with passive uses Passengers are hereby requested not to smoke. Not: Passengers were hereby requested not to smoke. You are hereby warned to leave immediately. Not: They will be hereby warned to leave immediately. Characteristics of Performative verbs The sense of the verb is always present. The subject is always first person (singular,plural) Since performative verbs are not descriptions but actions they are not subject to truth-value. In performative sentences the illocutionary act is explicit. Performative verbs like (affirm, allege, assert, forecast, predict, announce, insist, order, state, name, declare, bet, agree). For testing whether a verb is performative we can insert the word (hereby). The book entitled semantics and pragmatics by Dr. Misbah Mahmood gives extra examples about the distinguishing between performatives and constatives. Performatives Constatives I promise I will be there. I will be there. I warn you, the gun is loaded. The gun is loaded. I thank you. I am very grateful. I order you to read. You must read. I request you to send me the book. Send me the book. I apologize. I am sorry. Are Performatives truth-evaluable? Verschueren, in his book, entitled Understanding Pragmatics states that Austin drew a distinction between constative and performative utterances. In this dichotomy, constatives are utterances in which something is said which can be evaluated along a dimension of truth. Performatives, on the other hand, are utterances in which something is done which cannot be said to be true or false but which can be evaluated along a dimension of felicity. According to Austins account, it is an essential characteristic of performative utterances that they are neither true nor false, that is, not truth-evaluable, instead when something is wrong with them then they are felicitous (happy) or infelicitous (unhappy). The uttering of a performative is the doing of a certain kind of action , the performance would not normally be described as just saying or describing something. For example, when Tom says I promise to do the dishes in an appropriate context he does not just describe what he is doing; rather, in making the utterance he performs the promise; since promising is an illocutionary act, the utterance is thus a performative utterance. If Tom utters the sentence without the intention to keep the promise, the sentence is not false: it is rather unhappy, or infelicitous. In the absence of any such flaw, on the other hand, the utterance is to be assessed as happy or felicitous, rather than as true. What Leech states is that Constative utterances could be evaluated in traditional terms of truth and falsehood, performatives were neither true nor false: instead they were to be regarded as felicitous or non felicitous. (Leech,1983:176) By felicity and infelicity, as Yule points out, they can only be as appropriate that is the performance of a speech act to be recognized as intended or inappropriate that is if the speaker is not a specific person in a special context. Briefly, felicity and infelicity are not subject to truth-value. A sentence like I pronounce you man and wife, the performance, here, will be infelicitous on condition that the speaker is not properly qualified. Regarding felicity condition (happiness condition), it can be grouped under three headings: preparatory conditions, sincerity conditions, and essential conditions. Types of Felicity Conditions There are normally conditions which must be fulfilled before a speech act can be said to have been properly performed. These are usually called felicity conditions or happiness conditions. 1-Preparatory Conditions The preparatory conditions for a promise and warning are unlike. When I promise to do something, two conditions appear: first, the event will not occur by itself, and second, the event will have a beneficial effect. But when I utter a warning, it is not clear that the hearer knows the event will happen whilst the speaker does think the event will occur, and the event will not have a beneficial effect. 2-Sincerity Conditions They require the speaker to be sincere. When one promises to do something must genuinely intend to do it; someone congratulating somebody else must feel pleasure at that persons good luck. 3-Essential Conditions By the act of uttering a promise, an obligation created to carry out the action as promised. In other words, the utterance changes my state from non-obligation to obligation. When speaker A warns speaker B, speaker A changes his state from non-informing of a bad future event to informing. Aspects of Speech Acts Austin found great difficulty in drawing a completely clear distinction between performatives and constatives; he came to the conclusion that to state something is to perform an illocutionary act, which renders all constatives as performatives; Austin proposed that in uttering a sentence speaker is involved in three different acts. In other words, he isolates three basic senses in which in saying something one is doing something, and thus, three kinds of acts that are simultaneously performed. 