Contract Management | Assignment
17 Pages6737 Words214 Views
Added on 2019-12-03
Contract Management | Assignment
Added on 2019-12-03
ShareRelated Documents
ASPECTS OF CONTRACT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Essential elements of valid contract.......................................................................................1Lawful impact of mentioned clauses......................................................................................2Applicability of these clauses as per the facts........................................................................3Terms that will be considered for formation of contract........................................................3Likelihood of consideration of note as an offer and acceptance by Dilon.............................4Clause do not assure the price................................................................................................4Enforceable acceptance by Joe...............................................................................................4Terms required to form the basis of contract with its meaning and effect.............................4Contracts formed with PartsCo..............................................................................................5Invitation to treat not an offer.................................................................................................6Offer made by Chloe..............................................................................................................6Various days for acceptance...................................................................................................6Another offeree is Jeny...........................................................................................................7Jenny revocated the offer........................................................................................................7At the time of posting a letter it is reasonable to expect a next day delivery.........................7TASK 2............................................................................................................................................83.1 Contrast liability in tort with contractual liability ...........................................................83.2 Nature of liability in negligence.......................................................................................9Claim for negligent action by Dex.......................................................................................103.3 Explaining how a business can be vicariously liable.....................................................114.1 Applying the elements of the tort of negligence and defences in different businesssituations...............................................................................................................................114.2 Applying the elements of vicarious liability in given business situations......................12Vicarious liability of Local Council for Holy's slip.............................................................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONContract can be bestowed as a legal agreement among two parties with the intention tofulfill the promise. Moreover, statements created by parties under negotiation are not meant toform a part of contract while they are termed as representation. The things that are required to befulfilled by the parties under the contract are termed as essential elements of contract. It involvesdifferent types of terms in contract i.e. express and implied terms. In the present case, expressterms have been used (Beatty and Samuelson, 2012). Express terms are the statements made byparties either by words of mouth or in written and thus, the parties are intended to carry out suchterms in order to create a part of valid contract. TASK 1Essential elements of valid contractFollowing are the essential elements that are important to form a binding contract. Theseare as follows- Offer- It can be stated as the statement in which one party is ready to deliver service orproduct to another party on agreed terms. Moreover, the person making offer is called asofferor and the person who is accepting the offer is termed as offeree. In order to form avalid contract, there should be some offer made by one party to another. Offer is termedas proposal that is made to the other party with an aim to gain their consent to enter into alegal contractual relationship (MacMillan and Stone, 2008). However, an offer cannot beaccepted by the offeree once it is terminated by the unlawful act of any party i.e. offereeor offeror. Thus, it can be stated that offer made by the offeror should be supported with alawful objective. Acceptance- It is defined as the consent of party with an aim to create a lawfulrelationship by accepting the offer. It is essential for the parties to give acceptance thatshould be certain and unconditional otherwise, it will not be considered as a legalcontract. The offer can only be accepted by the party to whom it is actually made. InCarlill V Carbolic Smoke Bull co (1982), case is based on offer and acceptance. Thus, insuch a case, situation is stated with respect to the rules of valid offer and acceptance(Bledose, 2010). Invitation to treat- It is considered as an expression of willingness to enter intonegotiation with one another with an aim that such contract will prove to be a lawful1
agreement at a later date. In addition, an expression that is made by one party assistsanother party to negotiate with the seller. However, invitation to treat given by the partywill not be treated as an offer. Partridge V Crittenden (1968) is a case in which invitationto treat has been given by one party which is not considered as a valid offer (Clarkson,2010). Furthermore, obligations cannot be bounded by the party on offeree in order toaccept the offer. Cross and counter offer- It is another essential element of valid contract. Cross offer ismade by the parties but still it lacks to create a lawful contract. It is because hereexchange of offer is done by both the parties but acceptance is not given by the offeree.On the other hand, conditional acceptance will be treated as a counter offer on whichfurther acceptance is needed by the law (Kelly and et.al., 2013). Consideration- It is a crucial element of valid contract. Consideration is considered as abenefit which is given to parties either in return for something in the form of exchange. Itis a bargaining element that is done in return for a promise. However, it is not essentialfor parties to support the contract with financial consideration. It may consist of right,interest, profit or benefit so that other party is entered into the agreement. Also, it isapplied to both the parties i.e. offeror and offeree (Mckendrick, 2012). Competent parties- It states that the parties who are competent to enter into the contract.They should not be minor or person of unsound mind at the time of forming a contractotherwise; it will not be referred as a valid contract (Jones, 2010). Lawful impact of mentioned clausesThe legal impact of all discussed elements of valid contract is as follows- Offer- It is considered as the initial step in order to formulate a contract. It acts as aproposal made to other party in order to gain their acceptance (Padhi, 2014). Acceptance- The proposal made by offeror is accepted by the offeree in order to enterinto a contractual relationship. Thus, all the parties are obligated to fulfill their promises(Sweet and Schneier, 2012). Invitation to treat- At the time when invitation to offer is made, it is the willingness ofparty to enter into the contract in order to make it a lawful contract. Furthermore, primaryparty is not obligated for accepting the offer (Middlemiss, 2010). 2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Contract and Negligencelg...
|13
|3548
|138
Important of Essential Elements of Valid Contractlg...
|13
|3915
|97
Aspects of Contract and Negligence for Business (Doc)lg...
|13
|3873
|54
Aspects of Contract and Negligence Act (docs)lg...
|13
|4168
|39
Aspects of Contractlg...
|16
|3735
|217
Negligence and Vicarious Liability Act - Reportlg...
|11
|3659
|146