Contract Law & Tort Liability
Added on 2020-01-23
22 Pages7908 Words370 Views
|
|
|
ACNB1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3The essential elements, contract types and terms of a valid contract in business context...........3TASK 2............................................................................................................................................6Application of the elements of a contract in business situations.................................................6TASK 3............................................................................................................................................9TASK 4..........................................................................................................................................13Case 1.........................................................................................................................................13Case 2.........................................................................................................................................14Conclusion ....................................................................................................................................15References......................................................................................................................................16INDEX OF TABLESTable 1: Difference between Contractual Liability and Tort Liability..........................................112
INTRODUCTIONIn order to enter successfully into a valid contract, both the parties must focus on properlegal framework so that they can enable valid agreement (Nielsen, 2010). However, it is essentialfor the parties to follow proper judicial system so that rights and duties of the parties can beprotected who are entering into the contract. Different statute laws as well as regulations framedby the governing authorities must be abide by the parties so that they may not enter into theillegal practices and activities. Therefore, UK government has implemented various laws andlegislation that are related with the contract and neglectful activities conducted by the parties sothat they may defend the right of innocent parties from the partial practices. Presently, the study focuses on defining the essential elements for entering or forming avalid contract. However, it will also focus on different types of contracts that parties may form aswell as it will also focus on different terms existing in the contract that are required by thebusiness parties to focus on so that they may easily perform the business practices. Furthermore,elements and different forms of contracts are also applied for the given case scenario. In additionto this, report will also discussed the nature of negligence by the parties within the contractualaspect. TASK 1The essential elements, contract types and terms of a valid contract in business contextEssential elementsValid contract within the business context is characterized as a binding statement amongtwo or more parties that may be legally enforced by the judicial system (Lawson, 2011). Validcontract must be in the written form in between two or more parties that mainly specify the termsand actions that have to be performed by both the parties. Despite of this, there are differentelements that need to be focused by the parties while entering into an agreement or contract.Different elements of agreement are-Offer and acceptance: One of the essential elements that proposes agreement is related tovalid offer and acceptance. For instance; if an offer is offered by one party to anotherparty and other party accepts that offer, then both the parties are abide in the agreement.An offer is defined as a proposal that has been given by one party to the other party so3
that they may complete action by performing activity. However, there are different typeof offer such as1.special offer- Under special offer it has been given to the specific or particular person. 2.Cross offer- Cross offer under which respective two parties places similar offers in therelated manner. 3.Counter offer- It is an offer that is made by the other party that is supported by thecondition. 4.General offer- This is a form of offer that is provided to the general public under whicheach individual is eligible for accepting the offer. On the other hand, acceptance is termed as a respond that is provided by other party in tothe respect of offer. Therefore, the acceptance of offer must be unconditional (Friedman, 2011).Basically there are 5 types through which offer can be terminated that is impossibility ofperformance. This situation arises if the performance that is describe in the offer is impossible toachieve then offer can be terminated. Second situation under which offer can be terminated is ifthe offer is mistaken by the offeror or the offer has been disapproved by the offeree. Thirdsituation under which offer is terminated is in the case of counter offer. Under this situation partywho is accepting the offer has placed condition then the offer will get cancelled. Fourth situationin which offer can be terminated is when parties entering into a valid contract are incompetentthat is party is not in the condition to accept the offer. Lastly, the fifth situation under which offercan be terminated is passage of time provided by the offerer that is after the completion of propertime period the offer can get terminated. Consideration- Another essential element that is being required to form the valid contractinclude proper consideration that is parties must be entering into the agreement must besupported by some value or gratitude while rendering services. Basically there are 5 rulesof consideration that is consideration may not be valid for the past performance. Theconsideration among the parties are not mandatory but it may be sufficient to both theparties. The modular duty and responsibility of the individual may not be consider ortreated as the consideration. The last rule of consideration include one-sided payment ofthe debt is not termed as consideration. 4
Intention to create legal relationship: Another essential element within the agreementincludes the intention of both the parties who are entering into an agreement. Both theparties must have intention to create legal relationship by enabling fair and ethicalpractices. For instance; if, intention of both parties are not to create a legal relationship,then there will be no contract among the parties (Beale and et.al., 2010). Pivity of the contract- Another element for formulating the valid contract include pivityof contract which enables that the right of sue or claiming the damages andcompensation. This element ensure that party agreeing into the contract are entitled andenforced to sue each other. The other party have no right to sue the parties who are in thecontract.Competent parties: However, parties who are engaging in a valid contract must becompetent enough so that they may enter into a valid contract. According to the law, anyperson or individual who is below 18 years, with unsound mind or lunatic may not bevalid to enter into a valid contract. Person of sound mind as well as adult of above 18years is eligible for entering into a contract and form contractual relationship. Free Consent: Another significant element that is essential for valid contract includes thatthere must be free consent of each and every party. The consent is defined as a situationwhere both the parties must agree upon the related things in the identical meaning.Parties cannot entered into a valid contract if, the parties are evoked by fraud, mistake ormisrepresentation (McKendrick, 2014). Different types of contract There are different forms of contract under which parties may form legal relationship aswell as it is also enforceable by the law. For entering into a valid contract, parties may focus ondifferent types of contracts that mainly include-1.Written contract- One of the effective type of contracts within the business context is thewritten form of contract. Under written contract, parties who are entering into anagreement are focused on forming a deed or statement that would clearly state the rightsand duties of parties that they would enact (Engler and Heyman, 2011). The advantage ofenabling written contract among the parties is that it may act as a proof to the parties that5
they have entered into a contract and they are liable for performing activities which arementioned within the contract. Advantages and disadvantages of written contract-It is consider as most formal type of contract that are used by many businesses so that in futurethey should resolve the dispute as in the written form of contract there is deed signed by theparties who are agreeing into the contract. Despite of the advantage there is also a majordisadvantage of the written form of contract that is it consume more time and money as itinvolve high paper work that sometime lead to take delay decisions. 2.Oral contract- Another type of contract that is commonly used in the business scenario isoral contract among the parties (Fried, 2015). This form of contract is highly suitablewhen parties of the contract are at the distance or are physically present at the same place.On the other hand, oral contract can be made through telephonic conversation.Disadvantage of oral contract is that it lacks the evidence of entering into a valid contract.However, oral form of contract may not be advantageous in the situation where one partydoes fraud with the other party and the defended party has no right to sue them as due tolack of evidence. 3.Bilateral contract & Unilateral contract- Bilateral contract is also considered as aneffective type of contract under which parties agreeing into the contract mutually dealingwith their promises. Under bilateral contract both the parties specifies their duties as wellas role so that they may perform their actions to meet or accomplish the goals of both theparties (Elliot and Quinn, 2009). However, this type of contract is also termed as twosided contract under which both the parties mutually agree to perform their duties andresponsibilities. Another sort of contract includes one sided contract that is often termedas unilateral contract. Under unilateral contract, one party gives offer but it is notnecessary or required that other party may accept the conditions that are offered by theofferee. Example of unilateral contract includes that an individual advertises in thenewspaper and magazine to provide financial reward to the party in the program whowould return their missing products. Thus, individual who has provided offer to providereward is obliged to pay certain amount if it is being returned (Horsey and Rackley,2009). 6
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents