Detailed Report on Contract Negligence in Business Law Context

This report delves into the complexities of contract negligence within a business context. It begins by highlighting the importance of valid contracts, outlining the essential elements for their formation, and differentiating between various contract types such as fixed price, cost reimbursable, and time and material contracts. The report then explores the significance of contract terms, including time, investment, and material-based terms, and their impact on business operations. Furthermore, it applies these contract elements to real-world business scenarios, analyzing the application of contract law and the evaluation of different terms. The report also examines the principles of liability, including torts with contractual liability, and the nature of liability in cases of negligence. Finally, it discusses the principle of liability in business situations, the impact of torts of negligence, and the role of vicarious liability, concluding with an overview of the importance of contract management for the success of a business. The report emphasizes the legal implications and practical applications of contract law, making it a valuable resource for understanding the legal aspects of business operations.

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Contract Negligence
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Contract Negligence
Table of Contents
Introduction.................................................................................................................................................3
LO 1............................................................................................................................................................4
Importance of a valid contract.................................................................................................................4
Elements required forming a valid contract.............................................................................................4
Different types of contracts.....................................................................................................................5
Terms in contracts...................................................................................................................................5
LO 2............................................................................................................................................................6
Application of the elements of contracts in business situations...............................................................6
Application of the law of terms of the contracts......................................................................................6
Evaluation of the impact of the different terms........................................................................................7
LO 3............................................................................................................................................................7
Principles of liability...............................................................................................................................7
Tort with contractual liability..................................................................................................................8
Nature of liability....................................................................................................................................9
LO 4............................................................................................................................................................9
Principle of liability on the business situations........................................................................................9
Impact or tort of negligence...................................................................................................................10
Impact of vicarious liability in the business...........................................................................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
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Contract Negligence
Introduction
Each and every essential task of any company is always depended on some contracts. The
dealers of the company deal with the management of the company by some certain and specific
contracts. The stakeholders of the company trade with the company by some contracts. Thus the
contracts that the company or the management of the company has with the other organizational
department determine the future of the company or the business of the organization. These
contracts have a certain deadline and certain regulations that both the company and the dealers or
the stakeholders of the company has to follow for the success of the contract. The following
report deals with the various aspects of the negligence of the contracts of the management of the
company. The report will provide information on the importance of the contracts and how the
employees and the management of the organization will react if there is any negligence of the
contracts. On the other hand, what consequences the management of the company and the
dealers or the stakeholders of the company would have to face if there is any negligence of the
contracts are also mentioned in the further report. If the management of the organization is
willing to run their business successful, then they have to be dependent on the contracts of the
company, and they have to get rid of the contractual negligence for the improvement of the
business of the organization.
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Contract Negligence
LO 1
Importance of a valid contract
The business of any company is always full of many agreements and responsibility. Verbal
communication or verbal agreements do not have much importance in the professional field.
Thus whenever a company or the management of the company makes an agreement with another
organization or an individual, it is severely important for that particular company to be
dependent on a certain and specific contract. Thus a valid contract can assure some business deal
or individual deal between the management of the company and the other organizations or the
individuals with whom the contract is(Becken and Hay, 2007). This also gives the management
of the company an assurance of the deal as the contract cannot be broken by any of the two
parties otherwise they would have to face some legal issues.
Elements required forming a valid contract
There are some elements which are needed for the formation of a valid contract. A business
contract can only be formed when the two parties are agreed on the business deal. If one of the
parties is against the deal, no law can force him or her to sign the contract. Political influence on
the contract is also a notable point(Hall, 2007). There is much legal legislation related to the
business contracts which the management of the company should be aware of before signing the
contract. After the signing of the contract, it is the judiciary of the country or the place, who will
activate the contract and set the deadline of the contract.
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Contract Negligence
Different types of contracts
Business contracts have different purposes and different agendas. Thus the formation of the
contract is based on the needs and the requirements as well as the conditions of both the sides.