1-Locutionary act. Lots of writers define locutionary act. One of them is Levinson in the book Pragmatics. Locutionary act is the utterance of a sentence with determinate sense and reference. (Levinson,1983:236) Another definition is by Finch. It refers simply to the act of saying something that makes sense in the language; in other words, that follows the grammatical rules of language. (Finch,2000:180) The last definition said by Cruse, in his book, Meaning in Language in which Austin explained as follows: the utterance of certain noises.. certain words in a certain construction, and the utterance of them with a certain sense and a certain reference. (Cruse,2000:331) From the above definition, we conclude that locutionary act is related to the inherent meaning of the lexical item and it is the province of semantics. It is the act of expressing the basic, literal meanings of the words chosen. Besides, performing the act of saying something that makes sense in the language; in other words, that follows the grammatical rules of language. For more elaboration, see the below instances For example, Tom is outside the room. In this sentence both words (Tom and the room) have meaning and we should know what the words (Tom and the room) refer to. In uttering the words, You will get your hands blown off, a speaker performs the locutionary act of stating that the hearer will get his hands blown off. Suppose speaker A says to hearer B There is a bear sneaking up behind you! (Fasold,2006:162) Speaker A utters the word there and refers to the addressee with the word you. 2-Illocutionary act Cruse, in his book, entitled A Glossry of Semantics and Pragmatics defined that illocutionary act is an act performed by a speaker in saying something (with an appropriate intention and in an appropriate context), rather than by virtue of having produced a particular effect by saying something (Cruse,2006:167) According to Finch illocutionary act is one which is performed through the medium of language: stating, warning, wishing, promising and so on. Context can be seen in the definition and this leads to remind us the province of pragmatics. If we come to talk about intention, which is also found in defining illocution, we can regard that the intention is to inform, complain, thank, apologize, threaten, etc. Consider the below instances Father: I will turn out your light. Here, the intention of father is to threaten her son. It is duty of pragmatics since the idea of threatening doesnt relate to meaning but the context. In the sentence like, There is a lion behind you, suppose that A is a speaker and B is a hearer. At the illocutionary level, A asserts a fact (that there is a lion behind B) and warns B that he/she is in danger. The speaker has the illocutionary force of warning. In short, context in which the sentence is uttered is crucial in interpreting the illocutionary force of a speech act. If someone says: I order you to leave now, the intention is ordering by virtue of having uttered the words, whether or not the addressee acts in the desired way. 3-Prelocutionary act Concerning prelocutionary Levinson states the bringing about of effects on the audience by means of uttering the sentence, such effects being special to the circumstances of utterance. While Fasold points that prelocutionary is an action which goes beyond communication such as annoying, frightening, or tricking. The contrasts between illocutionary and prelocutionary lies by lists of verbs Illocutionary: report, request, suggest, announce, predict, order, propose, reprimand, promise, thank, express, congratulate, admit, ask Prelocutionary: persuade, deceive, encourage, irritate, frighten, amuse, inspire, distract, impress, encourage embarrass. Briefly, prelocutionary is the act of producing an effect in the hearer by means of the utterance. It is outside the province of semantics and pragmatics, because it involves many other aspects of the situations. It is not always intended by speaker, is not under his control, and is not evident until after the utterance is made. The speaker tries to carry out a prelocutionary act for example to shock, to amuse, and to annoy somebody. The following examples serve the above point A-You will get your hands blown off. The above sentence might be to prevent the hearer from playing with a lighter and a stick of dynamite, to frighten the hearer. B-John is inside the hall. The prelocutionary act for the above sentence is perhaps to disappoint, shock or annoy. To explicate more about the three types of speech acts, we take instances to apply the three acts. A-There is a wasp in your left ear. The first act: we know speaker and listener. (reference) The second act: the intention is the act of warning. The third act: The hearer is panic (afraid). The hearer may scream and scratch his ears. Panic is not intended but the speaker tries to make the hearer panic. B-Someone says Good night late at night in forest. The first act: speaker and listener. (reference) The second act: leave-taking, there is greeting purpose behind saying good bye. The third act: to horrify or to frighten. C-Father: I will turn out your light. The first act: I refers to father, your refers to sons light, having meaning and reference. The second act: to intend the act of threatening The third act: to frighten the son to sleep. The father tries to frighten his son. It is not under the control of the speaker and it may not be intended of the speaker that he wants to frighten his son. Types of Illocutionary Acts Implicit and explicit