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Vicarious Liability of Employer for Employee's Actions

   

Added on  2019-12-03

10 Pages3181 Words249 ViewsType: 249
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ASPECTS OF CONTRACT
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1.1 Importance of Essential Contract ElementsOffer : Offer is most essential for making a valid contract between the parties. Theimportance of offer is for making a strong communication between the other parties. Thisis given by one party (offerer) to another (offeree) party. Acceptance : Acceptance is refereed to the consent of offeree which is provided inrelation to an offer. This is to be noticed that only offeree is entitled to acceptance for offer. Incase a third party gives consent on behalf of offeree, the contract can be deemed void .Unconditional consent of party along with any material modification acceptance in valid, in caseparty is giving acceptance with a condition then it will be treated as a counter offer (FourEssential Elements of a Contract. 2016).Consideration:Also parties’ performance has to be encouraged by mutual considerationswhile having legal intention of entering into contractual relationship (Mondal, 2014).Consideration here is the price for which the promise of another party is brought. Capacity of party: In addition to this, the contract formed can be considered as valid ifthe person is capable. The capacity of the individual can be judged in the following aspect suchas must be age above 18 year and should have sound mind. In addition to this, the party will alsobe consider as capable for forming contract if he/she is in sound mind. Thus, the contract whichis formed with the insane people will not be consider as valid (Four Essential Elements of aContract. 2016). Intention to create legal relationship: Moreover, in order to form the contract partiesmust reveal about its intention. If parties are not interested in forming legal relationship then inthis condition contract cannot be formed. Thus, it can be said that in order to form the validcontract all these identified element needs to be fulfilled by the enterprise (Sulphey and Basheer,H., 2014). Privity of contract:It is another element of valid contract which states that the party whohave form agreement has the right with regard to file case against the defective party. Thisprovision restricts the right to third party with regard to file case against the another person whois in default or which has not fulfilled the condition of agreement.
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Mini Case AIn the given case scenario, Arnold offers Fiona his dental equipments for £15,000.Provided that he needs to sell them as early as possible to her as he already had good offers fromother parties. But Fiona was not sure about payment to be made so quickly so she calls him tosay that she could only pay after Christmas. But as the call was received by his secretary, Fionaleaves the message with the secretary which is yet to be delivered to Arnold. This can beconsidered as conditional acceptance (Saxena, 2008). In absence of a reply from uncle, shemanages to get a bank loan and then writes to uncle about her acceptance of offer on 28thSeptember. But on 30th of the same month, Arnold calls to inform her that offer is already madeto another party and that the equipments are sold. Thus, due to lack of acceptance, there is novalid contract between individuals. Both parties have intention to create legal relations and thiscan be termed as one of the contract elements.Mini Case BIn given case, Mrs. Smith makes a unilateral offer and announces a reward of £10 forfinding a black and white cat named lucky which belongs to her. David finds the cat and thenspends £15 to get to the owner and return the cat. David claims £5 in excess of reward amountand this has been refused by Mrs. Smith. In this case, a proper offer and acceptance of contractcan be found between parties and only £10 will be considered as agreed amount for paymentwhich is to be paid by Mrs. Smith in terms of her liability. And this is essential to be adequate interms of English Contract Act (Sulphey and Basheer, 2014). There is an element of capacity toenter into contract as David is capable to find the cat as he is not infant or insane and can returnit to Mrs. Smith.Mini Case CIn this case, Mrs. Harris asked Ted her neighbor for collecting rent from her tenants onher behalf during her aboard trip. Ted agreed and collected the rent and when she returned by hertrip, she promised to pay £50 for the help but later she refused for the same. In this case, a properoffer, consideration and acceptance can be found in agreement between Ted and Mrs. Harris butas they do not intend to enter into any contractual relationship, there is an absence of a valid
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