Aspects of Contract and Negligence

This report delves into the critical aspects of contract law and negligence, outlining the essential elements required for a valid contract and the implications of negligence in business scenarios. It discusses various types of contracts, the significance of mutual obligations, and the legal responsibilities of parties involved. The report also examines case studies to illustrate the application of these legal principles in real-world situations, emphasizing the importance of understanding contractual relationships and liabilities.

ASPECTS OF CONTRACT
AND
NEGLIGENCE FOR BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1...........................................................................................................................................1
1.2, 1.3....................................................................................................................................2
2.1...........................................................................................................................................2
2.2, 2.3....................................................................................................................................3
TASK 2............................................................................................................................................4
3.1...........................................................................................................................................4
3.2...........................................................................................................................................4
3.3...........................................................................................................................................5
4.1, 4.2....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business contracts can be stated as the form of mutual understanding or consent among
two or more parties in order to develop a legal contract. However, it is essential for the parties to
agree upon the prescribed responsibilities and duties with the aim to enhance future performance
(Fried, 2015). Also, form the present research it develops the understanding regarding the
different elements of contract.
TASK 1
1.1
From the given case scenario on Sam and Bob it can be assessed that it is based on valid
contract. It can be stated that the contract is enforceable by law and thus involves different
essential element of a valid contract. Following are the necessary elements of valid contract
which are as follows-
 Mutual obligation- It can be stated that mutual obligation is the contract among two
parties on a joint perception regarding the terms of the contract. However, if there is a
difference found in the understanding of the actual offer which is made to the parties
then, it creates a legal challenge for them (McKendrick, 2014).
 Competent parties- The parties who are involved in making the contract need to be
competent i.e. they must be in their absolute state of mind at the time of entering into
contract.
 Legal considerations- It consists of a lawful exchange of something in return for the aim
to fulfill the promise or obligation. For instance, when one party promises to benefit other
party in order to execute the offer and acceptance then it is stated as a valid contract
(Karagonlar, Eisenberger and Aselage, 2015).
 Legal formalities- It is crucial for any legal contract to carry out varied formalities such
as registration, receipts etc. so that it can help in forming a valid contract.
From the given case, it can be assessed that refusal was made by Sam to Bob regarding
selling of book. This presents that there is absence of valid agreement among them. Thus, there
is no offer and acceptance among offeror and offeree. Further, it can be determined that there is
absence of lawful association between both the individuals. In addition to this, the stated case
does not showcase both free acceptance and legal consideration. Lawful formalities and
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exchange of money does not exist among Bob and Sam. Hence, it indicates that the seller of
book owns full right to deny the selling of book to Bob (Haigh, 2015).
1.2, 1.3
Impact of varied types of contract are discussed as under-
 Oral and Written contract- At the time when contract is made among parties through
oral communication is stated as oral contract. Such type of contract is formed through
having trust and relationship among both the individuals. However, due to any reason if
there is breach of contract then the damages occurred to the party cannot be investigated
by court as there is no presence of deed. On the other hand, in written contract an actual
deed is signed among parties so that at the time of any dispute it can be used as a proof in
the court of law (Chapman, Wilder and Millar, 2014).
 Distance and face to face contract- The parties are not present at the time of forming
the deed in distance contract. However, contract is formed through developing mailing
language among parties. Here, the time period is fixed in which the offeree needs to
accept the offer within stipulated time period otherwise it will be revoked. While, face to
face contract can be assessed as the contract in which both the parties need to be available
at the time of forming the agreement (Hovenkamp, 2014).
Analyzing the terms in contract with reference to their meaning and effect-
 Expressed terms- It can be stated as the terms which are particularly defined by the
parties on their own. Both warranties and conditions can be defined in expressed terms.
The terms which are stated earlier before making the contract is called conditions while,
the supportive terms to the agreement are warranties. However, if the conditions are not
fulfilled by the party then the aggrieved party can breach the contract and also claim for
damages. While, if warranties are not fulfilled then at such time the innocent party can
only ask for damages (Miceli, 2014).
2.1
From the given case it can be assessed that as the advertisement given by Adam in order
to reward the person who will paddle across English Channel in a bath from Dover to Calais.
Thus, such type of advertisement is given in general and thus it is unilateral offer. As it does not
specify any particular individual thus it can be accepted by whole public. Through viewing the
advertisement, Brian agrees to swim across the English Channel and thus it is assumed as
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acceptance of offer. The consideration that needs to be given to Brian is Pound 1000 on carrying
out the performance. It is a contractual relationship where both the parties showed willingness to
enter into the contract. When, Brian was in the middle of the voyage Adam published another
advertisement that the reward that was earlier announced is canceled with immediate effect.
However, Brian was not aware about it and thus carries out his performance and came first.
