Aspects of Contract And Negligence for Business TABLE OF CONTENTS INTRODUCTION 3 TASK 13

7 TASK 38 3.1 Contrasting the differences in the legal relationship between parties in tort law and parties in contract law. 8 3.2Identifying the things requiredin establishing eachofthe requirements of negligences 8 3.3 Identifying the things required of vicarious liability10 TASK 4 s 10 4.1 Applying the rules of negligence10 4.2 Applying the rules of vicarious liability11 CONCLUSION 11 REFERENCES 12 INTRODUCTION A contract is defined as legally bindingpromise which can be formed orally or in written by one party

Aspects of Contract
And
Negligence for Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Importance of essential elements of contract..................................................................3
1.2 Impact of unilateral and bilateral contracts.....................................................................4
1.3 Analysing the way exclusion clause becomes incorporated into a contract...................5
TASK 2 ...........................................................................................................................................6
2.1 Applying the elements of a contract to the agreement between Colin and Moran and Colin
and Jason................................................................................................................................6
2.2 Exclusion clause in the contract .....................................................................................7
2.3 Applying the Consumer right act 2015 To the Exclusion clause....................................7
TASK 3............................................................................................................................................8
3.1 Contrasting the differences in the legal relationship between parties in tort law and parties
in contract law. ......................................................................................................................8
3.2 Identifying the things required in establishing each of the requirements of negligences8
3.3 Identifying the things required of vicarious liability.....................................................10
TASK 4 s........................................................................................................................................10
4.1 Applying the rules of negligence ..................................................................................10
4.2 Applying the rules of vicarious liability ........................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
A contract is defined as legally binding promise which can be formed orally or in
written by one party with the purpose of developing legal relation. The important elements of
valid contract are offer, acceptance, consideration and intent to create legal relations. Contract
law in United kingdom is defined as a body of law which regulates contracts in England and
Wales. It is essential for party to make an offer and another person to accept the same. Objective
of contract law is to allow both parties to gain equal benefit from agreement. It also provides
parties with remedies in case of breach for contract. It is very much important for parties to fulfil
their roles as well as responsibilities as per the terms and condition in the contract.
Purpose of report is developed understanding about contract law in United kingdom. It
also has emphasizes on identifying the important element of valid contract.
TASK 1
1.1 Importance of essential elements of contract
A contract law governs the agreement between private parties. There are various
elements which are required to be considered by parties before entering into a legally binding
contract. As per the contract law in United kingdom, if all elements as per the contract law are
not fulfilled in such a case or situation parties does not have the right to sue other person for
not fulfilling the roles as well as responsibilities as per the terms or condition in agreement. It is
very important for parties to fulfil all the requirement when entering into contract , so that they
can execute their rights when required (Draper and Newton,s2017). Two persons in order to
enter into a valid as well as legally binding contract has to show their agreement about an offer
or proposal presented by other party. The several elements of valid or legally binding contract
are:
Valid offer : As per the contract legislation in United kingdom, an offer can be defined
as a promise to act or refrain from acting, which is made in exchange for a return promise to do
the same. There are few types of offers which expected to be performed by the parties in order to
get various benefit in exchange (Weber, 2017). For instance , an offer or proposal for painting
the house is given by an individual to painter.

Acceptance :It is the very important element which is required to be considered by
parties if they have intention or purpose to enter into legal relationship. For instance , if a person
has presented an offer to painter for painting the house , then same should be accepted by the
painter. If both the parties are agreed with the terms and condition they can enter into legally
binding contract. Acceptance is the very important element which is required to be considered by
parties if they have intention or purpose to enter into legal relationship. For instance , if a person
has presented an offer to painter for painting the house , then same should be accepted by the
painter. If both the parties are agreed with the terms and condition they can enter into legally
binding contract.
Considerations : In order to form legally binding statement , both the parties in contract
should be aware about all terms and condition in agreement. For instance , painter and person
who has presented the offer should be aware about all the conditions (Stevens, 2017).
Intention to create legal relation – It is very important that both the parties should have
intention or purpose to enter into the legally binding contract.
It is very much crucial for parties to fulfil all conditions in order to enter into a valid
contract , as is in case contract conditions are not met it is possible to terminate written
agreement and seek compensation or damages.
1.2 Impact of unilateral and bilateral contracts.
A unilateral contract is defined as an agreement which is created by an offer than can
only be accepted by performance. Such type of contract can be develop[ed by one party by
expressing proposal which should state that the offer can only be accepted directly by
performance. Unilateral contract can be considered to be as one-sided. In Unilateral agreements'
offeror, makes a promise to pay certain amount of money in exchange for an act.
A bilateral agreement is defined as mutual arrangement between two parties which
promises to perform an act.
As per the contract law, both unilateral as well as bilateral written agreement have direct
as well as significant impact on interest of parties. In context of unilateral contract, promise is
made by parties in certain conditions (El-Gendi, 2017). In context of unilateral contract, offeree
acts on the offerors promise, an individual who present proposal is legally obligated to fulfill the
contract. In informal unilateral contract both the parties can not file law suit again each other, as
there is no agreement in written.

