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Task 11: Contracts and Terms in ACNB Table of Contents

   

Added on  2020-02-05

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ACNB

TABLE OF CONTENTSintroduction....................................................................................................................................1task 1................................................................................................................................................11. Importance of the essential elements required for the formation of a valid contract..............12. Impact of different types of contract.......................................................................................23. Analysing terms in contract with reference to their meaning and effects...............................34. Discussing the impact of different types of contract and analyse terms in contracts withreference to their meaning and effect..........................................................................................45. Application of the law on terms in different contracts............................................................46. Evaluation of the effect of different terms in given contracts.................................................5Task 2...............................................................................................................................................51. Difference between contract and tort liability.........................................................................52.Explaining the nature of liability in negligence and employers’ liability...............................63. Explaining how a business can be vicariously liable...............................................................64.Applying the elements of the tort of negligence, vicarious liability and defences in differentsituation........................................................................................................................................7conclusion........................................................................................................................................8references.........................................................................................................................................9

INTRODUCTIONCurrent business environment is full of agreements between different businesses andindividuals. Most of the parties use oral and written contract for managing operations. There arenumber of laws which emphasis on the formation and operations of business organization. Thepurpose of this report is to identify and examine different aspects of contract and negligence forbusiness (Stone, Devenney and Cunnington, 2011). The present study will focus on differentelements which are required for a valid contract. Including this, research will apply theseelements of contract in different situations of business. Along with this, study will try to increaseunderstanding about the principles of liability in negligence in business activities. Including this,elements of tort of negligence and defences are also describing in the following paragraphs ofreport. TASK 11. Importance of the essential elements required for the formation of a valid contractThere are number of different elements which are required for developing a validcontract. For example, Balfour vs. Balfour (1919) is a case of social agreement and it is not avalid contract (Zoll, 2012). So, as per this, a valid contract requires the following elements:Offer and acceptance: In order to create a valid contract, there must be a lawful offerfrom one party and lawful acceptance by another party. So, offer and acceptance are theessential elements for developing a valid contract. Without inclusion of these elements, acontract cannot be considered as valid and can be termed as a simple agreement. Legal relationship: A valid contract requires legal relations between both the partiesbecause it shows official consequences and obligations. But, social and familiarrelationships are not considered as the attributes of valid contract. Case of Balfour vs.Balfour 1919, has reflected social relationship between both the parties, so, it is notincluded in a valid contract (Tomprou and Nikolaou, 2011). Lawful consideration: Consideration can be defined as different ways and as per thiselement of valid contract, both parties must be agreed on predefined promises. Capacity of both parties: For developing a valid contract, both the parties must becapable enough to complete the agreement in a lawful manner. So, capacity of both1| P a g e

parties is also included in the essential element of valid contract (Sources and definitionsof contract law, 2014). Free consent: As per this element, parties of valid contract must be agreed on same thingin a same sense. Consent must be free from coercion, influence, fraud, mis-presentation,mistake, etc (Essential elements of a contract, 2014). Lawful object: Purpose and object of an agreement must be valid and legal then it isconsider as a valid contract for both the parties. Legal formalities: There are some legal formalities which are required for developing avalid contract. These formalities include registration, license, etc. Formalities are requiredfor different agreements such as sales, mortgage, lease, gift of immovable property,articles of association of a company, etc. Absence of above discussed elements can reduce the validity of contract. It means that allthese elements are required for developing a valid contract (Olander and Norrman, 2012). 2. Impact of different types of contractGiven statement has stated that “When one speaks of ‘types of contract’, it is all the sameunder English law”. According to the English law, this statement is not true because there aredifferent types of contract which are developed by distinct parties as per the situation andrequirements (Miles, Fleming and McKinney, 2010). Different types of contracts and theirimpacts are described as under:Written contract: According to the English law, when both the parties write theirpromises on a paper as a proof of contract then these types of agreements are known aswritten contract. Such contracts are essential for long term agreements and have differentadvantages also. In addition, written contract provides equal rights to both the parties inorder to take legal actions in various circumstances (Middlemiss, 2012). For example:written contract is generally formulated at the time of purchasing land, building andautomobiles. Oral contract: This type of contracts are based on verbal communication between boththe parties. In this type of contract, both the parties can write their promises and liabilitieson paper but their contract does not have any existence in written form. Telephonicpurchase is also known as an oral contract (Written vs. Verbal Agreements, 2012). 2| P a g e

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