ACNB

ACNB

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................2
1.3................................................................................................................................................2
2.1................................................................................................................................................3
2.2................................................................................................................................................3
2.3................................................................................................................................................4
TASK 2............................................................................................................................................5
3.1................................................................................................................................................5
3.2................................................................................................................................................6
3.3................................................................................................................................................6
4.1................................................................................................................................................7
4.2................................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Different laws along with legal regulations have been introduced by the regulatory
authorities with the motive to reduce the level of unfair transactions and this directly supports
business enterprise to indulge into practices which are illegal (Johnston, 2014). Further, when
two parties enter into contract then they are bound to carry out operations as per the legal
guidelines and it is necessary to provide damages to the parties who have suffered loss.
Moreover, it is necessary for entire commercial environment to protect parties which are weak.
Different provisions along with laws have been introduced which assists in providing protection
to the parties in the contract. The present study being carried out is based on various cases and
different tasks have been covered in the report which includes important of essential elements
required for formation of valid contract, terms in different type of contract, contrast liability in
tort with contractual liability etc.
1.1
Contract is generally regarded as the legal document linked with both the parties which
binds them into contractual liability and in turn is required for legal compliance (Heine and
Kerber, 2002). Essential elements which are required in case of formation of valid contract are as
follows:
Offer: It is a kind of willingness to develop contractual obligation which states that terms and
conditions in agreement. Further, offer is subject to intension of contractual liabilities along with
the legal compliance. Obtaining updated offer over the original one at the time of negotiating
terms in contract is regarded as counter offer. The principles associated with case law Harvey v
Facey [1983] reflects that it is required for parties to show intention at the time of accepting any
offer.
Acceptance: This term highlights the expression of unconditional agreement of all the terms
linked with offer (Gray, 2010). Acceptance takes place when both the parties agree on the terms
and conditions present in the contract. The case law Felthouse v Bindley [1862] highlights that
intention to purchase horse was not expressed by nephew which lead to occurrence of no
contract in between the parties.
Consideration: This element is considered to be most important where parties in the contract
must receive something of value in return at the time of building legal compliance. As per the
English law consideration is a form of promise.
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Legal intention: Both the parties in the contract must have legal intention. Any type of contract
which is being developed for illegal activities is not regarded as valid contract.
1.2
Every type of contract is being built on the basis of obligations and terms. Further,
different types of contract which are defined under English law are as follows:
 Unilateral contract: In this type of contract one party associated with the contract has to
carry out contractual obligation where other parties are free to carry out obligations. The
offeror in the contract builts an open offer (Types of Contracts. 2012). Further, the
revocation in the offer can be done anytime before its completion. The case linked with
Carlil v Carbolic Smoke Ball Company [1893] highlighted obligation of firm to pay
reward to claimant as individual suffered from flu after using product
 Bilateral contract: This contract takes place between two parties through mutual
exchange of promises. All the major elements in valid contract are required to be
undertaken by parties and in case if they are not followed then suffered party has right to
take legal actions. Considering the case of Brogden v Metropolitian Railway [1877] the
obligation of performance of contract took place after acceptance of all the terms (Bell,
2011).
 Collateral contract: it is defined as the one where development of one contact is
promised by one party as consideration of first contract. The main requirement is to build
contractual obligation.
1.3
The terms associated with the contract supports in knowing about the obligations for
performance of the agreement. Different terms associated with the contract are as follows:
 Expressed terms: It involves the stated terms in the contract which are agreed by parties
in the contract. Further, it can be both in written or oral form and undertakes both
conditions and warranties. In case if any condition is not fulfilled in the contract then it
leads to breach of contract (Fried, 2015). Apart from this warranty is secondary term
which relies on contractual obligation. In case if any party non complies with any of the
term then they are liable to pay for the damages.
 Implied terms: These are some of the main terms which are not highlighted through
expression but they are implied by court of law. Implied terms allow in developing
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mutual intention for parties with the motive to build contractual liability. It acts as an
effective means of performance for the contact.
 Exclusion clause: The terms in the contract are generally built in order to reduce liability
of parity. It is allowed by legal bodies only when proper terms are being developed. In
exclusion clause improper insertion is not allowed for exclusion clause (Gilbert and
Vargo, 2014).
