Aspects of Contracts and Negligence Assignment

ASPECTS OF CONTRACTS AND
NEGLIGENCE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Essential elements that lead to formation of a contract and their significance.....................3
1.2 Type of contracts...................................................................................................................4
1.3 Different terms of a contract.................................................................................................5
TASK 2............................................................................................................................................5
2.1 & 2.2 Drafting of a contract for the purchase of the contract ..............................................5
2.3 Writing report to Mr. Michael Hair, owner of “Hair UK”....................................................6
TASK 3............................................................................................................................................7
3.1 Contrast between contractual and tort liability.....................................................................7
3.2 Development of the concept of “Duty of Care” and neighbor principle...............................7
3.3 How a business is held vicariously liable.............................................................................8
a) Can Mathew sue Alan.............................................................................................................8
TASK 4............................................................................................................................................9
4.1 Draft a short letter to brad.....................................................................................................9
4.2 Solution for following case study.........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The objective behind preparation of this report is to analyze the different aspects of
contract and negligence. The report herein showcases the different elements of a contract act and
makes a detailed expression of these elements which are important for determining the validity
of a contract. The purpose of conducting this report is to draw lights on the different types and
terms of contract act. Further, the report has made a sharp contrast between contractual and tort
liabilities. Moreover, the report has made a clear determination on the nature of liabilities that
persist in negligence. The report has bought out various conclusion in reference to varied case
law specifying the degree of liabilities that lie on an employer arising due to vicarious liabilities.
TASK 1
1.1 Essential elements that lead to formation of a contract and their significance
For a valid contract to form it is important to discuss in brief the essential elements that
requires to be accomplished by the contracting parties. The following are the key elements-
1. Offer and acceptance- Offer is manifestation of willingness to enter into a contract on a
specified terms, made by the offeror with an intention of making it binding once
accepted by the person to whom it is being addressed. Offer may be expressed or by
conduct. Acceptance is the final expression of affirmation to the terms stated in an offer.
It is also important that there must be an intention of the offeree to bound itself by the
terms stated in an offer. Offer must be accepted in accordance with the precised terms
for converting it into a valid agreement (Kelly and et.al., 2013). Unilateral and bilaternal
are the two different forms of contract. Here, unilateral offer is the type of open offer
which is being given to the general public. But, in the bilateral offer firm will have to
perform as per the terms and conditions of the contract (Harvey v Facey
[1893] AC 552).
2. Intent to create a legal boundation- Agreement has no legal binding on parties until it has
been made with a legal intention. It is important that parties enter into mutual agreement
to actually get legally bound by it. In case of ordinary transaction, a presumption of legal
intentions of parties to enter into contract is made (Jones v Padavatton [1969] 1 WLR
328).

3. Consideration- In context of general law, a contract isn't binding unless supported by
some valuable consideration. The given thing is also specified under Thomas v Thomas)
(1842) 2 QB 85. A promise is not binding on parties unless it has been supported by
some consideration. Consideration needs to be sufficient enough but need not be
adequate (Chen-Wishart 2012).
4. Capacity of contract- It has been withheld by the contract law, that the parties must have
attained the age of 18 and above before entering into a contract act as well as be solvent
before making such contracts.
5. Privity of contract- the doctrine of privity of contract specifies the general rule, that a
third party holds no legal right to exclaim his rights for a contract to which he isn't a
party. Thus, it cannot claim to use upon his rights for a non-performance of a contract in
order to gain its promised performance (Hemraj, 2003).
Case Study
As per the case study, James has advertised on e-commerce website about the sale for a
high definition web camera for £55. Maria responded to this advertisement via an e-mail
showing ts willingness to buy at the counter-offer at £45. This counter-offer has invalidated the
previous offer making the contract standstill. The negotiation and James unwillingness to accept
negotiation has affected the validity of the contract. Thus, James and Maria are not legally
binding with one another.
1.2 Type of contracts
There are different type of contract that are identified between the parties, formed for the purpose
of entering into a legal relationship-
1. Face-to-face contract: In this type of contract all conditions regarding agreement is
decided between the parties by way of verbal communications. The probability of denial
by parties in reference to the terms and condition cannot be traced in this type of contract.
Often it has been seen that such type of contracts are entered by those who are more
related and close to one another. In such type of contracts the consent of parties is taken
immediately and responses can be availed (Beale and et.al., 2010).
2. Distance Selling: Here the legal relationship between parties is established between
parties whereby the means of communication are used such as telephones or e-mails. The
physical presence of parties while the formation of contract isn't assured. Moreover, in