Assignment On Analysis Of Essential Terms Of The Contract
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Added on 2020-01-28
Assignment On Analysis Of Essential Terms Of The Contract
Added on 2020-01-28
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Aspects of contract1
Table of ContentsINTRODUCTION................................................................................................................................3TASK 1.................................................................................................................................................31. Explaining the importance of essential elements of a contract.....................................................32. Discussing the impact of various types of contract......................................................................43. Analysing contractual terms with references to their meaning & effects.....................................54. Apply the elements of contracts in the given business scenario...................................................65. Applying the law on terms in various types of contracts..............................................................76. Evaluating the effect of different terms in a given contract.........................................................7TASK 2.................................................................................................................................................81. Differentiating liability in tort with the contractual liability........................................................82. Explaining the nature of liability in negligence............................................................................93. Explaining how a business can be vicariously liable....................................................................94. Applying the elements of tort of negligence, vicarious liability & defences..............................10CONCLUSION...................................................................................................................................11REFERENCES...................................................................................................................................122
INTRODUCTION In the worldwide business arena, corporations are strictly abided with the domestic as wellas international legislations, rules and regulations so as to expand business overseas. In suchrespect, legal contracts have been defined as agreed legal conditions and norms decided after themutual agreement & discussion of the related parties. It is a very important facet of theestablishment which aims at establishing legal relationship between parties having a lawful object.It has an incredible impact over the functionality of the business organizations as they have tofollow the terms; otherwise, it will result in legal consequences. Contracts arises legal bindings andenforceable by jurisdictions. Here, the current assignment aims at developing a brief analysis of theessential terms of the contract that is required to be incorporated while creating a contract.Moreover, it will make a thorough analysis of different contracts types & terms along with theirimpact upon contract. In addition, it will describe two most essential type of legislation that isnegligence & vicarious liability provisions. Besides this, the report will compare and contrast tortliability with the contractual liability. TASK 11. Explaining the importance of essential elements of a contractContract is defined as an agreement made between parties after mutual concern andenforceable by law. In such respect, it must be focused that all the agreements do not makes validcontract whereas all the contracts are agreement. In order to make competent parties legallyresponsible, there are some essential elements needs to be incorporated that are enumerated below:Offer: It is the inaugural stage of every contract formation, in which, a party is intended toexpress a willingness to form a contract with other, called offer. It must be note that offer must belegal, illegal object will not develop any legal contract (Abebe and et.al., 2013). Moreover, it isdifferent from invitation to offer because it is just an invitation to invites others to come and presenttheir offers. Referring the case law of Fisher Vs Bell, party displayed knifes in the shop with theenclosed prices, court declared that it was just an invitation to offer hence, shopkeeper cannot beliable. Acceptance:The willingness of the other party (offeree) to enter into a contract on the termsand conditions expressed by the offeror is called acceptance. In short, it can be said that acceptancemust be the mirror image of the offer presented. In case, if offeree placed new contractual terms &norms to the offeror than it will a counter offer (Butler and Mueller, 2016). In case of Hydre VersuWrench 1840, Wrench presented an offer to sell his field at 1200 GBP whereas on the Next day,3
Hydre wrote that he is ready to buy the field at 1000 GBP, court made judgement that it is a counteroffer. Lawful consideration:The promises of act, charge or value that will be delivered by boththe offeror & offeree to each other in return for the products & services given is known asconsideration. Every agreement must be based on freedom theory indicates that parties must begiven free consent without any coercion, mistake, fraud & undue influence (Bennett and Gibbeson,2010). Looking to the British case law of Chappell & Co Ltd versus Nestle, 1840, House of Lorddeclared that in accordance with the doctrine, consideration must be sufficient and legal, there is norequirement of adequate consideration. Intention to create legal bindings: It is the first and foremost provision of every contractwhich aims at making a formal & valid contract between the two parties involved. Contractualparties must have a legal intention to frame legal relationship, henceforth, domestic & socialcontracts are not considered lawful contract as parties involved have no intention to liable other forthe breach. In the English law of Esso Petroleum Versus Commissioner of Custom & Excise, 1976,coins were distributed as a free gift without any intention of legal effect. Capacity of the parties: Parties both offeror & offeree must have legal capacity andcapabilities in terms of both physical and mental fitness for the creation of the contract. 2. Discussing the impact of various types of contractEvery contract is based on different rules, conditions & norms with which competent partiesare legally obliged. Before establishing a contract, parties have to prepare several documents so asto induce each other towards their legal obligations & responsibilities. It is necessary to createnecessary documentation so as to resolve disputes, conflicts and violation or breach of any of theterm. As per the stated scenario, it has been given that when one speaks types of contract, it is allsame under English Law, the statement is not true, because there are multitude of contracts that areexplained here as under:Licensing contract: This type of contract is often used just to transfer the licensing rights toan individual so that the receiver will be able to licensee the items and/or services in the trademarkregime (Freedland and et.al., 2016).Oral/verbal contract: Contracts in which parties do not decides the terms and conditions ona written document, henceforth, agreement will be the result of oral discussion and mutual concernis called verbal or oral contract (Ritchie, 2014).Written contract: In opposed to above, this contract set all the norms & conditions in awritten form so that, in case of any dispute and conflicts later, legal evidence will be available to4
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