Aspects of Contract and Negligence for Business

ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1:LO1......................................................................................................................................3
1. Essential elements required for forming a valid contract (AC 1.1).............................................3
2. Identification and explanation of Types of contracts that may be entered in UK by individuals
and business (AC 1.2)......................................................................................................................4
3. Different terms that can be included in a valid contract (AC 1.3)...............................................4
Task 2: LO2.....................................................................................................................................5
1. Application of elements of contracts in the given business scenarios (AC 2.1)..........................5
2. Application of law on terms in different contracts (AC 2.2).......................................................5
3. Evaluation of effect of different terms in given contracts (AC 2.3)............................................6
Task 3: LO3.....................................................................................................................................7
1. Contrasting liability in tort with contractual liability (AC 3.1)...................................................7
2. Explaining the nature of liability in negligence (AC 3.2)...........................................................8
3. Explaining how a business can be vicariously liable (AC 3.3)...................................................8
Task 4: LO4.....................................................................................................................................9
1. Application of the elements of tort of negligence and defences in different business situation
(AC 4.1)...........................................................................................................................................9
2. Applying elements of vicarious liability in given business situation (AC 4.1).........................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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INTRODUCTION
The Civil law of UK covers the aspects of contracts in diverse form in books of law. The
agreement generally made between two or more parties enforced by laws with the legal bonds is
known as the contracts in the society. The negligence is the situation in whicvh one of the party
bonded in agreement fails to comply with the agreed terms and condition. Negligence of the
contracvt cvan be observed in the situation where there is situation of one not wiulling to
participate in terms of the agreement. The contract can be seen in negligence if there is chance of
perceiving injury. The present assignment deals with understanding different contracts and terms
of contracts for fulfilling legal aspects in the organisation.
TASK 1:LO1
1. Essential elements required for forming a valid contract (AC 1.1)
As mentioned by Featherstone et al. (2015, p.50), a legal agreement between two parties
enforced by law and accepted by two parties is called as contract. Every legal and valid contract
includes elements determining the viability and the contract of organisation or two parties.
Freddy can use the following below mentioned contract for forming the business along with
various terms.
Offer: It is essential to have a contract which needs to be legalised by government and
legal authority for the better fulfilment of the offer and the contract. Offers mean an invitation or
a proposal by an individual to another to show prime willingness of entering a legally bonded
contract (Smits, 2014, p.55). Freddy offered for the sale of the high definition TV for £145
through e commerce.
Acceptance: As inferred by Thomas and Wright (2016, p.67), a contract can be initiated
only after the acceptance of the offer properly by one party to another. The acceptance depends
upon consideration proposed by one party to another party. Therefore, there is a need for
similarity between offer and acceptance without modification. Layla responmded to th
advertisement and presented to buy to the high definition TV for £125
Consideration: As mentioned by Micklitz and Reich (2014, p.800), the consideration in
an agreement is one of the most important aspect, as the performance of the parties should be
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based on the consideration. The consideration term marks the agreement to have something in
return for the completion of the agreement. Freddy with no no other cjhoice in the offer, accepted
the reply offer of Layla and decided to sell the product at £125.
Intention: The term intention means that the every party need to have a common
intention of fulfilling the agreement maintain the consideration of the agreement. Since, the
agreement between the charitable factors includes love, bond and affection, there needs to be an
intention between two parties agreeing in one agreement. As per the contract there were no ill
intentions of Freddy and decided as he decided just to sell the product.
2. Identification and explanation of Types of contracts that may be entered in UK by individuals
and business (AC 1.2)
Written and Oral Contracts: As supported by Dowell et al. (2013, p.445), written
contracts are the agreement signed by two parties with mutual consent with signed paper for the
better chance of providing evidence of the agreement.. The documents provided are duly signed
by the parties on the consent of legal authorities. On the other hand, the oral contracts have no
such documents in the agreement. Verbal agreement has no documents for supporting agreement
in the future.
Business to Business contracts: Agreements between two commercial units or bodies in
the society is called as business to business contract. The Business to business contracts are
bound by law and generally deal with support of maintain the price and the quality of the
product.
Business to consumer contract: These contracts takes place between consumers and the
seller of a product, where the seller agree to sell the object and the consumer who is willing
accepts the proposal; depending on satisfactory level of the consideration. In the above case
scenario, Freddy and Layla were bided in a written contract as Freddy advertised, Layla accepted
and the consideration was accepted by both Layla and Freddy via mail, which is in written and
can be used in case of proof.
3. Different terms that are included in a valid contract (AC 1.3)
Implied terms: As supported by Turner (2014, p.78), the terms or the facts which are
taken as default in making any of the contract are viable. The implied terms refers to the values
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