Essential Elements Contract law Business Assignment

ASPECTS
OF
CONTRACT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................4
1.1 Elements of valid contract ....................................................................................................4
1.2 Impact of different types of contract.....................................................................................5
1.3 Analysis of terms used in contract ......................................................................................6
TASK 2 ...........................................................................................................................................7
2.1 Application of elements of contract in the business context.................................................7
2.2 Analysis of consequences of classified terms .....................................................................7
2.3 Effects of terms of laws in contract.......................................................................................8
TASK 3 ...........................................................................................................................................9
3.1 Contrast liability in tort with contractual liability.................................................................9
3.2 Nature of liability in Negligence.........................................................................................10
3.3 How a business can be Vicariously Liable.........................................................................11
TASK 4 .........................................................................................................................................11
4.1 Elements of tort of negligence and defences ......................................................................11
4.2 Elements of Vicarious liability............................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In present era, the business organizations enter into contract into various contractual
parties. These requires various contracts, agreements deeds etc. contract is a document which is
signed by both the parties to make a professional relationship. A valid contract is one which
contains all the particulars of valid contract. It contains all the essentials that are required to be in
contract so as to give it a legal effect. In this competitive world, it is necessary for the companies
to have a proper knowledge about valid contract and its aspects (Inghammar, 2010). The
business organisation should consider all the requirements as laid down in the agreement. In this
present report various essentials of valid contract like offer, acceptance and legal intention has
been mentioned. The main motive behind this unit is to identify the necessary parts of the
contract as well as their binding effect on the parties to the contract. In this report, the statements
are also supported with various case laws and their judgements. Further more, the concepts of
Tort and Negligence also been discussed.
TASK 1
1.1 Elements of valid contract
It is necessary that a agreement formed between the contractual parties should contain all
elements of a valid contract. It is very important for a business organization as it enters into
various contracts with another business parties, so legal persons should make sure that the
contract framed should be lawful and valid in the eyes of law. The elements are as:

 Offer: a contract is considered to be a valid contract if a proper offer has been given by
one party to another party. Offer is a term which means a proposal by one party to
another party to create a legal binding effect on both the parties. There are 3 elements in
offer: offer, offerer, offeree (Isaksson and et. al., 2010). According to the decided case
law: Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256, it has been decided that the Mrs
Carlill was entitled to reward as advert has made an offer of a unilateral contract on
which Mrs Carlill has accepted all the conditions. So, there should be a valid offer made
by an offerer to another party. Acceptance: a valid contract must be followed by a effectual acceptance. It means a
willingness by another party to accept or to agree to all the terms and conditions proposed
by an offerer. Lawful consideration: in a valid contact or agreement, there should be a legitimate
consideration. Consideration has been defined as an acts or a promise or value which is
termed as consideration made by promiser to promisee. Free consent: it is an essential element of a valid contract. It means that for constituting a
valid agreement or contract between two parties , they have to agree at a common point,