Aspects of Contract & Negligence for Business

This assignment focuses on analyzing and recognizing the different components of Contract and Negligence for business. It covers topics such as the formation of contracts, importance of contract elements, impact of different contract forms, analysis of contract terms, liability in tort and negligence, and vicarious liability. The assignment also includes case studies to apply contract elements and laws on terms in business scenarios.

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
Aspects of Contract & Negligence for
Business
Student Name:
Name of the Tutor:
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
Title Aspects of Contract & Negligence for Business
Introduction
1.1 Explain to Peter Abraham how a contract is formed and the importance of the various elements
which has to be present to form a contract.
1.2 Discuss the impact of forming contracts (as it may apply to Peter Abraham) by means of
i. face to face
ii. written contract
iii. distance selling (telephone, internet)
1.3 Give an analysis of the following terms in contracts with reference to their meaning and effect
(including remedies and damages) as it may apply to Peter Abraham.
i. condition
ii. warranty
iii. innominate terms
iv. exemption clauses (including legality)
2.1 Apply the elements of contract in the given business scenarios (Cases 1 and 2)
2.2 Apply the law on terms in the following cases (Cases 3 and 4)
2.3 Evaluate the effect of different terms in the given cases (Cases 5 and 6)
3.1 Explain the similarities and differences (contrast) of liability in tort with contractual liability using
an example.
3.2 Explain using suitable example how liability for negligence can arise and the conditions needed to
be met for a claimant to successfully prove negligence.
3.3 Explain what vicarious liability means and how a business such as your organization can become
vicariously liable giving example.
4.1 Apply the elements of the tort of negligence and defenses in the given business scenarios.
4.2 Apply the elements of vicarious liability in given business situations
Conclusion
Reference
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
Introduction
The main focus of this assignment is to analyze and recognize the different components of Contract and
Negligence for business. Today, the business environment is filled with assertions between organizations
and people. Contracts that are composed provide people and companies with a record that express the
desires, gathering and how they are determined. Likewise, contract is subject to court of law enforce ably.
Organization can utilize their assets and shield them with the help of a contract.
The objective of this assignment work is to give the information and details about the law of contract and
the principle that comes in each case. Applying and demonstrating of a valid contract and their different
parts of agreement. How to enter a contract, terms and condition evaluation, expressing and law
identification with agreement. There is some case which are interrelated but not totally same. We examine
and analyze the agreement of law.
Task 1
In this task, you will be required to demonstrate knowledge and understanding about essential elements of
a valid contract, discuss different types of contract and be able to analyses the impact and effect of
various terms used in contracts.
Peter Abraham is looking to set up as a self-employed building contractor. He is aware that he could be
sued for damages for breach of contract but has very little knowledge and unsure about formation of
contracts or the effect of terms used in contracts. As a friend, he has approached you to get further clarity
as he knows you are studying Aspects of Contract.
LO1 (AC1.1, AC1.2 and AC1.3)
You are required to
1.1 Explain to Peter Abraham how a contract is formed and the importance of the various
elements which has to be present to form a contract.
Answer:
As a friend, I would like to first introduce him to following elements which has to be formed for a
contract:
Agreement: Agreement containing offer and acceptance, it is a presence of an offer and an acceptance of
dissect the whole procedure to choose weather agreement has been made, if so when it was made.
Another important thing is that reaching common term of the party is essential for understanding.
Conditions: Conditions refers to major and important terms of a contract. It is the base for a contract. If
any term is not fulfilled or breached the whole contract is compromised. They are the warranties that
should be fulfilled. Contract is considered complete if the terms are completed accordingly.
Consideration: This is the worth given by the party as a guarantee that should be made. Cash, property,
goals, administration manifestation generally comes under consideration.
Consent: It refers to a party that does not enter onto assertion readily, then understanding is not achieved
so it would be invalid. Peter should take it in consideration.
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
Capacity: If a party have limit have the ability to enter the introduction to a legitimate contract. Capacity
is the main element; peter should build the capacity to have genuine mental approach to enter a contract
with organizations.
