Contract Law in Organizational Scenario

ASPECTS OF CONTRACT
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
1.3.................................................................................................................................................5
TASK 2............................................................................................................................................6
2.1.................................................................................................................................................6
2.2.................................................................................................................................................7
2.3.................................................................................................................................................9
TASK 3............................................................................................................................................9
3.1.................................................................................................................................................9
3.2...............................................................................................................................................10
3.3...............................................................................................................................................11
TASK 4..........................................................................................................................................11
4.1...............................................................................................................................................11
4.2...............................................................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14
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INTRODUCTION
The relationship existing in an organizational scenario is more complex and needs
particular norms and regulations that can assist in smooth functioning. In this regard contract law
has specific application within firm through which assistance can be taken from legal framework.
Thus this leads to development of rights and duties of parties in the agreement (Kelly, Schwartz
and Partlett, 2010). All the agreements do not form legal contracts but all the contracts are
regarded as agreements. This is due to the reason that agreements is combination of offer and
acceptance however other elements like consideration, intention towards creating lawful
association as well as capability are important for creating legal contract. Along with this
particular application of tort law also prevails for regulating the relation that devoid any formal
contract.
The present report would reflect the analysis of essential elements, varied contracts and
its influence on associated parties. Further the study will lay emphasis on the difference among
tort as well as contractual liability. Along with this tort of negligence as well as vicarious
liability are also discussed with respect to business. The present study makes elaboration on the
principles relating with vicarious liability and negligence.
TASK 1
1.1
Formation of contract takes place when two or more parties enter into agreement that has
legal aim along with free consent. It is the procedure in which an offeror makes offer to offeree
that is then accepted based upon the reverse promise which is referred to as consideration. There
is greater importance for Peter Abhraham to gain insight to essential elements of contract. This
are enumerated as under: Offer: It is one of the most significant element for formation of contract. Under this one
party makes communication of desires for entering into contract with intention to bound
the parties by means of legal relationship. In case of Harvey v. Facey (1893) it was held
by the court that communication offer would be effective to unambiguously inform the
true intention to the other party. Another crucial factor that needs to be taken into
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consideration by Peter Abhraham is that offer as well as intention treat to two different
terms concept. Further latter cannot be an offer in development of valid contract. Acceptance: For the purpose of carrying out the formation procedure an offer needs to
have unconditional acceptance that needs to communicated to offeror in an effective
manner (Abn, 2009). It has been viewed in the case of Felthouse v. Bindley (1862) that
just silence in response cannot be considered as acceptance. It is important that offeree
needs to accept the offer in verbal way that implies acceptance to particular offer. Intention to create lawful relation: While making offer and acceptance the parties bind
one another in a legal relationship. In case of Jones v. Padavatton (1969) it was held that
in situation of domestic agreement an assumption is made regarding no desire towards
binding one another under legal obligations. Consideration: This element plays instrumental role as in of case absence of valid
consideration contract cannot come into emergence. The nature of reciprocity within the
contract can be owned for payment under consideration. In well known case of Chappel
v. Nestle (1960) it was presented that consideration alone is adequate by nature.
 Capacity: It is important to make sure that the parties to the contract possess legal
capacity towards entering into contract under law of Contracts. However minor,
insolvents unsound mind people cannot enter into contract.
1.2
Under the Common Law, a valid contract can be either verbal or in written form. The
needs for existence of essential elements of contract is mandated under such law system. A
contract can be comprised of implied terms or express terms (Levy, Golden and Sacks, 2015).
Further this to a greater extent depends on the nature of relationship that exists among the
parties. Under law, just an exchange of promises in a meeting can bind the parties, if there is
existence of intention of create legal relationship while making exchange of the promises.
Therefore Peter Abhraham needs to gain knowledge of the fact that valid agreement can be
developed by several modes stated as below: Face to face: It has been reviewed by Peter Abhraham that verbal contract holds certain
relevance under Common law in case it is supported by all the important elements of
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