Variety of Contracts and Their Positive and Negative Impacts

The assignment content discusses various types of contracts, their positive and negative impacts on the parties involved, as well as different contract terms like innominate, implied, and express. The content also highlights the distinction between contractual liability and tort liability, explaining how breach of a government contract can have different consequences compared to negligence in performing duties.

Aspects of Contracts
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TABLE OF CONTENTS
Introduction .....................................................................................................................................3
Task 1...............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
1.3.................................................................................................................................................4
Task 2...............................................................................................................................................5
2.1.................................................................................................................................................5
2.2.................................................................................................................................................5
2.3.................................................................................................................................................5
Task 3...............................................................................................................................................6
3.1.................................................................................................................................................6
3.2.................................................................................................................................................7
3.3.................................................................................................................................................8
Task 4...............................................................................................................................................8
4.1.................................................................................................................................................8
4.2.................................................................................................................................................9
Conclusion ......................................................................................................................................9
References......................................................................................................................................10
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INTRODUCTION
A contract is the written and spoken agreements, which is made between ofrer and ofree
and intended to be enforceable by law. The for the executing desired function of business aspects
of contract are very essential. The present report is based on various elements of contract and
with a different cases. In this report it covers,the impact of different type of contract has been
discussed. Terms in contract with references to their meaning and effects is analyzed. Along with
this, the importance of essential elements of a valid contract is is explained. Apart from that, the
nature of liability in negligence is explained.
TASK 1
1.1
The importance of essential elements required for the formation of valid contract are as
follow
 Offer and acceptance: It is very essential elements of the valid contract because in this
one party make an offer and it is necessary for other party to accept it (Oni-Ojo, and
Iyiola, 2014). Only one party cannot create a contract without a offer or acceptance of
another party.
 Intention to create legal relationship: The valid contract is made with intention to
create a legal relationship with other party. Both the party ofrer and ofree must intend for
entering into legally binding agreement
 Certainty: Each and every term of valid contract must be clearly defined and remain
certain. Unclear contract it not enforceable by law, so contract should not be vague. It is
necessary that all details of a contract must be correct and no uncertainty occur.
 Completeness: the parties who are entering into a contract must be agree each and every
point before performing any activity mentioned in a contract (Thampapillai Tan and
Bozzi, 2012). Agreement should not remain pending before its performances.
 Consideration: Consideration is related with a bargain of the contract, it is a exchange
of one thing of value for another. Moreover it is a price paid for the promise of the other
party and must be legally sufficient.
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 Legal capacities: All the people cannot enter into the valid contract. People who are
mental impairment, young and prisoners cannot make any valid contract with other party
(Martin and Van Linden, 2015). As per contract law each party should be capable and
above the age of 18 year.
This all are the essential elements for making any valid contract. If any element sis
missing then contract will not be valid and and not accepted as per according to the law.
1.2
There are various type of contract and its has different impact on contracts that are as follow:
 Written contract: It is type of contract in which both the party made agreement in
written. All the terms and condition are made in a written format and signed by both the
parties by agreeing the terms and condition (Berger and Lester, 2015). The impact of this
contract is that tryst and confidence is maintained between both the ofrer and ofree party.
If any party breach the rule then other party can claim in the court.
 Face to face contract: It is the contract which is face to face in oral form. In this two
party sit together and agree upon terms and condition which is included in contract but
only verbally (Carter and Courtney, 2016). It has a positive impact on the that there will
be no confusion between both the parties and any confusion can be clear on the spot. It
also reduces the chance of cheat and misconception.
 Distance contract; In distance contract formation of contract is can be in verbal or in
written form. Agreement is not done face to face so, there can be a positive or negative
impact of contract (Vashist and Talwar, 2014. ). Negative impact is that it may be create
confusion between and delay in contract which may lead to rejection of contract.
1.3
It is very essential for all the parties to involved in making a contract. There are many
terms in contract are as follow:
 Expressed term: In this exchange of promises both the party agree to be bound are
declared either orally or in a written form is know as express contract (Miles, Fleming
and McKinney, 2010.). This term is also mentioned in a contract in a specific manner
and agreed by both party.
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 Implied term: the term implied is important in contract for giving a full effect to
intention of the parties. It is known as obligation which comes out of the contract and to
be followed by both ofrer and ofree.
 Innominte term: It is a term which is not describe in a contract. It is difficult to
understand and because of this reason this the importance of contract is also decreases
(Olander and Norrman, 2012.). There less importance of the Innominte term at the time
of making a contract.
