Aspects of Contract & Negligence of Business | Report

Added on -2020-02-17

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Aspects of Contract andNegligence for Business
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Define the essential elements of a valid contract..................................................................31.2 Impact of different types of contracts...................................................................................41.3 Analysis of different terms used in a contract.......................................................................5TASK 2............................................................................................................................................52.1 Applying elements of contract in given scenario..................................................................52.2 Various terms of contract......................................................................................................62.3 Exemption clause in contract................................................................................................7TASK 3............................................................................................................................................83.1 Contractual liability in tort....................................................................................................83.2 Nature of liability in Negligence...........................................................................................83.3Vicarious liabilities of the business........................................................................................9TASK 4............................................................................................................................................94.1 Tort negligence' elements......................................................................................................94.2 Vicarious liability element..................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONLaw is a system in which there is a set of rules and regulations which are responsible forthe effective governance and effective control over the behaviour of company. In this light, t canbe assessed that law has a different parts. In this report, different aspects of contract andnegligence of business will be discussed. Also, various elements which make a contract a validand legal document will also be discussed (Aldous, 2016). In addition to this, terms andconditions related to the written document is also demonstrated. Furthermore, various aspects ofvicarious liabilities will be illustrated. It is the term in which employer is liable for the acts andtasks done by its employee. Also, various concepts of offer, acceptance warranties andconditions will also be explained in a detailed manner. Various decided case laws can also begive effect in the light of these provisions. TASK 11.1 Define the essential elements of a valid contractIn order to effect a written agreement in a legal and lawful manner, it is considered asnecessary that it should consist al the essential requirements of a valid contract, it can be furthernoted that an agreement is called a valid contract if it is consisted of all the legitimate and legalelements in it. In the context of the business organization, it is rendered necessary to include allthe essential requirement so that there transaction can be termed as lawful transaction (Ang,2013). There are various elements of the contract which are illustrated as follows:Offer: It is the first and foremost element of contract. It is a concept which includes anoffer which has been given by one party to another party. In other words, it refers to aproposal which is given by one party to another party in a legal terms. The mainimportance of offer is that without a legal and legitimate offer, a contract can not beestablished. In the decided case law of Carlill v Carbolic Smoke ball company [1893]1QB 256, it was held that there was a legal contractual relationship established betweenboth the parties.Acceptance: A contract can not be completely established if an offer is not accepted byanother party to whom offer has been given. It refers to the situation, in which one partywillingly accepts the offer made by another party.
Lawful consideration: There should be legal and valid consideration in the contract forwhich both the parties have agreed. In other word, consideration is the value, based onwhich the contract is formed ( Chetwin, 2011).Intention to create legal relationships: It is an another essential element of a validcontract, in which there is an intention to create legal relationship between the parties. 1.2 Impact of different types of contractsThere are different types of contract which can be practised in accordance with theprovisions of law in the time being in force. These contracts have their own impact on thebusiness institutions. Different forms of contract which are explained as :Written contract: It is the contract which is formed in a written way and also consist ofall the essential legal elements. In this agreed terms and conditions by both the partiesare written in a contract. In accordance with the decided case law of Harvey vFacey[1893] UKPC 1 , it was been held that there was a contract established in betweenboth the parties in a written form. Also, the parties are bound by both the parties in thecontractual relationship and terms and conditions.Face to face contract: It is another type of contract in which both the parties to thecontract establishes a contractual relationship in a verbal form. These contract are framedthrough the use of words of mouth. Transactions related to the contract are operated in averbal form.Valid contract: It is a different form of contract in which there is an existence of all legalessential elements required by law in the time being in force (Ford, 2010). It is a contractwhich is enforceable in the eyes of law. This contract fulfils all the requirements of alegitimate agreement. Unilateral and Bilateral contract: Unilateral contract is the one in which only one partyto the contract makes an offer to an another party to an agreement. Terms and conditionsare establishment on the basis of one party who is initiating an offer. On the other hand, itcan be evaluated that bilateral contract is the one in which there is an existence of anoffer made by both the parties to the written agreement.1.3 Analysis of different terms used in a contractTo highlight a legal document as a valid contract, it is also be very necessary that itshould contain all terms and conditions in it. In Prior to establishment of a contractual

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