illocutionary force Implicit performatives are those which dont have performative verbs. For example when one says I will turn off your light, it is implicit since there is no performative verb and besides, the force doesnt relate to the meaning of the words. Another example Be aware of the dog means that I warn you to beware of the dog. Whereas explicit performatives are those which have performative verbs, that is, a verb which names the action being performed. For example when I say I warn you that.., it is explicit as I am not describing or stating the existence of any independent fact; I am, instead performing an act (act of warning). Speech Act Classifications Searle (1976) has set up the following classification of illocutionary speech acts that one can perform in speaking. David Crystal in his book, The Cambridge Encyclopedia of Language, sheds light on five basic types. 1-Representatives: the speaker is committed, in varying degrees, to the truth of proposition. For instance, affirm, believe, conclude, deny, and report. The following examples illustrate the point. A-The earth is flat. B-Chomsky didnt write about peanuts. C-It was a warm sunny day. In all the above instances, the speaker represents the world as he/she believes it is. 2-Directives: the speaker tries to get the hearer to do something. For example request, challenge, insist, command, advise, and suggest. A-Could you open the door, please? B-I suggest you take a taxi. C-Dont go too far. The above-mentioned examples illustrate that the speaker tries to make the world fit the words through the hearer. 3-Commissives: the speaker is committed, in varying degrees, to a certain course of action. For example, promise, oath, refuse, pledge, threat, guarantee, vow, and swear. The instances, which shown below, point out that the speaker undertakes to make the world adapt the words through the speaker. A-I will be back. B-We will not do that. 4-Expressives: the speaker expresses an attitude about a state of affairs. For instance, congratulate, excuse, thanking, deplore, apologize, welcome, and thank. A-Congratulations! B-I am really sorry. The sentences indicate the speaker makes words fit the world of feeling. 5-Declaratives: the speaker alters the external status or condition of an object or situation solely by making the utterance. For example, resign, sack, appoint, name, christen, sentence (in court), bid (at auction), declaring war, pronouncing someone husband and wife. The below instances clarifies more about what we said. A-Priest: I now pronounce you husband and wife. B-Referee: You are out. One can say that the speaker changes the world via words. Direct and Indirect Speech Acts It is obvious that we have three structural forms (declarative, interrogative, imperative) and the three general communicative functions (statement, question, command/order) respectively. The table below clarifies more about what we pointed out. Whenever there is a direct relationship between a structure and a function, we have a direct speech act. Furthermore, there is a match between sentence meaning and speaker meaning, that is to say, the form of the utterance coincides with what a speaker is intending to convey. But in case of having indirect relationship between the two which mentioned before we have indirect speech act. Therefore, when a declarative used to make a statement it is functioning as a direct speech act, but when it used to make a request it is functioning as an indirect speech act. Consider the following instances A-It is hot. B-I hereby tell you about weather. C-I hereby request of you that you open the door. It is clear that the sentence A is a declarative, the sentence B used as statement so, it is direct speech act but the last sentence C used as command therefore; it is indirect speech act. A speech act can be indirect where one illocutionary act is performed by another. Well-known examples are requests which are superficially question. We expect actions rather than answer. A-Can you pass the sault? B-Would you mind if I opened the door? So, the above mentioned sentences superficially are interrogative and they are direct speech act but if we look at them deeply they become request and in this case they are indirect speech act. It is quite true to say that different structures used to attain the same function. The examples below show that the speaker wants the addressee not to stand in front of the TV. A-Move out of the way! B-Do you have to stand in front of the TV? C-You are standing in front of the TV. D-Youd make a better door than a window. The basic function of all the utterances is a command. The first instance is direct speech act because its structure is imperative. Whilst the rest of the sentences are indirect speech acts because the interrogative structure is not used only as question and also the declarative structures are not used only as statement. Conclusion Needless to say, that conclusion shows the product of any turn paper, research and etc. In this turn paper, a formal account of speech acts provided. Throughout reading it, I infer that we can extend what a speaker means by his/her words. Thus, utterances are not uniquely used to describe states of affairs but rather they convey speakers intention to the addressee. Speech act comprises the notion of