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Report On Elements Of Valid Contracts & Their Importance In Business

Added on - 12 Feb 2020

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ASPECTS OF CONTRACT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Explanation about the essential elements of valid contract..................................................11.2 Discussion about various kinds of contract...........................................................................21.3 Analysis of the various forms of contractual terms..............................................................3TASK 2............................................................................................................................................42.1 Application of the essential elements of contract to the case scenario.................................42.2 Application of the law on terms to the scenario....................................................................52.3 Evaluation of the remedies are available to Mary.................................................................6TASK 3............................................................................................................................................63.1 Contrast liability on tort with contractual liability................................................................63.2 Explanation about the nature of liability in negligences.......................................................63.3 Explanation about the vicarious liability...............................................................................74.1 Application of the element of the tort of negligence to the scenario and consider thepossible defence..........................................................................................................................74.2 Application of the law on vicarious liability to the scenario................................................8CONCLUSION................................................................................................................................9
INTRODUCTIONIn every organization, regulation and legislation plays a crucial role which it protects itsbusiness activitiesand operation from illegal and unfair activities.In order to provide protectionand security to business as well as individual who are engaged in any type of agreement,government has formulated business legislation and code of conduct. The government authoritieshave also developed civil legislation that ensures provision related with the contractual liabilityand tort liability (Appleman Appleman and Holmes,2013). The following report provides deepknowledge and understanding about various elements of valid contract and its importance in thebusiness. The entire report is bifurcated into various case scenarios and each scenario definesvarious kinds of legal consideration between parties who have made contract and agreement. Attheend of the report, elements of vicarious liability and tort of negligence has also beenaddressed.TASK 11.1 Explanation about the essential elements of valid contractIn the context of business law, all contracts are agreement but all agreements not contract.A contract which is enforceable by law is known as the valid contract and it must possess all theessential elements. As per the UK government, a valid contract must includeall elements and theparties who are involved must carry that essential element. Following are some importantelements of the valid contract-Proper offer and proper acceptance- According to the law of UK government, if anytwo parties enter into a legal contract then theremust be develop a proper offer.An offeris an expression of proposal in which terms and conditions are included. The person whohas developed offer for someone is known as offerer and a person to whom the offer isbeing made is known as the offeree (Chen-Wishart, 2012).On the other hand, while anyperson offeres something to another person then there must requires a proper acceptance.According to the UK government, if any person accept the offer from offerer then theacceptance must be in oral and written form in which all terms and condition mustincluded. An offer is being followed by only legal acceptance of other parties who acceptthe offer.Furthermore, an offer should be accepted unconditionally because if any kindof additional terms are included by offerer then the contract is calledas a counter offer.
Intension to create legal relationship-As per the law of UK government, if any validcontract is made between two parties then there must be consideration to create a legalrelationship among them. In addition to this, both the parties makes sure that there is notinvolves any another outside pressure (Stirling, Kilpatrick and Orpin 2011).Capacity to enter into contract-Another major element of valid contract is capacity. Itmeans that the party who made the offer and the party who accept the offer must have thecapacity to enter into the contract.In addition to this, both the parties have age ofmajority and in sound mind. Furthermore, both parties should have capability to implywith the legal rights to form the valid contract.Free consent-According to the UK government,while any valid contract made betweenthe parties then there must not any kind of fraud, misrepresentation, coercion, undueinfluence and mistake. If the consent of both parties is not free then it will not be a validcontract.1.2 Discussion about various kinds of contractAs per the UK government, a valid contract is a document which carries all the legalterms and condition which both parties must follow who enters in the contract. There are variouskinds of valid contract which are as follows-Unilateral and bilateral contract- Unilateral contract involves action and activitieswhich is undertaken by one person or a group. Under this contract, only one party isallowed to make promise or agreement. For example, if any person has lost his dog thenhe can place its advertisement in the newspaper and stated that theperson who will returnmy dog will be getting 1000 rupees reward by me. In such kind of offer, no particularindividual is bound to return the dog so it is a kind of unilateral contract. On the otherhand, bilateral contract is a contract under which both the parties are responsible orobligated to fulfil their promise. It is a kind of two sided contract because both partiesfulfil their responsibility to formulate a valid contract. For example, if any person entersin the restaurant and order for a meal then restaurant is bound to deliver the meal and thatperson is obligated to pay the bill for that meal.Written and verbal contract- Written and verbal contract is a most essential ways todevelop a valid contract. In the context of written contract, it is safe and because both theparties have signed the document of contract and in this document all relevant terms and
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