ACNB: Contract Law Analysis, Exclusion Clauses, and Negligence

This report examines key elements of contract law, including offer and acceptance, consideration, and competency, while analyzing different types of contracts such as oral, written, and distance contracts. It delves into expressed and implied terms, advising on the validity of exclusion clauses. The report further explores the differences between obligations in contract and negligence, the elements required for a successful negligence claim, and the application of these elements in a case study, including defenses and vicarious liability. The report addresses the case of InXs and CP, focusing on contract formation, product quality, and the implications of an exclusion clause regarding product defects. It provides legal advice on the enforceability of the contract and the responsibilities of each party, with a focus on ensuring quality and addressing manufacturing defaults. The analysis covers essential elements like offer and acceptance, along with the application of expressed and implied terms within the contract. The report concludes with an overview of liabilities and potential damages in the given context.

ACNB
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1 Essential elements needed for the formation of contract..........................................................3
2. Types of contract and agreement adopted in case...................................................................4
3. Advise in respect to case scenario...........................................................................................5
4. Types of terms and its application...........................................................................................6
5. Advise the InXs on the validity of exclusion clause CP included in their contract.................7
TASK 2............................................................................................................................................7
1. Principle differences between obligations in contract and in negligence ...............................7
2. Elements which need to present for a claimant to succeed in an action for negligence..........9
3. Application of elements in context to case............................................................................10
4. Defenses in context to case study..........................................................................................10
5. Explain vicarious liability......................................................................................................11
6. Liability and damage on context to case................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
In order to have better promotion of legislative aspects, it is significant to have better
understanding in regard to the aspects of contract. By having an improved focus on the
legislative values the innocent parties from different unfair practices can be protected in desired
manner. Along with this, it also helps in developing the legislative understand among parties who
are taking part in contract formation (Boundy, 2010). However, legislation framed by the
government will also defend the right of weaker parties who is affect with the unfair or illegal
activities. UK government is well focused towards protection of parties for diverse issues so that
sustainable development can be promoted in desired manner. Number of laws are being framed
under governing body of UK parliament so that key values of contract and negligence can be
promoted in desired manner. It is significant for businesses to have appropriate understanding
about such values in contractual activities so that issues can be resolved in desired manner
(Burton, 2008).
Present learning report will focus towards effective understanding of diverse elements of
valid contract. Along with this, different key factors which need to be referred in formation of
contract so that goals and objectives can be accomplished in desired manner.
TASK 1
1 Essential elements needed for the formation of contract
In addition to this, it can be said that there are number of elements which need to be
consider by every party in order to framed the valid contract. Classification of factors can be as
offer and acceptance, consideration, competency of parties, etc. It has been noticed that if any
party is not following such contexts in appropriate then it will impact the overall outcome in
negative manner. It means the accountability of valid contract will also be harmed in appropriate
manner (Cooke, 2009). Offer and acceptance is a key element which is must be referred
effectively from the parties so that better protection can be offered to both parties. Offer is
considered as situation in which individual or party offers a proposal to another party. If another
party accepts the proposal offered then it will be marked under acceptance. In other words, it can
be stated that acceptance is a term which generally considered as response of second party
towards offer (Cornford, 2013).
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While having a formation of contract the parties need to focus on few mutual benefits so
that key aspect of contract can be well maintained. If any party is not having mutual
understanding on the terms and conditions of contract then it will not be referred as valid
contract. It might impact the overall outcome which might create a legal issues. Moreover,
participants in the contract must be 18 years old so that they can easily enter in the contract
(Cotutiu, 2015). If any one of participant is not meeting the competency standard then formation
of legal agreement will be invalid. Moreover, it is also significant for parties to ensure that any
kind of force is not being used while having a formation of contract. Competent parties mainly
involve individuals or parties with sound mind who are entitled to enter into a valid contract.
Any kind of such factor avoidance might create an issue for the parties in regard to contract
formation. Further legal issues can be raised in order to have formation of contract (Fried,
2015).
2. Types of contract and agreement adopted in case
Contract formation is one of most critical aspect and mainly it is accomplished through
diverse forms of contract. Generally oral and written oral communication methods are being
employed while having a formation of contract. Face to face and distance contract is one of
critical aspect which is mainly adopted by the parties. In this, all parties must be present at the
location where contract is being framed so that face to face interaction can be taken into account.
Along with this, the terms and conditions are also being discussed by the parties in face to face
interaction so that valid contract norms can be well maintained (Gale, 2007). Moreover,
improved focus on the verbal and written contract is also one of critical factor. It has been
noticed that verbal contract is being settled in the ground of having verbal discussion among the
different parties. In such kind of contract the lack of evidence is key barrier because in situation
of conflict parties does not have evidences to present (Palmer, 2014). It influences the
effectiveness of contract and impact overall aspects. Moreover, written agreement is referred as a
form of contract which is accomplished through written communication. Significance of such
contract is that in conflict situation proper evidences can be promoted in desired manner.
