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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