Essential Elements for Valid Contracts and Impact of Contract Types

This report provides a comprehensive analysis of contract law, focusing on the essential elements required for the formation of a valid contract, including invitation, proposal, acceptance, common consent, lawful intent, capacity of parties, free consent, lawful consideration, and inevitability. It discusses the impact of different types of contracts, such as bilateral and unilateral contracts, on legal obligations. Furthermore, the report contrasts liability in tort with contractual liability, explaining the nature of liability in negligence and how businesses can be vicariously liable for the actions of their employees, emphasizing the importance of the employer-employee relationship and adherence to legal obligations. Desklib offers a wealth of similar solved assignments and resources for students.

Task 1
1.1 Explain the importance of the essential elements required for the
formation of a valid contract.
Contract can be defined as a treaty which is created and is recognised by the
participation of two parties which is assisted by consideration and the intent of both the
parties is to create a legal relationship between them. Contract can be created for
various purposes such as marital, service, hire purchase or even for the credit of the
consumer. The basic principles that should be followed are stated below:
Invitation, proposal and acceptance
There is a difference between both the invitation and the offer. Invitation can be made
by any person but such invitation should posses capability of being accepted. It is
basically invitation given to the individual for making a proposal. When we visit any
supermarket the goods which are been displayed can be referred to as invitation.
Common consent of the party is very essential. The offer and the acceptance must
agree with the guidelines laid down in contract law.
Aim to form a lawful relation
This is one of the important and the leading principle while designing a contract. The
contract which is made adheres to involvement of two parties. Both the parties
concerned with the agreement should have pure intent to make a contract. They both
should have clear understanding between them.
Capacity of the parties
There should be a legal relationship between both the parties involved in the contract.
Both the parties should be substantially, spiritually and legally fit for the formation of the
contract.
Free consent and authenticity of the object
The object involved in the contract agreement must be permissible. The both the parties
should not be physically and mentally pressurised and should be free of intimidation at
the time of formation of the contract.
Lawful consideration
Presence of lawful consideration is important for the validation of the contract. It is
important for the consideration to be lawful as both the parties agrees to make a valid
contract. Any violation make result to declare a contract illegal.
Inevitability
All the terms and conditions of the contract should be certain to the possible extent to
form a valid and successful contract.

1.2 Discuss the impact of different types of contract.
There are certain number of terms and conditions behind each and every type of
contract which is legal. A contract which is followed by a proper terms and conditions
stated is considered to be a complete and a proper contract. Before a contract has been
formed, both the parties persuade each other by making certain statements which are in
favour of the contract and this leads to the creation of the contract. Only those
statement will bound the contract which have been included in the terms and the
conditions of the contract. There are chances that a argument may arise between both
the parties as to which statements should become the part of the contract and which
should be left over.
The various types of contracts and their influence has been discussed in detail below:
Bilateral and Unilateral Contracts
Bilateral contact is a two- sided contract in which guarantee is undertaken by both the
parties involved in the contract. Both the parties share equal motion, assurance and
transaction.
Unilateral contract is a contract in which guarantee is made by only party out of the two
parties.

Task 3
3.1 Contrast liability in tort with contractual liability
The present undertaking requires the integral highlights in the midst of the risk of agreement
and the obligation of tort. The law of tort is a common law yet forces risk which is un-sold in
nature. The law of agreement is additionally a common law yet forces risk which is sold in
nature and is pre-chosen according to the terms of the agreements. The risk in tort is forced on
the respondent when he doesn't consent to his lawful obligations. The obligation in contract is
forced upon the litigant when he doesn't consent to his legally binding obligation. In tort, the
weight is resolute according to the rule that everyone must follow. In get, the risk is resolved
according to the terms of the agreements. At the point when the respondent is to blame of his
lawful obligations, at that point just the risk under the law of tort can be forced upon the
gatherings. In this manner, it is a blame-based risk. At the point when the litigant does not go
along his strict commitments under the agreement then just the risk under the law of
agreement can be forced upon the gatherings. In this way, it is a strict based risk. These are a
portion of the differentiating highlights in the midst of the two laws.

3.2 Explain the nature of liability in negligence
The character of the weight of the law of carelessness is a critical idea and must be
comprehended when the law behind carelessness can be assessed. The law of carelessness was
an essential tort law which was started in wherein the court has held that each make should
create items so as not to hurt their clients against any sensibly predictable damage. This
commitment of care which is constrained upon the producer as brought about the
advancement in the law of carelessness. To end up being careless in his activities, it is essential
that there are couple of major standards which must be demonstrated. The same are submitted
in this under.
The litigant must ensure that when he starts any of his activities or inactions, at that point, he
ought to do as such bringing about no damage to any offended party. This precautionary
measure in the law of carelessness is called obligation to fare thee well or obligation of care. Be
that as it may, the litigant isn't subject to avoid potential risk in every single situation. The
obligation of care against an offended party is just forced given.
The offended party and the litigant are neighbors. This suggests they are attached to the point
that the activities/inactions of respondent fall straightforwardly upon offended party.
Accordingly, the offended party is thought to be the neighbor of litigant under the law of
carelessness.
Likewise, obligation to give care to the offended party is just forced on the litigant against those
effects which can be rationally predictable by the respondent. In the event that the litigant
can't rationally predict the effect, at that point, there is no obligation of care to be forced upon
the respondent against the offended party.
At the point when the obligation of care is forced upon the respondent then he should conform
to the same in every single circumstance. In any case, each circumstance requires the
distinctive level of care. At the point when the respondent can't accomplish the respectable
level of care that is required in the given circumstance, at that point, the obligation is said to be
not agreed to and is thought to be broken. This is the second component under the law of
carelessness, that is, rupture of obligation.
On account of the rupture of the obligation, the offended party ought to endure misfortune. Be
that as it may, the misfortune is said to be brought about under the law of carelessness gave:
The misfortune is a result of the immediate consequences of the rupture of obligation of care,
accordingly, there must be a component of obligation of care.
The misfortune which is caused to the offended party is sensibly expected by the litigant, that
is, the misfortune isn't remote. The consistence of all the above essentials brings about basic
leadership the respondent subject under the law of carelessness. Along these lines, the nature
of the risk of the law of carelessness is blame based, in light of the fact that it is just when the
litigant is to blame of following his legitimate commitments, that, he can be held at risk for
carelessness.

3.3 Explain how a business can be vicariously liable.
The law of vicarious risk is particularly forced upon those relationship which manages ace
worker or business – representatives section. Vicarious obligation essentially makes the ace
liable for the endeavors of his worker. To make any ace at risk for his activities of the worker it
is important that couple of essentials ought to be agree to. The same are:
The vicarious risk is appropriate in the relationship covering expert hireling, business employee.
The worker ought to go about according to the summons of the ace. The worker should act in
business course. Inside acting in the work course, activities are attempted which has made
harm an outsider. The activities of the hireling are not individual in nature. In these given
situations, the misfortune which is caused by the hireling isn't forced upon him, yet the ace is
considered responsible for the misfortune which is caused by the worker.