Essentials of Legal Contract
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Added on 2020-01-16
Essentials of Legal Contract
Added on 2020-01-16
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ASPECTS OF CONTRACT
Table of ContentsINTRODUCTION....................................................................................................................................................3TASK 1.....................................................................................................................................................................31.1 Elements of a valid contract..........................................................................................................................31.2 Impact of different types of contract.............................................................................................................41.3 Analysis of different terms of contract ......................................................................................................5TASK 2 ....................................................................................................................................................................62.1 Elements of contract in the given business context......................................................................................62.2 Consequences of classified terms.................................................................................................................72.3 Effect of terms of laws in contracts..............................................................................................................7TASK 3 ....................................................................................................................................................................83.1 Contrast liability in tort with contractual liability. .....................................................................................83.2 The nature of liability in Negligence...........................................................................................................93.3 Explain how a business can be vicariously liable.......................................................................................10TASK 4 ..................................................................................................................................................................114.1 Elements of tort of negligence and defences in the given scenario............................................................114.2 Elements of Vicarious liability...................................................................................................................11CONCLUSION......................................................................................................................................................12REFERENCES.......................................................................................................................................................12
INTRODUCTIONA valid contract is one which contains all the essentials of legal contract. In thiscompetitive world, the business organization should understand the aspects and rules andregulations of valid contract. It should be understand that a valid contract is one which shouldcontain all types of essentials to fulfil the conditions. Also, the companies enter with variousagreements with another companies for transaction of business, so they should have theproper knowledge regarding aspects of valid contract (Ali and Kumar, 2015). This report hasbeen framed with a view to providing a professional knowledge about particulars of a validcontract, which includes offer, acceptance, contractual capacity needed by persons etc, andits importance as well as liabilities in tort and negligence. In this report various cases has alsobeen discussed to apply the various particulars of contracts in different aspects. Also, the termnegligence has been discussed which means if the negligence has been occurred by one partythen other party is liable for his act. TASK 11.1 Elements of a valid contractAs business contracts are essential parts of operating any kind of business as businessorganizations enters with various types contracts with another contracting parties. It meansthat business contract is a tool or base which can keep work between both the partieslegitimate. Various elements of a valid contract are:Offer: It is the first element which is the starting point of a valid contract. It meanswhen one person has formally expressed his willingness to do or abstain fromperformance of any act to another party for obtaining his assent to such act oromission of the said act (Appleman, Appleman and Holmes, 2015). The party whichmakes offer to another party is called as offerer and he is making offer. Another partyis called as offeree. Acceptance: To give contract a legal effect, offer made by one person should beaccepted by another. In legal terms, this has been defined as acceptance of an offer. Itmeans that an offer should be followed by valid acceptance along with taking assentfor an offer from offeree. It can be given orally, verbally or in a written form. Lawful consideration: Consideration means to provide a promise or an act or chargeor value in against of performance of a task for which contract has been made. It is
also defined as other person to contract is entitled to give back something in return inagainst of an act. It is performed in between promiser and promisee (Blomme, VanRheede and Tromp, 2010). Competency of the parties: It means the contractual ability of party to enter intocontract. According to the rules of law, person under the age of 18 years, of unsoundmind or lunatic cannot enter into a contract.Intention to create legal relations: There should be a legal intention that should beexpressed by both the parties to create legal relations. It would not be treated as avalid contract until and unless there is an intention to create legal relationship betweenboth the parties.1.2 Impact of different types of contractAccording to The Contract Act 1950, there are different types of contracts which havean impact on the parties. Different types of contracts are discussed as follows:Void and Voidable contract: Void contract is the one which is not enforceable in theeyes of law. It has no legal rights infringed upon the parties (Brodie, 2011). On theother hand, voidable contract is one which can be cancelled by the act of each of theparties due to any misrepresentation of facts and figures mentioned in contract. Bilateral and unilateral contracts: In case of bilateral contract, each of party hasmutual promises that are to be performed by them . It is also called two sidedcontract as there is a relationship of promises in between both the parties for aconsideration. Written contracts: These are the contracts which are in written form. It means thatparties to the contracts have made it in writing on a document. terms and conditionsrelating to the persons in contract have been mentioned in contract that are agreed byboth the parties (Brun and Moretto, 2012). After this, signature and attestation shouldbe done in order to give it legality that it has been verified both the parties and thecontract is in operation.Face to face contract: These are the contracts which are merely formed by the partiesby verbal communication only. These contracts are made on the basis of mouthwords. So, due to this reason, these contracts are not having any legal effect andcomparatively, these are riskier too in nature as they are not supported by any kind of
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