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Aspects of Contracts and Negligence for Business

   

Added on  2019-12-28

15 Pages5237 Words403 Views
Aspects of contracts andnegligence for business

Table of ContentsIntroduction......................................................................................................................................4Task 1...............................................................................................................................................41.1 Importance of essential elements required for the formation of a valid contract .................41.2 Discussion on the different types of contract.........................................................................51.3 Analysing terms in contract ..................................................................................................6Task 2...............................................................................................................................................82.1 and 2.2 Applying the elements of contract in given business scenarios................................82.3 Report to Mr Michael Hair ..................................................................................................9Task 3.............................................................................................................................................113.1 Contrast liability in tort with contractual liability................................................................113.2 Explaining the nature of liability in negligence...................................................................113.3 Explaining the way a business can be vicariously liable.....................................................12Task 4 ............................................................................................................................................134.1 Applying the elements of the tort of negligence and defences............................................134.2 Applying the elements of vicarious liability .......................................................................13Conclusion.....................................................................................................................................14References......................................................................................................................................15Online.........................................................................................................................................16

IntroductionA contract is refer to agreement in which both the party who make offer and who acceptit need to agree with all terms and conditions. There are different types of contract which can becreated in different situations. The present report is based on different scenario which are basedon various case of negligence of contracts. In this report different elements of contract is discussin detail. Along with this, different types of contact and its impact on both business andindividual is explained. Apart from this different elements of tort of negligence has been discuss.Task 11.1 Importance of essential elements required for the formation of a valid contract There are some essential elements for forming a valid contract that are as follows:Offer: The offer is an agreement or a promise which needs to be made contract. In case ifoffer is made by one party to other than the valid contract cannot be formed. As percontract act 1950, the first element in a contract is offer. It is an important element formaking a contract valid and there should be at least two parties or more for making anylegal contract (Anson, Beatson and Cartwright 2010). Further, if offer is accepted byother party with all terms and condition then it becomes a valid contract. For example, inpresent case Freedy advertised on its websites for the sale of high definition TV for £145.It is an original offer which is made by Lyala which was cancelled because it was notaccepted by any other party. On the other hand, Lyala responded to the advertisement andmade counter offer for buying high definition TV at £125. Acceptance: After making an offer by one party there should be acceptance from otherparty. At the time when one party makes offer with clear terms and condition then makeacceptance once it clear with the rules and regulation being offer in the contract (Olanderand Norrman, 2012.). Apart from this, there cannot be any valid offer made if the partiesnegotiate or discuss on above made offer. The offer can be valid if it is accepted by otherparty on given terms and conditions (Liu, Cheng and Xie, 2012.). For instance, in givenscenario counter offer is made by Layala for buying a TV at £125 through email and itwas accepted by other Freddy. This reflect that, original offer was not created in place ofit counter offer made which is accepted with terms and condition by Freedy.

Consideration: It is another important element for creating a valid contract. Considerationin a contract means that one person give something back to other in return. Further, it isan exchange which is made between other two parties that is promise and promissor. Theconsideration is also giving something to other party in return which can be money orever payment (Hou, Zeng and Zhao, 2010). For instance, in given case layala make offerto buy TV at £125 and Freedy. For buying TV Layala agree to pay £125 as consideration.Intention to create legal relations: For making a valid contract, it is necessary to create alegal relationship. In this, common intention of the parties which should be legallyenforceable (Forstenlechner, And Lettice, 2008). Further, if any party do not have anyintention of creating a legal relation in a contract then it would be subject to a lawsuit.For instance, in given case both party offrer and offree are legally agreed to makecontract on given terms and condition. Capacity: Capacity in contract means both party ofrer and ofree must have the legalcapacity to do so (Berger and Lester, 2015). This means person who make offer and otherperson who accepts the contract must be above the age of 18 and should be mentally fit(Connolly and Hoar, 2014). For example, in the given case both parties are above the ageof 18 and have the legal capacity to enter into a contract.Privity of contract: In a privity of contract, the relation between the parties in a contractwhich have right to sue each other in court but forbid third party from sue (Connolly andHoar, 2014). For instance, in given scenario if contract is breached by any party then itcan claim in contract. However, third party have no right to sue in the court1.2 Discussion on the different types of contractThere are different types of contract and each contract have some impact which are discussedbelowBilateral contract: It is a contract in which both the party offerer and offree need to makecontract and one party take obliged action which comes under bilateral contract. It is type ofagreement which is enforceable in the court (Carter and Courtney, 2016..). For example, if oneparty sale house and both parties agree with given terms and condition at the time of formationof contracts.Written contract: In the written contract, both parties make contract in the written formand agree with all terms and condition provided in the written contract. For example, one party

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