Business Law: Contract & Negligence

This assignment delves into the crucial legal elements surrounding business contracts. It examines the process of contract formation, highlighting key components like offer, acceptance, and consideration. Furthermore, it analyzes potential breaches of contract and the legal consequences that arise. The assignment also explores the concept of negligence in a business context and its implications for contractual liability.

Aspects of Contract and Negligence
for Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Significance of important elements needed for the formation of a legal contract............1
1.2 Impacts of various kinds of contracts...............................................................................2
1.3 Analysing terms in legal contracts...................................................................................3
TASK 2............................................................................................................................................4
2.1 Contract elements in given business scenario..................................................................4
2.2 Law on terms in various contracts....................................................................................4
2.3 Impact of various terms in given contract........................................................................5
TASK 3............................................................................................................................................5
3.1 Contract liability in tort with contractual liability............................................................5
3.2 Liability nature in negligence...........................................................................................6
3.3 How a organisation can be vicariously responsible or liable...........................................7
TASK 4............................................................................................................................................8
4.1 The components of the tort negligence and defence in various situation of business......8
4.2 The components of vicarious liability in mentioned business situation...........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Contract is a valid agreement between two parties which can be in the form of written or
spoken. It is necessary for the each and every organisation for making any kind of legal
agreement. When there is law enforcement in a contract, it will includes into dictation. There are
different types of formations which is essential in order to make a logical agreement. This report
describes about the negligence and contract among different persons (Capaldi, 2013). Both are
significant elements of business legislations which are required to make as well as execute
relationships with several parties. An organisation is always require of maintaining and
generating link with external and internal clients for making services & products sales to the
buyers. It will happen individual, liability is obligatory on another people. The tort law equal
from the official document of contract. This elements supports to analysis problems of obligation
in negligence in context of business organisation and how it can be ignored.
TASK 1
1.1 Significance of important elements needed for the formation of a legal contract
In the case, Peter Abraham is a building contract, they have little knowledge about the
breach of contract. Everything is needs several components that should be ensured in order to
make a valid contract in a better way. Above all elements that is followed by Peter Abraham to
build a legal statement with a potentials clients are as follows:
Offer and Acceptance: It is a first process for starting an agreement is individual persons
is making proposal to another peoples which will be legal. In the scenario, there must be a legal
acceptance and offer in relation to the other party.
Intention to generate legal relations:
Consideration: Promise cause is known as consideration, without this elements contract is
invalid. For instance: A contract between A and B, A is sell their house to B person at $300,000,
B agrees to give $ 300,000 for the building (Hiles and Hon, 2016). It is known as consideration
process which is irregular when:
 It is dishonourable
 Forbidden by aggregation Court may respect it as dissolute
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Capacity of parties: In the contract, both parties are capable for generating a lawful
connection between them (Kehoe, 2013). They must be mentally, legally and physically fit for
the contract creation. In this agreement individual have less capability and other has genuine in
enter the enforceable and legitimate contract introduction.
Priority of contract: As per the given case, court had to believe the contract construction.
In this way, an individual contract priority should be essential to sort out all problems in an
effective or efficient manner. In this, contract between both parties that will be respond in order
to generate the legal statement free of different coercion as well as other types of physical or
mental pressure.
1.2 Impacts of framing various kinds of contracts
All contract which is construct on various conditions and terms. They are provides an
agreement in a complete way. Before incoming into a bidding, different authorities will often be
create by individual in regards to induce and encourage another to get into the contract. There are
various kinds of contract have different effect on the form of objectives as well as parties of a
statements (Joint and Baker, 2011). All these are apply to Peter Abraham which have been
discussed under this:
Face to face: Under this type, all parties are agreed by face to face. In this contract, trust is
required among the different persons. There are various ways which define, it is very supportive
and valuable for the groups are as follows:
 Particular actions of another party.
 After and before the agreements conduct of both the parties required.
 Past transaction with another.
But sometime its effects never positive such as:
 Transaction value is remarkable very high Substantial document presentation which may be rise different uncertainty and question
in the parties mind.
Written contract: It is mainly signed various persons in written form with sustaining the
assumption. So in this, various terms of legal statements among parties are given in the
document without verbal contract. Such kind of aspects is very useful and beneficial for the
person in order to understand all issues in an easy manner.