So, these are some of the main terms in the contract with reference to their actual meaning
along with the effect.
2.1
The present case is associated with Ivan and Todor where Ivan saw HND law book at
bookstore operated by Todor. Ivan intended to purchase book for ₤50 and paid amount to Todor.
Further, individual informed that book was already sold to Carl and it was Todor’s fault that he
forgot to take it off from display shelf.
The case of Ivan and Todor clearly highlights that by displaying the books on the shelf
represents open invitation for buyer to purchase the book at an agreed price (Gray, 2010). By
accepting the offer Ivan agreed to purchase the book at an price and consideration of amount ₤50
took place. Ivan was already informed well in advance that book was sold but its possession was
not transferred to the seller yet. Thus, it was not possible for Ivan to purchase the book.
Considering the legal aspect of the case both Todor and Carl has built contractual
obligation which is a kind of restriction in case of Ivan that individual is not allowed to claim for
the book. Further, considering the parity of contact Ivan is not allowed to claim for damages
from Todor as individual is playing role of third party and he has no right to sue. Apart from this,
the overall existence of innominate terms has also been undertaken in the case. Therefore, due to
this basic reason it is not possible to form any type of contract as offer was not at all made and
consideration for buyer does not exist (Grigoryan, Best and Dellavalle, 2015).
2.2
Highlighting all the key terms in the contract is most important as it supports organization
in developing well developed base for contractual obligation. The key terms have been stated
below which are as follows:
Condition: It is considered as one of the primary term being used by company with the help of
which it becomes easy to analyze the basic performance parameters. Every party involved in the
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contract critically determines the main conditions in the contract. In case if conditions in the
contract are not fulfilled then it leads to breach of contract (Partington, 2013).
Warranty: It is regarded as the secondary term which is also crucial for business to highlight all
the secondary terms being present in the contract. Further, no such right is being present to
revoke the contract. Non performance of warranty does not lead to unfavorable outcome such as
breach of contract but party has right to claim for damages but breach of contract does not takes
place at all.
Innominate terms: These are the specific terms which are not warranty or condition but are
regarded as the intermediate terms. They are considered to be the flexible terms which are in
favor of both the parties (Rosly, 2010).
So, these are some of the law on terms in different contract where they totally differ from
one another in every possible manner.
2.3
The present case is associated with John where individual went to local council park and
read a notice that chair can be hired at an price of 50p per hour. Reading this notice John
purchase the ticket for 50p and occupied the chair. As soon as John sat on the chair then it
collapsed and he was badly injured which damaged his clothes as well. Individual approached
authority to claim for the damages and against this John was shown exclusion clause on the
ticket (Rush and Ottley, 2006). Considering the entire case John examined notice in which it was
stated to offer services at 50p which individual claimed. The implied condition which is being
present is to deliver quality service which was not present at all. Apart from this, injury was
caused to buyer due to presence of faulty products and this was referred to exclusion clause in
the ticket.
It was the moral responsibility of park authorities to provide chair in proper manner and it
was not provided at all. Moreover, exclusion clauses are considered as the added terms with the
main motive to provide defendant protection for non performance. Considering the present
scenario it is not possible to reduce the basic liability to deliver quality service. Adding other
clauses in the ticket is regarded to be unacceptable along with illegal too. Therefore, considering
the overall situation park authority has to pay for damages to John for the entire condition
(Desai, 2008).
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TASK 2
3.1
Tort liability is regarded as one of the most significant term in which legal term is being
present which reflects the harm being caused to one party due to negligent act of another party.
This term is directly associated with the civil law. Apart from this, concept of contractual
liability is also present which occurs when performance which is linked with type of liability
does not take place at all (Gillies, 2004). The duties associated with both the parties are clearly
mentioned under contract terms. The main difference which is being present between tort and
contractual liability has been mentioned below:
Basis of difference Contractual liability Tort liability
Relation In case of contractual liability the
relationship between parties takes
place through mutual understand
so that contractual obligations
can be carried out easily. Further,
all the terms and conditions are
developed through proper
discussion
Tort liability is generally
regarded as major civil offence.
Further, every individual has
right to avoid any sort of
uncertainty through negligence.
