Commercial Law Assignment Example

This assignment delves into the field of commercial law, requiring students to analyze different legal situations and apply relevant principles. It covers topics such as contract interpretation, tort law, company law, and vicarious liability. Students are expected to demonstrate their understanding of these concepts by referencing provided legal texts and online resources.

ASPECTS OF CONTRACT AND
NEGLIGENCE FOR BUSINESS
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
ASSIGNMENT NUMBER: 1. PROVIDE LEGAL ADVICE .......................................................3
Case 1 (1.1, 1.2 and 1.3)..............................................................................................................3
Case 1 (2.1, 2.2 and 2.3)..............................................................................................................4
Case 3 (3.1, 3.2 and 3.3)..............................................................................................................5
ASSIGNMENT NUMBER: 2. EVALUATION TASK..................................................................6
4.1 and 4.2....................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9
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INTRODUCTION
Aspects of contract are termed as several elements which are required to consider while
making valid contract. This report presents various legal factors that are considered by both
parties to convert an agreement in a legal contract (Alshubaiki, 2013). This report examines
various situations by considering different elements of a valid contract. In addition to that it also
analyzes negligence of business with reference to different scenario.
ASSIGNMENT NUMBER: 1. PROVIDE LEGAL ADVICE
Case 1 (1.1, 1.2 and 1.3)
As per the give case, Bob (purchaser) and Sam’s (seller) of book require to consider
several elements in formulation of valid contract: Offer and acceptance: It is termed as most significant aspect of a contract. It can be
stated that without a lawful offer and acceptance a contract cannot become valid. Offer is
the first step of making contract. This entails that one party is giving invitation to another
to enter into some legal or contractual relationship. However, the contract will be formed
between parties if the invitation as being given by one individual will be accepted by
others. Here, in the given case, Sam has given invitation to Bob by displaying book at the
counter. Legal Relations: There must be a legal goal and consideration between the parties that
has to be disclosed in agreement in the form of outcome and commitments (Connolly,
2013). The parties who have decided to enter in the contract must show their intention to
enter in the legal relationship. This is because, if it would not happen then in the given
condition, legal relationship will not be formed between parties. In the given case, Sam
has displayed the book in shelf which depicts that he has an intention to enter in the legal
relationship. Lawful consideration: The presence of a lawful consideration has been considered as
most important part of valid contract. In addition to this, it can also be said that
consideration is something which one party gives to other in return of something. For
example, in the case, consideration can be in the form of money and book. Here, for Sam,
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consideration would in the form of money. However, for Bod, it will be in the form of
book. Free consent: In the context of valid contract, both parties must be agreed on similar
consent. In the situation of fraud, free consent is totally absent. Lawful object: A valid contract is required a valid goal. Legal Formalities: It must fulfill all legal formalities that are essential for development of
legal contract such as registration and receipts, etc. (Baskind, Osborne and Roach, 2013). Capacity of parties: Both parties must be able to meet different compliance of law;
otherwise it cannot be implemented as per the law.
 Certain or meaningful contract: It should clear all elements of contract.
As per the case, there is no valid contract identified between Sam and Bob even though
some elements of contract are present in the respective case. This is because, while taking book
at the counter of Sam, Bob had explored that the book was already sold to Carl. It is the reason
because of which Sam has refused to sell the book to Bob. Thus, it is correct to say that there is
no valid contract in between both the parties as all essential elements of a valid contract are not
fulfilled in the present case.
There are mainly two types of contracts such as written and verbal used to manage
particular agreement. Written contract is the type of contract which is formally written and
authorized by both the parties on some specific written documents (Elements of Law of
Contracts, 2012). It is the most common form of contract. The contract is effective as here
parties have the written proof of all the terms and conditions which are decided between them.
Hence, with the help of given proof, individuals can create a legal binding on the other party in
case if the respective person will not comply with the terms and conditions of contract.
On the other hand, Verbal agreements are based on the good faith of both parties who are
involved in particular contract. Here, all the terms and conditions of contract are decided
verbally. Hence, parties do not have any written record of conditions which are specified by
them. In the present case, there is verbal or face to face communication carried out by both the
parties, that is, Sam and Bob.
Some important terms of a contract is explained as below:
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 Express term reflects a contract which is made by verbal and written communication
methods. Hence, it is the condition which is decided by the parties while entering into a
contract. Here, the parties have full authority to file case against other individuals who
have not complied with the conditions of contract.