Certainty: Peter should attain certainty in his approach to avoid damages and should have clarity. All the
terms of an agreement ought to be clear.
Lawfulness: any type of lawfulness is a better approach for any agreement. I would like to advise to peter
that he should go for lawfulness. In contracts lawfulness have to be obtained because it will be beneficial
for him. In the simple word the contract is protected by lawfulness
Lawfulness: any consent to disregard the law or any assertion illegal by law is void. Contracts are illicit
for two explanations: firstly, in light of the fact that their article is unlawful: besides, since despite the fact
that the item is superbly legitimate, the way of making it is against the law.
1.2 Discuss the impact of forming contracts (as it may apply to Peter Abraham) by means of
i. face to face
ii. written contract
iii. distance selling (telephone, internet)
Answer:
i. Face to Face
It is a type of contract which is done between two parties by face to face. It will help to peter to do an
agreement for his contract. In face to face contract both parties can negotiate to their terms and conditions
and both parties can compensate to each other. In this contract peter, can make his verdict. It is the main
feature of a contract
ii. Written contract
Written contract is an important form of making contracts between parties. In case of written contract
peter can be secure by the written documentation of a contract. In written contract, he is totally safe by
any misconception because the contract is in the written form and he will be benefited by this contract.
Both parties have accepted and signing agreement and keep agreement copies which is essential for them
iii. Distance selling
Distance selling is a contract which is going to be essential for peter. It is a type of contract which can be
made by various facility like internet where you can make agreement between each other. it may be
verbally by means of telephone mobile or etc . I will advise to him that he should do this because this
agreement has a good impression on his contract. Through this agreement he can communicate for his
distance selling and it can be benefited for him
There are some other contracts by types which needs to be understood as well:
Unilateral contract: It is a contract in which someone is making offer in return to some act.
Bilateral contract: when offer is made in return for offer.
Simple contract: It is in written form, but also can be verbal.
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
Standard Contract: It is well documented by both parties.
Verbal contract: It is well documented though, but it is mostly done verbally.
1.3 Give an analysis of the following terms in contracts with reference to their meaning and effect
(including remedies and damages) as it may apply to Peter Abraham.
i. condition
ii. warranty
iii. innominate terms
iv. exemption clauses (including legality)
Please note the key underline words are significant and must be addressed in your answers
Answer:
There are some terms which are essential while doing business. These are explained below:
i. Conditions:
A condition is an integral part of contract which acts as a basis. If a condition is not achieved or break, it
will cause problems and considered denial of a contract. And if a side is affected by it then the contract
may get terminated. In Peter case, he should fulfill clients condition as a builder otherwise he may get
nothing out of a contract.
ii. Warranties:
Good warranty is a security for a contract. It does not act as a basis for any agreement but give security to
it. The warranty can be helpful against claims by any side. So, Peter should consider having warranties.
iii. Innominate terms:
It is not possible for any agreement to predict anything unless terms especially innominate terms are met
successfully. It may help Peter in most of the cases. Because of these terms the affected party may get
some help for their damages. So, these terms are very important and needs to be considered all the time.
By fact, law, custom and trade usage, it is easy to deal with these terms.
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
TASK 2 - Case studies
In this task, you will be required to able to apply the elements of a contract in business situations
LO2 (AC2.1, AC2.2 and AC2.3)
2.1 Apply the elements of contract in the given business scenarios below (Cases 1 and 2);
Case 1 - Agreement
Carol’s student apartment was unfurnished. She perused Gumtree, an online classified ad and saw this
advertisement: “Moving. For sale: a very nice brown leather couch, almost new, £600.” There was an
accompanying photo and contact information. Carol e-mailed the contact, saying she wanted to buy the
couch.
Explain, using cases and statutes, whether Carol has a contract with the seller.
Answer:
Carols need his apartment get furnished and shows interest in buying the leather couch. At this point she
has shown interest. But she will wait to see what the seller is offering. The seller response is vital here, to
get to an agreement we have to look at both sides. So, I think Carol has a contract but she also has to look
for seller response.
