Aspects of Contracts Report
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AI Summary
This report delves into various aspects of contract and tort law, focusing on the legal issues faced by Salvatore, the owner of MotorsRus. It examines different contract types (distance and face-to-face contracts), the elements of offer and acceptance with relevant case law (Pharmaceutical Society of Great Britain v Boots, Dickinson v Dodds, Hyde v Wrench, Entorres v Miles Far East), and the assessment of contractual relationships. The report analyzes contractual terms (conditions and warranties) and their effects. Scenario 2 explores several case studies involving breaches of contract and negligence, applying principles of negligence (duty of care, breach of duty, causation, foreseeability) and vicarious liability. It also discusses defenses against negligence claims (ex turpi causa, contributory negligence, volenti non fit injuria). The report concludes by emphasizing the importance of ethical conduct and proper performance of contractual duties to avoid legal issues.
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
Task 1...............................................................................................................................................3
1. Description of different types of contract along with their impact..........................................3
2. Description of term offer and acceptance along with the suitable case reference...................4
3. Assessment of existence of contractual relationship in given case scenario...........................5
4. Analysis of term in contract with reference to their meaning and effect.................................5
Scenario 2.........................................................................................................................................6
Case a)..........................................................................................................................................6
Case b).........................................................................................................................................6
Case c)..........................................................................................................................................7
Case d).........................................................................................................................................7
Case e)..........................................................................................................................................7
Task 3...............................................................................................................................................8
Contrast liability in tort with contractual liability........................................................................8
Principles of negligence...............................................................................................................8
Provisions of vicarious liability...................................................................................................9
Task 4.............................................................................................................................................11
Defences available for the prevention of liability in negligence...............................................11
Case a)........................................................................................................................................12
Case b) ......................................................................................................................................13
Case c)........................................................................................................................................13
Case d).......................................................................................................................................14
Conclusion ....................................................................................................................................14
References......................................................................................................................................16
2
INTRODUCTION ..........................................................................................................................3
Task 1...............................................................................................................................................3
1. Description of different types of contract along with their impact..........................................3
2. Description of term offer and acceptance along with the suitable case reference...................4
3. Assessment of existence of contractual relationship in given case scenario...........................5
4. Analysis of term in contract with reference to their meaning and effect.................................5
Scenario 2.........................................................................................................................................6
Case a)..........................................................................................................................................6
Case b).........................................................................................................................................6
Case c)..........................................................................................................................................7
Case d).........................................................................................................................................7
Case e)..........................................................................................................................................7
Task 3...............................................................................................................................................8
Contrast liability in tort with contractual liability........................................................................8
Principles of negligence...............................................................................................................8
Provisions of vicarious liability...................................................................................................9
Task 4.............................................................................................................................................11
Defences available for the prevention of liability in negligence...............................................11
Case a)........................................................................................................................................12
Case b) ......................................................................................................................................13
Case c)........................................................................................................................................13
Case d).......................................................................................................................................14
Conclusion ....................................................................................................................................14
References......................................................................................................................................16
2

INTRODUCTION
Contract and tort law are part of civil legislation in the UK. Objective of this law is to
promote fairness in commercial transactions and to protect interest of public. Contract law is
applicable in situation where parties mutually decide to enter into legal enforceable relationship
for completion of promise. Further, negligence law is applicable in situation where there is
absence of contractual relationships between parties (Engler and Heyman, 2011). Contract and
tort imposes obligation on individuals and businesses to provide performance in an effective
manner in order to prevent risk of injury for the other innocent parties. In order to assure
standard performance, provisions of damages have also been introduced according to which; if
parties fail to comply with the provided duties then, they will be liable to pay compensation for
the injury of the aggrieved party.
Present study is focused on the description of provisions of contract and tort law in order
to assist owner of the MotorsRus i.e. Salvatore in his legal matter. For this aspect, importance of
essential elements and contractual terms will be explained along with the suitable case scenarios.
Further, general responsibilities of Salvatore will be discussed through the provisions of
negligence law and vicarious liability. Described provisions will be applied in the issues
provided by Salvatore in order to provide justifiable recommendations to him.
TASK 1
1. Description of different types of contract along with their impact
Parties to the contract are required to select appropriate contractual form by considering
their needs. It is because; each contractual form has different impact on the performance of
parties. As per the provided case scenario, owner of the MotorsRus (Salvatore) is planning to
enhance his customers by attracting them towards his second hand cars. For this aspect, he can
select following form of contracts: Distance contract: This form of contract is selected when contracting parties are not able
to meet at common place for the negotiation of contractual terms. Validity of these
contracts is determined by the applicability of postal rule. For this contract, Salvatore can
create website on which entire information of cars will be displayed to the customers.