Distance contract is mainly employed at situation where both parties are not available at same
location. In this, different tools are being used such as email, postal, video conference, etc.
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In addition to this, it can be said that distance agreement can also create an issue for the
organisation because it helps in sustainable development. It has been noticed that InXs and CP
both has considered the email as a medium to have formation of contract so that aspects of valid
contract can be promoted in desired manner. It has been noticed that distance contract is being
referred as key method which helps in formation of contract (Perritt, 2010). Along with this,
there are few other methods which can also be employed by the parties in order to make sure that
valid aspects are being promoted effectively. In addition to this, it can be said that mobile phone
contract can also be employed by the parties in order ensure about standards. It is significant for
both parties to ensure that terms and conditions are clearly mentioned in the contract (Ryan,
2005). If any kind of legal value is not appropriate then overall aspect can be affected in diverse
manner. Essential elements of valid agreement like valid offer and acceptance are enclosed
within the case scenario. Offer presented and accepted by both parties on the basis of mutual
benefits for valid contract.
3. Advise in respect to case scenario.
In addition to this, it can be said that InXs has presented an offer to CP in order to design
the furniture and CP has accepted the offer. It indicates that valid contract elements are being
considered effectively in the present case. However, terms and conditions are also being
discussed while having a contract. It can be advised to both parties they must focus on the
expressed terms and implied terms. Proper understanding about such aspects among both parties
is significant so that goals and objectives can be accomplished in desired manner. It has been
witnessed that terms and conditions are being developed according to mutual understanding for
sustainable development in desired manner (Adams, 2010). Moreover, the warranties are also
considered as essential section of expressed terms so that goals and objectives can be
accomplished effectively. Moreover, the proper information need to be shared with both parties
in desired manner so that sustainable aspects can be promoted effectively. CP have referred
them to a price variation clause in their contract which states that the price could be raised by up
to 5% if the price of raw materials increased (Beale and et.al., 2010). InXs have now discovered
that a number of the dining table legs are becoming detached from the table tops which is
causing instability. It means the product provided to InXs is not appropriate as per the quality as
there is manufacturing default which might be covered under implied term. It means the valid
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aspects are effectively promoted within contract. Quality and product stability is factor which not
stated in the contract but it is genuine factor which must be ensured effectively. In addition to
this, it can be stated that by having an application of offer series it can be analysed that the valid
contract can be considered at the situation where last party has accepted the offer. On the basis of
legal provisions it can be said that all the essential elements are present in the agreement of
parties thus their contract is legally enforceable.
Along with this, the pricing and other aspects are being promoted effectively in the
contract framed under the heading of expressed terms (Blum, 2007). It is because the information
about costing and further terms is effectively shared within contract such as pricing of
manufacturing can be advanced by 5 percent if the pricing of raw material is increased.
4. Types of terms and its application
It has been noticed that there are number of terms which need to be referred effectively
from both parties so that goals and objectives can be accomplished in desired manner. By having
an improved focus on terms the key aspects of valid contract can be promoted in desired manner.
With an assistance of this, guidelines can be shard effectively within contract so that key
parameters can be well maintained. If any of the party is not concern about the terms then legal
values might get affected in negative manner (DiMatteo, 2012). Classification of terms can be as
implied terms and expressed terms. It has been noticed that expressed terms is considered as
term which mainly represent the parties mutual understanding in form of oral and written
communication. In addition to this, it can be stated that both parties are mainly focused towards
mutual benefits and agreed on all terms while drafting the contract. It means the consideration of
expressed terms is being taken into account for sustainable consideration of legal values
(Emerson, 2009).
In context to this, it can be asserted that terms and conditions is also considered as critical
term which must be referred effectively. Terms and conditions are core elements of expressed
term under which written agreement is being comprised. It has been noticed that terms and
conditions must be presented in the agreement (Frey and Frey, 2000). If any one of party is not
meeting the standards then overall outcome might get affected. Innocent party can claim against
the damage in respect to terms and conditions so that issue can be resolved effectively as per
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legal norms. Along with this, it can be said that warranties also being referred as one of most
critical aspect for sustainable development.
On the other side, it can be said that implied terms is also considered as term which is
applicable in the contract but not expressed in the contract. Such kind of norms are automatically
being employed effectively so that goals and objectives can be accomplished in desired manner
(Tomprou and Nikolaou, 2011). In addition to this, it can be said that product provided to InXs is
not appropriate as per the quality as there is manufacturing default which might be covered under
implied term. It means the valid aspects are effectively promoted within contract.
