Contract Law and its Applications
Added on 2020-01-16
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Aspects of contract and negligence for business
Table of ContentsTASK 1.............................................................................................................................31....................................................................................................................................3Elements of contract ...................................................................................................32....................................................................................................................................4Types of contract .........................................................................................................43. ..................................................................................................................................5Terms in contract .........................................................................................................54....................................................................................................................................6Ivan case .....................................................................................................................65....................................................................................................................................7Adam and Brian case .................................................................................................76....................................................................................................................................7Barry case ...................................................................................................................7TASK 2.............................................................................................................................81....................................................................................................................................8Contrast of liability in tort with contractual liability........................................................82....................................................................................................................................8Nature of liability in negligence ...................................................................................83....................................................................................................................................9Vicarious liability...........................................................................................................94..................................................................................................................................10Mark’s case ...............................................................................................................10CONCLUSION ...............................................................................................................10REFERENCE ................................................................................................................13
INTRODUCTIONA contract does not exist simply because there is an agreement between people. Theparties to the agreement must intend to enter into a legally binding agreement. And also this isimportant because that ensure both the parties of an agreement are equally compensated fortheir work, goods or money.Contract is probably the most familiar legal concept in our societybecause it is so central of our political, economic, and social life. For the business law contractis very important because in business environment is full of agreement between the business tobusiness or business to individual to keep everyone’s rights secure it is very much necessary.Contract is an official agreement (Azoulay, 2012).It could be written or even be in oral.Contracts can be written by using formal or informal terms, or entirely verbal or spoken. In thefollowing project discuss about the negligence and give the knowledge for the same.TASK 11.Elements of contract Contract is a binding agreement between both the parties on certain terms and conditionconditions. To for a valid contract there must be all the elements in the contract these arefollowing-Offer this is the first element in the contract. an offer is a promise to act or refrain from acting,which is made in exchange for a return promise to do the same. An offer need not be made to aspecific person. It may be made to a person, a class of people, or to the whole world.Case law-Pharmaceutical Society of Great Britain v Boots Cash Chemist (1953)Acceptance this occur when a party answering the offer agrees to the offer. This is equallyimportant as offer because without the acceptance of the terms and condition both the partiescannot come into contract.Once an offer has been accepted, the parties have an agreement(Fried, 2015). That is the basis for a contract, but is not sufficient in itself to create legalobligations.Case law- Entores v Miles Far East Corp (1955)Consideration To be valid, every contract must have some consideration on the basis of whichthey engage in the contract. There must be exchange of something. The subject matter of thecontract may vary from contract to contract. In simple meaning Consideration is "something of
value" which is given for a promise and is required in order to make the promise enforceable asa contract (Pateman, Mills, 2007).Case law- Byrne v Van Tienhoven (1880)Intention to create legal relationship An agreement, even if supported by consideration, is notbinding as a contract if it was made without an intention to create legal intentions. So it isimportant that parties must intend their agreement to be legally binding.Case law- Balfour v. Balfour 1919Capacity Each party in the contract must be capable of involving into the contract.Infants andmentally disorder persons are not legally allowed to engage in contract.Case law-Crown Lands Comrs v Page (1960)2.Types of contract There in the contract law contract classified according to different different categoriesand as per the impact of the contract. Some of the contract are-Face to face contract As per the contract law these are the contract in which both the partiesmust be at same palace and they decide conditions and then they come into contract. In thiscontract there are very less chance of miscommunication. These contract are known as crystalclear contract (Friedman, 2011).Impact of face to face contract are in these contract there are less chances of miscommunicationso that also cause less chance of breach of contract.Express and Implied Contracts when two parties in a contract express all the terms &conditions, that are relevant to the contract, to each other is called express contract. Most of thecontracts happened in business are express contracts. When the work, conduct, activities &behavior of the parties of a contract indicate that they have entered into the contract, then it iscalled implied contract (Smith, Atiyah, 2006).These are the simple contract and use in business and personal as well.Distance selling contract when both the parties were at the distance to each other than partiesmake distance selling contract. In These type of contract are very important for the businesspurpose. In this supplier and buyer can come into contract from anywhere in the world(Brennan, Buchanan, 2008).
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