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Contract and negligence law: Assignment

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Added on  2019-12-03

Contract and negligence law: Assignment

   Added on 2019-12-03

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Aspects ofContract
Contract and negligence law: Assignment_1
TABLE OF CONTENTSIntroduction......................................................................................................................................3Task 1...............................................................................................................................................31.1 Valid contract and liability in case of Negligence.................................................................31.2 Types of contracts in UK.......................................................................................................41.3 Terms included in valid contract............................................................................................5Task 2...............................................................................................................................................52.1 Preparation of contract...........................................................................................................52.2 Explaining terms....................................................................................................................6Task 3...............................................................................................................................................63.1 Contractual liability and Tort liability...................................................................................63.2 Negligence: Duty of care.......................................................................................................73.3 Vicarious liability...................................................................................................................8Task 4 ..............................................................................................................................................84.1 Advice on recovery of losses.................................................................................................84.2 Situation based analysis.........................................................................................................9Conclusion.....................................................................................................................................10References......................................................................................................................................112
Contract and negligence law: Assignment_2
INTRODUCTIONIn today's scenario, all kind of businesses and individuals have to deal with the legalaspects and even a single mistake can hamper the operations of whole business. Therefore, it iscrucial for them to have some knowledge of contract law and negligence law. Contract is avoluntary agreement between two or more parties who tend to enter into an agreement bycreating legal obligations along with a lawful object. It can be verbal or written. On the otherhand, negligence refers to failure of parties in exercising due care which any person in normalcourse of action would have ensured (Zhang, 2006). It excludes intentional harm. In the presentproject report, valid contracts and liability in case of negligence is explained. Further, properjustifications of case scenarios are also given with the help of case laws.TASK11.1 Valid contract and liability in case of NegligenceEssential elements of a valid contract are:Offer: As per the contract law, in order to enter into a valid contract, there must be alawful offer made by one party.In accordance with the case of Harvey v Facey [1893] UKPC 1,Offer refers to a promise which is made in exchange for the performance which is to beconducted by another party. An offer can be general or specific. Offer must not be confused withthe invitation to offer (Pharmaceutical Society of Great Britain v Boots) (McKendrick, 2014).Offer once made cannot be revoked or terminated except under certain conditions. Offer can alsobe negotiated so as to create a counter-offer. Acceptance: The offer made by party above must be given with a lawful acceptance byanother party without any modifications in it. Acceptance is an act of receiving something whichis offered. It should be given in the specific mode and the manner provided. When an offer isaccepted, it becomes a contract.Any condition based acceptance is called a counter-offer.Lawful Consideration: A reward for work done is termed as consideration. It must beappropriate (Beever, 2007). It can be in monetary or non-monetary terms as well. Any promise todo or not to do an act is also a consideration.3
Contract and negligence law: Assignment_3
Capacity of parties: This states that the parties must not be incapable to enter into acontract. Incapacity may deal with being of unsound mind, disqualified by law to enter into acontract and minor person. Privity of contract: Privity refers to a relationship between two parties that is clearlyrecognised by law. It simply means that the parties must carry an intention to create a legalbinding upon them before entering into a contract. It excludes agreements of social or domesticnature (Best and Barnes, 2007). The most important rule in privity of contract is that, only partiesto contract can sue one another. No third party can intrude in between.Intention of parties: All the parties must have intention to create contractual relationship.In accordance with the case facts of Jones v Padavatton [1969] 1 WLR 328 domestic andcharitable agreements are not enforceable because parties do not have intention of createcontractual relationship.Thus, as per the given scenario, James made an Invitation to offer by posting it on thewebsite. Maria's response to that invitation was an offer made by her to James that James did notaccept and this resulted in the cancellation of offer. So, there was no contractual relationshipbetween James and Maria. James reply to Maria's offer was a counter offer which was made byhim to Maria and was not accepted by her. This clearly shows an absence of essential elements(as stated above) which are required to enter in a contract. Further, if James wants to accept thefirst offer made by Maria, then it is not possible because as soon as he made a counter offer,Maria's initial offer got cancelled.1.2 Types of contracts in UK3 types of contracts are there in UK:Face to face contract: This happens only when all the parties to the contract arephysically present. In this contract, acceptance has to be given at that time only. Forexample, purchasing of goods from shopping mall (Helewitz, 2010).Distance contract: Any contract which happens through post or telecommutes isconsidered as a distance contract. It is generally settled between the trader and consumerunder Sales provision scheme without the physical presence of consumer and seller. It ismostly time bound like online shopping.Example: importing goods, online contracts, etc.4
Contract and negligence law: Assignment_4

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