Case Study of InXs Ltd and Country Pine Ltd

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Added on 2019-12-03

Case Study of InXs Ltd and Country Pine Ltd

Added on 2019-12-03

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Aspects ofcontract

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TABLE OF CONTENTSIntroduction......................................................................................................................................3Scenario 1.........................................................................................................................................31. Essential elements required for the formation of contract.......................................................32. Description of different types of contract along with the suitable examples...........................43. Advise of InXs for prevailing of contract................................................................................54. Applicability of contractual terms in the given case scenario.................................................55. Validity of exclusion clause inserted by CP in the contractual deed.......................................6Scenario 2.........................................................................................................................................81. Difference between contract and negligence obligations........................................................82. Elements that required to be presented by claimant in order to succeed in an action fornegligence....................................................................................................................................83. Advice to Fiona regarding her claim of personal injuries ......................................................84. Defenses for country pine........................................................................................................95. Doctrine of vicarious liability..................................................................................................96. Advice to CP regarding damages caused by Jason..................................................................9Conclusion.......................................................................................................................................9References......................................................................................................................................102

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INTRODUCTIONEnglish contract and negligence law is developed to govern commercial relationship andfor the promotion of fairness. Present project report is focused on the description of differentprovisions of the contract law and negligence law by considering given case study of InXs Ltdand Country Pine Ltd. Report will include description of provisions of contract and negligencelaw in order to provide justified recommendation to the given case scenario.SCENARIO 11. Essential elements required for the formation of contractContract is a legal agreement between two or more parties for the completion of specificperformance. An agreement is said to have legal enforceability if it supported by followingelements-Offer- It is a proposal given by offeror to offeree to enter into contractual relationship inorder to provide stated performance. However, invitation to treat will not be consideredas offer because it is merely a preliminary statement of showing intention to create legalrelationship (Fisher V Bell 1961. Basic difference between invitation and offer toinvitation to offer is of intention. In offer one party intend to create legal relationshipwhile in invitation party shows merely willingness.Acceptance- It can be termed as consent given by offeree on the provided offer. It mustnot be supported by additional conditions or modification else it will be treated as counteroffer(Hyde v Wrench 1840). In this case precedent court had declined the validity ofcontract because counter offer had destroyed the original offer and due to which offereeis not entitled for the acceptance.Consideration- It is benefit for which promise is made by parties. In accordance with thecase of homas v Thomas) (1842) 2 QB 851 consideration is not required to be at fair pricebut it must have some values in eyes of law. It is because, court is not interest inbargaining techniques of parties. Consideration can be provided either in monetary andnon monetary terms. Further past consideration is not said to be valid for formation ofcontractual relationship.3

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Intention- All parties to the contract, must have intention to create legal relationship forthe fulfilment of promise described by them (Jones v Padavatton [1969] 1 WLR 328).This element is assumed to be part of the contract because it is not expressly stated by theparties. Case scenarioIn the given case situation, invitation to treat was given by InXs Ltd to Country Pine Ltdfor providing quotation of furniture for the purpose of refurbishment. By considering theprovided invitation offer was given by the CP for the sale of furniture at £45000. Given scenariois based on the contract of goods thus in this implied terms of Sales and Goods Act will beapplied. Further, counter offer was given by InXs Ltd by making change in price i.e. £42000.Along with this, they also sent a written contract to the CP. This contract was not returned by CPbut they had sent email regarding delivery dates along with their standard contract with astatement that there contract with prevail. This mail was considered by InXs Ltd and it was alsosigned by employee and company secretary of the organization. This aspect shows that there isvalid contract between parties as all the essential elements are covered in the agreement formedby the parties. 2. Description of different types of contract along with the suitable examplesBy considering the given case scenario it can be said that there was contract of supply ofgoods between InXs Ltd and Country Pine Ltd. It is because, tangible products are transferred bythe parties for the description of terms and conditions. It is conducted in written manner. This isthe most formal form of contract because prepared deed is considered as evidence in order toresolve dispute among parties and to provide reasonable damages to the innocent party. Alongwith the written contract, following contractual forms can be selected by contracting parties forformation of legal agreement-Contract of employment- This contract is created between employer and employee inorder to determine terms and conditions of the contract. Generally these contracts arecreated in written form. Contract of services- Contract of services is created between purchaser and seller for thetransfer of intangible goods. These contracts are governed by Supply of Goods and4

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Case Study of InXs Ltd and Country Pine Ltd