Case Study-Identify The Aspects Of Contract & Negligence In Business

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Table of contents
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Introduction
The purpose of this case study is to recognize and identify the different aspects of
contract and negligence in business. In this age of modernization, people sometimes refrain
from vocational agreements, which have seldom paved the way for written contracts. Both the
oral and written contracts provide a proper legalised business transactions with two or more
parties and it resolves any probability for future disputes.
In the following case studies, the various aspects of the legal court proceedings and the
cases linked with contract and negligence are discussed vividly. In addition to that, the below
mentioned case studies also forecast a detailed understanding of the myriad laws of contract and
the proper tort and skill that are applicable in lieu to it, especially in business predicaments.
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1. Explaining of the formation of essential elements required for contract with
examples (AC 1.1)
There are four elements required for a valid contract. Those are:
Offer: Before making a proposal legalised, it should be followed a clearly stated offer.
As for example, it may be any quotation by sub-contractor to main contractor and an offer to
lease. An offer is likely to lapse if acceptance time expires; offer is withdrawn before it is
accepted.
Acceptance: Acceptance is caused when any offer is accepted without any terms and
conditions. Proposal of any new terms makes it a counter offer.
Intention: In case of a commercial transaction, the parties entering a contract are guided
by some legislation. If one party has signed a contract about any business, then he can sue the
opposite party if the contractual provisions are not being fulfilled. The presumption can be
rejected if both the parties express their reluctance in making any legally binding contract. The
word subject to contract is often printed on document.
For example, as noticed in Taylor V Cladwell, 1982, this legally ensures that the
document is not contractually signed but all its contents will be bound by a subsequent contract.
In this case, party acting the “subject to contract” can withdraw case at any time before
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conclusion made for the contract. The dispute and proof in which the intention was to build a
contract rest the party who rely on the contract (Cooter and Landa 2016)
Consideration: The offer placed should have value to be considered for example, one
party's promise to do something, in return of any action of other party. It can be called as an
agreed price for other party’s promise. Although, it does not have any monetary value, it can be
any kind do deed as for example promise to do something or not to do.
2. Considering the effect of various types of contract (AC 1.2- M1)
Various types of contract are categorized as follows.
Types of contracts based on formation:
Contracts under seal: a contract was only considered valid if it is enforced as a legal
document with proper stamp and seal. The seal symbolizes to be the acceptance proof of legal
effect along with its consequences. Courts recognise informal contracts including implied
contracts, which have diminished the importance of employment of formal contracts under seal
(Andrews, 2016).
Express contracts: it includes cases where terms are being stated by parties. The terms
can be both in verbal or nonverbal forms while making the contract. There is a well-defined oral
or written offer which are accepted by the offered explicitly demonstrating consenting its terms.
Implied Contracts: although contracts that are implied in fact and contracts implied in
law are both called implied contracts, a true implied contract consists of obligations arising from
a mutual
Agreement and intend to promise which have not been expressed in words. It is
misleading to label as an implied contract one that is implied in law because a contract implied
in law lacks the requisites of a true contract (Perry, 2016). The term quasi contract is a more
accurate designation of contracts implied in law. Implied contracts are binding as express
contracts. An implied contract depends on substance for its existence; therefore, for an implied
contract to arise there must be some act or conduct of a party, in order for them to be bound
(Perry, 2016).
Section 68: when the requirements are supplied
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