Now, Brian is claiming for his reward and Adam refused to give (Cameron, 2015). Such incident
can be well explained with the case of Carlill v Carbolic smoke ball company 1893 1 qb 256.
Here, also the company announces to reward the individual to will carry out the particular
performance. While, later on the aggrieved party accomplished the performance and asked for
reward but company refuses to provide the same. Thus, later the court stated that the company is
required to provide the reward otherwise they are liable for breaking the contract. Furthermore,
in the current case, Adam is liable to give reward to Brian for the act he has done. However, the
revocation of the offer will be the liability of the defendant party as they have published the
advertisement in newspaper and Brain as already started his performance (Kodilinye, 2014).
2.2, 2.3
From the given case, it can be evaluated that Barry enters into the contract with local
council for hiring the chair at 50p per hour. However, Barry paid money to the local council
which is stated as a valid offer and acceptance. Thus, there is proper contractual relationship and
consideration within Barry and local council. Here, the clause that is stated at the back of the
ticket is considered as expressed term and thus the local council is obliged to make payment to
the party in case of any injury occurred from the equipment. Further, through analyzing the
exclusion clause it can be assessed as the liability of the local council has been eliminated
because of non-satisfactory performance (Sudbury and Wilson, 2015). Thus, because of
availability of the exclusion clause fact the local council is refusing to pay compensation to the
aggrieved party.
It can be analyzes with the similar case of Chapelton v Barry UDC [1940] 1 KB 532. In
such case, a deck chair has been hired by the aggrieved party from the defendant by purchasing
the ticket. Also, a similar exclusion clause has been mentioned on the back of the ticket.
However, the purchaser of the ticket kept in the pocket without screening it. At the time of usage
of chair, the claimant sat on it and got injured. He asked for damages of injury but the defendant
party denied because of existence of exclusion clause. Thus, it can be stated in such situation that
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the presence of exclusion clause on the ticket will not be taken into consideration and thus Barry
is liable for his own damages (Weissenberger and McFarland, 2015).
TASK 2
3.1
It can be assessed that because of disappointing performance by the party both
contractual and tort liability arises. However, due to breach of terms i.e. condition and warranty
by the party contractual liability occurs. On the other hand, tort liability arises because of directly
violating the individual's rights. In tort the damages are only provided to the innocent party when
the principles of negligence by the defendant are proved. While, in order to claim the damages at
the time of breach of contract there is no need to fulfill any rules. Through, providing
compensation to the plaintiff it helps them to overcome the damages occurred due to negligence
of tortfeasor (Witting, 2015). While, in contractual liability the damages are provided to the
injured party if the act of performance was similar to the contract deed.
As per the case of Hochster v De la Tour (1853) 2 E & B 678 it was agreed by the
plaintiff to work as a courier for the negligent party for 3 months. In middle of the contract, the
defendant informed the injured party that his services are no more required and he will not be
given any compensation of breaching the contract. Thus, defendant was sued by the innocent
party and it was reasoned as lawful because the time duration that was mentioned was not
accomplished. Hence, the parties were in contractual relationship and thus the innocent party will
be given compensation from the negligent party (Koppelman, 2014).
3.2
As per English Law negligence can be stated as the imposed liability for the wrongful
acts of others. However, it is considered as a failure for the party who is required to carry out
specific duty of care. Following are the principles that need to be satisfied at the time of liability
of negligence occurs-
 Duty of care- It can be stated that reasonable duty of care is required to be taken into
consideration by one party to another so that they do not suffer any type of injury.
However, if such duty is breached than the defendant party is required to compensate the
loss or injury caused due to negligence (Wernette Jr and Rogers, 2014).
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 Breach of duty- Here, if the plaintiff is failed to provide reasonable duty of care to
injured party and thus breaches the contract. Thus, legal action should be taken against
such party by the aggrieved.
In the present case scenario, Mark decides to stay in Poshplace hotel which is owned by
Ben. Later in the night, when Mark was in his room a masked man enters and threatens him to
hand over his antique jewelery otherwise he will hurt him (Gilbert and Vargo, 2014). Moreover,
through investigation it was found that gardener of the hotel was the culprit. Thus, in such
condition, Ben is liable for the act occurred by their employees. Hence, they are liable to pay
reasonable damages to Mark.
3.3
Vicarious liability is the condition where some individuals are held responsibility for the
actions or omissions of another person. However, such concept came into existence by law in
order to protect negligence through proper monitoring. Further, there are varied relationship in
which vicarious liability came into existence such as marital relationship, professional and
employment relationship. Here, employment relationship case has been considered. Thus, it is
essential for employer to prevent negligence and omission in order to keep an eye on the actions
of workers (Chamallas, 2014).