 An implied contract is formulated by avoiding any kind of words used in verbal or
written from (Dignam and Hicks, 2011). These terms are not decided by the parties but
automatically get inserted into a contract. Main objective of these terms is to protect
parties from any kind of damages. Hence, the given form of terms causes a significant
impact on the parties as well as on the type of contract.
 Warranty is defined as duration in which seller is become responsible for any kind of
damage and issues occurred in particular period.
 Valid contract is termed as an agreement that accomplishes all conditions as per the laws.
As per the present case, the exchange of money along with legal formalities is not
identified in agreement. There is not any kinds of valid contract develop between Sam and Bob.
Case 1 (2.1, 2.2 and 2.3)
The given case determines that Barry is a customer of a particular park which is handled
by local authorities. Barry pays 50p per hour for the ticket to hire a chair. But, the chair crumples
his cloths. Barry demands for reimbursement of his cloths from local council. But, local council
has refused to pay for it as per the words written tickets.
By considering different transaction in given case, there is a valid contract identified
between Barry as well as Local council. This is become it has fulfilled all elements of valid
contract such as offer and acceptance, legal formalities, lawful object, free consent, etc. (Leone,
2011). For example, the ticket which is offered by the Local council to Barry will be considered
as an offer. In addition to this, Barry has accepted the ticket by making payment of the same.
Acceptance from the side of Barry entails that he is very well aware about all the terms and
conditions of ticket and hence, accepted it. Thus, it is correct to say that there is a contract which
is established between parties as all the essential elements of contract are available in the present
case.
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In addition to this, in the given case, written contract is formulated between parties. This
is because; here, all the terms and conditions of contract are written and specified by Local
Council in the ticket.
This case is appropriate in terms of Exclusion Clause required for valid contract. With
reference to present situations, it can be said that local authority is eligible to apply this clause.
This section determines that the rights of both parties are controlled by one party. This clause
reduces some liability of one party within particular situations. Exclusion clauses are categorized
in three parts: True exclusion clause that contains logical liabilities and responsibility of care
(Levi, 2013). Limitation clause comprises only some limitation on the assertion. Time limitation
clause applies only within some specific standard time to claim for damage. Here, in the given
case, exclusion clause will be the condition which is written by Local council in the ticket. The
ticket states that the council will not be held responsible for any injury and damage which is
caused to a person (Sealy and Worthington, 2013). Hence, the implications of exclusion clause
restrict all the rights of Berry to claim for the damages which are bear by it in an effective way.
Case 3 (3.1, 3.2 and 3.3)
This case determines that Brian and Adam has been become part of a valid contract when
Brain addresses the advertisement in the news paper which has provided by the Adam. This
advertisement is providing detail information about the competition along with a reward of
£1000 for the winner to paddle across English Channel in a bath from Dover to Calais. But after
some time, Adam again has placed a new advertisement in newspaper to withdrawn particular
benefit (Tomasic, 2011). But, Brain has not addressed the second declaration of Adam and he
claims for reward against Adam after competition. This case is reliable under the tort law. Some
liabilities have been addressed that are termed as tort liabilities. As per the given scenario, Brain
is eligible to claim for reward as per the laws of tort liabilities. Furthermore, it can be said that
All case associated with negligence, vicarious, contractual as well as contrast liability are come
under the tort law.
Negligence liability of the tort law contains three elements such as duty of care, break of
contract along with remoteness of harm. In accordance with the given context, different
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principles are identified which if fulfilled, at that time; the affected party has full authority to put
the claim of damages on other person. The detailed explanation of same is depicted as below: Duty of care: The given principle states that the person who resides in the duty of care
position must ensure that it should make all types of measures so that its employees can
be protected from any kind of circumstance. Here, the affected party can claim the
damage if it will prove that the respective person has not fulfilled its duty of care. Breach of duty: The given principle depicts that the employee can claim for the damage if
it will be proved that the employer has breached his duty and because of it, damage has
been caused to him. Remote causes: This principle depicts that physical damage must be caused to party
because of ignorance from the side of person who resides in the position of duty of care.
 Causation: This element of negligence entails that the negligence must be occurred from
the side of person who resides in the position duty of care.
In addition to that, vicarious liability reflects a significant relationship between both
parties. The contractual liability indicates that both parties are familiar with each other on the
other hand both parties are termed as stranger in tortuous liability. Selections are carried out in
terms of voluntary element but negligence is considered as obligation of another party. Here,
vicarious liability is the liability in which action of employees tend to cause the legal impact on
the employer of firm. In addition to this, it is the type of liability in which some is held
responsible for the act or performance which is being done by some other person. In this regard,
number of conditions identified with the help of which employer of the firm will be held
vicariously liable for the act as being done by employees.
