Contract And Its Elements | Assignment

Added on -2020-02-12

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ASPECTS OF CONTRACT1
Table of ContentsINTRODUCTION.......................................................................................................................................4TASK 1.......................................................................................................................................................41.1 Explanation of various elements of contract......................................................................................41.2 Discussion bout the implication of various types of contract.............................................................51.3 Analysis of terms of contract.............................................................................................................5TASK 2.......................................................................................................................................................62.1Application of various elements of contract in the case scenario........................................................62.2 Application of the terms of different contract in the given case scenario...........................................72.3 Evaluation of the effect of various terms of law on the terms and exemption clause in contract in the given case scenario............................................................................................................................7TASK 3.......................................................................................................................................................83.1 Explanation about the difference between contrast liability in tort with contractual liability............83.2 Explanation about the nature of negligence and its liability...............................................................83.3 Explanation about how a business can be vicariously liable..............................................................9Task 4..........................................................................................................................................................94.1 Application the element of the tort of negligence and defense in the various case situations............94.2Application of vicarious liability in the case situation........................................................................9CONCLUSION.........................................................................................................................................102
INTRODUCTIONIn 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 activitiesin the business organization, business law plays a very important role. In order to develop a legalrelationship, 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 11.1 Explanation of various elements of contractA 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 ofthe 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 3
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 numberof vitiating factors as mistake, fraud, misrepresentation etc.1.2 Discussion bout the implication of various types of contractAs 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 contractIn 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-4

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