Analysis of Contract Law and Tort Liability in UK Business Context

This report provides an overview of key aspects of business law, focusing on contract law and tort liability within the UK legal framework. It begins by outlining the essential elements of a valid contract, including offer and acceptance, intention to create legal relations, free consent, and the capacity of parties to enter into a contract. The report then explores the implications of various types of contracts, such as unilateral and bilateral, written and verbal, distant and face-to-face, and valid, void, and voidable contracts. Furthermore, it describes various terms of contract including expressed terms, implied terms, conditions and exclusion clauses. The report then applies the law on essential elements to a given scenario, analyzing whether a valid contract was formed. Finally, the report touches upon the defence of tort liability and vicarious liability of the employer, providing a comprehensive understanding of the legal obligations of business enterprises.

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ASPECTS OF LAW
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INTRODUCTION
Business law is the very important aspect in order to survive business activities and function.
UK government has developed some law and legal rules related to employment, business, customer,
employees which considered by every business organisation. It can be said that law is a system of
rules and regulations that are enforced through social institutions. Law assists in raise important and
complex issues concerning equality, fairness and justice. In the context of business, legal rules and
regulation assist in protecting business as well as employees. In this project report,essential
elements of valid contract has been discussed (Blum, 2007). Furthermore, implication of various
contract on the business enterprise also studied in this report. The major objective of this report is to
understand the legal obligation of business enterprise. In the last part of this report provide the
knowledge about defence of tort liability so that neglectful action in the business can be overcome.
Apart from this, vicarious liability of the employer has also studied in this project report.
TASK 1
1.1 Various essential elements of valid contract
Business law provide the protection to business enterprise against the illegal activities. In
this manner, contract and agreement play a very important role through which two or more person
can engage in the legal considerations. According to the legal aspect, all contracts is an agreement
but all agreements are not contract. As per the UK government, a valid contract must includes all
essential elements. A contract which is enforceable by law is known as a valid contract. Various
elements of valid contract are as follows- Offer and acceptance- According to the legal aspect, offer and acceptance are the elements
which required for the formation of a legally binding contract. If two or more persons
engage into the contract then there must be some kind of acceptance and offer. A proper
offer is a proposal by one party to another party. That proposal must includes some terms
and condition related to the contract (Cross and Miller, 2011). The person who offer or
proposed some one is known as offerer. On the other hand the person who accept that
proposal is known as offeree. As per the business law, when one person offer to another for
create a legal contract then there must requires a proper acceptance. Acceptance must be oral
and written and that must includes terms and condition which made by offerer. The offer
must be accepted unconditional because if any additional requirement includes in the
contract by offeree then contract being made by counter offer. Intension to create a legal contract- According to the UK government, when two or more
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parties are involved the valid contract then there must be include intension to create a legal
relationship. At the time of developing valid contract, then there must not any kind of
outside pressure and force. Both parties should be free to develop a valid contract. It mean
no outside pressure of any person through which they are bound to enter into the contract. Free consent- According to the UK government, when valid contract create among two or
more than two parties then there must be free consent of both parties (Cross and Miller,
2011). It means there must not any kind of misrepresentation, undue influence, fraud,
coercion. If in the contract, there has nor free consent then no valid contract comes into
existence (Giliker, 2010).
 Capacity to enter into the contract- This is another important element of valid contract
through which parties must have capability and capacity to enter into the contract. It means
both parties should have ability to implies the legal rights assigned to form the valid
contract. In addition to this, the parties who enter into the valid contract must have sound
mind and age of maturity(Haarala and et.al., 2010). He/she must not under the age of 18 and
they must have proper sound mind.
1.2 Implication of various types of valid contract
A valid contract is a document which includes all legal terms and condition. The parties who are
entered into the valid contract must follow that rules and conditions. As per the UK government,
there are various types of valid contract which are as follows- Unilateral and bilateral contract- Bilateral contract is a contract under which both parties
are obligated towards promise. It is two side contract because two person or group are
involved in the contract. Most of the business and personal contract fall into this category.
For example, when a person enter into the favourite store and order for a meal, then he will
obligate to pay for that meal (Hodgson and Lewthwaite, 2001). On the other hand,
unilateral contract involves an action undertaken by one person or a group alone. This
contract allows only one person to make a promise or agreement. For example, if a person
have lost a dog so he places an advertisement in the newspaper or online offering a 1000
rupees reward to the person who will return missing pooch. In this offer, no specific person
is obligated to returning the dog so it can be said that it is a unilateral contract. Written and verbal contract- Written and verbal contract is essential and easy manner to
develop a valid contract. Written contract is a safe and secure manner because both parties
have signed upon the document. Further, in this document, all terms and condition are
incurred. On the other hand, in the verbal contract, both parties are involved in the valid
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contract by expression and words. In this, there are verbal terms and conditions and both
parties agree upon the terms and conditions by verbally. Distant and face to face contract- In the face to face contract, both parties are physically
present at the time of developing contract. Furthermore, both parties have full consideration
and interest in the duration of contract. On the other hand, in the distance contract, the
parties who are involved in the contract are not physically present at a common place.
