Aspects of Contract and Negligence for Business
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Added on 2020-02-03
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Aspects of Contract and Negligence for Business Bilateral 3 TASK 13 1.13 1.24 1.35 TASK 25 2.15 1.36 2.37 TASK 37 3.17 3.28 3.39 TASK 49 4.19 4.210 CONCLUSION 11 REFERENCES 12 INTRODUCTION Agreements and contracts are essential elements of any business organisation. The following are the essential elements to form a valid contract: Offer and Acceptance: The primary and much needed element to form a contract is offer and
Aspects of Contract and Negligence for Business
Added on 2020-02-03
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Aspects of Contract and Negligencefor Business
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1................................................................................................................................................31.2................................................................................................................................................41.3................................................................................................................................................5TASK 2............................................................................................................................................52.1................................................................................................................................................52.2................................................................................................................................................62.3................................................................................................................................................7TASK 3............................................................................................................................................73.1................................................................................................................................................73.2................................................................................................................................................83.3................................................................................................................................................9TASK 4 ...........................................................................................................................................94.1................................................................................................................................................94.2..............................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONAgreements and contracts are essential elements of any business organisation. These twoplays a significant role in the organisation and impacts the business operations of every companythese days. All the agreements are not contracts but all the contracts are agreements. Thedifference between agreements and contracts is the enforceability of law. Agreements becomecontracts only when they have legal enforceability (Adger 2013). In this report the researcher hasfocused on the factors such as elements that makes a contract valid, different types of contract,liability in tort and negligence and provide various recommendations in different case scenarios.TASK 11.1Contracts are essential part of any business organisation. The contracts should be legallyenforceable by the law of government. Contract is a promise between two parties to dosomething for each other. The enforceability of law in the contract ensures the parties are liableto perform their duties and rights in the contract. The following are the essential elements toform a valid contract:Offer and Acceptance: The primary and much needed element to form a contract is offerand acceptance between the parties. There should be a proper offer by one party and otherparty needs to accept that offer in time (Alvarez, 2013). If the offer and acceptancerequires some liabilities, terms and conditions of the contract, it needs to be fulfilled intime. Improper communication of offer and acceptance has lead to misunderstandingbetween the two parties in the case of Harey v Facey.Free Consent: A legal contract requires free consent from both the parties. The consentshould not be affected by any of the following factors such as coercion, undue influence,fraud, misrepresentation and mistake. If the consent of any party is affected by any ofthese factors, the contract will be called as voidable contract and hence it can not beenforceable by the law. Mutual Consent: The two parties involved in a contract should have an intention tocreate legal relationship. Both the parties must be intended to enter into legal bindingagreement (Austin and Maier, 2013). If there is mutual consent in the agreement, thecontract will be deemed as a valid contract. Bisset v Wilkinson is the example for mutual
consent where there was misrepresentation of information happened regarding the detailsand statements between the parties. Consideration: Consideration is promise of giving something in return to other party.Contracts without consideration can not be considered as a valid contract. Consider canbe anything, but it should be real and lawful. The contracts without consideration can notbe enforceable by law. In the case of Chappell v Nestle there was a contract withoutconsideration and hence it was declared as void contract.Competency: The parties of the contract must be competent to enter into a contract. Aminor, Person of unsound mind and legally disallowed person can not enter into acontract. If these people enters into a contract, the contract becomes invalid (Austin andWang 2015).1.2The parties of a contract have different relationship according to the type of the contract.The following are the main types of a contract:Express Contracts: The contracts in which the parties of the contract states theterms and conditions of the contract are called as express contracts. These termsand conditions of the contracts can be orally or in written form as well. Theexchange of promises are also considered as express contracts.Implied Contracts: The implied contracts are non verbal contracts which areneither spoken nor written. These types of contracts are made up of a mutualagreement or intention of promise between the parties involved in a contract(Bevacqua, 2013).Unilateral Contract: Unilateral contracts are generally one sided contracts inwhich the offerer makes an open promise to a group of people. It is one sidedcontract because only the offerer knows the terms and conditions of the contract.Bilateral Contract: Bilateral contracts are normal contracts in which one partyoffers something for consideration to the other party and other party accepts thatoffer.Deed Contracts: Deed contracts are always in for of written contract. Generallythese contracts are legally enforceable by the law of government (Boame and
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