speaker meaning since through it the intentions of the speaker can be felt or found it. Also, I conclude that speech act is one of the helpful factors for decoding those words that uttered by a speaker. It is obvious that there is communication in speech act between speaker and hearer and this communication conveys not only linguistic meanings but also expressing attitudes, and understanding is a matter of recognizing the attitudes being expressed. Another conclusion which is not to be forgotten is that if a sentence is interrogative, the same sentence could be regarded as request if we look at it deeply. The sentence Could you sign the papers, please? is our evidence. So, this case only occurred in speech act, one is direct and the other is indirect and the sentence has two functions question and request.

The legal capacity

The legal capacity CAPACITY TO CONTRACT Legal capacity is defined as the power provided under law to a natural person or juridical person to enter into binding contracts, and to sue and be sued in its own name. In order to be bound by a contract, a person must have the legal ability to form a contract in the first place. This legal ability is called capacity to contract. Both parties in a contract must have the necessary mental capacity to understand what they are doing. Under common law anyone has the right to enter into a contract, except for minors, people with mental disability and also people who are under the influence of drugs or alcohol. For a person to avoid a contract on the ground of their incapacity, they must also show that they lacked capacity to enter into a contract and that the other party knew or ought to have known their incapacity. A person who is unable, due to age or mental impairment, to understand what she is doing when she signs a contract may lack capacity to contract. For example, a person under legal guardianship due to a mental defect completely lacks the capacity to contract. Any contract signed by that person is void. In other situations, a person may not completely lack the capacity to contract. The contract would then be voidable at the option of the party claiming incapacity, if he or she is able to prove the incapacity. INFANCY The term infant differ from the term minor. In most cases, legal contracts are voidable if one of the contracting party is a minor. The law states that an infant is not bound by the contracts he or she enters into except for the purchase of necessaries and for useful contracts of service, that is they would have to pay for the necessary goods and services that they consume. However, it is stated in the British Columbia Infants Act (RSBC 1996 c.223) that all contracts cannot be implemented against an infant, regardless of whether it includes necessities and beneficial contracts of service. If there is a contract between an adult and an infant, adults are bound but infants can break away from the contract at their option, which means that the contract is voidable. The infants may endorse a contract once they have reached a maturity age. In the case of executed contract, the infant cannot avoid debt if they have obtained advantages under the contract, except if what they obtained has no value. Any one of the party can apply to the court upon the termination of contract. MINORS A minor generally cannot form an enforceable contract. A contract entered into by a minor may be canceled by the minor or by his or her guardian. After reaching the age of majority (18 in most states), a person still has a reasonable period of time to cancel a contract entered into as a minor. If, however, he or she does not cancel the contract within a reasonable period of time, the contract will be considered ratified, making it binding and enforceable. If you intend to enter into a contract with a person who is under the age of 18 years it is essential that you give that person the opportunity to consult with a suitable adult about their rights and responsibilities before concluding the deal. This will make it less likely for a dispute to arise about their capacity.A young person is generally bound to a contract for necessaries which includes food, medicine and clothing. Contracts for necessaries can also include contracts for education or employment. However, some other contract s will not be binding on a young person, including contracts for goods or services which are not necessaries and credit contracts. Based on the case study, John has the age capacity to enter into a contract as he is an adult. He was walking alone around SOGO Shopping Complex to do some window shopping. His age has got to be above 18 years old. This is because he is working, and this is illustrated in the sentence as I was very busy with my work, I only managed to go to the shop a week later. Case example: Nash v. Inman [1908] 2 KB 1 The defendant, a minor, purchased a number of waistcoats from the plaintiff. The issue was whether they were necessaries. The court held that the waistcoats were not necessaries as the minor had an adequate supply at the time of sale. It was held that two conditions had to be met before goods or services would be regarded as necessaries. First, the goods or services had to be suitable to the condition in life of the minor (e.g. a minor accustomed to living a life of luxury will have