Aspect of contract and negligence for business | Assignment
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Added on 2019-12-03
Aspect of contract and negligence for business | Assignment
Added on 2019-12-03
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Aspects of Contracts
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Essential elements for the formulation of a valid contract...............................................11.2 Impact of different types of contract................................................................................21.3 Analyzing terms in contract with reference to their meaning and effect.........................32.1 Applying the elements of contract in given business scenarios.......................................32.2 Applying the law in terms in different contracts..............................................................42.3 Evaluating the effect of different terms in contracts........................................................4TASK 2............................................................................................................................................53.1 Contract liability between contract and tort liability........................................................53.2 Explaining the nature of liability in case of negligence...................................................53.3 Ways through which business can be vicariously liable..................................................64.1 Elements of tort of negligence and Defences...................................................................64.2 Applying the elements of tort of negligence, vicarious liability and defences................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................9
INTRODUCTIONAs per the law, contract can be referred to some agreement made between two or moreparties in order to form a legal contract. However, it is an agreement which is a lawful object andtwo or more parties entered into it voluntarily with the aim to create legal obligation amongthem. Also, it is significant for parties to perform the specific contract and they cannot terminateit without prior information otherwise it will be treated as breach of contract. Moreover, partiesentering into the contract are required to carry out different terms mentioned in the contract(Chapman, Wilder and Millar, 2014). Thus, mutual consent is essential for both the partiesbefore entering into the contract. In the current report, it analyzes various essential elements ofcontract with support of different case laws. Also, different contractual terms such as express,implied and innominate terms are not at all easy to identify and distinguish. Furthermore,different cases have been assessed in regard to their meaning and effect. TASK 1 1.1 Essential elements for the formulation of a valid contractIn order to form a contract it requires varied essential elements for a valid contract.Further, at the time of developing an agreement between two or more parties it involves fourmain elements. However, it can be assessed that if any single element is not present than theagreement will be considered as void. The elements are described below- Offer- It is an offer that helps in formation of a legally binding contract. However, theexpression of offer within contract on certain terms by one individual is offeror and theanother person will be offeree. In the contract law, offer is a promise that is made inexchange for the performance by another party. Furthermore, the offer can be revokedunder certain conditions (Chen-Wishart, 2012). For instance, it is crucial for the parties toform a valid offer before formulating a valid contract. The case concerning with such lawinvolves Fisher v Bell [1961] 1 QB 394. Acceptance- At the time of providing offer in the contract it is crucial for another partyto accept the offer then it will be termed as valid acceptance. Also, it is crucial for boththe parties i.e. providing the offer and accepting the offer to be clear and specific with allthe conditions and terms (DeMitchell, 2006). However, it can be stated that the party is1
required to accept the offer which is made in writing as it is a legal agreement. Adams vLindsell [1818] 1 B & Ald 681 is supporting case laws in regard to acceptance of offer. Intention to create legal relationship- However, it is crucial for both the parties to forma legal relationship at the time of entering into the contract. Also, it is crucial for theparties to develop a legal relationship that is enforced by law. For instance, if either of theparty decides to not form a legal relationship than the contract is termed as void.Kleinwort Benson Ltd. V Malaysia Corporation Bhd [1989]. Consideration- It is another essential element of the contract. Consideration can bestated as something in return has been given to the offeror as well as offeree. However,promisee is required to provide consideration in order to enforce their promise (Falk,Huffman and Macleod, 2015). While, the party who has not provided consideration forpromise is not able to enforce the contract. Tweddle v Atkinson [1861]. 1.2 Impact of different types of contractIt can be stated that “When one speaks of 'types of contract”, it is regarded same as perthe English law. No, such statement cannot be said as correct because there are varied types ofcontract in law and thus they possess different effect and meaning. However, different contractspossess different impact on business situations so that they do not possess similar meaning underEnglish court of law. Different types of contract are as follows-Oral and written contract- There is two different types of contract that needs to beformed between parties such as oral and written contract. In oral contract, the partiesformulate a contract orally. Thus, it requires trust and relationship among partiesotherwise it will not be enforceable in the law. For instance, in oral contract if either partybreaches the contract then loss or damages are not given to them (Fried, 2015). On theother hand, in written contract it is essential for both the parties to formulate a validcontract and they are liable to each other at the time of conflicts as per the court of law. Distance and face to face contract- While, forming the distance contract, the parties arenot available at the time of contract. Thus, such contracts are formed through sending orreceiving e-mails or letters within each other. Also, it is essential for the offeree to acceptthe offer within stipulated time frame otherwise it will be considered as revoked. While,face to face contract can be considered as the contract where both the parties are presentand also agrees upon the terms and conditions mutually (Gilbert and Vargo, 2014). 2
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