Business Law and Negligence Concepts

This assignment delves into the realm of business law, particularly examining the principles of negligence and vicarious liability. Students are tasked with analyzing various case situations involving negligence and applying relevant legal concepts to determine responsibility and potential remedies. The assignment also explores the concept of vicarious liability in a workplace setting, highlighting the legal implications for both employers and employees.

ASPECTS OF CONTRACT
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Table of Contents
INTRODUCTION.......................................................................................................................................4
TASK 1.......................................................................................................................................................4
1.1 Explanation of various elements of contract......................................................................................4
1.2 Discussion bout the implication of various types of contract.............................................................5
1.3 Analysis of terms of contract.............................................................................................................5
TASK 2.......................................................................................................................................................6
2.1Application of various elements of contract in the case scenario........................................................6
2.2 Application of the terms of different contract in the given case scenario...........................................7
2.3 Evaluation of the effect of various terms of law on the terms and exemption clause in contract in
the given case scenario............................................................................................................................7
TASK 3.......................................................................................................................................................8
3.1 Explanation about the difference between contrast liability in tort with contractual liability............8
3.2 Explanation about the nature of negligence and its liability...............................................................8
3.3 Explanation about how a business can be vicariously liable..............................................................9
Task 4..........................................................................................................................................................9
4.1 Application the element of the tort of negligence and defense in the various case situations............9
4.2Application of vicarious liability in the case situation........................................................................9
CONCLUSION.........................................................................................................................................10
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INTRODUCTION
In the business context, the governmental laws and legislation is very important through
which unfair practices and illegal activities can control. In order to overcome the unfair activities
in the business organization, business law plays a very important role. In order to develop a legal
relationship, two or more than two person engage with legal authority (Akintoye, Renukappa and
Lal, 2012). The contract which is enforceable by law is known as the valid contract. The
following report is going to define the various elements of valid contract and terms of contract.
The following report is bifurcated into the various case scenario and these element of contract
has successfully implemented. In addition to this, various forms of contract has also effectively
studied in this report.
TASK 1
1.1 Explanation of various elements of contract
A contract is an agreement but an agreement is not a contract. A contract may be define as
legal binding agreement. A contract which is enforceable by law is known as the valid contract.
It is an essential part of a contract to establish if there is an agreement can be reach only by
writing, a verbal agreement can also give rise to contractual obligation. Following are some
essential elements of valid contract-
 Offer- While between two parties contract is going to develop then it is very important to
identify a valid offer. Offer refers to the definite promise by someone with the intension
to create legal relation. One who made the offer is known as offerer and the offer made
for the person is known as the offeree.
 Acceptance- Once the offer has made for someone then it is very important acceptance of
the offeree for that particular offer. While the offee reject the offer then there is not
acceptance. Acceptance may be by express words or by action.
 Consideration- One another important element of valid contract is consideration. While
contract made between the person then it is very important to that both of person have
full consideration or free consent (Business, 2013). There must not any kind of pressure
and force by any body on them. There must free consent of both parties.
 Intension to create legal consideration- While the contract is made between the parties
then there must be intension to create legal consideration. There must not any kind of
illegal and fraud action. An agreement will only become a legally binding contract if the
parties have demonstrated a contractual intension to be bound.
 Capacity- While the contract is made between the parties then there must capacity to
enter into the contract. It means the party who made offer to someone he/she must have
capacity to enter into the contract. It should not be on the basis of friction and
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imagination or assumption. It must be in reality and they must have capacity to develop a
legal relationship with someone.
 Legality- A contract which is made between two or more then two parties must be legal
in order to be enforceable by law. Illegal activity is not enforceable by law.A legal
contrct should avoid any vitiating forms as it validity may be affected by one of a number
of vitiating factors as mistake, fraud, misrepresentation etc.
1.2 Discussion bout the implication of various types of contract
As per the above discussion it has been ascertained that in the valid contract there are various
kinds of elements through which a contract is known as a valid contract. In addition to this,
according to the UK government, in the context of business law, there are various kinds of form
of contract. These contract are as follows-
 Unilateral contract- It is that type of contract under which party assumes an obligation
under the contract. For example, if someone order the food at the restaurant then he/she
are obligated to pay money for that food product. The person is bound by their offer in
this contract.
 Bilateral contract- Most of the contract is Bilateral contract. This means that each party
promise to carry out certain things as an obligation assumed under the contract.
 Electronic contract- It is a contract under which offerer and offeree use the various
mediums of communication channel like email, fax, mobile, internet etc .In other word
the contract under which use of technology is known as the electronic contract.
 Void contract- A void contract is one which has no legal effect at any time, and nether
party can be enforced (Chesbrough, 2013).
 Voidable contract- It is a contract under which one party his option at any time during
the contract because he has not given his genuine consent to its terms. Property
transferred to the third party before avoidance is usually irrecoverable from the third
party.
 Express contract- it is the most common contract in the context of business. In this
contract, the parties of the contract either by words or in writing. In other word it can be
said that both parties who are engage with the contract either by words or by writing.
