Aspects of Contract and Negligence - Desklib

ASPECTS OF CONTRACT
AND NEGLIGENCE
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Table of Contents
Introduction................................................................................................................................3
Task1..........................................................................................................................................3
1.1 Essential elements of valid contract............................................................................3
1.2 Impact of different types of contract...........................................................................5
1.3 Various type of terms affecting the contract...............................................................6
Task 2.........................................................................................................................................7
2.1 Elements of contract in given business scenarios.......................................................7
2.2 Law on terms in different contracts............................................................................8
2.3 Effect of different terms in given contracts................................................................8
3.1 Contrast liability in tort with contractual liability.......................................................9
3.2 Nature of liability in negligence...............................................................................10
3.3 How a business can be vicariously liable.................................................................11
Task 4.......................................................................................................................................12
4.1, 4.2 apply the elements of the tort of negligence, vicarious liability and defences in
different business situation.............................................................................................12
Conclusions..............................................................................................................................13
References..................................................................................................................................1
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INTRODUCTION
A contract is a valid agreement between two or more persons or entities. A contract will
be considered as legal agreement only when two essential elements are present (i.e. offer and
acceptance). Moreover, this report interprets various essential elements required for the
formation of a valid contract. In this various type of contracts are also discussed. Various
type of terms are also discussed which in turn affect the contract. In this report liability in tort
is explained. Moreover, various elements of the tort of negligence are also discussed.
TASK1
1.1 Essential elements of valid contract.
According to law all contracts are agreements but all agreements are not contracts. All
agreements are contract only when they are made up of free consent, competent to contract,
lawful consideration and so on and is not expressly declared to be void (Beever, 2007).
Therefore some of the essential elements of valid contract are as follows:-
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1.1 Meaning Case study
Offer
An offer is the act of offering
something to another in an aim to
sell it or to take something in
return. Moreover, it can be said
that offer + acceptance=
agreement.
Carlill v Carbolic Smoke Ball Co [1893] 1
QB 256 Court of Appeal. According to the
case Carbolic Smoke Ball Co. made an
offer in a newspaper to reward £100 to the
person who caught influenza from using the
balls three times a day. But there was no
acceptance. Therefore, offeror (Mrs. Carlill)
must show in advance his intention to
accept the offer.
Acceptanc
e
It is the process of accepting
something offered by the offering
in order to purchase the thing or to
given something in return.
Butler Machine tool v Ex-cell_O
Corporation [1979] 1 WLR 401 Court of
Appeal. According to the case Ex-Cell-O
want to purchase a machine from Butler
after 10 months. In lieu of which Butler
send him a price quotation with a copy of
sales terms. Ex-Cell-O mentioned in the
agreement that any variation in the price
will not be accepted. Order will be placed at
£75,535 only. In lieu of which Butler
signed an agreement accepting all the terms
mentioned by the Ex-Cell-O.
Therefore, the contract is the valid contract.
Butler demand to pay extra £2893 is not
valid.
Intention
to create
legal
relations:
For creating a lawful agreement
there must be an intention among
the parties to create legal relations
(Caruso, 2007). An agreement of
social and domestic nature does
not form a legal contract.
Jones v Padavatton [1969] 1 WLR 328.
According to the above case, mother
promised to pay $200 per month to her
daughter if she leaves her job but daughter
did not accept. Later on, mother purchased
a house for her daughter for studies. But
due to some reasons daughter got married
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