Valid Contract Agreement | Importance
Added on 2019-12-28
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ACNB
TABLE OF CONTENTSIntroduction .....................................................................................................................................3Task 1...............................................................................................................................................31.1 Description of importance of essential elements required for the formation of validcontract.........................................................................................................................................31.2 Impact of different types of contract......................................................................................41.3 Analysis of contractual terms with reference to their meaning and effect............................5Task 2...............................................................................................................................................72.1 Applicability of law in different contracts ............................................................................72.2 Applicability of contractual terms in different business situations........................................82.3 Evaluation of effect of different term in given business situation ........................................9Task 3.............................................................................................................................................103.1 Contrast liability in tort with the contractual liability..........................................................103.2 Explanation of nature of liability in negligence...................................................................113.3 Explanation of vicarious liability of business......................................................................11Task 4.............................................................................................................................................124.1 Applicability of principles of liability in negligence in different business situations.........124.2 Applicability of principles of vicarious liability in the given business situations...............13Conclusion ....................................................................................................................................14References......................................................................................................................................152
INTRODUCTION English legislation had developed contract and negligence law to describe the standardrights and duties of parties. Objective of this legislation is to ensure prevention of unfair acts andto protect interest of public. Described norms by contract and negligence legislation areapplicable in all the civil situations whether parties are in contractual relationship or not (Adams,2010). Present report focuses on description and evaluation of significant provisions of contractand negligence law. For this aspect, essential elements of contract will be explained along withits different terms and forms. In addition to this, vital principles of negligence law will bediscussed to understand the obligations of individuals in situation where there is absence ofcontractual relationship. Described provisions will be applied in the given business scenario toprovide appropriate recommendations to resolve the dispute between parties. In order to justifyprovided recommendations previous case precedents will be used. TASK 11.1 Description of importance of essential elements required for the formation of valid contractAgreement created by individual is considered to be legally enforceable if all theessential elements are present in it. By considering this fact, in English law it has been stated thatall contracts are agreement but all agreements cannot be treated as the contract (Bagley andDauchy, 2011). For the formation of valid contract following elements are required to be presentin it:ElementDescription and importanceOffer It can be defined as a proposal given by one party for entering into theagreement. Offer must be valid, certain and lawful. It can be providedto specific person or the general public. However, it must not beinvitation to treat because it has distinct legal aspect. Invitation ismerely a way of showing willingness for negotiation and in this otherparties are invited to provide offer (Bagley and Dauchy, 2011). Thisaspect is clarified in the case of Pharmaceutical Society of GreatBritain v Boots Cash Chemists (Southern) Ltd (1953). In this case,court stated response of invitation is offer. 3
Acceptance Acceptance is a consent provided by the party to whom offer wasmade. In accordance with the case facts of Ardente v. Horan statesthat condition is said to be valid only if it is not supported by anyconditions or modifications (Bledose, 2010). Further, conditionalacceptance is treated as a counter offer through which previous offeris canceled.ConsiderationIn legal terms, consideration can be defined as a benefit for whichcontract is created by the parties. As per the case of Thomas vThomas) (1842) 2 QB 851, consideration must be of some value(Elements of Law of Contracts, 2012). However, it is not required tobe at arm length price but it must be supported by the consent ofparties. Intention Parties entering into contract must intend to form a legal enforceablerelationship to fulfill the promise made by them in a justifiablemanner. It is not required to be stated in an express way. However,case of Jones v Padavatton [1969] 1 WLR 328 shows that thiselement is not assumed in domestic and charitable agreements. 1.2 Impact of different types of contractParties entering into contract can choose suitable contractual form to create legalenforceable relationship. Each contractual form has contrasting impact on the performance ofparties. Explanation of different types of contract with their meaning and effect is as follows:Face to face contractIn this form of contract, individuals are present at similar place for the description ofcontractual terms and conditions. Further, offerree is required to provide quick acceptance elseoffer is said to be lapsed (Zoll, 2012). These contracts are conducted in a verbal manner and areinformal in nature. Due to absence of written deed, situational approach is applied by court toresolve dispute between parties. Example of this form of contract is purchase of groceries from alocal retail store. Distance contract4
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