It can be assessed from the case that Roger the dishwasher in the hotel regularly
complains about the skin rashes which have been occurred due to washing the dishes. However,
owner of the hotel has provided rubber gloves but they do not make use of it. Thus, in such
condition Ben is fulfilling reasonable duty of care by providing gloves and thus he is not liable
for the skin injury of workers. Because of regular complaining of Roger head chef Colin got
frustrated and hit Roger badly with frying pan. In such condition, Roger can claim compensation
from owner of hotel as they have created violence at the workplace (Graham, 2014). Hence, it
can be stated that Ben should warn their workers to carry out their duties effectiveness without
affecting any other. Here, Ben is vicariously liable for the action caused by Colin and damages
should be given to Roger.
4.1, 4.2
There are different elements of defense in negligence which are as follows-
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 Volenti-non Fit injuria- It can be assessed that such type of defense can only be utilized
by the injured party when it commits the act unintentionally. However, if such type of
negligence is occurred intentionally then claimant cannot ask for impairments.
 Illegal- Here, if the negligence of the aggrieved is immoral or unlawful thus in such
condition the provision of law provides that the party is not liable to request for casualties
(McMillan, 2012).
However, if any of the particular defense elements is fulfilled by the acts of plaintiff then
the individual will be liable to make payments against the damages caused due to negligence.
As per the Occupier’s Liability Act 1957, it can be stated that it is duty of the employer to
undertake reasonable duty of care by the owner to protect the right of guests from damages.
However, if found that employer is guilty of not fulfilling the obligation then he will be liable for
the damages caused due to negligence (Fried, 2015).
From the given case it can be assessed that Mark went to the swimming pool after
reading the notice of the closed timing of pool. Thus, as per the Occupier’s Liability Act 1957 it
is the liability of the hotel to provide damages to Mark. While, certain changes have been made
in the Occupier’s Liability Act 1984 under this the hotel can utilize defense as they have
provided the warning notice outside the swimming pool. Hence, in such condition Volenti-non
Fit injuria will be implemented and thus Mark will be liable for the damages because of its own
negligence and not because of the hotel (Owen, 2007).
CONCLUSION
It can be accomplished from the study that there are varied elements of valid contract
which are crucial in order to develop a legal relationship among parties. However, if such
elements are neglected than the contract is stated as unlawful. Further, for the negligence or
omission act occurred by the wrongdoer then he will be liable to pay the reimbursements to the
aggrieved party.
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REFERENCES
Books and Journals
Cameron, G., 2015. Sir Peter North, OCCUPIERS'LIABILITY Oxford: Oxford University Press.
Edinburgh Law Review. 19(2). pp. 293-294.
Chamallas, M., 2014. Two Very Different Stories: Vicarious Liability Under Tort and Title VII
Law. Ohio St. LJ. 75. pp. 1315.
Chapman, S., Wilder, M. and Millar, I., 2014. Defining the Legal Elements of Benefit Sharing in
the Context of REDD. CCLR. 270.
Fried, C., 2015. Contract as promise: A theory of contractual obligation. Oxford University
Press.
Gilbert, R. R. and Vargo, J. J., 2014. Swimming Pools and Aquatic Injuries. Products Liability
Practice Guide. 6.
Graham, J. C., 2014. General Principles of Liability. Florida Torts. 2.
Haigh, R., 2015. Legal English. Routledge.
Hovenkamp, H., 2014. The Opening of American Law: Neoclassical Legal Thought, 1870-1970.
Oxford University Press.
Karagonlar, G., Eisenberger, R. and Aselage, J., 2015. Reciprocation wary employees discount
psychological contract fulfillment. Journal of Organizational Behavior.
Kodilinye, G., 2014. Commonwealth Caribbean tort law. Routledge.
Koppelman, E. L., 2014. Recent Limitation of Doctrine of Liability for Negligence to Third
Parties. St. John's Law Review. 5(2). pp. 6.
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press.
Miceli, T. J., 2014. The color of law: an economic theory of legal boundaries. European Journal
of Law and Economics. 38(2). pp. 185-209.
Sudbury, P. and Wilson, C. K., 2015. Law and legislation. Manual of Curatorship: A Guide to
Museum Practice. 198.
Weissenberger, G. and McFarland, B., 2015. The Law of Premises Liability. LexisNexis.
Wernette Jr, R. C. and Rogers, E. A., 2014. Premises Liability vs. General Negligence in
Michigan. Michigan Bar Journal. 26.
Witting, C., 2015. Street on Torts. Oxford University Press.
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Online
McMillan, C., 2012. Elements of the law of contract. [PDF]. Available through:
<http://www.londoninternational.ac.uk/sites/default/files/programme_resources/laws/
ug_subject_guides/elements_law_contract-subjectguide4chapters.pdf>. [Accessed on 2nd
October 2015].
Owen, G. D., 2007. The five elements of negligence. [Online]. Available through:
<http://law.hofstra.edu/pdf/academics/journals/lawreview/lrv_issues_v35n04_i01.pdf>
[Accessed on 5th October 2015].
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