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Distance selling: In this way, contract between the two parties which is completed regarding
their responsibility and specified obligations. This kind of element is easier to transparent and
form in order to perform undoubtedly (Marks and et. al., 2013). It will protected the user rights
when purchasing goods from a distance. It will set out the important information, so in this seller
must provide about the services or goods on offer, it will considering:
 Information regarding the seller.
 A services and goods description.
 Commodity price.
 Less time of the legal bridge for services.
1.3 Analysing terms in legal contracts
Condition: It is an important way which is specific to the agreements aspects. For
example: A person sell out their property to B, in this break of condition are generate between
both parties. It will suffice the harmed person for case harm and deny the statement. In this
situation, harmed and injured party settle to occur with the legal statement, thoughtless of the
break and recoup damage.
Warranty: It is less important way; it is do not head off the agreements foundation. A
warranty rupture will just provide the damage party. They have precise to claim injury; they can't
mistake the legal agreement. It doesn't impact in the contract root, in this warrant breach only
provides the harmed person a right to averment damage.
Innominate terms: It is define as a contractual ways that lie in obscurity. In this term is
an essential one. For example: Breach is a serious terms to take the innocent persons of
sustainability the entire advantages it was to acquire from the bridge (McArthur and et. al.,
2011). It is difficult in order to characterize as a perfectly term that ahead of period as either a
warranty or condition.
Exemption clauses: It clearly defines the limited liability of the person in context of their
contract. In simple word, it means that one party can protect themselves from the legal action
taken by another person for loss, damagers, non-performance and negligence etc., as well as its
liabilities are gravely restricted.
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TASK 2
2.1 Contract elements in given business scenario
Above define all elements which are essential in regards to identify the agreement. A
business statement is composed of different elements. They are mainly depend on nature as well
as kind of contract.
In these respective case the contract act is enforced in practice (Kehoe, 2013). This law
implemented in the practices of UK and defined in English law as English contract act 1875.
This particular law works for securing the rights of both the involving parties and protecting
them from any kind of fraud made through development of void agreement.
Case 1: Agreement is developed by the both involving parties. This formed by the
engagement of offree and offerer. The offree is the person is offering something who demands
for the acceptance from another party. While the agreement is formed after getting acceptance
form the responding party. So, in this respective case after sending mail to the Gumtree online ad
the agreement is formed between both the parties by getting acceptance from the Carol's student
for showing interest in purchasing leather couch at price of 600 pounds. In this case scenario,
Carol's is a acceptance because Gumtree offer their products with the help of advertisement, so it
is known as agreement. Gumtree offered a legal statements by Carol. In second condition, Carol
was assigned a project of buying a product so they are called as acceptance.
Case 2: In this respective case the consideration of the father is not appropriate as he is
not having knowledge about that his son is already hired by the IT firm George, Smith &
Fogarty, Inc. So, this agreement made between the Devi father and the IT firm for the 1, 50000
pounds is considered to be void and not a valid contract as the information about the Devi hiring
on 12 April is not communicated to his father by the firm (Joint and Baker, 2011). So, there is
not consideration for both the parties.
2.2 Law on terms in different cases
Exclusion clause is the legal term applied in making a legal relation with any of the
services provided by the firm to its customers. The exclusion clause helps to protect the company
from any claim made by the opponent party from any of the breach of duty in practice.
Case 3: In this particular case the men is handed over with the exclusion receipt which is
written that the person should not keep important object in the coat. So, the restaurant is not
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liable for the paying any losses to the main as person is having 500 pounds in his coat as this is
written in exclusion statement by the restaurant (Hiles and Hon, 2016). This will protect the
hotel for any claim from the opponent. In this case, hotel is not liable for compensating the
person as per the exclusion law. This act protect the company in regards to no compensate their
clients.
Case 4: As per the tenancy law and the contract act this can be evidenced that the owner
is having right that he can terminate the tenancy agreement at any time. So, the Aaron is not
liable for making demand for any compensation. In this case such kind of people is responsible
to terminate the agreement. But Aaron is not liable and responsible for making needs and
demands for any type of compensations.
2.3 Impact of various terms in given contract
The case can become void agreement of the important information about the contract
condition are concealed by any of the involving parties. The person should not be labile to
compensate over the losses as the agreement developed is void.
