Study On Elements Of Contracts & Terms To Contain In Agreement

Added on -2020-02-05

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ASPECTS OF CONTRACTAND NEGLIGENC INBUSINESS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1................................................................................................................................................11.2................................................................................................................................................21.3................................................................................................................................................2TASK 2............................................................................................................................................32.1................................................................................................................................................32.2................................................................................................................................................42.3................................................................................................................................................5TASK 3............................................................................................................................................63.1................................................................................................................................................63.2................................................................................................................................................63.3................................................................................................................................................7TASK 4............................................................................................................................................84.1................................................................................................................................................84.2................................................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONLaw of Contract occupies a highly instrumental position in the scenario of a businessenterprise, and accords the attributes of certainty and longevity to the business relations. This inturns influences the extent of profits realized by the businesses in the general course of time.With the assistance of these agreements, rights and obligations of all the parties are ascertainedto ensure a smooth flow of the business and the their relationship (Petsoulas and et.al., 2011).Moreover, in the event an entrepreneur does not hold any certain relation with another entity, buthas suffered loss or injury due to some act of that entity, Law of Torts can be applied to sue sucha party. To further deepen the understanding of these two laws, the present study demonstratesthe essential elements of contract and certain kind of terms which can be contained within anyagreement. In addition, a brief explanation of the principle of negligence has made, along withthe doctrine of vicarious liability to provide a better application in any kind of scenario. TASK 11.1In order to form a valid contract, every individual shall necessarily include the followingelements in the whole process of formation of a contract:Offer and Acceptance: Offer communicates the desire to enter into a valid or bindingcontract. It shall be distinguished from 'invitation to treat' which considered in the case ofPharmaceutical Society of Great Britain v. Boots (1953). The courts opined that if ashopkeeper is displaying his goods, then it is merely an invitation to treat, in return ofwhich the customer in fact makes an offer. Hence, inviting offers from the end of thecustomers is merely an invitation to treat. Further, the other party is required to make anunconditional acceptance, which shall be effectively communicated to the offeror. In thecase of Entorres v. Miles Far East (1955) it was opined that communication ofacceptance shall be in a timely manner. Consideration: It is related to bargain of the contract, and is exchanged between thepromisor and promisee in return of a promise. Hence, the benefit or detriment which isexperienced by the parties in relation to a contract can be termed as consideration(Elements of Contract, 2012). 1
Intention to create legal relation: The offeror and offeree while communicating theirdesires shall hold an intention to bind each other in a contractual relationship. In the caseof Jones v. Padavatton (1969) the requirement of meeting of minds was reiterated as thebasic necessity for formation of contract. Capacity: The parties entering into contract shall necessarily be competent to form acontract, and a similar finding was observed in the case of De Francesco v. Barnum(1890). Hence, individuals who are minor or are incapable either mentally or financiallyshall not be considered a competent party to the contract (Bix and Bix, 2012).Privity of Contract: This is a Common law doctrine which restricts the third party to sueparties to the contract. 1.2Contracts can be formed through various means, and in accordance to the same variedimpact may be posed on the parties to the contracts:Face to face: Parties in physical meetings are capable to enter into a valid contract in theeyes of law. Ascertainment of the terms can be through a face to face conversation, andthe same is completely valid under the rule of Common Law. In addition, these contractscan even be enforced in the court of law.Written Contract: In the Business parlance, individuals prefer to make use of this form ofcontract for undertaking of transactions or dealings. All the terms and conditions of theagreement are noted down with a mutual consent of the parties, and this shall enable themmaintain the authenticity of relationship in the long run. Distance Selling Contract: Even if two individuals are residing across the nationalboundaries they can enter into a contract through the medium of telephonic or emailconversation, and determine the terms on the basis of which they shall carry out thebusiness (Bogg, 2010). 1.3A contract is comprised of various forms of terms and clauses which ha the potential toimpose different forms of effects on the parties involved in the agreement. Primarily, thefollowing terms and clauses are present in the contract:Express Terms: The terms and conditions which included in the agreement, by mutualconsent of the parties, at the initial stage of formation of the contract can be termed as2

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