Important of Essential Elements of Valid Contract
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Added on 2020-02-03
Important of Essential Elements of Valid Contract
Added on 2020-02-03
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Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Important of essential elements............................................................................................31.2 Impact of different types of contract.....................................................................................41.3 Analyzing contract terms......................................................................................................5TASK 2............................................................................................................................................52.1 Essential elements of a valid contract ..................................................................................52.2 Law on terms in different contracts .....................................................................................62.3 Effect of different terms in given contract ...........................................................................6TASK 3............................................................................................................................................73.1 Difference in liability in tort with contractual liability.........................................................73.2 Nature of liability in negligence...........................................................................................83.3 manner in which business can be Vicarious liable...............................................................9TASK 4..........................................................................................................................................104.1 Elements of tort of negligence and defeence......................................................................104.2 Elements of vicarious liability ...........................................................................................10CONCLUSION.............................................................................................................................11REFERENCES..............................................................................................................................122
INTRODUCTIONAn agreement is the activity that is undertaken by two or more parties so that they form alegal relationship among each other. However, there are different factors that are involved in alegal contract such as agreement which involves offer and acceptance, intention to create legalobligation, consideration etc. so that best legal relationship can be developed among parties.Further, there are different terms implemented within contract such as implied, expressed,unilateral and bilateral so that contract can be enforceable under English law (Levy, Golden andSacks, 2015). Here, being appointed as a legal adviser of XYZ Ltd different essential elementsneed to be considered in order to form a valid contract. Additionally, in relation to such elementsvicarious liability, contractual liability and tort negligence are also being discussed. TASK 11.1 Important of essential elementsFollowing are the major elements required in order to form a valid contract-Offer- [Carlill v Carbolic Smoke Ball Company [1893] 1 Q B 256]. According to theEnglish Law offer can be stated as a promise made by one party to another in exchangefor some consideration to perform the contract. However, till the offer is not accepted bythe offeree, offeror can revoke or terminate it by certain valid conditions. For instance,when an grocery shop owner displays grocery in order to sell them it is a kind of offer heis providing to consumers to buy the same (De Geest, 2012). Acceptance- Brogden v Metropolitan Rail Company [1877]. However, an offer is madeby the party the next thing that arises is acceptance of the offer. Here, both the parties arerequired to agree upon the conditions so that contract can be carried out effectively.Furthermore, it is significant for the offeree to understand the terms and conditionspresent in the offer before making an acceptance. It is essential for both the parties to beof sound mind in order to form a valid contract. For instance, through considering theabove example, it can be assessed that the person who accepts the offer of grocery ownerto purchase the grocery is the acceptor of the offer. Intention to create legal relationship- [Balfour v Balfour (1919)]. It is a crucial elementto be obtained by both the parties entering into the contract to form a legal relationship.With the help of such law if any of the party revokes or breaches the contract then they3
are punishable under the court of law. Also, if parties are not able to form a legalrelationship then the contract is not enforceable legally. Certainty- [Taylor v Portington]. It is the term that helps in ensuring the parties that theoffer made should be certain and thus do not contain any uncertain factors while makingthe contract. However, availability of such elements within contract does not consideredto be a valid contract (Porter, 2013). 1.2 Impact of different types of contractFollowing are the different types of contract-Oral and written contract- Both these terms are required to formulate a valid contract.Within oral contract it states that it is verbal form of contract which is not written butagreed orally. However, it is equally important as written contract\ in the eyes of law. Butsometimes it is difficult for the party to prove within court due to lack of evidence.While, written contract stated all the terms and conditions in written form. It is essentialfor both the parties to agree upon the terms and condition as they have to sign thecontract. For instance, in case of dispute it is easy to prove in the court of law and thushelps as a evidence in writing (Alexander and Alexander, 2011). Distance and face to face contract- It can be stated that both these terms helps informing a valid contract. Distance contract can be stated as the type of contract in whichparties are not present physically and contract is made through electronic form i.e. e-mailof telephone. For instance online shopping can be a example of distance contract. On theother hand face to face contract take place when both the parties agree mutually upon theterms and conditions of the contract and thus sign the contact. Unilateral contract- Within such type of contract only one individual is mandatory toundertake the terms and conditions that are involved in order to form a legal contact.However, such contract can be revoked at the time when the contract is not accepted bythe other party. Such contract can be canceled till the time any other party has startedperforming upon the contract (Shapiro and Smith, 2011). Bilateral contract- Further, such type of contract involves two parties in order to enterinto a valid contract and need to follow varied terms and conditions of the contract.While, the impact of such contract states that once the offer and acceptance has been4
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