Case 2 - Consideration
Preston’s son, Devi, was seeking a cyber-security position with George, Smith & Fogarty, Inc., a large IT
firm. Devi was independent and wished no interference by his well-known father. The firm, after several
weeks’ deliberation, decided to hire Devi. They made him an offer on April 12, 2015, and Devi accepted.
Preston, unaware that his son had been hired and concerned that he might not be, mailed a letter to
George on April 13 in which he promised to give the IT firm £150,000 contract if the firm would hire his
son. The letter was received by George, and the firm wishes to enforce it against Preston.
Explain using cases and statutes whether George can enforce the contract and why?
Answer:
In the given scenario, Gorge already hired Devi and Davi does not know that his father made an offer.
SO, if gorge is a smart guy he can surely enforce to get a contract out of Preston. He can fire Davi if he
does not get a contract. So in my opinion and the knowledge I have about contracts I think he can surely
get a contract out of Preston. In business, some time you have to take advantage of someone weakness.
After its business.
2.2 Apply the law on terms in the following cases (Cases 3 and 4)
Case 3 – Exclusion clause
A couple booked a table at a popular London restaurant. At the entrance to the restaurant the man handed
over his overcoat which contained his wallet with £500 inside. The porter gave the man a receipt which
has on the back an exclusion clause that states “all valuables must be removed from the jacket pockets as
the restaurant will not be held responsible for items missing or stolen”. As the man was about to make
payment for the meal he realizes his wallet was left in the overcoat and went to collect it. He then realized
the money had been taken from the wallet which he sought to recover from the restaurant. The restaurant
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
refused to refund the man stating that there was a clear notice on the back of the receipt which excludes
them from any liability.
Explain using cases and statutes whether the restaurant can rely on the exclusion clause contained
on the receipt.
Answer:
As per my understanding I would say yes, it is the right of restaurant owners to not refund because there
was a clear message to keep things save. We as a restaurant not responsible. After strictly rely on the
exclusion clause. They should find the man who did this, because customer care is important for any
business. If your business has satisfied clients or customer, then you are doing good. Restaurant should
strictly follow the policy they have set. But at the same time find the person responsible so in future there
should be no such incident.
Case 4 – Implied term
Aaron rented a warehouse from Zehphra which had not been occupied for a long period and had fallen
into disrepair. Aaron made significant improvement to the warehouse. Zehphra promised Aaron that he
will not increase the rent for the next 5 years. After a year Zehphra died by then the value of the property
had increased in value partly due to the repairs carried out by Aaron. Yeti inherited the property from her
mother Zehphra and immediately increased the rent. Aaron refused to accept the increase claiming that
Zehphra promised the rent will not increase for a 5 year period. Yeti terminated the tenancy and Aaron
has now submitted a bill claiming compensation for his expenses. Yeti is refusing to pay stating there was
nothing in the tenancy agreement stating that such compensation was payable. Explain using cases and
statutes whether Aaron is entitled to a compensation?
Answer
In business, the most value is keeping your promise. If Zehphra died, then her promise should be kept
despite the increase in property. Ethics is very important in any field of life. For the period of 5 year he
should be allowed with the same rent morally. I think Aaron is entitled to compensation for the period of
5 years, by trade principle, customs, but not by law.
2.3 Evaluate the effect of different terms in the given cases (Cases 5 and 6)
Case 5
The policyholder applied for motor insurance. The proposal form asked: "Have you or anyone who will
drive been involved in any motor accidents or made a claim (fault or non-fault including thefts) during the
last five years-"
His answer was "No."
When the policyholder's car was stolen, the insurer learnt that he had made a theft claim under his
previous motor policy within the five year period. The insurer voided the policy from its start date and
rejected the policyholder's claim. The policyholder argued that he did not have to disclose his previous
theft claim because the insurer concerned had decided not to meet it.
