Aspects of Contract and Negligence in Business- Report
13 Pages5124 Words91 Views
Added on 2020-01-28
Aspects of Contract and Negligence in Business- Report
Added on 2020-01-28
ShareRelated Documents
ASPECTS OF CONTRACTAND NEGLIGENCE INBUSINESS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Importance of essential elements of a valid contract ...........................................................11.2 Impact of different types of contract.....................................................................................21.3 Analysis of different terms in contract..................................................................................3TASK 2............................................................................................................................................42.1 Application of elements of contract......................................................................................42.2 Application of terms of contract...........................................................................................42.3 Evaluating effects of different terms.....................................................................................5TASK 3............................................................................................................................................63.1 Contrast between liability in tort and contractual liability....................................................63.2 Nature of liability in negligence............................................................................................73.3 Vicarious liability..................................................................................................................8TASK 4............................................................................................................................................84.1 Applying Tort of Negligence................................................................................................84.2 Applying Vicarious Liability................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONA contract is an agreement between two parties which is enforceable by law and eachparty intends to create one or more legal obligation between them. A contract will be consideredvalid by the law if the agreement contains essential elements – offer and acceptance, contractualintention, consideration, legal capacity of parties and free consent. The foremost requisite of acontract is that the parties should have reached an agreement. An agreement is said to be reachedwhen one party makes an offer which is accepted by the other party (Veneziano, 2013). Presentreport is on Asda Stores Ltd. which is a British supermarket retailer. The company was foundedin 1965. It became subsidiary of Walmart which is an American retail corporate in 1999.Between 2003 and 2014, it was the second largest supermarket chain in Britain. Apart from itscore supermarket retail, the company also offers a number of other products including financialservices and a mobile phone company. This report explains the importance of essential elementsof a valid contract. Further, it also focuses on impact of different types of contract. Moreover, itexplains the difference between liabilities in tort with contractual liability. Lastly, it explainselements of tort of negligence and vicarious liability.TASK 11.1 Importance of essential elements of a valid contract A agreement will be considered valid by law if it contains following essential elements:1.Offer: It is an expression of willingness to contract. It is made with the intention to bindonce it is accepted by the party to whom it is addressed. An offer may be expressed or byconduct (implied). In case of Harvey v Facey, 1893, it was contented that intentionshould be clear while making an offer. An offer should be distinguished from aninvitation to treat. Whether a statement is an offer or invitation to treat depends mainly onthe intention with which it is made (Bix, 2011). Some examples of invitation to treatinclude – advertisements, display of goods on a shelf in a self-service store. In thiscontext, display of goods in the retail stores of Asda will not amount to an offer but aninvitation to offer.2.Acceptance: An offer is said to be accepted when the other party gives his assent. Anoffer must be accepted in accordance with the defined terms and all terms of offer shallbe accepted. From the case of Entorres v Miles Far East, it can be concluded that1
acceptance will be effective only when it is communicated to the offeror. The term ofacceptance must exactly match the terms of offer as per the case of Hyde v Wrench 1840.The agreement must be certain.3.Contractual Intention: An agreement is not binding as a contact if it is made without anintention to create legal obligation. As per Esso Petroleum v Commissioners of Customsand Excise, 1976 case, there is a presumption that parties intend to create legal obligationin context of commercial transactions (Lurger, 2010). In case of Balfour v Balfour, 1919,it was contended that social and domestic arrangements do not amount to contract as theyare not legally binding.4.Consideration: Consideration is something of value in the eyes of law that is given for apromise and required to make the promise enforceable as a contract as per Thomas vThomas, 1842 case. Following rules govern the law of consideration : Past consideration is not a valid considerationConsideration need not be adequate but it must be sufficientIt must move from the promiseeAn existing public duty or contractual duty will not amount to valid consideration.5. Capacity: The parties who are legally competent can only enter into contract. Person belowthe age of 18 years i.e. minor and unsound mind are not legally competent and contract enteredby them will be void (Sarapinian, 2012).1.2 Impact of different types of contractThe different types of contract include face to face, written and distance selling and thesituation and conditions prevalent at that time decide which type of contract would be formed.Face to face contracts are formed when both the parties are present in the same area asthey are able to meet and discuss facts and figures related to the contract. This reduces any kindof ambiguity related to the terms of the contract and goods can be inspected before entering intocontract.Generally, face to face contracts are entered into written form of contracts as parties canget in touch with each other. All the terms of contract, clauses and conditions are written andsigned by both the parties. This reduces the chance of conflict in future and enables them to carryout contract smoothly.2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Aspects of Contract and Negligence for Business : essential elements of a valid contractlg...
|15
|5258
|162
Valid Contract Law Assignmentlg...
|11
|4033
|298
Essential Elements of Contract Law - Assignmentlg...
|12
|3767
|166
Contract and Negligencelg...
|13
|3548
|138
Aspects of Contractual and Tort Lawlg...
|12
|3995
|192
Essential Elements of Contractlg...
|14
|4913
|95