 Implied contract- It is a contract when the words an d conducts indicates that the parties
intended an agreement. It can be implied in fact or in law.
1.3 Analysis of terms of contract
In the business law, the UK government announced that in the valid contract there are some
terms and conditions which have to perform or follow by both the parties who are enter into the
valid contract. If any person or party break the rules and condition then there may to accept the
valid contract and that contract is assume as valid by the UK government. Thus, it is very
important to know that a statement is a terms in a contract. Court will decide its importance as
not all terms are equal and most of the terms are more important as compare to another. There
are various terms of contract according to the UK law which are as follows-
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 Conditions- While two or more then two party enter into the contract then there must
some essential conditions which have obligated by both parties. If any one party break
that condition then it will not come into the valid contract. A breach of condition is
usually known as a repudiators breach. This will discharge the parties of their obligation
under the contract and give the witness party the right to claim against the party who
break the condition. In other word it can be said that if any person in the valid contract
may break the condition then another party can eligible for sue against that particular
party.
 Warranties- Warranty is different from the condition. It is determine after the contract as
party can claim against the party after the contract been made. The main purpose of this
contract that means that the innocent party can claim damages for breach of warranty.
 Innominate terms- It is also known as the floating term. It is perhaps useful to think of an
innominate, intermediate or in determined term (Elliot and Quinn, 2009 )
 Express term- As the name suggest that express term will be expressly agreed by the
parties to contract to be a term of contract. Express terms were clear since the tender was
made public for companies to come up with their offer and by accepting the proposal the
parties were bound.
 Implied term- Even though these terms have not been expressly agreed or mention
between the parties, the court may implied such terms in order to reflect the intension of
the parties.
 Exclusion clause- As per this term , the clause must be incorporated into the contract and
it must pass the test of construction. The clause must satisfy the relevant statutory
provision of the unfair contract act 1977.
TASK 2
2.1Application of various elements of contract in the case scenario
As per the above discussion that according to the UK government, there are various kinds
of elements of contract in the context of business law. While between the two or more then two
party enter into the contract then there must be some elements of contract. As per the given case
scenario, the Ivan is a person who went to the Todor’s bookshop for purchase HND book. At the
Todors shop he saw the HND law book in the display which prices was 50.As per this statement,
it has been clear that Todor’s shopkeeper has made offer because he displayed the book at
showroom and attached the book price on it. When the Ivan takes te book to the shopkeeper at
the counter then the shopkeeper has refused to sell because he has already sold that book to carl
yesterday but forget to remove it from the display. From this statement it has been clear that
there was not any kind of offer according to the UK business law because the shopkeeper
actually forget to remove the book from display because it was already sold to someone. It can
also cleared from this case scenario that there are also element of free consent because
shopkeeper has not forced to Ivan for purchase that book from his shop (Gao, Wang and
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Zhang,2011).In addition to this, there are also a capacity to enter into the valid contract because
both of the party have capacity to develop a valid contract but because the shopkeeper has
already sold that book to someone that’s why he could not sell gain that book. From this scenario
it has also cleared that there was also one another element of valid contract that is acceptance.
Because while Ivan saw the book at display then he was ready to purchase that book so it can be
said that there is also element of acceptance because he was ready to accept the offer by
shopkeeper.
2.2 Application of the terms of different contract in the given case scenario
As it has discussed that according to the UK government there are various terms of
contract which is very significant for the valid contract in the business law. If any person and
parties who are engage in the valid contract breaks the terms and condition of contract then the
victim party or innocent party can eligible for sue against the party and claim for remedies in the
court. As per the given case scenario, there is not applied the terms of warranty because between
the ivan and shopkeeper there has not made any kind of valid contract. As shopkeeper has
already sole the book to someone so he could not sell that book again to another customer. In the
above case scenario, the condition term can applied because at the display , The Todor show the
price of book that is 50 rs, it means there was a condition that if any person eligible to pay 50 rs
for the HND book then that particular person will eligible to purchase that book otherwise not.
So here it can be said that condition term can apply but warranty can not apply because there was
not made any kind of valid contract between that both parties (Key, 2013). One another term of
valid contract is in nominate term according to this limbo between conditions and warranty. If
breach is series and has the effect of depriving the injured party of substantially the whole benefit
which it was intended as part of their bargain, the court will treat this breach as a breach of
condition but if the breach is less serious the court will treat it as a breach of warranty. In the
above case scenario, the term of innominate can also not apply because between both parties
there has not made any kind of valid contract.
2.3 Evaluation of the effect of various terms of law on the terms and exemption clause in
contract in the given case scenario
As it has discussed in the above that there are various kinds of terms into the valid contract
according to the UK government. In the business law, government has developed various kinds of terms
of contract through which injured party or victim person can sue against the party from whom the
damage has been made (Ueda, 2012). The main reason behind the development of terms is to provide
protection and remedies to party who has injured due to the person. As per the given case scenario,
John is is rightfully entitled to receive a compensation by his local council according to the implied term
because this term stated that Even though these terms have not been expressly agreed or mention
between the parties, the court may implied such terms in order to reflect the intension of the parties. In
the given case scenario, however the local committees has displayed that they have not responsibility to
pay injury due to equipment in the park but according to the implied term, the John have right to get
remedies for their injurey due to chair fallen in the park.
