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Unit 5: Aspects of Contract and Negligence in Business

   

Added on  2020-01-16

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ASSIGNMENT SUBMISSION FORM This sheet must be submitted with yourassignment. Failure to complete, sign and submit this form will result in a mark of ‘0’for the assignment.Student NameStudent IDAssessor NameQualificationUnit Number & Unit TitleUnit 5: Aspects of Contrast and Negligence for ControlAssignment TitleACNBDate of Submission01/02/2017By submitting this form and signing below, I declare that:●I am the author of this assignment and that any assistance I received in its preparation is fully disclosed andacknowledged in this assignment●I also certify that this assignment was prepared by me specifically for this course●I certify that I have taken all reasonable precautions to make sure that my work has not been copied by otherstudents●I confirm that I have understood the College’s regulations on plagiarism●I confirm that research resources are fully acknowledgedPage 1

Table of ContentsArticleNo.Article TitlePage No.1.1Identify the essential legal elements for the formation of a valid contractin this case and explain their importance031.2Discuss the impact of different types of contracts041.3Analyze terms in contracts with reference to their meaning and effect052.1Apply the elements of contract in given business scenarios062.2Apply the law on terms in different contracts062.3Evaluate the effect of different terms in given contracts073.1Contrast liability in tort with contractual liability083.2Explain the nature of liability in negligence making reference to theelements of a Tort of Negligence.093.3Explain how a business can be vicariously liability094.1Apply the elements of the tort of negligence and defenses in differentbusiness situations104.2Apply the elements of vicarious liability in given business situations.10References13Page 2

Introduction:The aim of this report is to understand the legal aspects of business form the business contractand negligence point of view. Basically, the concept of contract and tort in UK’s legislation isdiscussed in this report from different perspective. In English Tort law the civil responsibilitiesof the people is governed where in contract law the duties and responsibilities of two parties inan agreement is described. In this report the elliptical elements of a legal contract and how avalid contract formed is discussed. How different types of contract impact the business is alsoexplained here. The importance of different legal terms is stated in this report where it isdiscussed what are the impacts of these terms. It is also shown that how the terms areimplemented in different scenarios according to the case study. The difference in liability in tortwith contractual liability is addressed here for better understanding. Finally through the casestudy the concept of vicarious liability is discussed in this report.1.1Identify the essential legal elements for the formation of a valid contract in this case andexplain their importanceContact is an agreement backed by law which is made through voluntary and deliberateaction between two or more parties (Amao, 2010). So, contract is an agreement betweentwo parties with specific terms where it is promised that do to something by one or bothparties and in return on or both parties will get benefit that is known as consideration.Different elements are required to make a contract complete and fully functional. Acontract of law is about the enforcements of the promises. And According to law allPage 3

promises are not enforced. However in order to enforce agreements, or promises the courtmanly searches for the presence of particular element. The essential elements of a valid contract are listed below-1.Agreement 2.Offer3.Acceptance4.Consideration5.Intention to create legal relations6.Certainty7.Capacity AgreementFor a binding contract the first essential element is Agreement. To determine if anagreement has been reached or not, the court will take consideration whether the partydid make a firm offer or not which then other party has accepted .Example of how the process takes place:Offer: ●Offeror – The party who makes an offer to enter into a contract●Offeree – The party to whom an offer to enter into a contract is madeOffer is an essential element of a valid contract that states the readiness of doing something. Theoffer is the initial action of a contract where it can be expressed or implied (Burnham, 2011).Page 4

Carlill v Carbolic Smoke Ball 1893 case the Carbolic Smoke Ball company made an invitation totreat that was accepted by the plaintiff, Mrs Carlill through following the conditions set by thecompany and got flu. Though the company claimed the advertisement as a sales puff the courtfound that the offer was clearly made and accepted properly by the customer and gets impacted,the company is bound to give the reward as mentioned. Through the offer an individual orlegally accepted entity can express the willingness to make a contract. In legal procedures it isseen that who the offer in a certain scenario is.Difference between offer and invitation to treat:An offer is different from invitation to treat as it does not bound the offeror when it is acceptedby the offerree while offer intends to bound the party as soon as it accepted by offerree. In anoffer the person or organization make the offer to other is the offeror and to whom it is made thatindividual or organization is known as offeree. The main different is an offer a final stage of invitation to treat where invitation to treat is not anoffer. Invitation to treat is an expression of making an offer where one party invites other tomake an offer to do or not to do something. For example, any advertisement is a form ofinvitation to treat where the seller invites the buyer to buy his product only. When an offer made in return to previous offer is known as counter offer where the previousoffer is rejected automatically because of the new offer. Basic rules of an offer:●The offer can be implied or expressed. ●The offer can be general or specific.●For a valid offer it must be create a legal relationship between the offeror and offeree. ●The terms of an offer must be certain and definite. Page 5

Offer is the essential element of a valid contract and without it a contract cannot be created. In anoffer the parties express their consideration and also their capabilities to perform the contract. So,in a valid contract there must be an offer either it can be expressed or implied. Acceptance:Another important element of a valid contract is the acceptance of the offer. Through acceptance,an offer becomes an agreement and it gets a legal identity. Now the acceptance can be indifferent form. It can be in oral, written or through direct performance by the offeree. Basic rules of Acceptance:●The acceptance must be unconditional which means in terms of accepting the offer the offerree isnot allowed to create any condition to the offeror. ●The offree must communicate the acceptance properly following the instruction of the offeror.●The acceptance must be expressed.Postal Rule in acceptance: The rule of contract law which makes an exception to the general rule which acceptance can onlycreated when communicated directly to the offerer. In this offer is made by post or letter which isnot effective until received by offereeThe postal rule of acceptance is that after making the offer through the post the offerorhas toprovide sufficient time to get the reply from the offeree. According to the Adams v Lindsell case1918 the defendant breached the contract as he didn’t get the acceptance that is made at the timewhen the plaintiff posted his letter of acceptance. Agreement is made with the combination of offer and acceptance. So, agreement is an essentialelement of agreement where the consideration and other terms are present to make a validcontract. Page 6

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