Case 5: In this respective case the the agreement develop between the insurer and the
policyholder is not enforceable by law. The person should be provide all the information to the
insurer in order to develop legal contract with the insurance company. So, this case is not liable
for demanding for the compensation. Such kind of person is unenforceable by law and
regulations. They give all necessary information and data to the insurance company in regrades
to develop and improve lawful legislations.
Case 6: In this respective case the policyholder did not communicated about the changed
alloys and light of the car while developing an insurance contract (Capaldi, 2013). So, the
individual should liable to claim for his losses to the insurance company as he concealed
important information about the car conditions. This become void contract which is not
enforceable by law and the insurance firm is not liable for compensate over the losses.
TASK 3
3.1 Similarities and differences between contract liability in tort with contractual liability
Duty of care in the negligence tort: Prime components of negligence is lawful duty. It is
an essential part of the contract which concerns the connection between claimant and defendant.
It is true that there is any kind of obligation and responsibilities on the defendant in order to take
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accurate care as well as ignore causing damage to the complainant in whole the condition of case
(Middlemiss, 2011). As per the health and safety officer, there are mainly two kinds in which
responsibilities and roles of care in the negligence that be determined:
 The claimant and defendant are have better relationship.
 External of these connection, as per the principals which is developed and create by law.
Differences between obligation in tort and contractual liability:
Specifically, contractual responsibilities are voluntarily which is appropriated, while
tortious duty are obligatory by the legal document. They have a freedom of choice regarding
entering into an agreement and bound by certain obligations. As respects tortious obligations,
they will be not provided a better choice. All person into the obligation which is never defame by
another, not to tort on belongings to another.
 An individual who come in a contractual duty, it is define the responsibilities of party.
When tort which is define the ever person duty in order to calumniate them, without
trespass on its place.
 There is some kind of Historical variation. The tort law is primly traced from the trespass
writ. Contract law which is developed in the three forms such as sumps, debt and
covenant etc.
 Mostly, liability in legal agreement is very strict and another is tortious liabilities which
is mainly lay on fault (Miller, 2013). So in this, business can support their patients in an
essential manner. In this manger of the organisation is very strictly behave their clients
because of their liabilities.
 A tort is normally accept but a legal bridge is supported on the parties consent.
 Priorities are important in misconduct but it is essential to implied in lawful contract.
 Arise from infraction in performing duties and roles but a contract breach happens direct
wrongdoing of a right. Motives and encourage is considered with providing particular importance in tort, it is
connected to the contract breach.
For example: Mr. A contracts with B to buy a product at $ 200,000. If Mr. B fails in
order to provide the commodity within the specific duration, they will be written agreement
which is responsible to Mr. A. Likewise if A fails to provides the amount of goods, they will be
incurs contractual obligation for the failure sustained by B.
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3.2 The way liability nature in negligence can arise and conditions needed to be met for a
claimant to successfully prove negligence
As per the health and safety officer; negligence is a kind of civil or tort incorrect. To be
responsible for everything in the law which means to be liable in different root for a result that
output in the law violation which incurs condemnable liability. In order to be liable that
outcomes in a damager to another reason civil liability. Negligence is a basic problem which is
faced in the firm during business operations and functions (Aspects of Contract and Negligence
for Business, 2017). Basically, it is a legal statement in which both parties get agreed upon same
thing with mutual consent. There may present negligence between one or both persons. In this
they are responsible and liable for making any kind of laws and legislations because it is very
important for the company to easy sort out all issues in an effective or efficient manner.
In this criminal negligence, it is verified as well as difficult to establish. According to the
others, it has four parts that can be reasoned in civil wrong negligence (Odinet, 2016). Primly,
the litigant must owe several duty sort to either general or plaintiff public. Next, the suspect
unsuccessful to honour the responsibility in various way. Third one is, the complainant change
several sort of damage like; emotional, financial and physical etc. Last is, liable people could
have interrelate that the plaintiff's occurrence may cause damage to complainant. There are
several features of negligence which are determined under this:
Standard are not same as for adult and children.
Deferences against negligence and careless: For instance, in a parking, two person has
lot hit together with the products and the magistrate analysis that the product part was 65 %
defective. So, the first part cannot sure another part. But second part can litigate the prime for 65
% harm of net loss.
3.3 Vicarious liability and the way an organisation can become vicariously liable
Vicarious liability: It is define as a liability and sustainability for the torts of another and
develop due to connection among the parties. It is also known as English tort law doctrine that
imposes hard-and-fast liability on managers for the evilness of their workers (Pathak, 2013).
