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Aspect of Contract and Negligence for Business : Report
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Added on 2020-01-23
Aspect of Contract and Negligence for Business : Report
Added on 2020-01-23
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ASPECTS OF CONTRACT ANDNEGLIGENCE FOR BUSINESS 1
TABLE OF CONTENTSINTRODUCTION ...............................................................................................................................31.1....................................................................................................................................................31.2....................................................................................................................................................41.3....................................................................................................................................................4TASK 2 ................................................................................................................................................52.1....................................................................................................................................................52.2 ...................................................................................................................................................62.3 ...................................................................................................................................................7TASK 3 ................................................................................................................................................83.1....................................................................................................................................................83.2....................................................................................................................................................83.3....................................................................................................................................................9TASK 4.................................................................................................................................................94.1....................................................................................................................................................94.2..................................................................................................................................................10CONCLUSION ..................................................................................................................................11References..........................................................................................................................................122
INTRODUCTION Aspect of contract and negligence for business is a an organizes and systematic processwhich supports in performing the work of the organization in an successful manner. Contracts aresigned between two or more parties for determining terms and conditions of business (Berger andLester 2015). It is vital that legal formalities should be completed in an appropriate manner formaking proper contract. Present report is based on aspects of contract and negligence for businessand various elements of contract are mentioned in it. Methods of forming contract and importanceof various elements that are used for making contract are mentioned in it. In addition to this impactof forming contracts by means of face to face, written and distance selling methods are explained.Furthermore evaluation of different terms in the given contract has been mentioned and elements ofcontract are also described. Moreover difference between tort and contractual liability is explainedand different conditions due to which liability for negligence can arise in business are described. 1.1Peter Abraham is looking to set up a self employed building contractor and for this it isrequired that he should posses proper knowledge about contracts. There is need for following asystematic and organized process for making agreements with another parties (McInnes, Kerr andVanDuzer, 2013). It is vital that some significant elements should be included while forming thecontract and these elements are as described-Offer :- When one party gives offer to another party for determining the terms and conditions ofbusiness than it is declared as offer given. According to the case of Carlill v Carbolic Smoke ballco. it has been referred that contractual agreements are analysed in terms of offer and acceptance.One party which gives offer to another party than the party is known as offerer and the anotherparty is known as offeree. Offer is most significant term of contract as with out offer it is notpossible for inviting someone to make agreement.Acceptance :- Offer given by one party is accepted by another and it shown willingness of party foraccepting the terms and conditions which are mentioned in the contract. As per the case of Entorresv Miles Far East [1955] it has been referred that the acceptance must be communicated to theofferee. It is also vital that the terms of the acceptance should match with the terms and conditionsthat are mentioned in the agreements. Acceptance is significant term as if another party who hasbeen given offer will not accept terms and conditions of contract it will not be declared as a validcontract. Consideration :- It is assertive that there should be consideration in the contract. Consideration isdefined as promise which is done in exchange for promise made by another party. It is also defined3
as worth rendered by any party in exchange of guarantee that is made by another party . As per thecase of Lampleigh v Braithwait (1615) it has been observed that Lampleigh consideration was madein past and Braithwait's promise to pay can be linked with earlier request made by Braithwaite'spromise that he has earlier. Capacity :- It is defined as limit and ability of parties for entering into a valid contract. It is vital thatpersons who are getting involved in making agreements should be of sound mind (O'malley, 2012).Any person suffering from any mental disease can not be declared as eligible for signingagreements with another party. 1.2Peter Abraham is about to enter into a business and it is essential that he should possesappropriate knowledge related to procedure of making contract. Various methods of formingcontract and their impact are as described-(1) Face to Face :- When any contract is signed by face to face medium than in this type of methodthere is lack of evidence. If any party breeches terms and conditions of contract than it becomesdifficult for another party to take legal action against the defaulter (Sweetand Schneier, 2012). It isan oral method of making agreements and there is no evidence between both the parties that theyhave determined some specific conditions for doing business. (2)Written contract :- This method is appropriate and effective for making contract and in thislegal formalities are completed by all the parties who gets involved in signing theagreement. In written contract all the terms and conditions of business are mentioned inappropriate manner and all the parties gets agree on those specific terms (Thampapillai, Tanand Bozzi, 2012). If any party breeches the condition for making contract than another partycan take legal actions.ADVANTAGE :- Proper evidence are present with the parties which can be used for making claimsfor damages. All the parties sign written documents and due to that proper evidences are presentwith all the parties involved for signing contract. DISADVANTAGE :- It is a complicated and time consuming process and due to that it requires thatappropriate documents should be collected while signing contract. (3)Distance selling :- It is a cost effective and time saving method of signing contract and it isdone by making use of Telephone and internet. In this method sometime delay occur as boththe parties which are involved in doing contract are sitting at distance and due to this there isabsence of effective communication channel. Lack of proper interaction creates problems indetermining terms and conditions of business and due to this errors occur while making4
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