Furthermore, the terms and condition is not discussed between the parties in a physical
manner (Jones, 2002). In this manner, they may connect either by mobile or any other
source of communication. Seal (Deed) and simple contracts- Under a simple contract each party has to provide
consideration for it to be valid. On the other hand, there is no requirement of consideration
in the deed in order for them to be valid. Most contracts made in writing will be simple
contracts but some will be deeds (Kidner, 2008). A simple contract can be entered into orally
but a deed must be in writing.
 Valid, void and voidable contract-A contract which is enforceable by law is known as a
valid contract. All contracts are agreement but all agreement are not a contract. The contract
which is not enforceable by law is called void contract. In addition to this, a voidable
contract is that which is framed in compliance with a legal enactment prevailing (Cross and
Miller, 2011).
1.3 Description of various terms of contract
According to the UK government, when valid contract made among the parties then they are
obligated to follow terms and conditions of the contract. Terms is defined as the set of rules and
regulations which charged by the legal bodies, governance or any other authorities. These terms
largely influence on the entire process and cycling of the contract structure (Lando and Beale,
2000). Term assist in maintaining the consent and interest persons who are involved in the contract
and also helps in overcome the situation of negligence, fraud and other negative or illegal actions.
As per the UK government, there are various types of contracting terms that determine the types of
contract. Various terms of contract are as follows- Expressed terms- This is a contract which is made by the oral and written way. In this
contract, both parties engaged with oral and written words. This type of term is implemented
by the mutual consent. For example, a person wants to purchase his first home. He found the
perfect place in the pasadena. The contract for purchase was signed, and he closed on the
home within a month. It can be said that person entered into the expressed contract because
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the elements are specially stated, including offer, acceptance and consideration.
Furthermore, it can be said that the expressed kind of term includes the entire information
about the condition, warranty, guarantee etc (McKendrick, 2012).Expressed terms of
contract provides the condition and warranty to the individual who is going to make the
contract. Conditions arte the primary terms of the contract overrunning which may end the
contract immediately. Warrenties are the minor terms of the contract which evolve the
general liability of the contract. Implied terms- Implied term is different from the express term under which not includes
written and oral words (Cross and Miller, 2011). In this contract, both parties are liable to
follow the rules and regulation which is specified and determined by the third parties such as
government, and any other legal authorities. This kind of term are that which are not
expressed by words and written contracts and the individual are connected by the ultimate
promises. Conditions- Condition refers to the rules and regulation over the contract which parties have
to follow. If any party breaks the rules of contract then aggrieved party can sue for damage.
In other word it can be said that condition is a clause in the contract which parties have to
follow (Milner, 2011).Condition assist in protecting individual against unlaw full and illegal
actions and activities. In a general word it can be said that condition are that term of
contract which reflects by the rules and regulation and parties who are involved in the
agreement have to follow that rules.
 Exclusion clause- According to this term, unfair means and practices reduce. It is a term
which are included by unfair means and practices reducing the liability of the contract. In
other word an exclusion clause is a term in a contract that seeks to restrict the rights of the
parties to the contract. There are three types of exclusion clause that is true exclusive clause,
limitation clause and time limitation.
TASK 2
2.1 Application of the law on essential elements to the scenario
According to the given case scenario, Abel saw an advertisement in the newspaper from city
car dealer. In the advertisement the mentioned statement has given that is Three new car to be given
to the first three persons who run up to the city mountain on 1 November obtain a ticket from our
representative on the mountain and return to our showroom within 3 hours. By this statement it can
be said that in this contract offer is made because city car dealer has offered by publish its
advertisement in the newspaper (Nystén-Haarala, Lee and Lehto, 2010).In addition to this according
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to this statement it can also say that it includes the element of intension to create a legal contract
because city care owner have offer by advertisement to public. From the above statement one
another element of free consent is also included because city car owner has not pressure to someone
for buy his offer. After that, Abel was a person who successfully completed the challenge and
arrived at the showroom within a record time. This statement shows the element of acceptance
because Abel has successfully reached at the show room by given time so it can be said that offeree
has successfully accepted the offer of the offerer. So by this statement, it can be said that there was
an acceptance because Abel has accepted the offer which has made by the city car dealer.
As per the given case, it has ascertained that when Abel arrived at the showroom within a recorded
time then city car dealer manager refused to give the cars. In addition to this, under this case,
capability of enter into the contract has not fulfilled because this is a kind of fraud. From this given
case, it can be said that Abel can sue against the car dealer manager because he refused to give the
car to Abel.
