Report On Aspects Of Contracts & Lawfulness Of Business Terms

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Added on 2020-02-05

Report On Aspects Of Contracts & Lawfulness Of Business Terms

Added on 2020-02-05

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ASPECTS OFCONTRACT AND NEGLIGENCE

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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Importance of essential elements require in forming a valid contract .................................11.2 Different types of contract and their impact ........................................................................21.3 Analyzing legal terms in contract with reference to their meaning and effect ....................32.1 Impact of different types of contract ....................................................................................42.2 Applying the law on terms ...................................................................................................52.3 Evaluating effect of different terms in contract ...................................................................5TASK 2 ...........................................................................................................................................63.1 Difference between contractual liability and liability in tort ...............................................63.2 Nature of liability in negligence ...........................................................................................73.3 Explaining how business can be a vicariously liable ...........................................................74.1 & 4.2 Elements of tort of negligence and vicarious liability ...............................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

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INTRODUCTIONContract is treated as a legal agreement between two or more parties. A contract is onlyvalid when it contains all the necessary elements of agreements and these are offer andacceptance, consideration which party need to paid in order to create binding relations, legalcapacity of parties to act, etc. Moreover, if agreement lacks one or more element which is listedabove then it will not be treated as a legal agreement (Palmer, 2014). On the contrary,negotiation is considered as a process of discussing something with someone in order to makeagreement with individuals along with some major decisions. In relation to the contract and negligence, this present report will focus on making abetter understanding about different aspects of contracts and also the lawfulness of businessterms. Further, different case scenarios are mentioned in the report which will help client indeveloping a clear and extensive study regarding the aspect of contract and negligence.TASK 11.1 Importance of essential elements require in forming a valid contract The contract which is formed will be considered as valid if it constitutes all the major andcrucial elements of agreement in it. In relation to it, for making a valid contract, some importantprinciples which need to be followed are explained below:Offer- Offer is a crucial obligation for each and every contract. Further, an offer isdefined as a proposal that expresses the desire for the performance of duties andobligations. It clearly defines the content of a contract and seeks the consent of the partiesin order to deliver the legal prospects of the contract. With reference to the case Harvey vFacey (1893), offer can be understood in clear and precise manner. Further, an offergenerally describe the major content of a contract and also shows the involvement ofofferor in order to create a strong relationship with an offeree. Further, this shows that formaking a successful contract, involvement of minimum two parties is necessary(Negligence. 2015). Moreover, this offer have a specific time period and it gets elapsedwhen the time of the acceptance get expired or it is generally withdrawn before theacceptance of offeree. Acceptance:Acceptance is the second stage of contract. Contract is considered as a validdocument if the offer made by offeror is accepted by the offeree in a same way (Jenningsand Twomey, 2010). Further, if both the parties of a contract are bounded into an1

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agreement then major elements of acceptance will come into consideration and both theparties need to follow them efficiently. These elements are:◦Terms of acceptance must actually match with the terms of the offer◦Agreement which is coming into force have to be certain for a particular thing orevent◦Acceptance should be communicated with the offeree. Moreover, with reference tothe case Felthouse Vs Bindley [1862], major components of acceptance will beunderstood in clear form. Intention to bind into contractual relationship- With reference to the case of Jones vPadavatton (1969), both the parties of contract must have an intention to enter into somelegal relationship. Further, under the legal consequences, parties should enter into anagreement without any kind of fear and pressure.Consideration-Contract which is taking place should come into force by a valuableconsideration. Moreover, both the parties should get the equivalent benefit from thecontract either in the form of tangible or non-tangible gain (What is a contract? 2015).Capacity: Contract is treated as valid when both the parties of the contract are capable toenter into a contract. Further, a person with a sound mind, stable memory and eligible ageof entering into a contract is said to be capable.1.2 Different types of contract and their impact Different types of contracts have been stated below in order to have proper and effectiveunderstanding. Moreover, the type of contract is not same as per the English law because theygenerally have varied meaning and effect.Bilateral and Unilateral Contract: Bilateral contracts are the contracts where parties ofagreement promise each other to do the certain acts within the legal boundation. As perBrogden Vs Metropolitan railways (1877) case, contracts seek the mutual consent of boththe parties and frame the effective means in developing the contractual obligation. On thecontrary side, unilateral contracts are those where one party has promised to dosomething, and now it depends upon the desire of other party that whether he/she wantsto act or perform according to the first party. Further, these are formed and developed onopen basis (Tvarnø, 2010). 2

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