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Elements of Valid Contract and Its Impact- Report

Added on - 05 Feb 2020

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ASPECTS OF LAW ANDNEGLIGENCE ACT
Table of ContentsINTRODUCTION..........................................................................................................................3TASK 1............................................................................................................................................31.1 Essential elements of a valid contract..................................................................................31.2 Impact of different type of contract.....................................................................................41.3 Analyzing the terms of contract............................................................................................4TASK 2............................................................................................................................................52.1 Elements of a contract in a given scenario............................................................................52.2 Law of terms in different contract in the given business scenario........................................52.3 Effects of different terms of contract on the given case scenario.........................................6TASK 2............................................................................................................................................63.1 comparison between liability in tort and contractual liability...............................................63.2 Nature of liabilities in negligence........................................................................................73.3 How business can be vicariously liable................................................................................84.1 Elements of tort of negligence and defenses in different business situations......................94.2 Elements of vicarious liability in given situation..................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................10
INTRODUCTIONContract is an agreement in between two or more parties. A contract is said to be a legalagreement when both the elements of a valid contract are present (Lipshaw, 2011). Mostimportant elements that are required in a contract are offer and acceptance. If both these elementsare present then only a valid contract can be formed. In the following report, importance ofessential elements of a valid contract is depicted with its impact on different types of contract. Inaddition to this, different terms of contract are also mentioned. In the following report, variouscase scenarios are discussed by considering the elements of a valid contract. Along with this,nature and elements of contractual liability, liability in tort and vicarious liability are mentioned.TASK 11.1 Essential elements of a valid contractIn order to form a valid contract, availability of these elements is very important. If anyof the elements is missing then in that case, a valid contract cannot be formed. Some of theelements are as follows:-Offer: -It is an act of putting something in front of other with the purpose to sell it tosomeone else. In order to form a valid contract, availability of this element is very important. Anoffer can be in a tangible or intangible form.Case: -Harvey v Facey [1893] AC 552 Privy Council.As per this case, Facey has onlymentioned the lowest price of selling a Hall pen to Harvey but he has not indicated his intentionto sell out the pen at£900 to Harvey.Acceptance: -It is an act of accepting something that is offered by someone else for thepurpose of purchase (Beever,2007). Acceptance also show the intention of an individualwhether he is ready to accept the offer or not. It can be in both oral and written form.Case: -Felthouse v Bindley [1862] EWHC CP j35 Court of Common Pleas.In this case, nocontract has been formed. Because nephew has shown his intention to purchase the horse formhis uncle, he did not reply and at the same time, the horse was sold out in an auction. In this case,a contract is not formed because silence cannot be treated as acceptance.Consideration: -It is an act in which one party promises to another in exchange ofsomething at the time of formation of a valid contract (Caruso, 2007).
Case:- Lampleigh v Braithwaite [1615] EWHC KB J17.As per this case, a condition of a validcontract occurs. In this case, defendant has promised to pay£100 to the claimant if he was ableto get pardon from a king. The claimant has done everything to get pardon and he was evensuccessful. But as per the promise, defendant refuses to pay.1.2 Impact of different type of contractUnilateral contract: -It is a type of contract in which only one party is liable to create alegal contract. This type of contract is also known as one sided contract (Ciccarelli andCiccarelli, 2005). Formation of unilateral contract starts through advertisement in newspaper andmagazines and from television.Impact:- These types of contracts can be canceled at anytime but once the offer has beenaccepted and acceptor started performing it, then in that case, a contract cannot be revoked.Bilateral contract:-In this type of contract, both the parties are liable to perform the act.In this, both the parties with mutual understanding make a contract. In simple words, it can besaid that it is the exchange of correlative promise between both the parties (Koffman andMacdonald, 2010).Impact:- Both the parties are liable to follow the contract when an offer and acceptance has beenmade.1.3 Analyzing the terms of contractExpress term: -Express terms are the terms that are expressed in the contract at the timeof its formation. These terms can be presented in oral and written form. In other words, it can besaid that these terms are directly presented at the time of formation of a contract.Effects: - Including these clauses in the contract does not create any misunderstandingamong parties.Implied term: - These are the terms that are included in the contract but are not directlyexpressed in a contract (Cimino, 2010). In simple words, it can be said that these terms areincluded in the contract but are not expressed in the contract.Effects: - Availability of this type of term can create a misunderstanding among partiesIn nominate terms: - These are not the terms that can be considered as a warranty nor itcan be considered as condition. Availability of these terms highly depends on the condition. Innominate terms are also known as intermediate terms.
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