TASK 2
2.1
According tot he given scenario, Ivan goes to Todo's book shop for buying a book which
is displayed for a sale. He want to buy a book whose cost is $50. she went to a counter for
payment, but Todor refuse to sale the book. The reason for refusing is that he had sold that book
yesterday to Carl and it was the only copy, but forget to remove it form display. Ivan want to
buy that books and insist to Todor and she get disappointed after this (Sweet and Schneier,
2012). In this case the contact made was face to face, because both the party is in front of each
other. There was a positive impact because confusion and misconception is not created and all
the mater is solved on the spot. Todor need to remove the book form the display it create a
confusion for the Evan and it make her disappointed. But the confusion is cleared on time and
no illegal contract made. It is the benefits of the face to face contract.
2.2
The law term in different contract and their consequence are as follow
 A condition: In a contract it is necessary for the ofreer and ofree to keep some terms and
condition which are related with their contract. Condition sis a major term of contract
which goes to root cause of any type of contract (Connolly and Hoar, 2014). If any of the
party breached the contract then other party have power to sue in court and claim for the
damage.
 A warranty: the warranty is not so important in a contract because if any party break the
rule of contract the other can claim for only damage but, cannot end the contract (Marks,
Marks and Jackson, 2013.). A warranty is that which is given for any product and
services to other party.
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 An Innominte term: The innominate is a term which is lie between a condition and
warranty. this term is not important in contract as other term and it is also difficult to
understand and not much used in contract.
2.3
According to the given scenario, John wen to a park which is managed by his local
council. There he see a notice which states that anyone can hire a chair in 50p per hour. John
then pay the 50p and got a ticket by the parking attendant and get the chair. the chair was broken
and john get injured and his cloth was also damaged (McInnes, Kerr and VanDuzer, 2013). He
found trouble with the chair and made a complain against the management. But the local council
refused for the claim by saying that no liability is accepted for any damage for hired equipment.
However behind the ticket it was mentioned that damage will be payed but it is not a part of
contract because ticket is made after completing the contract.
John can claim in court if all the essential elements are included in contract and if park
authority refused to pay. The park cannot move away form its responsibility of paying to the
John. It is a fact that whatever terms and condition mentioned at back of the ticket and they
cannot refused to accept it (Forstenlechner And Lettice, 2008.). As according to the law of
contract John get payed for damage and local authority required to accept it fault. The contract
cannot break by them as john can fire a case in court where he has proof which is written on
ticket. The local authority cannot make any type of excuse for preventing themselves form
paying a compensation
TASK 3
3.1
There are various difference and similarity in the contractual liability and tort liability.
This both are different in aspects of common law and but common in certain amount. The tort
liability and contractual liability both are civil law. The defendant required to give compensation
not punishment, if other party claim. Further both tort and contractual liability is different in
some of the area that is in contractual liability relation is created by the contract . While in tort
liability the relationship is imposed by law and non contractual (Carter and Courtney, 2016.).
The other differences is that the liability in contractual is both the party agree for entering into a
contract and agree with every term in contract. Any party cannot force to other party for entering
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in the contract. On the other hand, it is not based on consent, intrusion by one party into the
safety, health, and profit of other party this all involved in Tort.
In the contractual liability if one party breach the contract then other party can sue for
restoring their position in the contract. It is done because on the balance profit of both the parties
the contract is made. Moreover if any party breach the contract then party can claim for the
compensation (McInnes, Kerr and VanDuzer, 2013.). While in tort of liability, one party can
only claim if it face loss or damage by other party. The level of compensation is based on the
extent of damage of the victim. Further the tort liability is imposed by government and it is
necessary that it should be followed without any misappropriation. Tort means a wrong action
which stated under the legal wrong.
3.2
The nature of liability in negligence are as follow it comes under the situation when any
individual fails to follow a instruction because of any reason. In the tort liability if any
individual committed a crime then punishment is given by the government and it is necessary to
be followed by all people (Berger and Lester, 2015.). If any person is harmed by other then it
come in the category of negligence . For example if any person get harmed because of other then
it have right to claim against the person by who the individual was hurt. Moreover, There are
many elements which are required for the negligence
 Duty of care; in this it is a legal duty to take care of other person. If any person fail to
perform its duty and other person get injured. Therefore the person who got injured can
claim in court and defendant person must owed by the duty of care (Carter and Courtney,
2016). when law recognize defendant take a responsibility if taking a care of other
person then duty arises.
 Breach of duty: if any individual fails to perform its duty of care toward the person who
owing tot he party (Oni-Ojo and Iyiola, 2014). In this case then person who get injured on
form of law. It can be seemed in the john case, that it is a duty of park owner to take care
of person who came in their park. John get injured in the park and it can sue the case and
can claim for compensation. Because park owner break the duty of taking care of people
who come in their park.
