Contract And Negligence For Business Aspects Of Contract And Negligence For Business
Added on 2020-02-03
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Aspects of ContractAnd Negligence for Business
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1...........................................................................................................................................11.2...........................................................................................................................................21.3...........................................................................................................................................3TASK 2............................................................................................................................................32.1...........................................................................................................................................32.2...........................................................................................................................................42.3...........................................................................................................................................4TASK 3............................................................................................................................................53.1...........................................................................................................................................53.2...........................................................................................................................................63.3...........................................................................................................................................7TASK 4............................................................................................................................................74.1...........................................................................................................................................74.2...........................................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONContract plays crucial role to build up judicial relationship between business parties .It isthe agreement which are legally enforceable by law. It gives the right to parties to sue the otherparty to contract, if they fails to fulfil the promises of an agreement. Business Organizationenters into the formal written agreement to legally bind the other party. This report is based ondifferent case studies to understand the essential elements of a valid contract and apply theseelements of a contract in the business situations. It explains about the principles of liability innegligence in the organisation activities and its practical application in the Company.TASK 11.1 The legal enforceability of agreements is known as the contracts. An agreement shouldconsist of essentials elements to be legally enforceable by law which are depicted below:Offer and acceptance: It is the integral element of a contract which depicts the intentionof the offerer and its acceptance by the other party. There must be free consent of anotherparty without any pressure or force. It is very important that offerer gives offer to theother party or public and the other party agrees to the offer with free consent. This wasproved in the decisions of following cases as (Gibson V Manchester City Council WLR294 HL and Hyde V Wrench 1840). For instance, a person makes offer to another personto sell the car. If any person accepts that offer, it fulfils one of the elements of a contract. Intention to create legal relations: The agreement depends upon the intention of theparty; the purpose of the individuals is to take the help of court when the other party failsto fulfils its promises. The social agreements do not fulfil this element of contract. Itinvalidates the contract if the parties do not intend to create legal relations. Lawful consideration: The promise of a payment or value is known as the consideration,there should be valuable consideration. In the contract, one party fulfils the promise inexchange of the valid consideration (What is contract. 2015). It was discussed anddecided in the Dunlop pneumatic tyre Co. Ltd V Selfridge and Co. Ltd. For instance, ifthe person offers to sell the car at £2000 and another person agrees to pay that amountagainst the car then it fulfils the element of lawful consideration. (Chappel & Co. vNestle 1960 AC)[1]
Capacity of parties: The parties must have the capacity to enter into the contract. lawhave defined the capacity of party to enter into the contract in the following ways asshould attain the age of majority, should be sound mind and not disqualified by any law.If any of the conditions are not fulfilled by the party, then he/she cannot enter into thecontract. Lawful object: The parties to contract must enter into an agreement for lawful object.The statement means that the object of the contract must not be fraudulent, illegal,opposed to public policy, immoral or not cause injury to the person (Hall, 2013). Forinstance, a landlord rents a house to carry on drugs business, so she/he cannot recover therent through court or any legal process. 1.2 There are types of contract entered by parties on the basis of various factors which aregiven below: On the basis of ValidityValid agreements: It is a type of agreements which are enforceable by law and fulfils allthe element of contract. It gives the right to the party to file suit against another person, ifany person fails to fulfil the promises mentioned in the agreement (Marks, Marks andJackson, 2013.). For instance, there is a contract between X and Y and it fulfils all thefeatures of the contract, then the parties have the right to take legal action against anotherone, if they fail to perform the terms and condition of contract. Void Contract: A contract which lacks one or more of the elements except free consent isconsidered as Void Contract and cannot be enforceable by law. For instance, Y entersinto contract with the Y, who is the minor and is considered as incapable to enter intocontract. Voidable Contract: It is a type of written agreement which lacks the essential element offree consent in the declaration. This contract is basically entered by the party undercoercion, fraud, misrepresentation (Bellamy, 2013). But the voidable contract can beturned as valid or void in the future. For instance, a binding agreement was enteredbetween X and Y where Y forcibly made X engaged in the contract. So it is voidable atthe option of A.[2]
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