Aspects of Contract Law Negligence in Business Assignment
Added on 2020-01-28
12 Pages4569 Words33 Views
ASPECTS OF CONTRACTAND NEGLIGENCE INBUSINESS1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31. Essential elements of contract..................................................................................................32. Impact of types of contract......................................................................................................43. Effect of terms of contract.......................................................................................................5TASK 2............................................................................................................................................64. Case Scenario...........................................................................................................................65. Consequences of Classification of terms.................................................................................66. Case Scenario...........................................................................................................................7TASK 3............................................................................................................................................87. Contractual Liability versus Tortious Liability........................................................................88. Nature of Liability in Negligence............................................................................................99. Vicarious Liability...................................................................................................................910. Case Scenario.......................................................................................................................1011. Case scenario.......................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................122
INTRODUCTIONEvery business organization in the market requires development of lawful contractualrelations which operate to protect the interests of all the parties involved. With the assistance ofcontract different enterprises ascertain the specific obligations and rights which the parties arebound to perform. This relation is supported by lawful considerations which is exchangedbetween the parties for performance of the contract. Law of Contract is the statute whichprovides for all the legal provisions governing such relations, and it specifically requirespresence of privity of contract for suing any party under this law. However, businessorganizations are also made subject to Law of Tort which does not require the parties to shareany specific relation. Hence, every entity is responsible to their neighbours and can be madeliable for causing any form of harm to them. In pursuance to the same the present report shallillustrate essential elements of contract which necessarily shall be present in a contract forformation of a valid and enforceable contract. Furthermore, the important concepts of negligenceand doctrine of vicarious liability has been discussed to understand their respective application inthe business world. TASK 11. Essential elements of contractFormation of a valid and enforceable contract requires all the parties to include thefollowing essential elements of contract, on the failure of which no valid contract shall come intoexistence:Offer and Acceptance: The former refers to an effective communication of thewillingness to form a valid contract. It constitutes to be the first stage of the process ofcommencement of formation of a contract. In the case of Harvey v. Facey it was opinedby the court that in order to make an effective offer it shall be communicated to the otherparty properly (Friedman, 2011). Moreover, it was further opined by the court that anoffer shall be distinguished from the concept of invitation to offer. It merely refers to theintention of one of the parties to call the public to make an offer in respect to a specificsubject. Followed by this element the parties are required to make an unconditionalacceptance of the offer on the basis of each and every term being communicated in the3
offer. Hence, the court in Entorres v. Miles Far East (1955) had clearly opined that anacceptance shall always be unconditional in nature, and shall be made before the offerceases to exist (McKendrick, 2014). Moreover, it has also been observed in Felthouse v.Bindley (1862) that silence can never be construed as a valid acceptance, until and unlessagreed upon. Intention to create legal relations: It is imperative for the parties to have an intention tocreate a lawful and enforceable relation. In the case of Jones v. Padavatton (1969) it wasopined by the court that in the case of business or commercial relation it shall bepresumed that the respective parties intend to form an enforceable relation, while in thecase of domestic relations the presumption shall be in respect of presence of no suchintentions of the parties. Consideration: It represents the attribute of reciprocity in a contractual relation, which ismarked by exchange of commitments or promises to act or omit to act in a particularmanner. In the case of Ward v. Byham (1956) it was observed by the court that anyrelation supported by unlawful consideration or absence of consideration cannot beconsidered valid in nature (Twigg-Flesner, 2013.). Moreover, it has also been upheld invarious judicial precedents that consideration shall not be past, be sufficient to supportthe relation, necessarily mover from the side of promisee to the promisor and shall becompletely lawful in nature. Capacity of Parties: In accordance to Contract Law it is required that all the partiesinvolved in a contractual relation shall be competent to enter into such relations. Thecompetence is judged on the basis of age, mental or financial capacity. For instance, inthe case of Pitt v. Smith (1811) it was recognized by the court that intoxicated personsunder the influence of drugs or alcohol are not capable to form valid contracts (Burton,2012). Further, in Peters v. Fleming (1840) the court recognized the exception ofNecessity Contracts entered into by minors and upheld the validity of such relations. 2. Impact of types of contractCommon law enables the business organizations to form different forms of contractwhich can be created by undertaking varied measures:4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Aspects of Contract and Negligence for Businesslg...
|14
|4887
|294
Contract and Negligence in Business Assignmentlg...
|12
|4423
|162
Study on Contract and Tort Lawlg...
|12
|4031
|146
Distinction Between Tortious Liability and Contractual Liabilitylg...
|14
|5138
|105
Study On Elements Of Contracts & Terms To Contain In Agreementlg...
|12
|4343
|30
Essential Elements of a Valid Contract - ACNB Assignmentlg...
|13
|3846
|60