Aspects of Contract and Negligence Act (docs)

Aspects of Contract and
Negligence Act

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Essential elements of the valid contract.................................................................................1
1.2 Different types of contract.....................................................................................................3
1.3 Explain and analyses the different forms of contractual terms..............................................3
TASK 2............................................................................................................................................4
2.1 Essential elements of contract...............................................................................................4
2.2 Law of terms..........................................................................................................................5
2.3 Remedies available to the Mary............................................................................................5
TASK 3............................................................................................................................................5
3.1 Contrast liability in tort with contractual liability.................................................................6
3.2 Nature of liability in negligence............................................................................................6
3.3 Taking into consideration the Film Flops vicariously liability is explain.............................7
3.4 Elements of the tort of negligence.........................................................................................7
3.5 The law of vicarious liability to the scenario.........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Contract is a legal agreement between two or more parties or individuals. Contract is
said to be valid if both the elements of valid contract are present (i.e. offer and acceptance). If
any one element is missing then a valid contract cannot be formed. Henceforth, the present report
includes various essential elements which are required for the formation of a valid contract. It
also interprets different forms of the contractual terms. In this study, liability of tort, negligence
and defenses is also discussed. At last, various elements of the vicarious liability are also
discussed which get affected with the change in business situations.
TASK 1
1.1 Essential elements of the valid contract.
According to “India Contract Act, 1872” all contracts are agreements but all agreements are
not contract. According to section 10 of the Act, all contracts are agreement only when these are
made up of free consent, lawful consideration and many more as well as these are not declared to
be void by any means (Chalmers, Davies and Monti, 2010). Moreover, some of the essential
elements of the valid contract are discussed below:-
Element Meaning Related case study
Offer
An offer is the act of putting
something in front by the
offeror in order to accept,
reject, consider or something
proposed.
Harvey v Facey [1893] AC
552 Privy Council. According
to this case, Facey has
mentioned lowest price of the
Bumper Hall Pen in telegram
but he has not shown
intention to sale the pen at
£900.
Acceptance It is a promise made by the
offeree that indicates that he or
she is willing to accept the
proposal offered by the offeror
(Koffman and Macdonald,
Felthouse v Bindley [1862]
EWHC CP j35 Court of
Common Pleas. According to
the case, nephew has
discussed with his uncle to
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2010).
purchase the horse but uncle
did not reply and after some
time that horse was sold in the
auction. In this case there is
no contract because silence
cannot be considered as the
acceptance.
Intention to create legal
consideration
In order to create a legal
agreement, there must have
intention among the parties to
create legal relationship.
Balfour v Balfour [1919].
According to the case,
husband promises his wife to
pay her monthly charges for
the maintenance but he
stopped after the certain
period of time. Therefore, it
can be said that it is not the
legal contract. It is simply a
social or domestic agreement
between the both.
Consideration
Consideration is the concept in
which one party is promised to
another party to exchange
something when making the
contract (Cimino, 2010). It does
not include the promise of love,
affection, gifts and so on.
Re McArdle
[1951].According to the case,
the agreement is valid only
before the actual work has
been done. The promise of
payment does not stand valid
after the repairs are carried
out.
Moreover, these are some of the essential elements of valid contract. If any one of them is
missed then a valid contract cannot be formed.
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