Essential Elements of Contract - Assignment

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TABLE OF CONTENTSIntroduction......................................................................................................................................3TASK 1............................................................................................................................................31.1 Essential elements of contract................................................................................................31.2 Different types of contract.....................................................................................................41.3 Different terms of contract.....................................................................................................52.1 Impact of different types of contract and analyzing terms in contract..................................62.2 Claim to the reward...............................................................................................................62.3 Effect of different terms in contract.......................................................................................6Task 2...............................................................................................................................................73.1 Contrast contract liability and tort liability............................................................................73.2 Nature of liability in negligence and employers’liability......................................................83.3 Vicarious Liability.................................................................................................................94.1 and 4.2 Occupier's Liability Act............................................................................................9Conclusion.....................................................................................................................................10References......................................................................................................................................122
INTRODUCTIONA valid contract generally takes place with agreement between two or more than twoparties which is enforceable by law. The UK law forms several types of laws and regulations inorder to ensure effective running of business. It facilitates management to carry out all businessactivities. It is also helpful to businesses to describe the aspect of negligence of business andseveral aspects of contracts. Present report covers essential elements of valid contract anddifferent types of contract. Further, terms of contract are explained along with different types ofcontracts. In addition to this, liberalities and negligence of business have been explained in thelight of given cases.TASK 11.1 Essential elements of contractThe essential elements of any contract are very important because these are the basis whichconverts an agreement into valid contract. Thus, an agreement must be followed by number ofessential elements which aid to formulate a valid contract (Adams, 2010).Offer- It is the first and foremost element of contact wherein one party offers anotherparty to enter into agreement. Here, the person who made an offer is known as offerorand the person who accepts the offer is known as offeree. For example, Sheena wants tosell his bike for £750 and she make offer for the same to Joseph. Here, the contract isinitiated by Sheena.Acceptance-It is another imperative element of valid contact wherein other party acceptsthe offer made by front person. As per the above example, Joseph accepts the offer madeby Sheena. It depicts that both parties agree for the same and want to enter into validcontract (Epstein, 2010).Consideration- Consideration means something in return. Here, both parties that areentering into contract must agree for something in return. According to the aboveexample, Mr. Joseph get bike and Miss Sheena will get £750. Thus, both of them havedifferent consideration by the formation of valid contract (Gray, 2010).Intention- The fourth essential element of valid contract is intention wherein both partiesintend to enter into valid contract. Under this, no any party can be forced to enter into3
contract and thus, both parties must be willing to formulate the legal contract. Itfacilitates to form a valid contract and ensures safety and securities of parties that areinvolved in the contract.Therefore, presence of all these essential element give rise to valid contract. It facilitatesto perform explained duties and responsibilities of parties in an effectual manner (Jianyuan,2010).1.2 Different types of contractIn English Law, the entire contracts are not same due to occurrence of the same as per thesituation(Lockwood, 2011). There are following types of contracts which can take placebetween parties in accordance with their needs. However, formation of each contract depend onthe situation as well as requirement of parties that are entering into contract. These are explainedas follows-Face to face and distance contract-The face to face contract takes place with oraldiscussion among parties. Under this, all the terms related to contract are specified at thetime of formulation of contract. However, at the time of breach of contract, parties do nothave proof to claim for the damages. Also, it is very important for parties to be present atthe place where contract is formulated (Lawson, 2011). However, it is not necessary thatthere will be some kind of verbal communication among parties that are entering in faceto face contract. On the other hand, distance contract is the one where partycommunicates regarding the terms of contract. However, the modes used forcommunication can be like telephone, emails and letters etc. It facilitates to save time butsome external issues like error of network give rise to conflicts among parties. Theexample of distance contract is like; Mr. X who resides in London wants to sell his car inChicago to Mr. Y. Here, both of them can communicate for the same through telephoneor email.Verbal and written contract-Verbal contract is that where people communicate theiroffer to front party without any kind of prior decision. For example, Mr. X went torestaurant and ordered for some dishes and his need was fulfilled effectively. At thisjuncture, contract was initiated as Mr. X entered into restaurant and ordered for somedishes but the same is over when he left restaurant . It does not have lasting impact on the4
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