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Contracts and NEGLIGENCE IN BUSINESS INTRODUCTION

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Added on  2020-01-21

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ASPECTS OF CONTRACT AND CONSIDERATION NEGLIGENCE IN BUSINESS INTRODUCTION 3 TASK 13 1.1 3 1.2 4 1.3 5 TASK 26 2.1 6 2.26 2.3 7 TASK 37 3.1 7 3.2 8 3.3 8 TASK 49 4.1 9 4.2 9 CONCLUSION 9 REFERENCES 11 INTRODUCTION The contract is defined as a written or verbal agreement made among two or more parties and is binding by law (Keele and Pearse, 2012). It is vital that all the essential elements of

Contracts and NEGLIGENCE IN BUSINESS INTRODUCTION

   Added on 2020-01-21

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ASPECTS OF CONTRACT ANDNEGLIGENCE IN BUSINESS 1
Contracts and NEGLIGENCE IN BUSINESS INTRODUCTION_1
Table of ContentsINTRODUCTION ...............................................................................................................................3TASK 1.................................................................................................................................................31.1....................................................................................................................................................31.2....................................................................................................................................................41.3....................................................................................................................................................5TASK 2 ................................................................................................................................................62.1....................................................................................................................................................62.2 ...................................................................................................................................................62.3....................................................................................................................................................7TASK 3 ................................................................................................................................................73.1....................................................................................................................................................73.2....................................................................................................................................................83.3....................................................................................................................................................8TASK 4.................................................................................................................................................94.1....................................................................................................................................................94.2....................................................................................................................................................9CONCLUSION ...................................................................................................................................9REFERENCES...................................................................................................................................112
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INTRODUCTION The contract is defined as a written or verbal agreement made among two or more parties and isbinding by law (Keele and Pearse, 2012). While making contracts, voluntary initiatives are taken byparties for entering into an agreement with each other. It is critical that parties entering into acontract should have the capacity for entering into a contract. Some specific elements needed to beincluded while writing a contract and it is also required that all the legal and formal requirementsshould be completed before entering into the contract. The present report describes significance ofessential elements that are included while making a contract with each other. In addition to thisevaluation of different terms that are mentioned in the report. Moreover, difference betweencontractual liability and tort liability has been explained. Furthermore, significance of vicariousliability in the context of business situations has been explained in the report. TASK 11.1Elements of the contract include various factors that are needed to be included while makingagreements with other parties. It is vital that all the essential elements of contract should be presentin the contract so that agreements should be prepared in a legal and unlawful manner (Hiltunen,2012). Whenever there is the need to sign agreements it is better if assistance from a legal advisorshould be taken so that better agreements should be signed. Various elements that are needed to beincluded while making contracts are as described-OFFER : - It is vital to mention offer for formulation of legally binding contract. When a partyexpress will for entering into a contract than it is considered as an offer (Vago, 2015). Whenexpression of interest is shown to another party for entering into an agreement than it is described asan offer. It has been refereed from the case of Smith v. Hughes it has been referred that offer isdefined as an element of expression of willingness for determining terms of the contract. Variousmethods can be used for giving an offer to a party, and sometimes parties give a verbal offer, andwritten offers are also given by parties. It is vital that all the elements of contract should be includeda contract for making it valid and acceptable. It is assertive that offeror should describe in detail allthe terms and condition to offeree while showing willingness for entering into an agreement. ACCEPTANCE: - while making agreements a party shows expression of interest to another partfor entering into a contract (Jones and Sufrin, 2014). Willingness shown by a part of getting agreeon terms and conditions of the contract is defined as acceptance. It has been concluded from thecase of Felthouse v Bindley It can be concluded that it is critical that acceptance must be3
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communicated in a proper manner. A contract can be declared as valid if the offeree showswillingness for entering into a contract. Communication of acceptance is necessary, and it is vitalthat it should be done in an appropriate manner. Offer must be acceptable to the individual to whomthe offer has been made. It supports in making a legal and valid contract, and proper agreements aresigned between different parties that are involved in making a contract. CAPACITY: - It is vital that all the parties entering into a contract should be of sound mind andshould have a capacity for entering into the contract. A [person facing criminal offence is alsoconsidered as legally ineligible for entering into a contract. It has been concluded from the case ofQueensland Titanium Mines Pty Ltd v Chalk [1975] AC 520, PC, [1975] 2 WLR 1. that a personwho is a minor can not be declared as eligible for signing a contract. In addition to this person ofunsound mind is also not eligible for doing an agreement and drunkards people also are not eligiblefor signing a contract and it is considered as invalid (Smets and Jarzabkowski, 2013). People whoare bankrupts and facing criminal charges are also not eligible and lacks the capacity for enteringinto a valid contract, and it is vital that all the parties that are entering for signing a contract shoulddo proper background checking before making a valid contract. CONSIDERATION: - It is considered as a major significant element that is needed to be mentionedwhile making contracts. It is defined as a promise made for paying a specific worth or value forentering into a contract (Peaucelle and Guthrie, 2015). All the parties involved in entering into acontract should agree on terms and condition that are needed to be included while making acontract. It is defined as the exchange of one thing for a value of another. While making contractsparties offer some values and worth in exchange for signing a contract and it is required that properagreements should be made for mentioning all the terms that are included for that. As per the caseof Re Casey's Patent (1892)It has been observed that it is assertive to pay subsequent promises that have been made in thecontract. It is critical that written documents should be prepared and all the terms of considerationshould be properly declared tonne both the parties. 1.2It is assertive for adopting a systematic and legal procedure while entering into a contract sothat agreements should be signed in an appropriate and legal manner. Diverse type of contracts andtheir impacts are as described-Unilateral contract: - unilateral contracts are formed when promises are made by a single party onlyfor entering into a contract. Other parties who are involved in signing a contract are not included formaking an agreement with each other (Pistor, 2013.). Promises are rendered by a single party only4
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