INTRODUCTION Aspects of contract are essential for executing desired functions of business and it is vital tohave proper understanding of that (Vashist and Talwar, 2014). A contract is defined as agreementwhich is done among two or more parties (Berger and Lester, 2015). It create legal binding on allindividuals who are involved in signing the contract with each other. Present report describes aboutvarious elements of contract that are required to be considered while signing agreements. Nature ofliability in negligence and importance and essentiality of vicarious liability is also described in thereport. In addition to this difference between tort and contractual liability is mentioned. Furthermorevicarious liabilities of business groups towards mistakes committed by their staff members havebeen defined in the report. TASK 11.1There are various significant elements of contract which are essential to follow for all theindividuals who are involved in making agreements with each other (Winfield, 2006). Whilemaking contract there are some essential elements that are required to be considered while makingagreement and they are as described-Offer :- While making contract proposal is given by one party to another and acceptance is givenby another party after adopting all the terms and conditions associated with the contract. All thenecessary conditions are mentioned in the agreements and all the parties involved in signing thecontract accept the mentioned terms (Dorfman and Cather, 2012). Acceptance is given by party whohas been offered the offer and by showing acceptance other party accept all the terms andconditions of business which are mentioned in Offer. Consideration :- It is explained as promise done for making payments from the side of promiser.Whenever any agreement is signed some benefits are shared between parties who gets involved inmaking the contract. It is vital that all the legal formalities should be completed while makingagreements. Capacity :- It is explained as ability of individuals for making a legal and valid agreement. Thereare some conditions which are needed to be followed while making a contract. Individuals whobelong from minority age group and who have not completed 18 years of age comes under thecategory of people who are not eligible for making agreement (Lai, 2015). These are some significant and essential elements which are required to be considered while signingcontract in legal and appropriate manner. 3
1.2contracts can be signed in diverse ways and impact of these agreement differ from eachother. When two parties get involved in signing various terms and conditions of business than alegal agreement is signed among them. The contract can be written, verbal or it can be signedthrough a online mode (Thampapillai, Tan and Bozzi, 2012). Documents are prepared in astructures manner whenever any contact is done in a Written manner (Liau, 2015). There are varioustypes of contracts that are signed between parties and they are as described-Valid contract :- A contract is declared valid if the agreement is enforceable by law and all theessential elements of contract are present in it. It is legally binding contract and in this all thenecessary elements of contract are included ((McInnes, Kerr and VanDuzer, 2013)). Voidable contract :- A agreement is declared voidable if it it lacks necessary elements of contractunder it. A contract becomes voidable when the consent of one party is not free and due to it legalityof contract becomes over. Void contract :- If any agreement lacks necessary legal elements then this type of contract isdeclared void. Void contract are without any legal effect due to this legality of contract is declaredas void. No legal rights and obligations are imposed upon the parties and void contracts are notenforceable by law. Expressed contract :- Under this contract parties mentioned terms in oral format and written formatat the time of formation. Offer given by one party is accepted by another and terms and conditionsof agreements are also accepted by both the parties. In some cases which includes selling of property and commodities, and making employmentagreements with staff members requires specific documentation process. It is vital that writtenagreements should be signed by all the individuals who are involved in making contract with eachother. Diverse impacts are observed in the process of making contract with each other (Marks,Marks and Jackson, 2013). Nowadays due to new innovations and advancements done in thetechnology companies are preferring to do online contracts. It aids in saving time and cost ofenterprise for making agreements. In cases when it becomes parties to meet face to face with eachother online contracts are signed. Sometimes there is no urgency and need for making writtenagreements and in this type of cases verbal agreements are signed by parties with each other. Whena agreement is signed for selling or buying products with each other parties involved in thisagreements get agree on certain terms and conditions. 1.3It is essential for all the parties involved in making contracts to know certain terms whichare used in this process (O'malley, 2012). An agreement should necessarily have these conditions4
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