Aspects of Contract

ASPECTS OF CONTRACT
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Table of contents
Introduction......................................................................................................................................3
LO 1.................................................................................................................................................3
AC1.1 Importance of various elements that are required for the formation of a valid contract......3
AC1.2 Impact of different types of contract....................................................................................4
AC1.3 Analysis of terms in contracts..............................................................................................5
LO2..................................................................................................................................................6
AC2.1 Application of the elements of contract in reference to variously given business scenarios
.........................................................................................................................................................6
AC2.2 Application of the law of terms in respect to different contracts........................................6
AC2.3 Evaluation of the effect of different terms in given contracts..............................................7
LO3..................................................................................................................................................7
AC3.1 Difference between liability in tort and contractual liability...............................................7
AC3.2 Explanation of the nature of liability in Negligence M1......................................................8
AC3.3 Explanation of process of a business being vicariously liable M3......................................9
LO 4.................................................................................................................................................9
AC4.1 Various elements of the tort of negligence and defences D2...............................................9
AC4.2 Application of the elements of vicarious liability in the context of given business
situations D3..................................................................................................................................10
Conclusion and recommendation..................................................................................................10
Bibliography..................................................................................................................................12
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Introduction
Every country follows some legal frame work for the citizens of the country so that people can
live their like by maintain some rules for the betterment of the country. there is an another reason
it helps to protect their rights, if any mishaps they can execute their rights. For every specific
grounds there are many legal frame work is maintained. As per the topic of the study deals with
contract. Therefore, depended on the laws that are made by the government the contracts can be
formed properly. In order to build any kind of contracts, there are various laws. For the particular
contract, it is important to fulfil all the appropriate requirements that are necessary as per the law
of the contract. In the time to build any cases and to respect the correct judgement, the
maintenance of the law is essential. The laws of government are created in order to provide all
the legal rights to the people of the country and to make clear the unnecessary things that are
illegal to practice.
LO 1
AC1.1 Importance of various elements that are required for the formation of
a valid contract
The word contract is a very common word as without any contract a business transaction can't
take place. According to Bordia et al. (2015, p.212), it is necessary to build any kind of contract
by following the rules and regulations. A contract comes into legal existence when an agreement
is enforceable by law. The valid contract between the parties provides the legal rights of the
parties to conducting any work. Before creating the contract the parties need to ensure so many
things that are necessary to include in the contract. By following all the process appropriately,
the parties can build valid contract for the need. The important elements for the valid contract are
following:
● agreement must be needed to constitute a contract.
● it must include two parties one will offer while other will accept
● consent must be free
● legal formalities must be fulfilled to enter a contract
● agreement must be supported by law
● parties must be competent as sound mind to enter a contract
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● parties must establish legal relationship
The above-mentioned elements are necessary to build the valid contract between the parties. The
proposal and acceptance process ensures the reality of e-contract. By the proposal, the parties
make clear the requirements for these contracts. Accepting the proposals, the parties ensure that
they agree with the proposal of each other. In order to make it real the proposal and acceptance
process is important.
The clearness of the subject of the contract is important to make clear the contracts importance
and validity. By following the rules and regulations of the government properly, the parties can
make their contract valid. The formations of the valid contract can be built by following and
fulfilling all the requirements of the laws (Glover and Kusterer, 2016, p.56). As per the law, the
parties need to ensure all the important documentations. The completion of the contract can be
possible with the witness. In the formation of the contract, a third party is essential. In any
negative incidents occurred ten with the help of the third party the proper solution can be built
easily.
AC1.2 Impact of different types of contract
Unilateral contracts- In any contracts the performance of term namely offer would be decided as
accepted the given offer, here the offer like some prize must be included that is called the
Unilateral contract (Wellin, 2016, p.23). In this case, the offers have been considered as
accepted and even after the offer acceptance is remain the party. An insurance party can use the
Unilateral contracts where the insurance organisation could make a promise to provide some
amount of money to their clients if the clients make their instalment at right time.
Bilateral contracts- Bilateral contracts are where both the party can make a deal by making a
promise to complete the obligations (Lee and Han, 2015, p.629). Here both the party can be
included under the legal considerations. In most of the business organisations, the Bilateral
contract can be used. For example, a contractor can make an offer to the buyers and the buyers
can accept the offer.
Written and Oral contracts- Oral contracts are such as when the contracts could be made orally
instead of any written documents between the two parties (Lipson, 2016, p.173). On the other
hand, the written communication is all about when the contracts can be made between the two
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