Aspects of Contract & Negligence for Business

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