Impact of Different Types of Contract - Doc
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Added on 2019-12-03
Impact of Different Types of Contract - Doc
Added on 2019-12-03
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TABLE OF CONTENTSIntroduction......................................................................................................................................3Task 1...............................................................................................................................................31.1 Explanation of importance of essential elements required for the formation of validcontract.........................................................................................................................................31.2 Impact of different types of contract .....................................................................................41.3 Analysis of contractual terms with reference to their meaning and effect............................5Task 2...............................................................................................................................................62.1 Applicability of essential elements of the valid contract.......................................................62.2 Applicability of law of terms in different contracts...............................................................72.3 Evaluation of effect of different business contracts...............................................................8Task 3...............................................................................................................................................93.1 Contrast liability in tort with contractual liability.................................................................93.2 Explanation of nature of liability in negligence...................................................................103.3 Vicarious liability of business..............................................................................................11Task 4.............................................................................................................................................114.1 Applicability of elements of tort of negligence and defences in different business situations...................................................................................................................................................114.2 Applicability of elements of vicarious liability in different business situations..................12Conclusion.....................................................................................................................................13References......................................................................................................................................142
INTRODUCTIONContract and negligence law in English law is developed to promote fairness and protectinterest of weaker party. For this purpose, guidelines of standard conduct is provided by thelegislation. Provisions covered in this legislation is part of the civil law. All individuals andbusiness entities are required to comply these legal norms else they will be held liable to providedamages (Adams, 2010). Present study provides description of provisions of contract andnegligence legislation in order to resolve given case problems. For this aspect, description will beprovided regarding essential elements, different types and terms of the contract along with itsimpact. Further, negligence law will be explained along with the defences and provisions ofvicarious liability. Described legal aspects will be applied to the provided case situation in orderto provide justified recommendations.TASK 11.1 Explanation of importance of essential elements required for the formation of valid contractContract is an agreement between two or more parties for the completion of justifiedpromise. This agreement is enforceable by law thus parties are required to provide performancein a proper manner. However, all agreements are not considered to be legally enforceable. It isbecause; validity of agreement requires presence of following aspects:Offer Offer can be defined as proposal given by one party for the completion of particularperformance to the specific person or to the general public. Offer is required to be specific andjustified by law. Example of offer is quotation to the contract or offer of lease by commercialentity (Miller, 2011). However, offer does be valid if it comprises of ball park estimates, letter ofintent, request for proposals and expression of interest. Offer is said to be cancelled if counteroffer is provided or after passage of reasonable time or by the incapacity of contracting parties.Acceptance In accordance with the English law, acceptance can only be provided to the offer givenby the offeror. Due to this aspect, acceptance supported by condition or modification is not valid.Further, it is considered as counter offer on which acceptance of initial party is required (Steele,3
2007). Acceptance can be provided in verbal or written or inferred (by conduct) manner.Example of acceptance is delivery of goods by storekeeper on the offer of customers.Consideration Promise formed without consideration is not considered as agreement. Due to this aspect,for the formation of valid contract there should be mutual exchange of promises. Considerationis derived from Latin phase pro quo i.e. something in return. Validity of contract is not judged byits sufficiency (Lawful consideration, 2011). However, past consideration and socialresponsibility is not valid consideration for the formation of contract. For example, if customerorders lunch in restaurant for cost £5 then consideration for hotel will be £5 and for customer itwill be food served by the restaurant.Intention to create legal relationshipContracting parties must be have intention to create legal relationship and they must becapable to enter into contractual relationship. This is an assumed element of the valid contract.However, in case of domestic and charitable agreements this element is not assumed (Luo,2002). For example agreements between husband and wife are social arrangements thus these arenot enforceable by law. This fact can be noticed in the case of Balfour v Balfour.1.2 Impact of different types of contract In accordance with the provisions of Contract Act 1950, different contracts have differentimpact on the contractual relationship and performance of parties. By considering this aspect,contracting parties are required to select suitable form of contract for entering into legalrelationship. Description of different types of contract and its impact is enumerated below:Face to face contract This form of contract is selected in situation where all the contracting parties are able topresent at same place for the negotiations of contractual terms. These contracts are created inverbal manner (Gray, 2010). Example of face to face contract is purchase of daily goods from theretail store. In situation of dispute between parties, courts considers situational approach these isabsence of proof of initial deed. Written contract This is the most formal form of contract in which terms of the contract are described inwritten manner. Written contracts are selected by business entities for the formation of contract4
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