5. Advise the InXs on the validity of exclusion clause CP included in their contract
As per the given case, it can be stated that CP has mentioned that they will not hold any
kind of liability in context to the any defect in the product after delivery. It means the exclusion
clause is well mentioned and it may impact the overall outcome in diverse manner. However, in
the present case, it can be stated that expressed terms that are involved by the parties in the
contract (Warren, 2012). Advise can be provided to InXs in context to clause 11 so that issues
can be discussed effectively. In addition to this, it can be said that clause 11 indicates that InXs
can have claim according to standards of sales of goods act. It has been noticed that it is one of
key duty of service provider to make sure that product and service offered to customer is
according to key standards. It means by having an improved focus on such aspect the issue can
be deal in appropriate manner (Watt, 2007). Actions can be taken into account according to
superior quality merchandise so that cause of damage can be reduced in appropriate manner.
Contractual terms are statements which describes duties of parties which is required to fulfilled
through their performance. Terms of contract can be expressed or implied in nature. Expressed
terms are inserted by the consent of both the parties. In situation where these terms are not
satisfied then innocent party can claim damages by repudiating the contract. Warranties are the
ancillary terms which is linked to core terms of the contract. For non-fulfillment of these
aggrieved party can only claim damages.
While having a formation of contract the CP and InXs has singed the standard of contract
which represents the expressed terms effectively. CP has mentioned the conditions within the
contract as they are not liable for any damages caused by their products. According to sales of
good act the CP is accountable for the customers damage (Boundy, 2010). It is significant for
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management to have operation as per customer good act so that better protection can be provided
to legal values. As per this legal values the CP has to provide correct good at correct place in
appropriate manner. It has been identified that company can have claim against damage by
having an improved focus on the goods and consumer protection act in appropriate manner
(Burton, 2008).
TASK 2
1. Principle differences between obligations in contract and in negligence
Basis Contractual liability Tort Liability
Definition It has been noticed that
contractual liability is
considered as situation in
which parties involved within a
contract are not able to meet
the terms and conditions of the
contract (Cooke, 2009).
In addition to this, it can be
said that tort of liability is
generally reflects that a
situation in which parties
focuses on the breaches. Such
kind of activities are mainly
concerned with the failure of
the duty.
Relationship between the
parties
It has been noticed parties
involved in contract are known
to each other because the
parties have contractual
relationship.
In this, parties are not known
to each other because there is
absence of contractual
relationship (Cornford, 2013).
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Measurement of damages In addition to the contractual
liability, the issues of conflicts
which are raised under the
terms of expressed terms which
are mentioned in the
agreement (Cotutiu, 2015). In
this, expressed terms plays a
critical role.
It has been noticed that tort
liability is considered as
damages which are being
evaluated under the range of
tribunal aspects. In this, the
abide of both parties are not
being evaluated effectively.
Reason of occurrence The main reason behind
contractual liability is breach
or failure of contract by the
party.
In addition to this, it can be
said that the trot of liability
can be occurred in the
situation where the contractual
parties are being unable to
take care of assigned duties. It
means the terms and
conditions are not fulfilled in
appropriate manner (Fried,
2015). It might enhance the
level of injury which might
affect overall outcome in
context to legal values.
2. Elements which need to present for a claimant to succeed in an action for negligence.
In addition to this, it can be said that nature of liability in negligence need to be
understand in appropriate manner so that issues can be deal in appropriate manner. It has been
noticed that negligence is considered as a situation in which party is not capable enough to
perform the duties and operational activities. It might cause the damage to the innocent party so
application of negligence act is essential (Gale, 2007). It has been noticed that in order to claim
for the damage in respect to negligence activities, any kind of contractual relationship is not
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required. There are different principle of negligence which must be considered in effective
manner so that injury better recovery can be attained effectively.
 Duty of care: It is considered as an element which assure that defendant has reflected the
care of duty in appropriate manner. By having improved focus on such aspect the ratio of
uncertainty improvement and injury reduction can be advanced in appropriate manner.
According to this, innocent party can be well protected from the injury (Palmer, 2014).
According to key principles the parties can have better control over negligence activities.
 Breach of duty: It is a principle that reflects that one of party has breaches the contract
due to neglectful activities. It means if any individual or party is not capable to meet the
responsibilities and result that neglectful activities is impacting outcome then it is also a
critical aspect (Perritt, 2010).
 Causation: Another principle is in context to causation defendant or any neglectful
activity taken into account which causes the damage to the other parties will be concern
of party who has not performed activity properly. However, reason of action or injury
will be referred as concern to tortuous action (Ryan, 2005).
 Foreseeability: In addition to this, it can be said that foreseeability is considered as injury
which is being occurred to the innocent party. In this, estimation of neglectful activity is
need to be consider in appropriate manner so that better protection can be provided. In
this, behavioural aspects of defendant are also being considered in appropriate manner
(Adams, 2010).
