Aspects of Contract and Negligence for Business - Valid Contract
Added on 2020-01-07
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ASPECTS OFCONTRACTSANDNEGLIGENCEFOR BUSINESS
TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................3TASK 1............................................................................................................................................31.1.................................................................................................................................................31.2.................................................................................................................................................41.3.................................................................................................................................................5TASK 2............................................................................................................................................62.1.................................................................................................................................................62.2.................................................................................................................................................62.3.................................................................................................................................................7TASK 3............................................................................................................................................83.1.................................................................................................................................................83.2.................................................................................................................................................9TASK 4 .........................................................................................................................................104.1...............................................................................................................................................104.2...............................................................................................................................................11CONCLUSION .............................................................................................................................12REFERENCES .............................................................................................................................122
INTRODUCTION A valid contract is defined as an agreement signed between parties containing all theessential elements of the valid contract (Connolly and Hoar, 2014). It is critical that all theindividuals that are engaged in signing the contract should have legal capacity for making a validagreement. Present report is based on aspects of contracts and negligence in business (Berger,and Lester, 2015). The report describes about importance of essential elements that are requiredfor the formation of valid contract. In addition to this impact of different type of contract havebeen discussed. Moreover, analysis of terms in contracts with references to their meaning andeffect has been mentioned. Along with this elements of contract have been applied in differentbusiness situations and laws have also been applied on terms in different contracts. Furthermore,difference between contractual liability and tort liability has been explained in the report. TASK 11.1There are some essential elements that are required Liau, T., 2015to be included whilemaking a legal contract. It is a legal process to make a contract and it is required that systematicand legal approaches should be used by different parties while signing a contract (Liau, 2015).Some essential elements that are required for making a valid contract are as described :1- Offer :- When a party involves in signing agreement with other parties than some terms andconditions are mentioned by parties for inviting others to enter into valid contract. If the nextparty accepts the terms and conditions mentions the offer given by another than it is consideredas acceptance shown by another party (Carter and Courtney, 2016). Offer is an definite andunequivocal promise or willingness to be bounded on specific terms without future negotiation.It is assertive that terms of the contract should be accepted by both the parties and these termsneeds to bwe clear and definite. It has been referred from the case ofCarlill vs Carbolic SmokeBall Co (1893) that an offer can be made to a particular person or to a class of person or even tothe whole world. 2- Agreement :- It is assertive that there should be free voluntary agreement between theparties. It occurs if one party gives offer to another party and the offer is accepted by anotherparty (Thampapillai, Tan and Bozzi, 2012). It is the most essential element that is required to be3
included into agreement. Offer and acceptance are two terms that combine together for makingan agreement. Once a offer has been made it has than to be accepted before the contract can beproceeded to the next stage (Sweet and Schneier, 2012). Acceptance is the unqualified andunconditional agreements to all the terms of the offer. Acceptance can be oral, written or byconduct. 3- Consideration :- It is essential that there must be some value or determining passing betweenthe parties. From the case of Dunlop Pneumatic Tyre Co v Selfridge &Co Ltd (1915 it hasbeen referred that consideration is an act or forbearance on the parts of one party to a contract asthe price of the promise made to him by the other party in contract. 4-Intention to create legal relation :- The parties must intend their agreement to have legalconsequences and therefore be capable for enforcement in case of breach (O'malley, 2012). 5-Legal capacity :- it is critical that each party signing contract should be equally capable toenter into valid contract. A person below 18 years of age can not be engaged in signing any legalagreement. Moreover an individual facing criminal charges can not be held liable for making avalid contract with other parties and individual. 1.2Different types of contracts are signed by parties when they enter into legal relationshipwith each other. It is essential that impact of various types of contracts should be consideredwhile entering into legal relationship with other individuals. Legal effect and impacts of differenttypes of contracts is as described :- 1 – Bilateral contract :- ON the basis of formation these contracts are classified as A promisemade for promise. On the other hand unilateral contract are made for A promise for an act. Abilateral contract is entered into by way of an exchange of promise between the parties (Oni-Ojo,and Iyiola, 2014). The offer that is made for a promise becomes a promise by acceptance. Eachparty that enters into a contract makes a promise to another party. 2- Void and voidable contract :- Valid contracts are those contracts that are having all theessential elements which are required for formation of contract. On the other hand void contractsare those contracts in which no contract exist and in voidable contract a party has option forvoiding or enforcing the contract (Lupton, 2013). There is one more type of contract that isUnenforceable contract and this type of contract can not be enforced because of a legal defenses.4
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