Essential Elements of Contract
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Added on 2020-01-15
Essential Elements of Contract
Added on 2020-01-15
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Aspects ofContract andNegligence forBusiness 1
TABLE OF CONTENTSIntroduction......................................................................................................................................3Task 1...............................................................................................................................................31. Essential Elements of Contract................................................................................................32. Impact of different types of contract .......................................................................................43. Terms of Contract....................................................................................................................54. Todor and Ivan Case ..............................................................................................................65. Case of Adam and Brain.........................................................................................................66. Local Council v/s Barry...........................................................................................................7Task 2...............................................................................................................................................71. Contract and Tort Liability.....................................................................................................72. Negligence..............................................................................................................................83. Vicarious liability .................................................................................................................104. Case of Mark and Regent hotel..............................................................................................11Conclusion.....................................................................................................................................12References......................................................................................................................................132
INTRODUCTIONIn present era, contractual agreements are increasing day by day, there is a need ofguidelines and principles so as to avoid unfair practices (Milner, 2011). For this purpose,contractual law is established by British parliament. In absence of contractual relationships,duties are described by negligence law. Present study also highlight the key provisions ofcontract and negligence law. However, the report will also understand essential elements of avalid contract that act as the base for entering into a valid contract. In addition to this, it will alsounderstand different contractual terms inserted in the contract as well as different type of contractfor the business. Other part of report will focus on explaining the negligence law along with thedifferent provision of defences and the vicarious liability. TASK 11. Essential Elements of ContractA Contract is nothing but an agreement which is legally enforceable (Adams, 2010).Elements which makes agreement a valid contract are as follows:Offer : It can be termed as situation where a person intends as well as express his wishto another person to do any act or something . Offer can be oral or write. Offer can bemade in general or to specific group of people (Steele, 2007).Case scenario : As per the case of Fisher v Bell [1961] 1 QB 394 the court have notconsider the contractual relationship between both the parties as display of products is notconsider as a offer. However, it is considered as invitation to the public.Acceptance : A person when gives his consent to the offer made from another person, itis termed as acceptance. Conditions or terms of offer must not be modified whileaccepting the offer. Acceptance must be given by the person to whom offer is made.Case Scenario : As per decision provided in felthouse v Bindley, One must communicate his consent to person making offer if he accepts it. Silence cannot be treated as acceptance.Consideration : Paying another person for acts done by him as per contract isconsideration. Consideration is anything either of monetary or non-monetary nature givenby one party of contract to another for acts done by him (Beatty and Samuelson, 2012).3
Case Scenario : As per decision given in Chappell v Nestle, inadequate consideration will not make any difference but it should be sufficient to support the offer.Intention : Agreement would be a valid contract when both parties intend to performtheir respective acts. Intention can't be shown or proved, thus it is presumed that bothparties intend to do their acts. No action by any of the party should question on theirperformance(Levinson, 2005).Case Scenario : According to decision made in ferrera v Littlewoods pools, if evidences are available which questions on the duty of parties or their performance to contract, then their intention would be questioned.Privity of Contract : No action can be taken on any other person which is not a party tocontract neither any person can take action if he is not a party to a contract.Case Scenario : As per decision provided in Tweddle V Atkinson, third party who is notin the contract cannot pay consideration. 2. Impact of different types of contract “When one Speaks of types of contract, it is all the same under English law”, thisstatement is not true because each type of contract has different consequences under differentsituations (Bowyer, 2000). Description of different types of contract along with their impact isenumerated below:Unilateral Contract : In this type of contract, a single party is bound to perform his actand the other party is independent in making decision whether to perform his act or notare unilateral contracts. Case Scenario : Say, X lost his branded watch somewhere and announced that whoever finds it will get reward of 100$. X is bound to pay 100$ if someone returns the watch but there is no boundation on anyone who finds watch to return to X, as per judgement of Carlill v Carbolic Smoke Ball Company.Bilateral Contract : A proposal in which both the parties are bound to perform their actcan be termed as bilateral contract (Willey, 2012).Case Scenario : As per decision given in Brogden v Metropolitan Rainway, an offer is made and accepted by another, and a valid contract is formed then both the parties have to perform their respective acts.4
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