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Aspects of Contracts and Negligence for Business : Report

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Added on  2020-01-23

Aspects of Contracts and Negligence for Business : Report

   Added on 2020-01-23

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Aspects of Contracts andNegligence for Business
Aspects of Contracts and Negligence for Business : Report_1
Aspects of Contracts and Negligence for Business : Report_2
Introduction:A contract is formed when two or more parties come together for the common purpose andexchange consideration in the name of the purpose. The contract would only be valid if thesame is intended commonly by the parties in the presence of the basic elements. Theimportant terms and types of the contract are to be studied in the following assignment. Theliability so arising from the breach of the contract is to be contrasted with that of the tortuousliability. The types of liability under the tort are also to be highlighted while studying theassignment.
Aspects of Contracts and Negligence for Business : Report_3
Task 1:1.1:Peter Abraham while creating contracts should ensure that all the elements of a valid contractare included in the contract. No matter which type of contract is created, the elements to bepresent in the contract are common in nature. These elements are further discussed below:Offer :-Offer: - A statement made by the offeror towards the offeree to propose a contractwhile determining the set of terms is said to be the offer. The offer so provided should beclear in meaning and interpretation. The offeror should ensure to use simple language tocreate a better understanding of the same. The offer so made shall be towards a specific partythe offeror wants to create a contract with. The offer so made should be different from theinvitation to offer. As per the case ofCarlill v Carbolic Smoke Ball co [1893] 1 QB 256, itcan be refereed referred that offer is a definite term which is used for creating a legalrelationship with other parties. Invitation to offer :-offer: - The invitation to offer is a stamen that determines the party’sintent to create a contract if the appropriate offer is made. The invitation is in considerationwith the offer and to express the possibility to accept the same if the appropriate offer ispresented. Therefore, while entering the contract the acceptance of offer is required and notthe invitation to offer. The advertisements and the shop displays may be the invitation tooffer. (Adams, 2008)Acceptance :-Acceptance: - For a contract to be created it is important that the offer so madeis accepted by the offeree. The contract to be created depends entirely on the acceptance ofthe offer. It should be clear in effect and interpretation. The acceptance shall be duly made forthe entire offer and not just parts of it. The acceptance so made for the offer when madepartially amounts to a counter offer being made by the original offeree. This determines thatthe counter offer is made to be again accepted entirely by the original offeror. This processgoes on as negotiations and ends when the final offer is accepted or rejected entirely. Thecontract created should be for all the terms laid down in the offer. When acceptance is beingmade the offeree should do the same according to the means of communication agreed by theparties under the contract. The acceptance may be made through the post, telephone, mailsand such other communications. Accordingly, postal rule suggests that the acceptance comesinto action as soon as it is posted. However, not all contracts require the element of
Aspects of Contracts and Negligence for Business : Report_4

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