Aspects of Contract: Essential Elements, Types, and Terms

Aspects of contract

Table of Contents
INTRODUCTION..........................................................................................................................................................3
TASK 1...........................................................................................................................................................................3
1.1........................................................................................................................................................................3
Essential elements of the contract........................................................................................................................3
1.2 ......................................................................................................................................................................4
Different type of contract.....................................................................................................................................4
1.3........................................................................................................................................................................6
Contractual terms.................................................................................................................................................6
TASK 2................................................................................................................................................................7
2.1........................................................................................................................................................................7
Apply the elements of the contract in Abel's case...............................................................................................7
2.2 ......................................................................................................................................................................7
Apply the terms in the scenario...........................................................................................................................7
2.3........................................................................................................................................................................8
Remedies available for the Eric...........................................................................................................................8
TASK 3................................................................................................................................................................8
3.1........................................................................................................................................................................8
Contrast liability in tort with contractual liability...............................................................................................8
3.2........................................................................................................................................................................9
Nature of liability in negligence..........................................................................................................................9
3.3........................................................................................................................................................................9
Vicarious liabilities..............................................................................................................................................9
4.1......................................................................................................................................................................10
Apply the element of the tort of negligence......................................................................................................10
4.2......................................................................................................................................................................11
Apply the vicarious liability in the scenario......................................................................................................11
REFERENCE................................................................................................................................................................12

INTRODUCTION
Contract law is considered important in the legal system. Contracts are not the promises
but are the agreement which is enforceable by the law. The contract is made between two or
more parties on the specific terms and condition which are decided by the parties themselves.
Contract law is important for the business as well as personal. As per the business context,
agreements are important to safeguard the rights of employer and define the duties in the
employment. A business requires contract to protect its interests. This project defines about the
contracts and other various aspects of the contract and provides knowledge for the same. The
project also defines about the negligence and the different type of liability in the contract and
also defines the tortuous liability (Appleman, and Holmes, 2015).
TASK 1
1.1
Essential elements of the contract
A contract is a legal binding agreement between the parties on the certain terms and the
condition. To form a valid contract, it is necessary to put all elements in the contract. These
elements are -
Offer in order to create a valid contract, there must be a lawful offer by one party because the
contract is based on the offer, if offer will be unlawful than later contract will not be enforceable
by the law. An offer or a promise or an agreement need to be in contract because if there is no
offer than there will be no contract. This is the element which makes sure that the contract is
legally valid or acceptable. The offer which is made by the offerer party could be for the specific
person or for the whole world (Marks, and Jackson, 2013).
Acceptance this is the second element of the contract and to create the valid contract there must
be lawful acceptance by the parties. Acceptance occurs when one party agree upon the terms of
the offer.
Consideration this is the main element of the contract. Consideration is the price paid for the
promise of the other party. The price must be something of value, although it need not be money
it could be the promise in return and anything else. The literal mean of the consideration is the
other person would be giving back something in return. Consideration in a contract is must so
that it would be legally valid.

Intention creates legal relations this is the essential elements of the contract. It is necessary to
create contract which must be based on the legal relation. If the contract is formed without the
legal intention then the contract will be not enforceable by the law (Smith, and Baumann, 2011).
Capacity of the parties As per the contract law, the parties who come into agreement must be
capable to come into contract. If the parties are not capable to come into contract then the
contract will not be enforceable by the law. The person who's age is below the 18 year comes
into minor and they cannot come into contract. And the person who announced as bankrupt and
the person who is unsound mind they cannot come into contract that is decided by the contract
law (Chomsky, 2014).
1.2
Different type of contract
As per the contract law there are different kind of contract that has been use to from the
contract. These different contract are-
distinction between the unilateral and bilateral contract
Bilateral contract is the most basic type of the contract as per the contract law. Bilateral
contract is an agreement between the parties. As per the business context, these are more suitable
form of arrangements.
These are the simple contract which usually use to form the simple contract
Unilateral contracts arise where only one party assumes an obligation under the contract. When a
person give advertisement about something that comes in the unilateral contract where the
obligation is on the one party the party who give the advertisement about their offer (Forster,
2010).
The first difference between both the contract is the number of parties which involve in the
contract. And the obligation which impose for the formation of the contract.
Distinction between Contracts under Seal (Deed) and simple contracts
Simple contract are the contract which are made by the parties. A simple contract can be
entered orally. In the simple contract, each party has to provide consideration to make the
contract valid. In the simple contract, all conditions written down or it can be form orally and it
is not required to put signature of the parties. So in that case , party can refuse for the term they
mention in the contract (Willsand, and Napier-Munn, 2015).