Report on Elements of Contract- Salvatore

ACNB

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1. Stating the suitable form of contract to MotorRus..................................................................1
2. Essential elements of valid contract........................................................................................2
3. Applying elements of the contract in different business situation or scenario.......................4
4. Stating the effect of terms of the contract upon competent parties.........................................4
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................7
Comparing contractual likability and tort liability......................................................................7
Stating the principles of liability in the context of negligence....................................................7
Stating the provisions of vicarious liability................................................................................8
TASK 4..........................................................................................................................................10
Defenses in the case of tort of negligence.................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In law, there are four essential elements which each and every person needs to follow in
order to convert agreement into contract. It includes offer, acceptance, valid consideration and
intention to create legal obligations. According to the contract act, parties to a contact must
follow all these aspects for making valid contract (Chen-Wishart, 2012). In addition to this,
employer has the liability to make proper health and safety arrangements for their employees to
prevent accidents. If employer fails to make such arrangements then he is liable to give
compensation to the damaged party. Besides this, vicarious liability refers to the situation in
which employer is held accountable for the undesirable act of their employees. This report is
based on case scenario of Salvatore who is the owner of garage namely MotorRus.
In this report, essential elements of the contract will be examined. Further, it will also
depict the extent to which different types and terms of the contract will impact competent parties
of a contract. Furthermore, it also provides information about extent or aspects to which
Salvatore is liable to compensation to the damaged party due to the undesirable act of their
personnel. Along with it, such report will also develop understanding about occupier's liability
act and its impact on the competent parties.
TASK 1
1. Stating the suitable form of contract to MotorRus
According to the case scenario Salvatore is unable to make sensible business decision
because of his old age. In this, he has employed an individual who is able to give advice about
the standard form which business organization is required to take into consideration for the
business purpose. There are different types of contract which are available to MotorRus. It
includes, express, unilateral, bilateral and distance contract which helps the enterprise in
fulfilling its business objectives. Unilateral contract: It is also termed as one sided contract in which one party give
promise to another party in relation to the performance of specific act. In unilateral
contract, there is absence of the consent of offeree to whom offer is made (Nijem and
Galpin, 2014). Thus, if offeree performs the same then offereor is obliged to act as same
within the predetermined time period.
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 Bilateral contract: In this, terms and conditions of the contracts are discussed as well as
agreed by the both parties to a contract. Thus, if one party makes default in his
performance then another party has the right to sue for compensation. Express contract: Under this contract, terms and conditions are clearly mentioned and
agreed by the competent parties either in oral or in the written format. In this, parties to
contract are obliged to perform their duties and responsibilities. If one party makes
default in his performance then damaged party has the right to sue him. Usually, written
contract are more effective rather than oral form (Laverty and et,al., 2015). Moreover, in
written contract claimant party has evidence which he can present in front of the judicial
authority in the case of dispute. Whereas, in oral contract damaged party has no proof in
against to the defendant party.
 Distance contract: In this, contracts are formed by the competent parties through the
means of internet, e-mail, telephone etc. This type of contract does not require physical
presence of the competent parties.
On the basis of all the above mentioned aspects, Salvatore is required to adopt distance
contract through which he is able to provide information about spare parts to the existing and
potential customers. For this purpose, Salvatore needs to create websites to convey information
about car parts and accessories. Through website, Salvatore is able to upload pictures of spare
parts with the price. It helps the owner of MotorRus in attracting large number of buyers who
have desire to purchase such parts. Besides this, Salvatore is required to undertake written form
of contract who offers protection to both the parties in against to the defendant party. On the
basis of the case of Brogden v Metropolitan Railway (1877) Salvatore needs to undertake
distance and oral form to make standard contract. According to such case, competent parties can
give acceptance in either oral, written or any other means of communication to form a legal
relationship.
2. Essential elements of valid contract
Four essentials which competent parties of a contract must follow are enumerated below:
Elements Features Related cases
Offer In offer, one party expresses
his feeling in relation to the
Fisher v Bell
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