a different condition in life from a minor living in impoverished circumstances). Whether this was the case would depend on the type of lifestyle the minor in question was accustomed to leading. Second, the goods or services had to be suitable to the minors actual requirements at the time of supply. If the minor had an adequate supply of the relevant goods from another source, this requirement would not be satisfied. MENTAL DISABILITY In 1954 the High Court dealt with the issue of a persons soundness of mind when involved in contractual dealings. The court held that it requires, in relation to each particular matter or piece of business transacted, that each party shall have such soundness of mind as to be capable of understanding the general nature of what he is doing by his participation (Gibbons v. Wright (1954) 91 CLR 423).It follows that if a person is so drunk, mentally ill or senile that they have no idea that they are involving themselves in a contract, they will lack the necessary contractual capacity. If however, their mind is affected by their problem, but they are nevertheless aware that they are involving themselves in a contract, the capacity to contract will probably exist unless the other party deliberately takes advantage of their weakness. (This is linked to the way in which the common law and equity deal with unconscionable conduct where a person takes advantage of a person with a disability). Contracts with intellectually impaired persons is void. Similarly, contracts with involuntary mental patients is void. Some types of mental disability may be sufficient to allow a person to repudiate a contract in certain circumstances. Generally, the law is concerned with the lack of capacity arising from mental disability. For example, people who have schizophrenia may have delusions, but if they can manage their own daily and business affairs and look after their personal finances, they may have the capacity to enter into contracts. The mentally disabled persons that the law protects are those who are unable to manage their own affairs or are unable to appreciate the nature and consequences of their actions. Provincial legislation provides that a person can be declared to be unable to manage his or her affairs. If there has been such a judicial finding, contracts made after the judicial finding are void on the grounds that there is a lack of capacity to consent to the provisions of a contract. Contracts made prior to the finding may be voidable. However, if a person lacks capacity because he or she is unable to handle his or her affairs, but there has been no judicial finding, the contracts made are voidable at the option of the person who is mentally disabled. If the contracts are not repudiated, they are presumed to be enforceable. Case example: York Glass Co. Ltd v. Jubb [1925] All ER Rep 285 Jubb contracted to purchase the plaintiffs company business. On the date of contracting, he was technically insane and shortly thereafter was placed in a lunatic asylum. The receiver of his estate, who was appointed under a lunacy statute, repudiated the contract. The plaintiff company sued for damages, alleging the repudiation was wrongful. The court held that a contract entered by someone of unsound mind is valid unless the impaired person can show that the other party was aware, at the time of contracting, that the impaired person was so insane that he was incapable of understanding what he was doing. In this case, there was no evidence to show that the plaintiff company knew or suspected that Jubb had been insane at the point of contracting. The contract was valid and Jubbs estate had to pay damages for not performing the contract. UNDER THE INFLUENCE OF DRUGS OR ALCOHOL If a person signs a contract while drunk or under the influence of drugs, can that contract be enforced? Courts are usually not very sympathetic to people who claim they were intoxicated when they signed a contract. Generally a court will only allow the contract to be avoided if the other party to the contract knew about the intoxication and took advantage of the intoxicated person, or if the person was somehow involuntarily intoxicated (e.g. someone spiked the punch). The law will intervene in some circumstances where someone who is intoxicated enters into an agreement. Intoxication alone is not sufficient, but it can be a defence to enforcement by the sober party, and the intoxicated party may void the contract on the basis of his or her own intoxication in the following circumstances, that is firstly, the intoxicated party, because of the intoxication, did not know what he or she was doing. Secondly, the sober party was aware of the intoxicated state of the other party. Thirdly, u pon becoming sober, the intoxicated party moved promptly to repudiate the contract. The basis for this approach is not that one party is drunk but that the other party might defraud the drunkard. Thus, even where the sober party is not aware of the intoxicated state of the other party, if there is evidence of intoxication so that it may be presumed, the unfairness or one-sidedness of a contract might result in its being voided. This view moves the law toward a position that an unconscionable agreement permits the court to presume that the sober party had knowledge of the intoxication