In bilateral agreement both the parties form written contract and they have rights
provided by contract law to file law suit against each other.
1.3 Analyzing the way exclusion clause becomes incorporated into a contract
An exclusion clause is defined as the article or provision which limited the liability of
parties into a contract. This clause states the conditions up to which one party has liability or
responsibility towards other. Exclusion clause can also be recognized as a term in a contract
which purpose is to exclude one of the parties from liability the person's liability to specific
conditions.
If in case, organization want to rely on an exclusion clause, then in such conditions or
situation they have to present the evidence that parties have intention to enter into a legally
binding contract. An exclusion clause can be incorporated into the contract through different
ways such as: By notice, signature, by course of dealing.
Signature : As per the contract law, If the plaintiff signs a legally binding agreement
which have contractual effect containing an exclusion clause., then in such situation it form part
of the contract. Once a party sign the contract or agreement, then an individual has to follow the
terms and condition in contract or agreement. In case, exclusion clause has been dictated orally
then in such situation the party will not be bounded by the exclusion clause.
For instance case scenario of Curtis V Chemical Cleaning Company. A lady has given
offer to clean the wedding dress and has promise to pay certain amount of money after
completion of work. Plaintiff has signed the receipt after listening to the assistant that they are
exempted from the liability for damages to beads and sequins (Stone and Devenney, 2017).
When the dress was given to plaintiff, wedding dress was badly stained. In the above case
scenario, the cleaning company can not escape from the liability. As the exclusion clause was
not in written, the laundry company has to fulfill their liability and has to pay for damages.
Notice : According to the contract law, exclusion clause might be included in an
unsigned document such as a ticket or notice. It is important for party to provide reasonable
notice of the exclusion of liability to other person.
For instance a case scenario of Olley V Marlborough Court , an individual has booked
hotel. During the stay at hotel , stranger gained access to her room and stole her mink coat. The
hotel management has already written an exclusion clause on the back of the bedroom door that

proprietors will not hold themselves responsible for articles lost or stolen. In such situation, the
court will take action against the hotel management.
Course of dealing : As per the case law, where there has been poor or incomplete
notice, an exclusion clause might however be corporate where there has been a former consistent
course of dealing between the parties on the similar conditions.
TASK 2
2.1 Applying the elements of a contract to the agreement between Colin and Moran and Colin
and Jason
Colin And Moran - In the given case scenario, Collin has given offer to the Morgan for
providing the adventure playground equipment and in return has promises to pay the 9000 dollar.
As the proposal is not accepted by the mordants, there is no valid contract between the parties.
It is not considered to be as contract between parties, as one person has made valid offer but it
has not been accepted by other. As per the contract law, It is important for the parties to have
intention to enter into a legally binding contract. In addition to this in order to form valid
contract once the offer is made by one party, same should be accepted by other.
Colin and Jason – It has been analysed from the given case scenario that Jason has
demonstrated his consent to sell the adventurous equipment to Collin as scrap for free. Collin has
taken that equipment and next day, stated to Jason that he is delighted with the playground
equipment and offers to pay Jason £5,000 and same has been accepted by Jason too (Kummer,
2017). In given case offer has been made and accepted by both the parties.
2.2 Exclusion clause in the contract
According to the contract law, the exclusion clause is considered to be a part of contract
or an agreement when it is signed by the parties, proper notice has been provided. The third
element to form valid contract is proper detail about the condition which has been provided.
In given case scenario, First condition that is document which consist of the exclusion
clause should be signed by both parties are not fulfilled. Second condition, proper notice should
be made. It has been analyzed from the given case scenario that the sign of danger is only
visible to customers when they leave the garden center property. It indicates poor notice
arrangements, and in such situation the Colin who has created the garden is responsible or liable
for accidents (Jones,2017). As per the third condition which is required to be fulfilled is that the
visitors should be provided with all the details or information about the risk and as well as