2.2& 2.3 Application the law on terms and remedies of contract
According to the given case, Rani published an advertisement for selling the cars by 50%
discount rate which is very low as compare to market rate. Eric saw this statement in the newspaper
and went to the Rani's car showroom with intension to purchase the car. He signed the standard
form contract without read the statement that is No liability is accepted for death, personal injury,
damage to property or consequential loss arising from driving a car which is purchased by this
showroom (Ramanathan, 2014). Eric has purchased the car without reading this statement which
has included in the contract form. According to this statement can be said that there was an express
term because the contract has made by written way. Furthermore, Eric entered into the expressed
contract because the elements are specially stated, including offer, acceptance and consideration.
Furthermore, it can be said that the expressed kind of term includes the entire information about the
condition, warranty, guarantee etc. So in the case scenario, Rani has mentioned the condition that
there is no liability of showroom if any injury or accident occurred by this car. In this case,
condition term can also apply because according to the condition term, rules and regulation are
mentioned in the document of contract (Slapper, Kelly, 2011). In this case, exclusion clause can also
apply because the mentioned term that are mainly included in the contract by unfair practices and
illegal manner which eventually results in reduction of the number and forms of liability existing in
the contract such types of clauses are reasoned as partial or unfair in respect of law only when the
representation of the sections are not done effectively and properly. In the above case scenario, Rani
can able to sue for damage as per the sale of goods act 1979.As per this act the goods must be
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described and satisfactory quality and fit for purpose. Fit for the purpose means both for their
everyday purposes and also any specific purpose that customer agreed with the seller. In addition to
these necessaries are goods suitable to the persons condition of life and actual requirements at the
time of contracting.
As per the given case scenario, Eric is not competent to get the remedies for the injury
which was occurred due to the car because showroom owner Rani has clearly mentioned in the
contract document that there is no liability is accepted for death, personal injury, damage to
property or consequential loss arising from driving a car which is purchased by this showroom. In
this case, it can be said that when a person purchase something from the seller then he/she should
manage their time and read all terms and condition which has included in the document before sign
the contract. In this above case scenario, the consumer right act 2015 is also applied because as
per this act all products which has sold to customer must be of satisfactory quality and fit for
purpose. As per this purpose, customer have right to reject goods that are of unsatisfactory quality ,
until for purpose or not as described and get a full refund within 30 days.
TASK 3
3.1 Difference between liability in tort and contractual liability
Contract laws and tort laws share many similarities. At the time of basic level, both contract and tort
laws usually deal with a duty that has been breached. However, there are various difference between
liability in tort with contractual liability. These differences are as follows-
 One major difference among the liabilities that party have to provide remedies or
compensation to the weaker party on the basis of term and condition. On the other hand , in
the tort liability, remedies and compensation for damages or injuries are provided through
reviewing the level of injury and it is stated by law (Sutton, 2010).Contractual liability arise
in the circumstances in which the parties breaches the stated terms and condition that are
imposed within the contractual agreement. On the other hand liability in tort arises in the
circumstances when parties engage in the tort full or negligent action that cause harm and
injury to the party.
 In the contractual liability, the legal action and punishment against the parties who are
involved in illegal action is limited. On the other hand in the tort liability action are
dependent upon the crime and losses caused by the person (Hodgson and Lewthwaite,
2001).In the contractual liability the compensation is provided to weaker party on the basis
of terms and condition. On the other hand in the liability in tort the remedies are provided
according to the level of injury and it is stated by law.
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 Tort liability develop in such circumstances in which parties engage in the tort or negligent
action (Treitel, 2002). On the other hand, contractual liability develop in such situation
when parties breaches the stated terms and condition.
3.2 Explanation of nature of liability in negligence
Negligence is a process under which one party ignore their liability to perform and by this
another party get injure or loss. In other word it can be said that Negligence is defined as an aspect
under which person is unable to perform their activity and responsibility with proper care that
ultimately result the another person injured or get losses (Nystén-Haarala, Lee and Lehto, 2010).
However, the law acknowledges the concepts of negligence as a way to hold a person accountable
when he failed to make appropriate decisions, even if he/she did not intend to cause harm. Various
principles of liability in negligence are as follows- Duty of care- This is the most significant element of negligence under which party who has
injured have precise to get remedies from the person who negligent the care of assets or
individuals (Whincup, 2008). The suspect is generally found incapable of addressing the
basic duty of care then it allows the injured person to take a legal action against that
particular person who has ignored the care of them. Breach of duty- According to this due to the party's activities the duty of care has breached
which caused injury to the claimant. t is a basic set of duty which a party or a company need
to follow so that nobody could be harm by their actions (Lawful consideration.2011).