Mainly, a handler will be a responsible for any kind of tort bound up while a workforce in
managing their responsibilities.
As a health and safety officer, a manager, careless of their size and situation that may be
lawfully liable for harassment and discrimination which will be happen in the organisation or in
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link with an individual's employment inferior, it can be identify that, entire liable phase which
have been interpreted in order to decrease this liability. So it is known as vicarious liability.
A manager may be vicariously responsible for the analysis of:
 Personal workers and teams of employees
 Managers, supervisors and directors
 Workplace involvement where different persons are work with the achieving common
interest on the similar premises, but some time they have various managers.
 Agents like; salesperson of the insurance which are mainly operating as per the business
behalf.
 Contract persons or employees being provide commission. An organisation partner which are harassing another person.
Liability of personal: In this an individual is liable for own harassing and discriminatory
behaviour in the working environment (Potter, 2012). In this both the manager, who has been
analysis to have never interpreted whole liable phase in order to prevent the harassment ass well
as discrimination from occurring.
Factors for managers to consider: It will deciding what preventative action level is
reasonable and liable, a manager should considers:
 Present resources
 Organisation structure and size
 Work nature undertaken
 Gender equilibrium in the company.
 Woman employment in non-traditional locations.
 Workplace culture
 Any harassment and discrimination history.
TASK 4
4.1 Elements of tort of negligence and defence in given business scenarios
Tort of negligence: It is legal mistaken which is suffered by all persons at another hand
who neglect to take accurate care in order to deflect what a liable people would respect as a
predictable uncertainty (Puil and Weele, 2013).
Elements of tort of negligence: There are several kinds of elements such as:
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1. Duty
2. Cause in fact
3. Breach of duty
4. Damages
Case 7: In this case Mr. Brown was feeling not poorly and they went to Goodmayes hospital.
They has some problems about breathing and chest pain. In this hospital is responsible to
compensate widower of Mr. Brown. It is a duty of doctor to help harm person, but they not teat
the Brown, so he is died a day. Widower should apply the tort of negligence, because it is very
useful and legal to give compensation to her (Qian, 2011). Cause in fact is define the Brown is
has breathing and chest pain problem's, it is a real, he is not jock in this situation. Breach of duty
which is identify, doctor do not fulfil their responsibilities so he is damage.
4.2 Elements of vicarious liability in given business situations
Vicarious liability: It is identify as a condition where several person is held liable for the
omission and action of other people. In an organisation context, a manager can be responsible for
the omission as well as acts of its workers.
Different components of vicarious liability: There are some elements of vicarious liabilities
such as:
 Recruiting and training right persons
 Claim for loss
 Managing the liability happen for negligence for another part
 Gives workers benefits
The manger can dismiss workers under the several reasons which are as follows:
 Misconduct of the worker
 lack of ability and capability
 lawful situations and conditions Redundancy
Case 8: In this case, company is not liable because it is a driver fault. They breathe the company
and governments rules and regulations. Responsibilities of there is topic up a customers at the
airport. But they decides to have few alcohol and glasses. Their car is crashed into a lamp post,
so clients suffered serious damage (Rancourt, 2011). They are responsible to sue the driver
regarding their compensation.
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Case 9: In this case Mr. Jones is working in the supermarket. They loading pallets but it is
slipped. He is injure, so it is a company responsibility to give compensation by them. As per the
government rules and regulation, it is a liability of company to secure their workers in an
effective or efficient manner. At the period of the accident, liability for health and social which
had been emissary to another organisation (Roizen, 2012). In this case, Mr. Jones sue the
company regarding their compensation.
CONCLUSION
From the above report, it can be determined that contract and negligence is a written
document part. It is apply by each and every organisation in order to reduce all issues in an
effective or efficient manner. To do many organisation, contact is making as an essential part.
There are different agreements which are incurred in the enterprise among the different parties.
Agreements is known as legal and valid contract in company. But negligence is define as a
common phenomenon of a firm. It is in vicarious as well as tort responsibility which support in
order to enhancing the contract practical knowledge in organisation context. Each and every
types of business have to turn with different kinds of legal agreements with various parties.
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Aspects of Contract and Negligence for Business. 2017. [Online]. Available through:
<http://www.academia.edu/11416991/Aspects_of_Contract_and_Negligence_for_Busine
ss >. [Accessed on 24th November 2017].
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