Research To Analyze & Examine The Understanding Of Aspects Of Contract

Added on -2020-02-05

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Aspects of Contractand Negligence forBusiness
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11.1................................................................................................................................................11.2................................................................................................................................................21.3................................................................................................................................................3TASK 2............................................................................................................................................42.1................................................................................................................................................42.2................................................................................................................................................42.3................................................................................................................................................5TASK 3............................................................................................................................................63.1................................................................................................................................................63.2................................................................................................................................................73.3................................................................................................................................................8TASK 4............................................................................................................................................84.1................................................................................................................................................84.2................................................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONA Justice is an agreement of expediency, entered upon to forbid the man harming orbeing harmed. A contract is really very helpful in regards to business so as to preserve the rightsof business person and avoid any sort of liability that may arise in the future course of action.The present research is conducted to analyse the and examine the understanding of the aspects ofcontract and also the skills needed to apply the same in varied circumstances. The study coversvarious aspects of vicarious-liability, tort and contractual liability. Certain terms as conditions,warranties, innominate and exclusion clause (Hunter, 2015).TASK1.1All the elements of a valid contract plays a very important role in protecting the rights ofthe innocent parties. There are several such components that need to be considered whileforming a legal contract with the binding parties. As per the current case scenario wherein PeterAbraham is a self employed building contractor. Before entering into any such agreement withthe respective parties, it shall consider the impacts as well as its effects on him. In addition to theabove, wrong or misleading information or transaction can bind the contractor into an obligationand it becomes difficult for him to escape from the liability. Some of the essential elements ofvalid contract and its significance have been demonstrated underneath:Offer and Acceptance: As per this element their shall be two parties involved in it, oneproposing the offer and the other showing a consent in the form of acceptance. This willenable the contract to become a legal and valid as per the English Law (Slišković andPenezić, 2016). In accordance to the current case scenario, Peter Abraham should ensurethat the proposed offer are accepted and then converted into a written format so as toavoid any sort of consideration in the future. The relevance of the present element canclearly be understood from the Harey v Facey case.Adequate Consideration: This can be deemed as sacrifice of certain amount of money,goods or services in order to avail some another benefit. The English Law describes thatthe consideration shall be nominal rather than being adequate. This is another crucialelement and its significance can be studied from the case Ward v Byham. In the presentcase, Peter Abraham is required to pay a requisite amount to its suppliers in order to availthe possession of goods from suppliers (Papaioannou and et.al., 2016).1
Mutual Consent: It means that the the acceptance made by the party shall be without anyundue influence, coercion, fraud or misrepresentation. If any of the above enlistedcharacters are present in the contract then it will be termed as void. The said contractormust ensure that the proper and adequate information is being provided to the anotherparty and also he cannot force them to purchase the building. Bisset v Wilkinson caseprovides a clear demonstration of misinterpretation conducted by the party (Hagenhoffand et.al., 2014).Competency of parties: As per the English Law, Both the parties must be competentenough to enter and form a binding contract. More briefly, Peter Abraham must assurethat the another party that is planning to form a legal contract is not a minor, of unsoundmind or disabled. Presence of any such character would lead to formation of a voidcontract.1.2A contract or agreement can be formed in many ways and each of it has a consequentimpact on the binding parties. Peter Abraham a self employed contractor need to ascertain theeffects of these in the future course of action when any sort of misunderstanding arouse betweenthe binding parties. Some of these have been enumerated hereunder:Face to face: This is the most common and reliable form of entering into the contract.Herein both the parties can decide upon the terms and conditions of the agreement byputting forwards their views. Herein the parties can analyse the intention of the other oneby reading his facial expression (Arlen and Carney, 2012). In accordance to the presentcase of Peter Abraham, he must make sure that all the norms shall be made clear and alsoinvolve in forming a face to face contract. Written contract: This is the most effective means of entering into a contract. Writtencontract forms an evidence which can be used in the future course of action. This is themajor disadvantage found in an oral or face to face contract. A written agreement can beformed by enlisting all the terms and conditions on a piece of paper or simply printing it.Peter being a self employed building contractor shall enter into a written contract only bystating the norms in of the agreement in the printed form. This will enable him to makeclear cuts agreements as well as producing an evidence that could be used in future toescape from the liability (Chamallas, 2014).2

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