 There must be employer and employee relationship. The damage must be caused to party during the course of employment.
Case of Brian and Adam
In the given case, Adam has given advertisement in the newspaper that the person who
paddles across the English Channel will be rewarded with 1000 Euros. This is the type of
unilateral offer which can be accepted by any party. The advertisement given is seen by Brian
and hence, he acted accordingly. Hence, Brian is claiming for the reward from Adam, but Adam
is refusing by putting the condition that the reward is being withdrawn by him and the
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information of the same will be published in the newspaper. Hence, it is the case of revocation of
offer but it is not done by Adam within specified time limit. Thus, in this case, Adam will be
held liable for the damage caused to Brian. This is because; it is the duty of Adam that he should
pay all the damages which it has incurred (Carnil Vs Carbolic smoke).
By considering the element of negligence liability, Brain is entitled to claim his reward
from Adam. This is because Brain has already come in competition before the second statement
of Adam (Hodgson and Lewthwaite, 2001). So, Negligence liability is addressed as per the act of
Adam in the form of breach of duty. In addition to that, Adam has not accomplished all his
responsibility while performing the break of duty in competition so as Brain is eligible to
demand the reward. This case determines that Adam has been found negligence liable and has to
pay reward to Brain.
ASSIGNMENT NUMBER: 2. EVALUATION TASK
4.1 & 4.2
The given case is based on the Tort Law. Tort is defined as problems and issues which
are faced by one party in the form of damage or losses that have been occurred through unfair
actions of another party. In this context, victim party is liable to claim for legal liabilities from
another party (Jones, 2002). Tort contains three elements such as intentional tort, strict liability
tort and negligence tort. Legal liability is an unintentional tort.
Statement A: Neil does not owe Roger a non-delegable duty of care as an employer to provide
a safe working environment.
As per the case of Poshplace hotel, there are three individuals identified such as Neil, the
gardener and Roger, the dishwasher along with Ben, the owner. This case reflects some
situations in which Neil has theft the master key of hotel’s room as well as also scared Mark.
This statement is viewing duty of Neil towards Roger (DiMatteo, 2012). With reference to tort
law, this statement has not found totally accurate as per the present case. By considering the
Non-delegable duty of contract, it is addressed that employer is responsible in order to ensure the
employee’s safety. In the present scenario, Neil is not an employer of Poshplace hotel and Ben is
considered as employer because it owner of this hotel. Therefore, Neil is not liable to accuse the
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Roger for a non-delegable duty of care in order to facilitate safe working conditions (Jianyuan,
2013). In present case, Ben is likely to responsible for the safety of both Roger as well as Neil
along with efficient working environment.
Statement B: Roger can bring a claim in vicarious liability against Neil for Colin’s actions
As per the case, Roger was working as a dishwasher and Colin was placed as a head chef
in the Poshplace hotel. Roger has faced the skin rash problem due to long time washing so as
Roger complained about this to Colin. Colin has beaten him by a frying pan with anger. With
reference to Tort law, the present declaration is not appropriate (Rush and Ottley, 2006). In this
situation, Roger is not able to bring a claim as per the vicarious liability against Neil for the act
of Colin.
An intentional action is not considered tort liability. In the present case, Colin’s act was
considered in terms of intentional. Therefor, tort liability is not applied in current situation
because Neil is not accused for Colin’s actions against Roger.
Statement C: The Poshplace Hotel is liable to Mark under the Occupiers’ Liability Act 1957.
In the given case, the master key of different rooms of hotel has been stolen by the
gardener (Neil). One night he entered in the Mark's room and captured all his exclusive jewellery
by threatening him. As per the Occupier’s Liability Act 1957, employer is liable for safety and
security of employees. In the present situation, Neil’s action has been found intentional so that
Poshplace hotel is not accountable for the act of Neil as per the Occupier’s Liability Act 1957.
Statement D: The Poshplace Hotel is not liable to Mark under the Occupiers’ Liability Act
1984 because of its warning notice
The Occupiers’ liability act 1984 is applied to assess liability of occupier in the context of
trespassers. By considering the Tort law, the present statement is completely right. This act
contains a significant warning subdivision of the contract (Twigg-Flesner, 2013). By using the
warning fragment, hotel is able to release its legal obligations. With reference to present case,
Poshplace hotel has released its duties associated with safety and security of customers by stating
a warning that; “pool closes between 7.00 pm to 7:00am. No entry to visitors during these hours;
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‘Dangerous when unattended’’. But, Mark has this cautionary and avoids. So, Marks is not able
to claim for damages for Poshplace hotel.
