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Aspects of Contract and Negligence in Business Doc

   

Added on  2020-01-28

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Aspects of Contract

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Essential elements required for the formulation of a valid contract.....................................31.2 Different types of contract....................................................................................................41.3 Different forms of contractual terms.....................................................................................6TASK 2............................................................................................................................................72.1 Essential elements of contract as per the scenario................................................................72.2 Applying different law on terms...........................................................................................72.3 Evaluating the remedies that are available to Mary..............................................................8TASK 3............................................................................................................................................83.1 Contrasting liability in tort with contractual liability............................................................83.2 The nature of liability in negligence.....................................................................................93.3 How a business can be consider as vicariously liable.........................................................103.4 Applying the elements of tort of negligence as per the scenario........................................103.5 Applying the law on vicarious liability...............................................................................10CONCLUSION .............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONContract can be stated as the agreement among two parties forming an enforceable obligation tocreate a valid contract. Moreover, it is essential for parties to form a specific contract and also they cannotbreach the contract without prior information. However, in order to fulfill the terms and conditions of theagreement it is essential for both the parties to gain consent of the members before entering into thecontract (Falk, Huffman and Macleod, 2015). The present study analyzes varied essential elements ofcontract in order to form a contract. Further, different contractual terms such as express, implied andinnominate terms have been assessed with reference to their meaning and effect. Different case scenarioof Mary and Film Flops have been evaluated. At the end, different concepts have been involved with thefield of contract and implement it in order to analyze the proper case laws and statutory provisions. TASK 1CASE EXPLANATION There are different elements that need to be involved in order to form an induction document sothat new employees joining the organization can gain legal knowledge. It assists them to raise their legalknowledge and use it whenever necessary. Following are the points that will be involved in order toconduct the program.1.1 Essential elements required for the formulation of a valid contractAs per the law, contract can be defined as the form of agreement between two or more partiescreating an enforceable obligation to do or to refrain from doing any specific thing. However, the mainpurpose of contract is to establish the agreement made by the parties and also fix their rights and duties inrelation to the particular contract (Fried, 2015). The contract made should be valid and also parties shouldhave an intention to enter into legal relationship. Following are the elements that are required in order toformulate a valid contract. These are as follows- Offer and acceptance- It is the first and foremost element of the contract that states that it isessential for the party to provide offer to another party in order to form a legal relationship.However, offer is considered as the first stage that starts the other element of the contract. It canbe assessed that the party cannot formulate legal relationship by providing offer till the offer isnot accepted by another individual. Hence, the offer made by the party will be considered as validif the party accepts it in the similar way (Gilbert and Vargo, 2014). Thus, the acceptance by theparty states that they are satisfied from the terms and conditions involved within contract. As perthe case of Harvey Vs Facey [1893]. It can be evaluated that as per UKPC I the Facey has notanswered the questions that is being asked by Harvey. Hence, it states that there was not legal

relationship formed among the parties. Therefore, it can be indicated that the contract will bevalid if the party has accepted the offer in the similar way (Gray, 2010). Consideration- Here, it is another crucial element of contract. It states that consideration issomething given in return by both the parties at the time of performing the contract. However,consideration can be in the form of both monetary and non monetary as decided by the parties.Also, it is crucial for parties to make prior decision in regard of consideration before entering intothe contract (Groetelaers and Ploeger, 2007). However, if the party fails to provide considerationas per the promise than the contract is not enforceable by law. Tweddle Vs Atkinson [1861]. Intention to create legal relationship- It can be assessed that the present element states that theparties entering into contract are required to create legal relationship. However, the offer isconsidered as valid if individuals shows their positive intention in regard to form a contractualrelationship among each other (Jones, 2002). While, if either of the party decides to not formulatea legal relationship than the contract is stated as void. The relevant case is Kleinwort Benson Ltd.Vs Malaysia Corporation Bhd [1989]. Capacity- Further, it is another important element of contract. It can be stated that the parties whoare entering into the contract should be competent so that contract can be valid and enforceable.On the other hand, it can be indicated that minor, person of unsound mind and drunk person willnot be considered as competent parties to enter into the contract (Krishnan, 2011). Free consent- Here, the contract that is formulated through forceful and ineffective act and also itis totally discarded within the eyes of law is not considered as valid and enforceable contract.Hence, at the time of forming the contract proper freedom should be provided to the parties todecide whether they are interested to enter into certain legal or contractual relationship or they arenot interested within it. For instance, consent gathered through undue influence,misrepresentation and coercion type of acts will not be considered as valid contract (Middlemiss,2011). Possibility of performance- Here, the parties who are forming the contract should ensureregarding the possibility of performance. As per the element it can be stated that the parties of thecontract should be able to perform the act that is being specified by them within the contract(Milner, 2011). For instance, due to lack of possibility of performance of the contract it mightaffect the validity of the agreement. Hence, such type of contract are not enforceable by law. 1.2 Different types of contractThere are different types of contracts formed among parties with unique characteristics are asfollows-

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