Contract and Negligence for Businesses

Aspects of Contract and Negligence
for Businesses
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 3............................................................................................................................................3
4.1 Applying elements of tort of negligence and possible defences............................................3
3.1 Contrast nature of liability in contract with the liability in tort.............................................3
3.2 Nature of liability...................................................................................................................4
TASK 4............................................................................................................................................6
4.2 Vicarious Liability.................................................................................................................6
3.3 Business can be vicariously liable.........................................................................................6
CONCLUSION................................................................................................................................6
References........................................................................................................................................8
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INTRODUCTION
In order to enter in a valid contract it is essential for the parties to follow legal process
that will aid in guaranteed their interest if one party neglect to execute the requirement
(Levinson, 2005). Law is termed as the political concept and legislation that is in existence
implemented by the government to govern the society and interest of parties who are in the valid
contract. Presently, the report will focus on contrasting the different nature of liability in
'contract' with the nature of liability in 'tort'. However, the report will further focuses on the
applying different elements of torts of negligence for the business and state possible defences
from cases.
TASK 3
4.1 Applying elements of tort of negligence and possible defences
According to the case scenario, Albert applies to be tenant and provides his accounts
details to the landlord brad. Brad further reference relating to Albert financial position but the
accountant carelessly do not bother to check the file that recommend him as good tenant. After
some months Albert disappears by taking flat and also run up several thousand pounds worth of
rent arrears. In such situation Brad is liable to recover his losses from Charles. However, with the
help of occupiers liability act. The Possible defences under this include Volenti non fit injuria,
Contributory negligence and Ex turpi causa (Introduction to Tort Law, 2012).
3.1 Contrast nature of liability in contract with the liability in tort
Basis of difference Contractual liability Tort liability
Definition Contractual liability arises
from the failure of term.
Tort liability arises from
breach of duty.
Relation of parties In contractual liability, parties
are well-known to each other.
Liability arises due to their
written agreement relationship
(Hassett, 2012).
In tort, obligation is
obligatory by law. Parties
are strangers with each
other. They are constrained
by law to come into a
judicial relationship.
Measurement of damages In contractual liability, In tort, damages are
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