Section E: Mark can use ordinary negligence principles in his claim against Poshplace.
This case is completely applicable in terms of tort law and tort liabilities. The present
statement is not feasible because negligence principle is avoided. These principles contain three
elements such as duty of care, breach of duty as well as remoteness of damage. There are two
situations occurred with Mark. In first situation he was robbed by the Neil (gardener). This
aspect comes in law civil and criminal as well as robbery is considered as criminal offence
(Hollingsworth, 2015). These criminal actions cannot be predicted by the Poshplace hotel. In
another situation, he has ignored the warning signals and suffered from damage. Therefore, Mark
is not able to use ordinary negligence principle in order to claim against Poshplace hotel because
negligence principle like remoteness of damage has not met by the Mark.
Section F: Under the Occupiers’ Liability Act, Mark will not be able to claim for the cost of
his designer swimming trunks
By using the Occupier’s liability act, hotel can discharge their duties by stating a clear
warning related to damages. This act is mainly associated with safety and protection of different
customer (Dignam and Hicks, 2011). The hotel organization has clearly stated a warning for the
danger. Mark has read the statement and ignored it as well as jumped in the Swimming pool. So,
Mark is not liable to claim for damage such as loss of expensive swimming suit from Hotel
organization.
Section G: Mark can bring a claim in vicarious liability against Poshplace Hotel for the loss of
his jewellery
Vicarious liability is not considered in the intentional crime cases. With reference to this,
Mark is not capable to demand for claim under the vicarious liability against Poshplace Hotel for
the losses occurred due to theft of jewellery and injury (Baskind, Osborne and Roach, 2013).
This is because Neil is responsible for the act of this robbery so as vicarious liability is not
applied in this context.
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Thus, present report determines different elements of tort laws along with its liabilities. In this
process, several factors of negligence principle and vicarious liability are considered to examine
accuracy of each statement.
CONCLUSION
On the basis of above assessment, it can be concluded that several elements are
considered by different parties in formulation of a valid contract. Furthermore, negligence
principle and vicarious liability have been termed as most effective elements in order to analyze
different situations.
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REFERENCES
Journals and Books
Alshubaiki, T. A., 2013. Developing the Legal Environment for Business in the Kingdom of
Saudi Arabia: Comments and Suggestions. Arab Law Quarterly. 27(4). Pp. 371-391.
Baskind, E., Osborne, G. and Roach, L., 2013. Commercial Law. Oxford University Press.
Connolly, M., 2013. Briefcase on Commercial Law. Routledge.
Dignam, A. J. and Hicks, A., 2011. Hicks & Goo's cases and materials on company law. Oxford
University Press.
DiMatteo, A. L., 2012. False dichotomies in commercial contract interpretation. Journal of
International Trade Law and Policy. 11(1). pp.27-43.
Hodgson, J. and Lewthwaite, J., 2001. Law of Torts. Blackstone.
Jianyuan, C., 2013. Validity of Contract to Dispose Other Person's Properties, Suspense of
Performance, Dissolution, and Undertaking of Debt. Chinese Journal of Law. 6. pp.011.
Jones, M., 2002. Textbook on Torts. Oxford University.
Leone, M., 2011. Legal controversies about the establishment of new places of worship in
multicultural cities: A semiogeographic analysis. In Prospects of Legal Semiotics.
Springer Netherlands.
Levi, E. H., 2013. An introduction to legal reasoning. University of Chicago Press.
Rush, J. and Ottley, M., 2006. Business Law. Cengage.
Sealy, L. and Worthington, S., 2013. Sealy & Worthington's Cases and Materials in Company
Law. Oxford University Press.
Tomasic, R., 2011. Company Law Modernisation and Corporate Governance in the UK-Some
Recent Issues and Debates. DICTUM-Victoria L. Sch. J.(1). 43.
Twigg-Flesner, C., 2013. The Europeanisation of contract law: current controversies in law.
Routledge.
Online
Elements of Law of Contracts. 2012. [pdf]. Available through:
<http://www.londoninternational.ac.uk/sites/default/files/programme_resources/laws/
ug_subject_guides/elements_law_contract-subjectguide4chapters.pdf>. [Assessed on 3rd
September 2015].
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Hollingsworth, G., 2015. Vicarious liability lawyers. [Online]. Available through:
<http://www.legalmatch.com/law-library/article/vicarious-liability-lawyers.html>.
[Assessed on 3rd September 2015].
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