Aspects of Contract and Negligence for Business - Report
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Added on 2020-01-21
Aspects of Contract and Negligence for Business - Report
Added on 2020-01-21
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ASPECTS OF CONTRACT ANDNEGLIGENCE FOR BUSINESS
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1................................................................................................................................................11.2................................................................................................................................................21.3................................................................................................................................................3TASK 2............................................................................................................................................42.1................................................................................................................................................42.2................................................................................................................................................52.3................................................................................................................................................5TASK 3............................................................................................................................................63.1................................................................................................................................................63.2................................................................................................................................................63.3................................................................................................................................................7TASK 4............................................................................................................................................84.1................................................................................................................................................84.2................................................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONIn the modern era every organization has to face many criteria for conducting businesssuccessfully. Rules, regulations, legislations, clauses impact on the entity to great extent.Contract between two parties is the part of business transactions, which defines obligation andrights of persons those who are involved in the written agreement. It is essential for enterprise tounderstand the tort of law and liability of individual so that person can act according to theclauses. Present report will focus on essential elements required for the formation of validcontract (Fong, 2015). Important terms condition, warranties and innominate will be discussed inthis assignment. The nature of liability in negligence will be illustrated in this study by usingseveral given scenarios.TASK 11.1Valid contract refers with the agreement between two parties those who are associatedwith each other. It creates legal binding and duties of between two of them and clarifies therights and obligation of both. Both involved persons have clear objective, mission and visionwith this declaration (Smith, 2015). To keep enforceable to this legal document, presence ofseveral factors are necessary. Essential elements required for the formation of a valid contract aredescribed as below:Offer: To make valid contract, offer is very important element. It is the initial formingstage in which offeree and offeror are two persons who are attached with this concept.Offeror explains desires and intention to be associated with this contract and offereeshows concern on same. Fisher v. Bell (1961) case gives full detail about element ofoffer (Bagheri and Hassan, 2015). Acceptance: It is the next stage which explains the positive concern of offeree. Harvye vFacy [1893] UKPC 1 is the clear example of acceptance. It is necessary that agreementbetween both of them, must be clear, there should not be any hidden clause. Validcontract c an only form when both parties are sound mind and give their positive concernfor the formation of biding agreement (Smith, 2015). Consideration: It can be described as promise of payment or exchange of value. Promiserpromises to promisee to pay certain amount of money or physical object for this contract
(Ashworth, 2014). Reciprocity of promises give benefit to both involved parties to greatextent. Thomas v. Thomas (1842) case defines the consideration and clarifies that itshould be lawful. Intention to create legal relationship: It is an important element, it will not beconsidered as valid if participants are not intended to create legal relationship. Jones v.Padavatton (1969) case describes that social and domestic agreements are not consideredas valid contract.Capacity: This element defines the ability of individual to enter into a valid biddingagreements. It is necessary that persons should be sound mind and above 18 year so thatindividual can understand the importance of legality (Reddy and Rampersad, 2012). Drugaddicted, unsound mind people are not capable for the formation of a valid contract. 1.2There are many forms of legal contract such as unilateral and bilateral, Seal (Deed) andsimple, written and verbal, Face to face and Distance Selling Contract. These all have uniquecharacteristics and impacts, these are discussed as below:Unilateral and bilateral contracts: Unilateral agreements are those contracts in whichsingle party operates all business and are responsible for the performance of entity.Whereas in bilateral contracts both participants are equally responsible for theperformance of the business uni (Smith, 2015)t. They have to pay in contribution if anydamages or misshapenness occur in the organization. Insurance is the most commonexample of unilateral bidding agreements, insured has choice whether to pay premium ornot. Insurance company promise to insured to pay certain amount at the time of miss-happening but it is only valid when insured pay timely premiums (Scopino, 2015). Seal (Deed) and simple contracts: Seal (Deed) is the written bidding agreements, termsand conditions are written on papers which work as evidence of left-slanting agreement.At the time of dispute innocent party can use it to prove own self. Simple contracts aremade orally which have not proofs, it is formulated orally between two parties (Thomas,2016). Written and verbal: When terms and conditions are written on papers then it is calledwritten agreements. But if contract is made between two persons by mutualunderstanding orally then It terms as oral contract In oral bidding agreements people have
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