Aspects of Contract and Negligence for Business

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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