Still, as per as the norms of the contract, there are mainly three kinds of contracts. The fixed
price contracts, the cost reimbursable contracts and the time and material contracts or the unit
price contracts. The fixed rate contract is also known as the lump sum contract. This kind of
contract is made by the management of the company by the rate or the investment of the
company. Buyers and the sellers of the goods or the service sign this kind of contracts by a fixed
rate which should not be changed or neglected by any of the signing sides. According to the cost
reimbursable contract, the buyers and the sellers of the company would be concentrating on the
time of any certain or specific deal. The time, material contract deals with the time of the
business or the deal and the materials needed for the deal. The both sides should determine a
specific time and material quantity and then should proceed for the contract.
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Contract Negligence
Terms in contracts
The main purpose or the main job of the business contracts are to determine some terms and
condition for the management of the company and the other company or individual with whom
the management of the company is willing to sign the contract. The terms are mainly based on
the needs and the requirements of the company or the other organization or individual. The prime
terms that the management of the company mainly uses are the time base terms, the money or
investments base terms and the material base terms(Hall, 2007). Each of the terms and the
condition has their importance and value to the betterment of the company or the business of the
company. If the management of the company can manage to maintain all the needed guidelines
for the betterment of the contract, it would be easier for the management of the company to run
the business with success and consistency.
LO 2
Application of the elements of contracts in business situations
Contracts are mainly signed by the management of some company for the betterment of that
particular company or the business of the company. Whether it is fixed rate contract or time and
material contract, the management of the company is doing the contract for the betterment of the
company, for the security of the future of the organization. The prime elements of a contract are
the investments, time and materials. All these elements are very much important for the company
or the business of the company(Hong, 2008). If the management of the company do not have
enough investments for their business, the management of the company would never be able to
get success in a short span of time. Time is another important element for the organization as a
whole. If the management of the company does not give sufficient time to the tasks of the
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Contract Negligence
company the management of the company would not be able to run their business with success
and the organization will be harmed. Thus the elements of a valid contract are very much
beneficial for the betterment of the company or the business of the company. If the management
of the company can use the business contract in the appositive way, the company or the
organization will get more success in a short span of time.
Application of the law of terms of the contracts
As mentioned earlier, there is some legal legislation which favors the contracts of the company
or the terms and conditions of the company. Similarly, there is also some legal legislation which
are barriers to the contracts of the company. Thus it is quite clear that the politics or the local or
the national government has a great influence on the contracts of a company. The management of
the company, as well as the other organization or individual involved in the in the contract,
would have to follow all the legal legislations and they do not have the power to disobey the
government of the legal legislations designed by the local or the national government. Thus the
effect of the law and legislations are huge on the terms and condition of the contract of any
company(Hong, 2008).
Evaluation of the impact of the different terms
As mentioned earlier there are three prime types of contracts which the management of the
company uses in accordance with the need of the company. It is also a very common factor that
the contracts or the business contracts are influencing the business of the company in many
ways. Firstly the fixed rate contract is helping the company or the management of the company
to secure the investments of the company and to get rid of any money related issues from the
company. Secondly, the cost reimbursement contract is securing the time of the deal or the
business of the company. Time is an important factor for the company, and by the help of the
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Contract Negligence
mentioned contract, the management of the company would be able to control the time factor.
Lastly, the material contract is helping the management of the company by assuring the material
that the management of the company will need. These are the main and the most important
impacts of the terms of the business of the company.
LO 3
Principles of liability
This standard implies that if a demonstration is done purposefully and intentionally and it comes
about into harm being done to another gathering, the tortfeasor would be subject. This is paying
little respect to the way that the demonstration was done in underhandedness, was pure or a joke.
In this manner, the length of harm is predictable, gatherings would be held subject to their
activities. Likewise, on account of Wilkinson versus Downton, The respondent tongue in cheek
told the offended party that her better half was occupied with an appalling mishap. The offended
party subsequently of this endured anxious stun and was hospitalized. In court, it was held that
the litigant was at risk despite the fact that he intended no mischief(Hoskins, 2002). The litigant,
who was the offended party's boss, acknowledged risk yet challenged the degree of harms
because of the way that the offended party declined to experience test and restorative operation.