Donoghue v Stevenson has
reflected that negligence of
organization has lead to
development of faulty ginger
beer and its consumption has
adversely affected claimant
(Harpwood, 2009)
Reason of occurrence It is possible to claim for
damages and in case of defendant
individual has no right to deal
with the contractual liability
Claimant holds the responsibility
to prove that damages that have
taken place due to presence of
negligent duty of care
Nature of obligation Contractual obligations are
directly reflected in the contract
terms and they are defined in the
contractual liability also
All the kind of obligations are
considered to be universal for
residents and such terms are not
agreed by parties associated with
the contract
Basis of damage Non performance of any type of One of the main motive behind
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responsibility is the contract
leads to breach of agreement
where the party who has suffered
for loss has to claim for damages
(McManis and Garrison, 2015)
claim for damages is financial,
physical and mental which
occurs in case of claimant where
main reason is negligent act of
defendant.
3.2
Negligence is basically regarded as the act of ignoring one party whose basic outcome is loss
which is being carried out to another party (Heine and Kerber, 2002). Further, it is directly
associated with carelessness of individual due to this reason another party has right to claim for
the injury. Further, the main factor which are linked with negligence are as follows:
 Breach of duty: This clearly states that one party in the contract has to suffer loss as
another party has breached duty of care which has lead to damages. Further, non
performance of obligations leads to breach of contract.
 Duty of care: This factor clearly highlights that any sort of damage caused to third party
is due to negligence of duty of care where any person or firm can be responsible for the
same. Donoghue v Stevenson reflected that organization has offered polluted ginger in
opaque hotel and this has directly lead to damages to the claimant (Gray, 2010).
Therefore, this case his directly associated with negligence of duty of care from business
side.
Considering the entire case of Donoghue v Stevenson claimant ordered specific product
associated with defendant. Further, she was offered commodity in opaque bottle from which half
of the content was consumed. At the time of pouring half of the content snail took place and this
directly lead to loss to claimant. As per the legal decisions which were being taken firm was
responsible for breach of standard duty of care and causation took place due to actions of
employees of the business. Therefore, claimant was responsible for the damages caused to the
defendant.
3.3
Vicarious liability is regarded to be one of the most important part of the tort liability
which highlights that action of one specific party can lead to damage or loss to another one.
Further, this liability is applicable in case of employees or employers linked with the company. It
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is regarded as the liability where any wrong act of employee can lead to unfavorable results and
in turn employer of the business is responsible for such act. Any business enterprise can be held
responsible for vicarious liability in case if:
 Relationship which is present in between employer and employee is dominated by
employer and it is required to highlight that entire relationship was shared between
parties. In order to ensure this relationship control test along with this court of law applies
integration. Further, on the basis of this further actions are taken (Fried, 2015).
 It is the duty of employer to look after actions of employees and this only occurs when
specific policies are developed and it is linked with vicarious liability. Case reference
Ministry of Defence v Radciffe [2009].
Action of all the employees in relation with the employment scope through which it is
ensured that negligent act being carried out by the employees during employment course then in
such case vicarious liability is applicable. Apart from this, in case of independents contractor
concept of vicarious liability is not applicable.
4.1
The present case is associated with David who was driving car at 35 MPH in 25 MPH
zones. At the time when individual was driving car children were playing in the street and at that
time nine year old Kevin runs on the street for soccer ball which lead david to crash into
telephone pole and he was seriously injured (Gillies, 2004). Apart from this, this accident caused
telephone pole to snap which lead to serious injury of Kevin badly. The damaged pole was
belonged to Teleco, a local company operating in the market.
So, this case clearly represents that David was driving car at high speed due to which
individual was not able to control vehicle and crashed into the pole. The injury which was caused
to Kevin was due to crash of David which led to snap of pole and it severely injured Kevin. So,
considering the overall case tort liability is applicable against David as individual was driving at
high speed in low speed zone. Moreover, vicarious liability can be undertaken as David was
going out for employment work and in such case employer was asked for urgent outcomes. The
factors which have been mentioned below are applicable in case of David:
 Duty of care: It was the main responsibility of David to drive slow in 25 MPH street. In
case if car was in slow speed then accident could have been avoided easily.
