Business Law - Various Elements Of A Valid Contract | Assignment
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Added on 2020-02-05
Business Law - Various Elements Of A Valid Contract | Assignment
Added on 2020-02-05
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Aspects of Contract andNegligence for Business
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1 ...........................................................................................................................................11.1 Essential elements of valid contract......................................................................................11.2 Types of contracts.................................................................................................................21.3 terms incorporated within a valid contract............................................................................2TASK 2............................................................................................................................................32.1 and 2.2 Applying contract elements in given business scenarios.........................................32.3 Report to Mr Michael Hair....................................................................................................4TASK 3............................................................................................................................................53.1 Differences between contract and tort liability.....................................................................53.2 “Duty of care” and neighbour principle in tort of negligence...............................................63.3 Vicarious liability for wrongs in a business..........................................................................6TASK 4............................................................................................................................................74.1 Applying tort-negligence elements in given business scenario............................................74.2 Applying vicarious liability elements in given business scenarios.......................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONWithout the proper implementation of law, a state couldn't survive in the current situationfaced by it. Peace is able to be maintained via its aid thereby imposing control upon wrongdoersas well as criminals. Business is also another field related to law that aids in smooth regulating ofthe economy (Ashcroft, Ashcroft and Patterson, 2016). In order to cover the aspects of businesslaws, discussion will be done upon various elements of valid contract. Furthermore, applicationof these elements in different business situations will be discussed. Light will also be thrownupon various principles of liability involved in negligence within business activities. In the endthese liability principles will be applied to various business situations. TASK 1 1.1 Essential elements of valid contractA valid contract is said to be a legal agreement between two parties in accordance withproviding a product/service within a business. In order for making a contract a valid one,following elements will be included :Proper offer and acceptance : A valid contract involves the creation of an offer by oneparty and it should be acceptable by another one (Revak, 2011). Freddy originallyadvertised to sale the high definition TV for £145. No offer was provided by him whenLayla responded to the advertisement. On the other hand Layla was only agreeable tobuy it for £125 to which Freddy was not agreeable. But Layla's not responding for longtime made Freddy sold the TV at £125 since no other offer was available with him. Intention for creating legal relationships : Both the parties involved in contract musthave the common intention of pursuing court of law, if other party fails to stay abide b ytheir promise. Social agreements do not impose a need for going to court but in case ofcommercial ones, intention for going to court is presumed (Beatty and Samuelson, 2012).In context to the scenario, there was no such binding contract between Freddy and Layla.Freddy in the end agreed to sell the TV for £125 since he had no intention for creatinglegal relations with Layla.Lawful considerations : A party needs to provide valuable assets to another one forindulging them within the contract. These assets could be price oriented as well. Laylawas only willing to buy TV for £125. Since no other option was available with Freddy hehad to agree to sell TV for £125.1
Parties competent : All the involved parties within a contract should be competent. Ifany incompetent party is found then that particular contract becomes void. Both Freddyand Layla were competent.Free consent : The parties involved in contract agree upon the same clause withincontract. Both Freedy and Layla agreed the TV will be sold for £125. So both possessed afree consent.Lawful object : An object involved within agreement must be valid. Freddy agreed tothe sell the TV for £125 to Layla. This agreement is lawful since the object is also lawful.Certainty meaning : The agreement's meaning should be certain (Reddy andRampersad, 2012). Freddy agreed to sell the TV for £125 to Layla. This is validagreement because of the certainty of the price.1.2 Types of contractsUnilateral contracts : Only one of the two involved two parties within a contract canformulate a promise. The performance of this contract will be indicated by the acceptanceshown towards offer. Bilateral contract : Both the involved parties within a contract are legally bounded foradhering the contracts-terms & conditions & accordingly perform or avoid a particulartask or act. Oral contracts : There occurs instances when parties associated to a particular contractorally agree to stay abide by the terms & conditions of it (Burnham, 2014). These type ofcontracts are less legal since the complexity involved in proving them. However, thesecan be made enforceable by law. Written contracts : In these, terms and conditions of contract are pre-decided by partiesbefore formulating them in written way on the paper. Also, this is considered as legallybinding one. 1.3 terms incorporated within a valid contractExpress terms : The written format of contract should clearly mention these terms. Boththe involved parties should be having a knowledge about those terms & are therefore tobe bounded by them. These could be legally enforced.Implied terms : They are not as such clearly mentioned in the contract. The intention ofthe party towards contract is depicted by it.2
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