of the other party once there is evidence of intoxication. Based on the case study, when John bargained for the 6 seater dining set, he was not under the influence of alcohol or drugs. He was well aware of the bargain and he realised that he has entered into an agreement with Comfortable Furniture Sdn Bhd. Case example: Matthews v. Baxter (1873) LR 8 Exch 132 Baxter, while drunk, agreed at an auction to purchase a property. Once sobriety returned he decided that he wished to affirm the contract that had been made by him while drunk. Sometime later he had a change of mind and he sought to rescind the contract, arguing that he lacked capacity to enter the contract by reason of intoxication. The court held that because Baxter had confirmed the contract it was no longer open to him to avoid the contract on the grounds of intoxication. This was despite the fact that he had made out the necessary element of this defence. BANKRUPTCY Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. These individuals would not be able to pay their debts and lose their status as creditworthy. Most states differ on the means whereby their outstanding liabilities can be treated as discharged and on the precise extent of the limits that are placed on their capacities during this time. However, they are returned to full capacity after discharge. In the United States, some states have spendthrift laws where an irresponsible spender is claimed to lack the capacity to enter into contracts. Based on the case study, Comfortable Furniture Sdn Bhd has the business capacity to operate its business. This is because the company is not facing bankruptcy. Therefore, the company has the capacity to enter into a contract or agreement with John. SIGNIFICANCE WHY CONTRACTING PARTIES REQUIRE LEGAL CAPACITY TO ENTER INTO LEGALLY BINDING CONTRACT Not everyone is legally entitled to enter into contracts. Some persons, by their status, are presumed not to have the ability to enter into contracts or have limited rights to contract. Prevention of fraud provides for formality requirements and the protection of persons who lack full capacity to enter into contracts. If there is no capacity, the incapacity party would become vulnerable and weak. If one party lacks the intellectual capacity to protect himself or herself, then the other party may act dishonestly during the bargaining process or takes advantage of a position of trust, or if the other party has expert knowledge of the subject matter of the contract that the weaker party cannot have and takes unfair advantage of that knowledge. Besides that, without capacity, the contract would be void. A contract is void when it involves minors. This type of contract will have no effect as it is not recognised by the court and parliament. Therefore, if there is no capacity, the contract would not be enforceable. The purpose here is to protect the weaker party from the stronger and more able party. This class of persons who lack or have limited capacity to contract include minor and persons under mental disability. The general rule is that minors may not enter into contracts. The reason for this rule is that minors are presumed to be naive, inexperienced, and easily taken advantage of. So, some protection is required to avoid them from being cheated. The law also interferes in circumstances where someone who is intoxicated enters into an agreement. The basis for this approach is not that one party is drunk but that the other party might defraud the drunkard. The contract may not be legal if there is no capacity. If there is no capacity, people with mental disability, minors, and also those who are under the influence of alcohol or drugs would be allowed to enter into contracts. The people who have mental disability and under the influence of drugs or alcohol do not have the mental capacity to enter into contracts. They are unable to think well and they are not able to make a wise decision. So, if there is no capacity, the contract will lose its validity. Case example: Mercantile Union Guarantee Corporation v Ball (1937) An infant haulage contractor who took a lorry on hire-purchase was held not liable for arrears of installments. Case example: Cowern v Nield (1912) It was held that a minor who was a hay and straw merchant was not liable to repay the price of the goods which he failed to deliver. Case example: Doyle v White City Stadium (1935) An infant boxer was held bound by a clause in his contract which provided for forfeiture of his prize money (as happened) he was disqualified. The contract as a whole was similar to apprenticeship. Case example: Valentini v Canali (1889) A minor leased a house and agreed to buy some furniture, paying part of the price. After several months the minor left, and avoided the contract as he was entitled to do. He could not recover the payments which he made for the furniture, however, because he had received some benefit from the contract. Case example: Leslie Ltd v Sheill A minor who lied about his age to obtain a loan could only be forced to return the cash he borrowed.Sheill failed to repay two cash loans he had obtained by falsely claiming to be an adult. The contract was not enforceable (not for necessaries) so the lender asked for restitution of the money on other grounds, including that Sheill had committed