Law of contract - Business Law
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Added on 2021-02-22
Law of contract - Business Law
Added on 2021-02-22
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Table of ContentsINTRODUCTION...........................................................................................................................31.(a) Explain term contract and elements of the valid contract...................................................3(b) Would Ringo be liable to pay Paul on the basis of above facts............................................52. Criteria that Jerry need to satisfy in an action of negligence..................................................53. Identification of the main business mediums available to Ringo and his friends ................74. Analysing the significance of determining the current employment status of any workersrecruiting in company ................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONIn this case three aspects related to law was highlighted one was Ringo's son wants toassist his father in managing garden and Ringo decided not to pay salary to the Paul as he thinksthat it is required that Paul should understand the house responsibility. So first case arises here isto should Ringo pay to Paul or not which has been discussed in a study. Second case arises isRingo customer Jerry has suffered a damage to property due to the action of Ringo's Gardnerwhich is George. Therefore the next issue is whether Ringo is liable for damage or his Gardner isliable for it. And what claim Jerry need to satisfy under such condition. The negligence lawarises in this which occur due to failure to exercise by any of the two party under certaincircumstances (Fulbrook, 2017). The criteria that jerry needs to satisfy has been highlighted inthe report. The last scenario which arises iswhat type of business medium can be used by Ringoand his friends. The various medium which they can adapt has been discussed in detail in reportalong with advantage and disadvantage of each business medium. At last the importance ofcorrect employment status of candidate which they recruit for their business has also beendiscussed. 1.(a) Explain term contract and elements of the valid contract.English contract law refers to the body that is responsible to regulate the contracts thatare formed in England and Wales. As per the law, the term Contract refers to the agreement thatforms when one party makes an offer and other person accepts the offer by communicating theassent and agree to perform the terms and conditions of the offer (What is contract law?, 2019).Further, there are various types of contracts such as valid, void, unenforceable, illegal, voidablecontracts etc. Generally, the agreement that are formed between the parties are enforceable in thecourt. The terms of contract can be agreed through oral or written communication. Requirements of a valid contract -A valid contract is the agreement between two parties that is made orally or in writing tooffer product or service. All the essential elements should be present for a valid contract. Further,both the parties should have an intent to perform the contract. The requirements of a validcontract are as follows-Offer and acceptance :
One of the most important requirement for a valid contract is offer from one party andacceptance of the offer by another party. First step to create the contract is the willingness of theperson to enter into a contract on certain terms. An offer made by one person must be clear anddefinite (Smits, ed., 2017). Legal relationship :Both the parties of the contract should have intentions to form lawful relationshipbetween them. It means that, contract should be enforceable by law. Communication :Offer should be communicated to another person because acceptance cannot be madewithout communicating offer. Communication of offer is said to be completed when it comes tothe knowledge of other party. Consideration :It refers to something in return by one party to another. It is the reason behind enteringinto a contract. It can also be defined as the amount paid by by one person to another.Consideration should be real and lawful. Without lawful considerably, the exchange will beconsidered as a gift. Capacity :Capacity refers to the competency of the parties to enter into the agreement. Contract issaid to be void ab- initio if, person of unsound mind is the party to contract. Therefore, if minoror a lunatic is the party to contract, in that case the contract is considered as void. Further, boththe parties should be competent to enter into the contract then only, it will be considered as avalid contract (Knapp, Crystal and Prince, 2019).Legal purpose :Another important element of a valid contract is that, parties to the contract should havelawful intention behind entering into the agreement. Further, parties should have clear purpose ofcreating a lawful relationship between them. If, objectives of the parties are not lawful in thatcase, the contract would be considered as void.Free consent :Consent of the party is one of the crucial element to create a valid contract. If both theparties have made mistakes, in that case the contract would be considered as void. Therefore,consent of the parties should be free. Example – If, one party threatens another party to enter
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