Aspects of Contracts
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Added on 2019-12-03
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Aspects of contracts INTRODUCTION 3 TASK 13 1.1 Importance of the essential elements required for the formation of a valid contract3 1.2 Impact of different types of contract 4 1.3 Analysing terms in contracts with reference to their meaning and effect 5 TASK 26 12.1 Applying the elements of contract in given business scenarios 6 2.2 Apply the law on terms in different contracts 6 2.3 Evaluate the effect of different terms in given contracts 7 TASK 37 3.1 Contrast liability between contract and tort liability along with case explanations 7
Aspects of Contracts
Added on 2019-12-03
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Aspects ofcontracts
TABLE OF CONTENTSIntroduction......................................................................................................................................3TASK 1............................................................................................................................................31.1 Importance of the essential elements required for the formation of a valid contract............31.2 Impact of different types of contract......................................................................................41.3 Analysing terms in contracts with reference to their meaning and effect.............................5TASK 2............................................................................................................................................612.1 Applying the elements of contract in given business scenarios...........................................62.2 Apply the law on terms in different contracts........................................................................62.3 Evaluate the effect of different terms in given contracts.......................................................7TASK 3............................................................................................................................................73.1 Contrast liability between contract and tort liability along with case explanations..............73.2 Nature of liability in negligence and employers’ liability with regard to the case scenario..83.3 Vicariously liable of business in the given circumstances....................................................8TASK 4............................................................................................................................................94.1 Applying the elements of the tort of negligence and defences in given business situations.94.2 Applying the elements of vicarious liability in given business situation............................10Conclusion.....................................................................................................................................10References......................................................................................................................................112
INTRODUCTIONAny promise that is enforceable by law is known as a contract. In order to form a legalcontract, mutual assent ids very important. A contract is an agreement that is entered betweentwo or more which is enforceable legally when executed in accordance to specific requirements.Contracts are a key part of any business and it is therefore the basic fundamental that all theparties to a contract understand the basic terms included in a contract along with the rights andresponsibilities that the parties have under a contract (Adams, 2010). Contracts must reflect theagreement between parties and must be project specific. TASK 11.1 Importance of the essential elements required for the formation of a valid contractA contract must be formed by including in it all the essential elements. Key essentialelements in formation of a legally valid contract are as follows:OfferOffer is the most initial and key feature in formation of a contract. Unless some offer ismade, it cannot be accepted. Depending upon the case of K.W. Const. V Stephens & SonsConcrete Contractors Inc., in order to create a contract, legal binding is must and must beexpressed before hand. Offer is however different from an “invitation to treat”. Offer must bemade specifically and communicated to the offeree (Appleman, 2014). AcceptanceAcceptance takes place only in situations where there is an unqualified acceptance of allthe terms presented in offer. This situation is not always there because there are negotiations tattake place before final acceptance (Taylor, 2011). It must however be kept in mind thatacceptance must be communicated and brought to the attention of offerer. Acceptance is verydifferent from a counter offer. As per the case of Weynand v Weynand, the most essential andkey feature in acceptance is “meeting of minds”. ConsiderationConsideration is an act which results in creation of reciprocal obligations upon the partiesto a contract. Consideration must be something valuable and can be in the form of money,promise to do or not to do something, act, etc. (Hernandez, 2010). Any gift out of love and3
affection are excluded while calculating consideration. As per the case of Texas Gas UtilitiesCo. v. Barrett, consideration need not be of exact amount because of the bargaining factorpresent in all contracts.Intention to create a legal bindingAs per this clause, it is important for the parties to accept the terms of mutuality ofobligation. They must surely agree to enter into an agreement that creates a mutually bindingagreement on all the parties to a contract. There is no intention of parties to create a legallybinding agreement if the contract binds only one of the parties (e-lawresources.co.uk. 2015). Asit can be seen from the case of Balfour v Balfour, a contract can be cancelled at any time in caseof lack of mutual agreements. 1.2 Impact of different types of contractAs per the given proverb, ‘types of contract’, it is all the same under English law”, it canbe depicted that the given statement is incorrect and false. All the contracts in law have beenformed with different intentions and needs. Their interpretation also varies depending upon theremedies and clauses stated in statue (Thomas, 2015). Various different types of contracts are: Oral contractA contract with oral terms and conditions is referred to as an oral contract. In this type ofcontract, the liabilities are also not specifically drafted or stated on a single piece of paper.Everything between the parties is discussed and contract is concluded verbally without anywritten proof of the same. In-spite of this it does not entitle the parties to breach the contracteasily (Partington, 2013). Claim can be brought against any breach and proof can be determinedby the actions or conduct of one party. Example: Selling of goods.Written contractAny contract with specifically written terms and conditions is known as a writtencontract. In order to be a legally valid contract, the terms, conditions and liabilities must bestated properly in it and must also be signed by the parties along with a proper seal (Nystén-Haarala, 2010). Written contracts are always better over oral contracts as they provide a betterunderstanding of the provisions that bind the parties. Distance contract4
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