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In this above case scenario, exclusion clause can also applied because as per this term Exemption clause
is that which is correctly mentioned into a contract. Further it is necessary that all terms must be enter
into contract so that claim for damage can be get to party who suffer from defendant action. But their
are some of parties who avoid exemption clause so that it cannot be claimed by other party on
breaching the terms and condition of contract (Liu and Aron 2014). According to this term, John have no
right to get remedies for injury because the local committee has already displayed at the board that
committee will not responsible to pay remedies if an accident occur due to the equipment in the park.
So it can be said that according to the term of exclusion of clause, John have no right to get remedies by
the local committee.
TASK 3
3.1 Explanation about the difference between contrast liability in tort with contractual liability
Negligence of contract is term under which any person ignore the promise made by them
with other party. Due to this negligence, the another party may suffer from the heavy losses. This
not only tends to develop a pessimistic state of dispute among them but to gather together results
in certain atrocious consequences at the end.
A tort is a portion of civil law and this occur when no other codified law is available for
the remedy of the plaintiff who has suffered a legal injury. In the tort of liability, the person from
whom another person got injured have responsibility to pay the remedies (Oliveira, Ruiz and
Conejo, 2013). A contract is a part of the civil law under which both parties ready to enter into the
contract and fulfill their responsibility according to determined conditions. They agree that it will
be binding on them. In the contract both the parties to the contract have a previous relationship
which is created through contract. In the contract to be liable one of the parties must have
breached the terms of the contract only then the person is held responsible.
3.2 Explanation about the nature of negligence and its liability
The negligence refers to that terminology which is used by someone and it influence to another
person. This section disclose the liability of that person who neglect or ignore the take care of
another person or another person goods. Due to this negligence, another person get injured and
the said person is responsible to pay the remedies for injury to victim or innocent person who got
injured. Following are some terms of liability of negligence-
 Duty of care- It is referred to that condition under which under which claimant have
right to get remedies from that person from injury occurred. For example, if any person
have got food position due to take food of the restaurant then it is responsibility of
restaurant owner to take care about the health of customers.Also the restaurant owner is
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liable to manufacture the healthy and effective food product so as customer can not get
ill.
 Breach of duty- If any person get injured due to another person irresponsibility then said
person have right to get remedies from the another irresponsible person.
3.3 Explanation about how a business can be vicariously liable
There are two key regulations of vicarious liability that depicts some leading elements of
supervising and control. It is essentially in context to describe the existence of vicarious liability
in the requisites of business where it is usually foreseen in worker- manager relationship in a
business corporation (Simons, 2014). It is therefore in agreement to its defined values where it
necessitates the organization to continually observe the approved activities of their respective set
of workers. In the general word it can be said that vicarious liability is that responsibility that
occur when one party is considered to be obligated legally for the wrongful torts of another
party. Generally this kind of responsibility course between the employer and employees under
which if any employee gets injured due to the wrongful activity of organization then company is
responsible to pay the remedies to that particular person.
Task 4
4.1 Application the element of the tort of negligence and defense in the various case situations
As per the discussed that The negligence refers to that terminology which is used by
someone and it influence to another person. Due to this negligence, the another party may suffer
from the heavy losses. As per the given case scenario, David is highly responsible to pay the
remedies to the Kevin because David is driving driving 35 MPH in 25 MPH zone down a four
lane street where there are children playing., Kevin, runs into the street chasing a soccer ball.
David, without looking over his shoulder, swerves into the other lane to avoid Kevin and in the
process he hits a telephone pole and is seriously and permanently injured. In this situation, the
element of negligence can applied because due to the negligence of david, Kevin got injured. On
the other hand the telephone company is also responsible to pay the damage to Kevin because
according to the breach of duty and duty of care, company have responsibility to maintain their
plat properly at the local street where daily citizen visit (Twomey and Jennings, 2010) Due to their
irresponsibility the nin year old child got high injured so company have responsibility to pay the
expenses for remedies.
4.2Application of vicarious liability in the case situation
As per the vicarious liability under which if any employee gets injured due to the
wrongful activity of organization then company is responsible to pay the remedies to that
particular person. So in the case scenario, the Roger have right to claim against the Colin in the
court and sue for remedies because due to the Colin mistake, roger got high injured. In this case,
either Colin or management department of Regent hotel is responsible to pay the remedies to
Regent.
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CONCLUSION
From this project report it has been concluded that business law and regulation is very
significant for organization through which employees and parties who involved in the contract
can get protection against unlawful or illegal activities and action. It has been also concluded that
there are various kinds of essential agreement which considered into the valid contract. In the
absence of terms and element, there may not occur the valid contract between the parties.
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REFERENCES
Books and Journals
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