 Remote damage- This is the most effective element under the liability of negligence under
which if applicant of the claim is able to show they have caused a physical or financial form
of loss from the negligence of the particular person then that applicant are able to gain the
compensation and reimbursement (Hodgson and Lewthwaite, 2001).
 Forseeability- This element defines that that defendant was aware or could assume about
the possible loss yet did not take effective measures to avoid the same then it is considered
to be act of negligence
3.3 Explanation of vicarious liability
According to the government law of UK, vicarious liability is a form of a strict liability that
arises under the common law doctrine of agency (Levinson, 2005). As per this law, if any
employees of the organisation are engaged with wrong activities and cation then owner of the
organisation is liable for the same. This provision clearly stated that business owner are to be held
with the any illegal action and activities performed by their workforce. Beside this, it is utmost
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responsibility of the owner or employer to monitor the personnels activities and action in the
organisation. If they are engaged with any wrong action within the employment period and within
the workplace then the entire liability to pay for the damages and injuries of victims on the shoulder
of organisation's owner. For example, an employees John of the royal hotel hired a boy who was
age of 14 year teenager. The manager of hotel become aware about this arrangement but has not
done anything. One day, while boy was cooking food then hew had burned. As per this case, hotel
owner is responsible for pay the remedies to boy. The elements of vicarious liability are as follows-
 Tenure of employment is applicable for the employees who are the part of the firm
 The actions of the employees are in control of the employers
 The action of negligence occurred on he basis of rights and authorities of employer
So as per the case, it can be said that company owner should acre about the illegal activities and
action done by its personnels
TASK 4
4.1 Application of elements of the tort of negligence
As per the given case, Denis is a husband of wife Emma, one day he took Emma to a
restaurant called food fresh to have dinner. While Emma eating food then she sick and throwing up.
When Denis took her hospital then it was discovered that she has suffered from food poisoning due
to the carelessness of the chef. That chef was using long expired food stuff to prepare Emma's meal.
In this case, according to the element of tort of negligence chef will liable for pay the remedies to
Emma. This can possible by the duty of care because according to this element if the customer
cause harm or damage by the act of negligence. By this element of negligence. Emma can recover
her losses and restaurant owner is liable to pay the remedies. On the other hand, another element of
negligence is remote of damage. According to this element,if a victim person is able to show they
have caused a physical or financial form of loss from the negligence of the nominal person then
they are expected to get the remedy or may increase reimbursement. With assistance of this element
of negligence, Emma have right to get the remedies because she is competent to show their physical
harm or injuries by medical certificate to the owner of restaurant. In the above case scenario, the
breach of duty can also apply because as per this element the corporation breached the duty of care
regarding physical safety of the company which implied breach of duty. Therefore, each and every
activities of employees should be control and manage by the employer, thus organisation is
responsible for any illegal and unlawful activities of worker. One another element of tort of
negligence is cause in fact it is a condition, action or object that caused the plaintiff injuries. The
cause in face may have caused the entire injury or only a part of it.
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4.2 Application of the law on vicarious liability
According to the concept of vicarious liability it has stated that a situation where someone is
held responsible for the actions of another individual (Vicarious Liability. 2013). In the organisation
context, employer or owner can be liable for the cats of its personnels, provided it can be shown that
they took place in the course of their employment (Hodgson and Lewthwaite, 2001). In other word
it can be said that act of vicarious liability is a type of liability which assist in decrease the damages
caused by the person by negligence activities or function of other individuals. In the case of Emma,
the restaurant chef is responsible to all injuries and damage of Emm but also the restaurant owner is
liable for pay the remedies to Emma. According to the act of negligence, if any illegal or wrongful
action or function done by employees then employer is responsible to stop for the same in the
organisation. Beside this, if any damage or injuries happened with person then entire responsibility
of pay put on the shoulder of owner. In the case Rose v\s plenty can also apply as per this act the
issue of where an employees is acting within the course of their employment vicarious liability was
tenuously found JohnWillian Slamond's test for cause of employment which states that an employer
will be held liable for either a wrongful act they have authorised. In this mentioned case, both
person chef as well as owner of restaurant is responsible for the care of customer. Tenure of
employment is equally practical or applicable for all workforce who are working in the corporation.
CONCLUSION
Business law is very important aspect through which employees, customer, and organisation
can get protection against the illegal activities and action. The above project is bifurcated in the four
essential parts with different case scenarios in each of them. It is mainly focused upon the
legislation and regulation of business enterprise. It has been concluded that if employees engage in
illegal action and activities then pay for any damage and injuries of another person by company
owner. Beside this, it has also concluded that in order to develop the valid contract various essential
elements requires to be considered by the parties. Essential element of valid contract includes
proper offer, acceptance, legal consideration competence of parties etc. It has also concluded that if
any employees are engaged in the illegal action and unlawful act then owner of the organisation is
liable to pay the remedies to that victim person who got injured or losses.
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