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 Cause in fact; in this negligence, it is important for the person to prof that it got injured
by other person. In the case of John it is written on back of ticket that and damaged is
responsibility of park owner (Martin and Van Linden, 2015.). So that john have proof to
claim for the damage of its cloth and injury.
 Proximate cause: In the proximate cause if defendant have foresee through his or her
action then it comes under the negligence. If the duty is breach and cause harm to
plaintiff the it proves that injured person is responsible for the losses and injuries
(Thampapillai, Tan and Bozzi, 2012).
3.3
Vicarious liability is defined as a business group in which there are various responsibility
and accountability of business owner. In this if any person do something wrong in the
organization then it is a responsibility of owner to pay for it. Many of the staff members are not
aware of there responsibilities and duty and due to their negligence whole company have to pay
for it (Forstenlechner And Lettice, 2008). It is necessary for the owner to provide a a training
facility for the staff members and make them are about their responsibility and duty toward the
organization. For example in the case of Roger and Colin . Colin a manger hit the Dishwasher
Roger in hotel and now he can claim in court for the misbehave of the Colin. Moreover ,in the
case of Lister and Hesley hall ltd in 2001. the mistake is made by the staff member and employer
face the problem. In this case some of the workers are engaged in sexual harrsahments activities
and employer fall in unlawful action by the according to the law. It shows that if any injury or
damages is caused by the employees then it become a accountability of owner to pay for it.
TASK 4
4.1
According to the given scenario, David is driving a car with high speed on a four lane
street. There children are also playing and one nine year old Kevin run into a street chasing a
soccer ball. David who is driving a car without looking a over his shoulder and hit the telephone
booth for avoiding the Kevin. And in this process Kevin was seriously injured. Moreover the
telephone booth was of local phone company teleco (Olander and Norrman, 2012). It was
broken into two pieces and hit the Kevin who is on the street. In this whole case the fault is of
Dvaid and teleco company. It is prohibited by law to drive a car with a high speed in between
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street where children played and teleco company should not put the telephone booth in middle of
street. Because of this Kevin was seriously injured. It show the lake of care by the David and
teleco company and a little kid was suffer form their careless.
Parents of the Kevin can claim in the court against the David and teleco company. They
have right to take legal action against the people who are responsible for the harm. In this case it
clearly shows show the lack of care and it come in the category of negligence (Connolly and
Hoar, 2014). However this accident can be avoided by the David if he not drive the care with
high speed. Now he is liable to pay a compensation to Kevin parents. Further if telephone booth
is not situated in roads side then also this accident can be avoided. So it is also a mistake of the
telephone booth company it also come under the contributory negligence. So both David and
teleco company required to pay compensation to Kevin.
4.2
According to the given scenario, Colin is working in a head chef regent hotel. He was fed
up with a Roger because of his attitude, who work their as a dish washer. One day Colin knock
the roger unconsciousness with a frying pan. Roger was injured and he also refuse to go tot he
hospital. Under the vicarious liability it is a responsibility of the owner of the hotel to pay for the
mistakes and wrongdoing of the staff members (Carter and Courtney, 2016). According to the
case Roger can take action against the Colin who is the manager of the hotel. It is necessary for
the owner to take a responsibility and accountability of its workers. Owner should also provide a
protection and safety equipment in hotel for the safety of its staff member.
If in hotel any employee get injured or harmed because of any reason then it is a
responsibility of owner pay for it. In this case Colin was the owner and not happy with the
attitude of Roger and knocked him with a frying pan. Roger was also offer help and forced to go
for hospital but he refused (Sweet and Schneier, 2012). For taking any type of medical help.
Roger should accept the offer of taking a medical help but he refused. It show the negligence of
Roger and it prevent him form taking a legal action against the hotel owner. As per the vicarious
liability it is responsibility of employer to pay for damaged suffered by law.
CONCLUSION
From the above report it can be concluded that, there are various element of contract such
as offer, acceptance consideration etc. this all are necessary for the valid contract. Various type
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of contract are their according to law and it all have some positive and negative impact on both
the party ofrer and ofree. Various terms in contract such as innominate, implied , express which
are important at the time of making any contract. Further it can be concluded that contractual
liability is different form the Tort liability. In tort liability all the action are taken by government
contract is breached. In the nature of liability in negligence if any person fail in performing of its
duty then other person can claim for the compensation.
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REFERENCES
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procedure. Elsevier.
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Thampapillai, D., Tan, V. and Bozzi, C., 2012. Contract law: text and cases. Oxford University
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Vashist, A. and Talwar, P.P., 2014. Legal modalities in dental patient management and
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Online
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[Accessed on 3rd november 2016].
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