the tort of deceit (fraudulent misrepresentation). The English Court of the Kings Bench held that Sheill could not be sued for deceit because that would make a minor indirectly liable for an unenforceable contract. The court could only order restitution if the lender could prove Sheill still possessed the actual notes and coins he had borrowed. Case example: Roberts v Gray (1919) Roberts agreed to take Gray, a minor, on a billiard tour to instruct him in the profession of billiard player. Gray repudiated the contract. The court held that Roberts could recover damages despite the fact that the contract was executory. Case example: Scarborough v Sturzaker A bicycle was a necessary because the minor had only one and used it to travel to work. Sturzaker, a minor, cycled 19 kilometres to work each day. He traded in his old bicycle to Scarborough and made a part payment on a new one. Sturzaker repudiated the contract and refused topay the outstanding amount. The Tasmanian Court held that the bike was a necessary. Therefore, the contract was enforceable and Sturzaker had to pay the money owing. Case example: Hart v OConnor The Privy Council said in Hart v. OConnor(1985) that an insane person who appears sane can rely on the independent and separate ground of unconscionability which relieves abnormal mental weaknesses even short of incapacity. Undue influence may also apply. Case example: Peters v Fleming (1840) Held an expensive gold watch chain was a necessary for a rich young man. Point of law being that it depends on the status of the minor as to whether a luxurious item is deemed a necessary. Case example: Chaplin v Leslie Frewin (1966) Contract was made to write the autobiography of Charlie Chaplin held as binding as it allowed a minor to start to earn a living as an author.However if on the whole a contract is unreasonable, oppressive and not beneficial then it will not be binding. Case example: De Francesco v Barnum (1890) A girl of fourteen was apprenticed to D for seven years in order to learn to dance. D was not obliged to maintain her, nor did he have to pay her unless he found engagements for her. Even when engagements were found, the rate of pay was very low. She could not obtain engagements for herself, nor was she allowed to marry, during the seven years. It was held that the contract was not binding upon the girl, as it was unreasonable, oppressive and not beneficial to her. Point of law is as above. Case example: Gore v Gibson Advanced the view that a contract for necessaries supplied to a drunk could not be maintained if upon sobriety the contract was repudiated. Case example: Hawkins v Bone The action for breach of contract was brought by the vendor of land which was knocked down to the defendant at an action. The defendant purchaser pleaded in defence of his drunkenness but did not allege that the vendor or auctioneer knew of this condition. Pollock C.B., in directing the jury said the plaintiff was entitled to the verdict: unless the defendant was in the state he describes himself to have been, that is wholly incapable of any reflective or deliberate act, so that, in fact, he was utterly unconscious of the nature of the acts he did, for example, having signed the contract and paid his money. Case example: McLaughlin v Daily Telegraph Ltd Holds that a power of attorney executed by a person while insane is void even in respect of actions that take place when the grantor has recovered his sanity; the actions that take place under the guise of the power of attorney are of no effect. Likewise, it is of no consequence that third parties act on the foot of the deed. If, however, the power of attorney enables the lunatic and his dependants to benefit from obtaining a supply of necessaries, an account may be ordered in relation thereto even though the power of attorney itself is void. For the deed to be void, however, it must be shown that the signature is a mere mechanical act and the mind of the signor must not accompany the act. Case example: Cf. Imperial Loan Co. v. Stone [1892] the rule had in modern times been relaxed, and unsoundness of mind would now be a good defence to an action upon a contract, if it could be shown that the defendant was not of the capacity to contract and the plaintiff knew it. Case example: Seaver v. Phelps which was trover for a promissory note, pledged by the plaintiff while insane, to the defendant, the Court were, on behalf of the latter, requested to charge, that although the plaintiff might have been insane at the time of making the contract, yet that if the defendant were not apprised of that fact, or had no reason, from the conduct of the plaintiff or from any other source 380 was held entitled to a decree of foreclosure. It seems equally clear that he is not liable when the other to suspect it, and did not overreach or impose upon him, or practice any fraud or unfairness, the contract could not be annulled. Case example: Beals v. See. it was held that the administrator of a lunatic could not, in the absence of fraud or knowledge of his state of mind, or such conduct on the part of the lunatic from which his disease might fairly be inferred or suspected, recover back the price of merchandise sold to him, even though it was unsuited to the object for which it was purchased, and above market price.