The refusal to experience tests was held to be absurd by the court because of the way that the
operation if completed, would have been fruitful. The court along these lines decided for the
respondents.
Tort with contractual liability
The Principle of Fault or Negligence
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Contract Negligence
The risk in torts depends on the way that the tort farms because of some activity or inaction of
his were careless in playing out his obligation or was to blame for doing his activities. The
obligation in the torts or carelessness, occupier's risk, proficient carelessness et cetera depends on
the rule of blame or carelessness.
The Principle of Damage
By applying this rule of risk, the respondent is just obligated where the petitioner/offended party
has endured any mischief or harm therefore of the litigant's activities. Be that as it may, this
doesn't make a difference in instances of torts which are significant in essence (no compelling
reason to demonstrate harm) like the trespass.
De Minims Non-Curate Lax
This Latin adage epitomizes the guideline; "the law does not worry about details." In this
manner, if a case is brought under the steady gaze of the court on a paltry or irrelevant matter,
the court would squander no time in tossing it into the junk can(Richter, 2002).
Nature of liability
This section considers the way of obligation to make reparation for misfortunes created by
carelessness. It concentrates on the circumstance where misfortunes have emerged therefore of
individual harm or physical harm to property. The dialogs cover the capacity of the law of
carelessness; constituent damage; the obligation of care; rupture of obligation; preparation for
misfortunes; and remoteness of misfortunes. Thus it is quite clear from the above passage that
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Contract Negligence
the liability is one of the most important parts for the betterment of the company that the
management of the company should always be concerned of.
LO 4
Principle of liability on the business situations
A tort is a legitimate term portraying an infringement where one individual causes harm,
damage, or mischief to someone else. The infringement may come about because of deliberate
activities, a break of obligation as in carelessness, or because of an infringement of statutes. The
gathering that submits the tort is known as the tortfeasor. A tortfeasor acquires tort risk, implying
that they should repay the casualty for the damage that they brought on them. As such, the
tortfeasor who is observed to be "at risk" or in charge of a man's wounds will probably be
required to pay damages(Rubin, 2001). A contract is a lawful authoritative assertion between at
least two people. When you sign or consent to the terms of an agreement, then you have
acknowledged the legally binding liabilities put forward in the record
Impact or tort of negligence
Concerning this task, I have selected to examine the instance of Z v United Kingdom which I
think has a noteworthy viewpoint in connection to the law of tort as it concerns one of
carelessness and rupture of an obligation of care by a neighborhood body. This case [2] concerns
four kin (Z, A, B and C) who were casualties of intermittent and horrifying misuse and disregard
by their folks' of which the neighborhood body included were educated of, yet neglected to act
professionally in their obligation of care owed to the said candidates'. [3] The fundamental issue
contended on was to decide if the nearby body included was at risk for carelessness. The
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Contract Negligence
candidates' cases for carelessness and break of statutory obligation were at last rejected by the
House of Lords. [4] The candidates' then brought procedures against the UK under the European
Convention on Human Right [5], which was observed to be permissible. This proves that the
impact of the tort and negligence is huge in the business situations.
Impact of vicarious liability in the business
The vicarious risk is a term utilized as a part of numerous work claims. It alludes to boss risk for
chiefs' and administrators' conduct and activities. The United States Equal Employment
Opportunity Commission clarifies vicarious obligation inside the setting of unjustifiable business
hones, unfair treatment, and working environment provocation(Williams and Mullin, 2008).
Direction from the EEOC on business risk risen after two prominent inappropriate behavior
claims. In Burlington Industries v. Ellerth and Faragher v. The city of Boca Raton, the U.S.
Preeminent Court elucidated the fitting guidelines for restricting boss risk. The Supreme Court's
measures in those cases set up case law for considering bosses responsible for the activities and
conduct of its administrators.
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Conclusion
To conclude the report, it must be admitted that the impact of the contracts on the business is
huge and the negligence of the contracts are harming the company and the management of the
company in many ways. If the management of the company wants to maintain the consistency of
the success of the company the first thing that the management of the company must do is to
maintain all the laws and regulations related to the contracts of the company.
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