Evaluate the usefulness of the question and the effect of policyholder’s response?
Case 6
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
The policyholder applied for motor insurance, answering "no" to the following two questions on the
proposal form:
"Has the car been altered/modified from the maker's specification (including the addition of optional fit
accessories such as spoilers, skirts, alloy wheels etc.-)"
"Have YOU or ANY PERSON who will drive ... during the past five years been involved in any accident
or loss (irrespective of blame and of whether a claim resulted)-"
When the insurer investigated a new claim, it came to light that the car had been fitted with oversized
alloy wheels, spoilers, and chrome wheel arches, and that the policyholder's husband, a named driver on
the policy, had made two significant claims in the previous five years. The insurer refused to meet the
claim and cancelled the policy from its start date.
The policyholder stated that she had bought the car with the all the modifications already fitted, and she
assumed they were all part of the car's original specification. She further explained that she did not realise
her husband had made one of the two earlier claims, and that his other claim had been rejected because he
had only third party cover at the time.
Evaluate the usefulness of the questions and the effect of policyholder’s responses?
Answer
For both cases, the policyholder lied and hide the facts, which is breach of conditions, warranty and
innominate terms. Written contracts are proving of the both parties. If there is anything which is hide
from other party and after investigation t comes as a lie. Then there is no effect of policyholder’s
responses.
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
TASK 3 – Vocational scenario
In this task, you will be required to demonstrate knowledge and understanding of the principles of
negligence in business activities.
You have been recently promoted in your employment as Health and Safety Officer and has been invited
to give a talk on ‘safety in the workplace and the consequences’.
LO3 (AC3.1, AC3.2 and AC3.3)
You are required to:
3.1 Explain the similarities and differences (contrast) of liability in tort with contractual liability
using an example.
Answer:
Similarities:
Safety in the workplace is one of the most important things. The basic similarity is that it showed be
followed by any means.
Differences are:
By large, the risk in tort is intentionally embraced. While the tortious is forced by law.
A man who goes into a legally binding commitment owes an obligation just to a gathering to the
agreement. In tort, we owe an obligation to everybody not to stigmatize them, not to trespass on their
property and so forth.
The law of tort is essentially gotten from the writ of trespass. The law of agreement grew for the most part
from the three types of activity known as obligation, pledge and as sumps it.
Obligation of care:
The key segment of indiscretion is the authentic commitment of thought. This worries the relationship
between the respondent and the candidate, which must be with the end goal that there is a guarantee upon
the prosecutor to take fitting thought to keep away from conveying on harm to the irritated party in every
one of the conditions of the case. There are two courses in which a commitment of thought might be
assembled:
The disputant and applicant are inside one of the 'one of a kind relationship'; or
Outside of these associations, as showed by the benchmarks made by case law.
3.2 Explain using suitable example how liability for negligence can arise and the conditions needed
to be met for a claimant to successfully prove negligence.
Answer:
As depicted before that tortious responsibility pivots duties settled by law. While strict threat is a standard
for duty which may exist in either by a criminal or normal affiliation. A principle describing strict
responsibility makes a solitary good fashioned at risk for the harm and hardship brought on by his or her
approvals and oversights paying negligible respect to culpability.
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
In the past the tort of lack of regard happened just in limited conditions as accident's all over the place.
Nowadays are any break of a legitimate commitment inciting setbacks to the inquirer achieved via lack of
regard.
It has 3 components:
Obligation of care;
Rupture of obligation;
Harm.
They should all be demonstrated all together for the carelessness claim to be effective.
3.3 Explain what vicarious liability means and how a business such as your organization can
become vicariously liable giving example.
Components for managers to consider
At the point when choosing what level of deterrent activity is sensible, a business ought to consider:
 the size and structure of the association
 accessible assets
 the way of the work attempted
 the work of ladies in nontraditional zones
 the quantity of junior staff
 the working environment culture
 social assorted qualities in the working environment
 any history of provocation
 any applicable arrangements in mechanical honors or assentions
 working hours
 level of supervision
Whatever other applicable element, for example, geographic detachment of the work area, obligations
which require working in close physical nearness, live-in courses of action, and so forth.