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 Breach of duty: Duty of care was breached by David as individual was driving car at 35
MPH in 254 MPH limit street Causation: David crashed into pole which lead to snap of the pole and due to this reason
Kevin was injured badly.
4.2
The present case is based on two employees who are working in Regent hotel. Further,
the staff members named Roger and Colin were working in the enterprise. Attitude of Roger was
not up to the mark and individual was high tempered. Colin knocked roger unconscious by
attacking him with a frying pan. This lead to serious injury of Roger and individual was referred
to hospital immediately. But roger refused in relation with the entire case. Considering the entire
scenario the overall parties involved in the contract was the staff members of Regent hotel.
Personal dispute of the parties resulted into physical abuse in the course of employment as well
in the premises also. Apart from this, one party was adversely affected who refused for medical
help or any other kind of support.
The overall decision was taken considering the vicarious liability where tort liability was
being carried out by the staff members which caused injury to another party during employment
course (Employer Vicarious Liability. 2013). Considering the present situation both Roger and
regent hotel has employee employer relationship. Action of tort liability was carried out during
employment course and overall activities carried out by employees were not under control of
employer. The kind of physical abuse which has taken place was the outcome of personal issue.
It was the moral duty of regent hotel to take Roger hospitality for which individual denied and
due to this reason vicarious liability is not applicable in this case. Further, it is possible for Roger
to sue Colin for damages under civil law.
CONCLUSION
The entire study being carried out has supported in knowing about the key elements
which are being present in a contract. Further, all the essential elements such as offer,
acceptance, consideration must be present in a contract which makes it valid. In case if any party
is not able to carry out the duties assigned then it leads to breach of contract and another party
has right to claim for damages or loss caused to party. Moreover, impact of different type of
contract varies from each other such as unilateral, bilateral etc.
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REFERENCES
Books and Journals
Bell, T. W. 2011. Graduated Consent in Contract and Tort Law: Toward a Theory of
Justification. Case Western Reserve Law Review. 61(1).
Desai, N., 2008. Checking correctness of business contracts via commitments. In Proceedings of
the 7th international joint conference on Autonomous agents and multiagent systems. 2. pp.
787-794.
Fried, C., 2015. Contract as promise: A theory of contractual obligation. Oxford University
Press.
Gilbert, R. R. and Vargo, J. J., 2014. Swimming Pools and Aquatic Injuries. Products Liability
Practice Guide. 6.
Gillies, P., 2004. Business Law. Federation Press.
Gray, J., 2010. Legal commentary. Journal of Financial Regulation and Compliance. 18(3). pp.
293-300.
Grigoryan, K. V., Best, A. and Dellavalle, R. P., 2015. University Tort Liability for Allowing
College Debit Card Purchasing of Indoor UV Tanning Services. JAMA dermatology. 151(5).
pp.479-480.
Harpwood, H. V., 2009. Modern tort law. Routledge.
Heine, K. and Kerber, W., 2002. European Corporate Laws, Regulatory Competition & Path
Dependence. European Journal of Law and Economics. 13. pp. 43–71.
Johnston, D., 2014. Peter Roberts, Petroleum Contracts, English Law and Practice. The Journal
of World Energy Law & Business. 7(2). pp.175-177.
McManis, C. R. and Garrison, B., 2015. The enforceability of mass-market e-commerce licenses
and social networking agreements: Is copyright or contract law the new lex
specialis?. Chapters, pp.30-48.
Partington, M., 2013. The psychological contract and implied contractual terms: Synchronous or
asynchronous models?. International Journal of Law and Management. 53(1). pp.32-50.
Rosly, A. S., 2010. Shariah parameters reconsidered. International Journal of Islamic and
Middle Eastern Finance and Management. 3(2). pp.132-146.
Rush, J. and Ottley, M., 2006. Business Law. Cengage.
Online
Employer Vicarious Liability. 2013. [Online]. Available through:
<http://www.oxbridgenotes.co.uk/notes/oxbridge/2013/tort-law-notes/samples/employer-
vicarious-liability>. [Accessed on 5th Oct 2016].
Types of Contracts. 2012. [Online]. Available through:
<http://www.lawsofbusiness.com/2013/08/types-of-contracts.html>. [Accessed on 5th Oct
2016].
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