3. Application of elements in context to case
According to in-depth analysis, it can be stated that effective consideration of negligence
and legal values related to it need to be consider in appropriate manner. It has been noticed in the
case study that CP is one of manufacturing firm which operates in furniture segment. Company
is operating its business at very small scale (Beale and et.al., 2010). In case study, it is mentioned
that Fiona has visited to the store for the purchase of product but she slipped on the water. It has
created an injury in her leg. In present case study, there is negligence of staff members of CP
because they have not concerned about the water on floor.
Duty of care: In present case study, it can be said that duty of care is considered as
significant aspect. It is one of key duty of store management that floor is clear so that customers
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who visit to the store are being safe from any kind of injury (Blum, 2007). It has been noticed
that overall outcome will get influenced in diverse manner due to negligence of company.
Breach of duty: Along with this, the breach of duty will also be referred under the
condition which ensure that beach of duty is impacted effectively. In the present case, the breach
of duty is mainly a subject of CP (DiMatteo, 2012). The activities performed by CP are not
according to standards which transform the overall outcome in context to the breach of duty.
4. Defenses in context to case study
In addition to this, it can be stated that there are number of defenses which can be
considered in regard to the Jason and Bob. It has been noticed that cited negligence arises at the
time when BOB was not well aware of neglectful act. It is one of key liability of the BOB to
ensure that the better protection can be provided (Emerson, 2009). It has been noticed that
According to this ex turpi causa, in the situation when it becomes necessary to perform
negligence or negligent behavior for suspect, then he/she can not be held liable to pay damages
to the injured party. By having an improved focus on such aspect the protection in regard to
damage can be promoted effectively. Along with this, BOB is not liable for the damage so
further aspects need to be taken into account for sustainable development (Frey and Frey, 2000).
It has been noticed that comparative negligence is also a defense which can be taken into
account for the present case study. It is considered as a cited negligence which can also be
referred as non-absolute contributory negligence. By having an improved focus on such aspect
the issue can be recovered in appropriate manner so that goals and objectives can be
accomplished effectively (Tomprou and Nikolaou, 2011). Moreover, the Jason holds the liability
against the damage so that opportunist can be advanced in critical manner. In addition to this, it
can be said that Jason has crashed which is concern of him because he was driving over the
speed which affect the overall outcome. Along with this, the illegality is also considered as one
of most critical aspect which also help in overcome the issue effectively. It also indicates that
defendant hold liability in context to issue (Warren, 2012). He only need to present the evidence
that the party is not involved in any kind of negligence. the date of knowledge (if later) of the
person injured.
If the person injured dies before the expiration of the period mentioned in subsection (4)
above, the period applicable as respects the cause of action surviving for the benefit of his estate
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by virtue of section 1 of the M3 Law Reform (Miscellaneous Provisions) Act 1934 shall be three
years from:
(a)the date of death; or
(b)the date of the personal representative’s knowledge;
5. Explain vicarious liability
It has been noticed that there are number of elements of vicarious liabilities which need
to be concerned effectively so that issues can be overcome in desired manner. In addition to this,
it can be said that employee and employer both plays a critical role. It is significant to make sure
that the employee and employer must hold state between each other. If any kind of activity
performed by employee at place or at job due to negligence then it will be refereed under
vicarious liability (Watt, 2007). It has been noticed that any kind of issue which is occurred due
to the negligence of employee then it will be referred under the act of vicarious liability. In order
to have better understanding about the concept of vicarious liability and the state between
employee and employer the case of Cassidy and Ministry of health can be taken into account.
Moreover, the allegiance of tort within the time span of employment is being taken into
account effectively. If any kind of issue is being taken into account due to negligence of the
corporation then it will be conducted under vicarious liability (Tomprou and Nikolaou, 2011). By
having an improved focus on the negligence and vicarious aspects need to be consider in
appropriate manner. Remoteness of losses is also referred as critical aspect because it helps in
sustainable development so that goals and objectives can be accomplished in desired manner.
Parties that get injured must take the action against the party (Warren, 2012). If innocent party is
not taking any kind of action against the neglectful act then vicarious liability can not be taken
into account.
6. Liability and damage on context to case.
As per the detailed case study, it can be concluded that liability and damage in the present
case study is subject to the Jason because he was driving the car in speed. The damage occurred
in the case is due to the negligence of Jason so concept of vicarious liability need to consider in
appropriate manner (Frey and Frey, 2000). By having an improved focus on the diverse norms
the issues can be resolved effectively so that work condition can be advanced. The application of
vicarious liabilities is beneficial to provide better protection for BOB. Damage occurred can be
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