instructions which are required to be followed by them . In context of given case scenario, the
exclusion clause does not form a part of contract.
2.3 Applying the Consumer right act 2015 To the Exclusion clause.
According to the unfair Contract Terms Act in context of consumer, a person has the
right to be sue other party for negligence of risk. Consumer Rights Act 2015 has replaced the
Unfair Terms in Consumer Contracts Regulations and regenerate the Unfair Contract Terms Act
in context to consumer contracts as well as notices.
It has been analyzed from the given case scenario that Collin has high level of concern
that the new adventure playground may mean that the garden center is at risk of negligence
claims. Collin in order to prevent such obligation has incorporated notice board but at wrong
place.s
Yes, Collin can rely on the clause, but art the same time he should understand that unfair
contract terms act is applicable only to liability arising in the course of a business and in relation
to liability arising towards other businesses. The Unfair Contract Terms Act widen beyond
obligation arising from contracts and widen to torturous liability arising from carelessness or
obligation arising from the Occupiers Liability Act 1957.
As per the contract law in Hong Kong, an organization can not limit the liability for death
or personal injury arising from negligence. As per the consumer right act 2015 In Hong Kong,
consumers who have paid money are entitled to services, rather than goods. In addiction to these
customers are also entitled to protection under the law (Marsh, 2017). In given case scenario ,
visitors vising the park can ask compensation for the injuries to the children or can file law suit
for the death of person due to negligence of risk by Collin.
TASK 3
3.1 Contrasting the differences in the legal relationship between parties in tort law and parties in
contract law.
In contract of the contract law , it is important for both the parties to enter into a legally
binding contract. On the other hand , Tort is interaction which does not include consent.
The contract law is recognised as the legislation which governs or regulates contractual
agreements between persons. A contract is defined as an agreement which generally takes
between parties. It can also be considered as legal document which defines the duties as well as
responsibilities of parties (Bergqvist,2018). On the other hand , in context of tort law, it governs

the situation where one party or an individual has suffered losses or harm due to the act of
another person. It also covers violations where the party deliberately harmed the other person.
The another difference between two is that contract law highly the things which are to be
included or not in agreement or contract. On the other hand, Tort laws highlight the different
situation where parties can be held responsible for the act which may not be executed by them
purposefully.
The major difference between two can be made in context of courts award damages.
With regards to contract law, the intention of a damages award is to the parties in re achieving
their position before the breach occurred. Whereas , in context of Tort law, the damages are
usually awarded to compensate the person who have suffered losses.
3.2 Identifying the things required in establishing each of the requirements of negligences
Negligence by a party or an individual can result into harm to another person and such
situation might lead to the legal obligation on person. For instance , in a case study , Colin is
the employer , and due to his negligence of risk, a girl has got injured by slipping on the floor
due to the leakage of water from refrigerator (Patten and Saunders,2018) . The negligence
generally consists of five important elements these are :
Duty :in establishing each of the requirements of negligences, it is very much important
for the parties to have relationship and they should have some duties towards each other. For
instance, a employer owes employees a legal duty to provide healthy and safe working
environment.
Breach of duty : It is considered to be as another most important element, the court may
take decision on the basis of information defendant knew at the time, would have known that
someone might have been injured as a result of their actions. In context of case scenario of
Colin, He was aware about the fact that due to the leakage of water and negligence of risk can
give rise to the accident.
Causation : In third element , it is needed by the plaintiff to provide evidence that injury
or harm is caused due to defendant's carelessness. In context of given case scenario, Colin can be
sure that injury has been caused due to negligence of risk by worker. If in case the defendant's
actions some ways caused the plaintiff injury through a random, unexpected act of nature , then
in such situation Colin can not hold responsible. In context of given case scenario , Employer
that is Colin is not responsible for the employees injury due to some natural disaster.

Damages : It is recognised as last but most important element of a negligence. This
element states that court or person who is liable for the injury or losses suffered by another
party has to pay compensation.
The obligation a defendant is accountable for can be mitigated utilising a few ordinary
defences such as :
Contributory Negligence : It is considered to be as a defence action which is taken by
defendant in order to reduce the amount of damages which is required to be paid by them. By
utilising this defensive technique a defendant might seek to exclude all potential obligation to
another person in advance of exposing themself to the risk of a possible claim (Clarke, 2017).
Contributory Negligence is considered to be as partial negligence which means that the defence
is permitted then the defendant would only be likely to pay the damages which was due to his
part in the tort.
Comparative negligence : This is considered to be as an effective defence. As
comparative negligence reduces a complainant recovery by the percentage in which the plaintiff
is at fault for damages.
Assumption of risk : It is required by the plaintiff to have the detail information or
knowledge about the incidence of accident as well as risk involved in activity.
3.3 Identifying the things required of vicarious liability
Vicarious liability is defined as the form of a strict, secondary responsibility or liability
which might arise. In context of employer, might be held directly as well as indirectly
accountable for fulfilling the requirement of their staff members. It is very much important for
employer to fulfil their roles as well as responsibility in the scope of employment (Business
Law,2018). Employer is required to provide all the essential facilities to workers as he has
promise to provide during the time of recruitment.
The requirement of vicarious liability are relationship between employees and
employer , The employee’s conduct must constitutes delicti, and workers should also work under
the scope of employment , etc.
Employer and employees relationship- It is important for workers as well as employees
to develop professional relationship with each other in order to establish vicarious liability.