Please note the key underline words are significant and must be addressed in your answer
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
TASK 4 - Case studies
In this task, you will be required to apply the principles of liability of negligence to business situations
based on the business scenarios given below
LO4 (AC4.1 and AC4.2)
You are required to:
4.1 Apply the elements of the tort of negligence and defenses in the given business scenarios below;
Case 7
Mr Brown was feeling unwell and went to Goodmayes Hospital complaining of chest pains and breathing
problem. He was seen by a nurse who telephoned the doctor on duty. The doctor asked the nurse to
prescribe some over the counter pain killers. Mr Brown died a day later from pneumonia caused from
toxic mould in his house.
Advice the widower of Mr Brown using cases and /or statutes to support your answer
a) When can the hospital be held responsible for negligence
b) When can the hospital not be held responsible for negligence
Answer:
4.1.a) All around, a commitment of thought rises where one particular or social event grasps a
development which could sensibly hurt a substitute, either physically, normally, or fiscally. It is the duty
of a doctor to check patient, the doctor and hospital are both responsible because a life has been lost. A
Nurse in a doctor's facility has likewise responsible of negligence so hospital is responsible.
4.1.b) Torts are polite wrongs perceived by law as justification for a claim. These wrongs bring about a
damage or mischief constituting the premise for a case by the harmed gathering. For this situation, if the
doctor have diagnose the problem then hospital was not responsible because he is a qualified person to
check the patient.
4.2 Apply the elements of vicarious liability in given business situations below (Cases 8 and 9);
Case 8
A driver working for an executive chauffeur company was sent to pick up a client at the airport. While
waiting for the flight to arrive the driver decides to have few glasses of alcohol. On his way from the
airport to the client’s hotel he crashed into a lamp post and the client suffered serious injury. The
investigation concluded that the driver was over the drink driving limit.
The client is now suing the chauffeur company.
Explain using cases and /or statutes whether the chauffeur company is liable for the driver’s
negligence.
Case 9
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016

Unit 5: Aspects of Contract & Negligence for Business
Unit code: F/601/1271
Unit type: Core
Mr Jones, of Billericay in Essex, was works as delivery driver for a supermarket. One morning while
loading pallets into his truck he slipped on the tail gate and the pallet fell over and injured another
colleague. The injury was so severe that the colleague was left with a torn rotator cuff which required
surgery and months of rehabilitation with a physiotherapist. The colleague is now suing the supermarket
for damages. The supermarket is arguing that, at the time of the accident, responsibility for health and
safety had been delegated to another company.
Explain using cases and /or statutes to support your answer whether the supermarket is or is not
responsible.
Answer:
For case 8, I would say yes because it is the responsibility of the company to appoint individual that are
competent and responsible. The company who hired a person who is careless and not serious should be
blamed. In this case I think company is responsible for the act of of driver because they appointed a
careless person.
For case 9, I think as per understanding, it is the duty of the company to provide health insurance.
Accidents can happen at any time. Company should support their workers especially labor class because
it is there responsibility. If an accident has happened, then the company should provide assistance and
support to the injured worker.
Conclusion
Through the above dialog and the examination for the supporting cases and given situations, this report
has propelled such gigantic data of authoritative law and law of torts. Individuals can get the
understandings from the hypothesis to have the capacity to separate law of agreement and law of torts.
Additionally, individuals can have enough information to have the capacity to examinations and fathom
the diverse down to earth utilizations of legally binding obligation and tortious risk zones.
References
Andrew Burrows, Ewan McKendrick, James Edelman (2007). Cases and materials on the law of
restitution 2nd Edition. New York: Oxford University.
BPP Professional Education, (2004). Mandatory Unit 5 Common Law I supporting foundation degrees.
West Midlands, England: W M Print.
Assignment/hand-out date: 26/09/2016
Deadline/hand-in date: 20/11/2016