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Assignment on ACNB Contract Law

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Added on  2019-12-03

Assignment on ACNB Contract Law

   Added on 2019-12-03

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Assignment on ACNB Contract Law_1
TABLE OF CONTENTSIntroduction......................................................................................................................................3Task 1...............................................................................................................................................31.1 Essential elements required for the formation of a valid contract.........................................31.2 Different types of contracts....................................................................................................41.3 Different forms of contractual terms......................................................................................5Task 2...............................................................................................................................................72.1 Applying the essential elements of contract to the scenario..................................................72.2 Applying the law on terms of the scenario............................................................................72.3 Evaluating the remedies available to Mary............................................................................7Task 3...............................................................................................................................................83.1 Contrast liability in tort with contractual liability..................................................................83.2 Nature of liability in negligence............................................................................................83.3 Explaining vicarious liability of business by Using Film Flops as an example....................93.4 Applying the elements of the tort of negligence to the scenario..........................................103.5 Applying the law on vicarious liability to the scenario.......................................................10Conclusion.....................................................................................................................................10References......................................................................................................................................122
Assignment on ACNB Contract Law_2
INTRODUCTIONAll contracts are a result of an agreement but all agreements do not form contracts.Agreement that is enforceable by law is referred to as a contract and the parties to a contractinvolves a promiser and a promisee. The given project helps in understanding the essentialelements of a contract and how to apply these elements in business context. Principles of liabilityin case of negligence are also depicted with the help of various case laws. Also present cases areapplied in the given scenarios so as to justify the answers and situations. TASK 11.1 Essential elements required for the formation of a valid contractAgreement has a wider scope than contract. All agreements are contracts if they are madeby following the understated elements:Offer: it is the most essential element in a valid contract. Offer, agreement and promise isimportant in a contract because if there is no offer then there cannot be any contract (Bennett andGibbeson, 2010). Offer makes sure that the contract is legally acceptable and valid. Offer andinvitation to offer are very different from each other. As per the case of Harvey v Facey, in anoffer, one person invites another person to accept his offer and enter into a valid contract.Acceptance: Once an offer is made it is necessary to give acceptance against it in order tomake it a valid contract. Acceptance must not be confused with a counter offer (Giliker, 2010).As per the case of Brogden v Metropolitan Railway Co., if the other party is clear with the rulesand regulations written down by the offerer in contract, then acceptance of that offer will bemade. No acceptance is valid if the parties are still negotiating. Acceptance and offer may bewritten or verbal (Zoll, 2012).Consideration: Consideration refers to the bargain of the contract. This simply meansthat there must be some exchange of promise in the contract, i.e., promiser and promisee mustreceive benefit from each other (Straub, 2011). This benefit is referred to as consideration butany one sided promise is a gift. As per the case of Thomas v Thomas, consideration must havesome value in the eyes of law except, promise of love and affection, gaming and betting, etc.Capacity: This states the legal capacity or power of a person to enter into a contract.Minors do not have the capacity to enter into a valid contract (Magnus, Casals and Boom, 2004).3
Assignment on ACNB Contract Law_3
All contracts with minor are void. As per the case of Crown Lands Comrs v Page, incapacity toenter into a contract occurs if the person is of unsound mind, minor, bankrupt, alien enemy,drunkard or is disqualified from entering into a contract.Intention to create legal relation: It states that the parties must have an intention tocreate a legal binding upon each other. This element was introduced in order to differentiate thecases of moral responsibility with that of contractual responsibility in order to save time andresources of courts (Faure, 2009). As per the case of Balfour v Balfour, social and domesticagreements do not come under intention to create legal relations and all agreements that do notresult in a legal arrangement cannot be enforced by law.1.2 Different types of contractsContract refer to an agreement between the parties to do or not to do a particular task.Different types of contracts are as follows:Written contract: Any written contract refers to a written document that outlines theagreement between parties to a contract (Ward, 2010). These parties can be in the form ofbusiness organisations, individuals, groups, etc. In order to be a legally valid contract, it must besigned by all the parties to contract. Many written contracts are typed and made by the licensedattorney. The main purpose of making a written contract is to ensure that the parties to thecontract have understood the contract and all its terms carefully and they are willing to bindthemselves in the contract by understanding their responsibilities (Pesqueux, 2012). It alsoprotects the parties in case of breach by any person. Example: Agreement to sell property. Oral contract: This refers to a contract which is made orally. Its terms and conditionshave also been agreed through the way of spoken communication (Lando, 2007). Contract canalso be part written and part oral. They carry same contractual liabilities and legal bindings asthat of a written contract. This simply means that an oral contract is enforceable unless thesubject matter that is present there entirely depends on the spoken words. The main problem withoral contract is that it is impossible to provide its existence or terms of contracts (Manuel, 2011).However it's existence can be proved by the action taken by one or both the parties. Here, thetime given to the parties to sue each other is comparatively less (Olander and Norrman,2012).Example: Sale of personal property for an amount less than that set in statues. 4
Assignment on ACNB Contract Law_4

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