Employee’s conduct must constitutes delicti- Employer have the vicarious liability or
the acts conducted by their staff due to which another party has got injured or have to suffer loss.
In such situation, might utilise any defensive technique (Howells and Weatherill, 2017).
workers should also work under the scope of employment – It is vicarious liability of
employee to perform all the tasks as per the instruction provided by employer.
TASK 4
4.1 Applying the rules of negligence
As per the rules of negligence in context of employment , it is the duty of employer to
provide the clear instruction to workers.
Duty : In context of given case scenario , it is the duty as well as responsibility of
employer to provide clear instruction related to safety measures to workers and make proper
arrangement of uncertainties.
Breach of Duty : In given case study , it has been analysed that employer has provided
the wrong instruction to employees which is considered to be as breach of duty. As per the rule
of negligence , Orin can demand for compensation for injury has suffered because of wrong
guidance provided by employer (Mai, 2017). Orin Can also file law suit against employer for
not providing the healthy and safe working environment.
Causation : it is required by the plaintiff to provide evidence that injury or harm is
caused due to defendant's carelessness.
Assumption of risk : it is required by employer to conduct assessment of risk at regular
interval of time.
4.2 Applying the rules of vicarious liability
Employer and Employee relationship - In the given case scenario , Orin has been
appointed as employer, and provided with instruction by him . So it indicates the relationship
between employer and employee.
employee’s conduct must constitutes delicti- So in such case, Orin employer has the
vicarious liability for the several tasks or activities conducted by Orin. In case of given scenario,
Orin has himself got injured due to the wrong instruction provided by employer (Patti, 2017). In
such case , as per the rule vicarious liability of management or employer is required to pay
compensation to Orin.

CONCLUSION
It has been concluded from the assignment that contract law governs as well as regulates
the contractual relationship between parties. Study has highlighted the different elements which
are required to be considered by the parties in order to enter into a legally binding contract. It has
also been concluded that mutual consent and intention to enter into a legally binding agreement
is very much important in order to form valid contract. Exclusion clause has been explained in
great detail.

REFERENCES
Books and Journals
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International Journal for Educational Integrity. 13(1). pp.11.
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Weber, R.H., 2017. Liability in the Internet of Things. Journal of European Consumer and
Market Law. 6(5). pp.207-212.
Stevens, R., 2017. The legal nature of the duty of care and skill: contract or delict?. PER:
Potchefstroomse Elektroniese Regsblad. 20(1). pp.1-28.
El-Gendi, M., 2017. The Consumer Rights Act 2015: A One Stop Shop of Consumer Rights.
QMLJ. 8. pp.83.
Stone, R. and Devenney, J., 2017. The modern law of contract. Routledge.
Kummer, S., 2017. The Language of Company and Contract: an integrated course in legal
English. BoD–Books on Demand.
Jones, L., 2017. Introduction to business law. Oxford University Press.
Marsh, P., 2017. Contract law. In Contracting for Project Management (pp. 65-80). Routledge.
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Rights Abuses from Parent Companies.
Clarke, P.H., 2017. Curbing the Abuse of a Dominant Position Through Unfair Contract Terms
Legislation: Australian and UK Comparison. In The Constitutional Dimension of
Contract Law (pp. 185-216). Springer, Cham.
Howells, G. and Weatherill, S., 2017. Consumer protection law. Routledge.
Mai, N.K., 2017. Exclusion and Limitation of Liability for Non-conformity of Goods: A
Comparative Study on CISG, UCC and UK Law (Doctoral dissertation, Niigata
University).
Patti, F.P., 2017. The New English Law on Penalty Clauses: An Italian Perspective. European
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Business Law. 2018. [Online]. Available through: <https://www.hg.org/corp.html>.