Aspects of Contract

Aspects of Contract

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1...........................................................................................................................................3
Essential Elements of Contract...............................................................................................3
1.2...........................................................................................................................................4
Difference between different types of contract......................................................................4
1.3...........................................................................................................................................5
different types of terms in a contract......................................................................................5
TASK 2............................................................................................................................................6
2.1...........................................................................................................................................6
application of essential elements of contract on case scenario...............................................6
2.2...........................................................................................................................................7
law on term of a contract .......................................................................................................7
2.3...........................................................................................................................................7
Remedies in given case..........................................................................................................7
TASK 3............................................................................................................................................8
3.1...........................................................................................................................................8
difference between tortious liability and contractual liability................................................8
3.2...........................................................................................................................................9
Nature of liability in Negligence............................................................................................9
3.3...........................................................................................................................................9
Vicarious liability in business................................................................................................9
TASK 4..........................................................................................................................................10
4.1.........................................................................................................................................10
Application of elements of Tort and defences against it......................................................10
4.2.........................................................................................................................................11
law of vicarious liability.......................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Agreement plays a very important role in the business organisation as it is a kind of paper
document which will bind 2 parties for creating a mutual interest to enter into an agreement.
When such agreement between the parties get protected with the operation of law shall be
constituted as contract. It is a very well known fact that half of the world is governed by business
activities which will include making of deals with other organisation to incurred profits. It is very
important for all the business organisation to bind them selves into a contract so that when there
will be breach in contract, party has the power to attain legal remedies(Chico, 2011). Contract
plays a very important role in governing business activities. The following project shall create a
better understanding about different aspects of contract in business as well as in normal scenario.
The main aim of the project is to create a better understanding about contract and their use in
different scenario.
TASK 1
1.1
Essential Elements of Contract
Contract is very important for all those parties who wants to get bind into a legal
obligation which will be benefiting parties. While the formation of a contract is being taking
place in an organisation or by an individual, they must take care that a c9ontract shall be formed
with all essential elements(Cullen, 2016). When a contract is being formed without any essential
elements then such agreements shall be referred as void contract. Some of the essential elements
to be included in the formation of a valid contract are:-
Offer- an offer can be referred as a person's desire. In a contract when 2 parties wants to bind
themselves into an agreement the an offer has to be made by one party to another. An offer to a
contract shall show an intention to bind a party in a contract. Without offer a contract shall not be
formed,
Acceptance- whenever a contract has been made by one party to another then if the other party
wants to enter into a contract, can accept his offer(O'Sullivan, and Hilliard, 2016). An acceptance
is much needed step towards formation of a contract in a valid nature as it will show an intention
of one party to for a contract.

Consideration- a consideration can be referred to a promise which has been made between the
parties over exchange of values in a contract. Without a valid consideration, a valid contract shall
not be formed between the parties.
Agreement- prior to a contract, it is very important that a valid agreement shall be formed
between the parties(Eggleston, 2015). An agreement to a contract shall raise legal obligations on
to the parties which will define the rights and duties of the party.
Therefore these are some of the essential elements without which a valid contract shall not be
formed.
Case Law: Balfour v Balfour.
1.2
Difference between different types of contract
There are different types of contract which has been between the parties depending upon
the situation and condition in which the party has to perform the contract(Clarke, 2013). There
are various kinds of contract has been formed between the parties but there is lot different
between the types of projects those are:-
Difference between a unilateral contract and bilateral contract
According to the law of contract a bilateral contract is when an agreement has been formed
between 2 parties and both the parties are obliged ton perform the duty arising out of contract. In
a bilateral contract, both the parties have to perform duty. Generally bilateral contract exist in
business scenario where it shall bind 2 parties for the same
while on the other hand in a unilateral contract, an action arising out of same shall be performed
by just one party of a group only(Kramer, 2010). For an example when a person make an offer in
a newspaper regarding the sale of any article shall be referee as unilateral contract.
Difference between Seal (deed) contract and simple contract
According to law of contract, a seal deed contract is when an agreement has been duly signed by
the parties after reading terms and condition of a contract. When a contract has been formed with
regard to seal deed the a proper witness is needed without which a contract shall not be formed.
Where as on the other hand, a in a formation of a simple contract, it can be carried out without
seal. In a formation of a simple contract, all the essential elements are to be included in
making(Lawson, 2011).
Difference between Written and Verbal contract