3
Contract and tort law are part of civil legislation in the UK. Objective of this law is to
promote fairness in commercial transactions and to protect interest of public. Contract law is
applicable in situation where parties mutually decide to enter into legal enforceable relationship
for completion of promise. Further, negligence law is applicable in situation where there is
absence of contractual relationships between parties (Engler and Heyman, 2011). Contract and
tort imposes obligation on individuals and businesses to provide performance in an effective
manner in order to prevent risk of injury for the other innocent parties. In order to assure
standard performance, provisions of damages have also been introduced according to which; if
parties fail to comply with the provided duties then, they will be liable to pay compensation for
the injury of the aggrieved party.
Present study is focused on the description of provisions of contract and tort law in order
to assist owner of the MotorsRus i.e. Salvatore in his legal matter. For this aspect, importance of
essential elements and contractual terms will be explained along with the suitable case scenarios.
Further, general responsibilities of Salvatore will be discussed through the provisions of
negligence law and vicarious liability. Described provisions will be applied in the issues
provided by Salvatore in order to provide justifiable recommendations to him.
TASK 1
1. Description of different types of contract along with their impact
Parties to the contract are required to select appropriate contractual form by considering
their needs. It is because; each contractual form has different impact on the performance of
parties. As per the provided case scenario, owner of the MotorsRus (Salvatore) is planning to
enhance his customers by attracting them towards his second hand cars. For this aspect, he can
select following form of contracts: Distance contract: This form of contract is selected when contracting parties are not able
to meet at common place for the negotiation of contractual terms. Validity of these
contracts is determined by the applicability of postal rule. For this contract, Salvatore can
create website on which entire information of cars will be displayed to the customers.
3

This advertisement will be considered as invitation on which offer will be provided by
customers (Adams, 2010).
Face to face contract: This contractual form is selected by parties when they can create
agreement by meeting at common place. This contract is generally conducted in verbal
manner. For this contractual form, Salvatore can show his car to customers by visiting his
garage by describing terms and conditions (Contract and Tort Law, 2014).
By considering the nature of the good i.e. car, contract will be supported by written deed.
From the above described contracts, it will be beneficial for Salvatore to select distance contract.
It is because; through online website, he can reach to large customers with minimum cost and
time. Further, if customers will be satisfied with the cars then, they will place the offer through
the website (Nystén-Haarala, 2010).
Formation of standard form of contract will be beneficial for the Salvatore for the sale of
second hand cars to the customers. It is because; by this contract, Salvatore will be able to set
terms and conditions on which customers cannot negotiate. It will reduce the cost of business as
individual deed will not be required for the each transaction. Further, standard form of contract
will make reduction in “unforeseen anomalies” as Salvatore will be prevented from inserting
changes to the contract without informing the client.
2. Description of term offer and acceptance along with the suitable case reference
Validity of contract is judged by legislation after formation of agreement between parties.
Further, agreement is said to be created, if offer given by one party is accepted by another party
in similar sense. Offer and acceptance are considered as the basic elements of contract which are
necessary to be expressly satisfied (Zoll, 2012).
Offer can be stated as proposal provided by an individual to another individual (bilateral
offer) or to the general public (unilateral offer) in order to complete certain act. In accordance
with the English contract law, an offer is said to be valid if it is certain and lawful. However, it
must be different from invitation to treat because; it is merely a way of showing willingness for
entering into negotiation. In addition to this, response of invitation is treated as offer on which
other party is entitled for its acceptance or rejection. For this aspect, case of Pharmaceutical
Society of Great Britain v Boots [1953] 1 QB 401 can be considered. Offering party can
terminate the proposal prior to the acceptance else; it will not be considered valid. For this aspect
4
customers (Adams, 2010).
Face to face contract: This contractual form is selected by parties when they can create
agreement by meeting at common place. This contract is generally conducted in verbal
manner. For this contractual form, Salvatore can show his car to customers by visiting his
garage by describing terms and conditions (Contract and Tort Law, 2014).
By considering the nature of the good i.e. car, contract will be supported by written deed.
From the above described contracts, it will be beneficial for Salvatore to select distance contract.
It is because; through online website, he can reach to large customers with minimum cost and
time. Further, if customers will be satisfied with the cars then, they will place the offer through
the website (Nystén-Haarala, 2010).
Formation of standard form of contract will be beneficial for the Salvatore for the sale of
second hand cars to the customers. It is because; by this contract, Salvatore will be able to set
terms and conditions on which customers cannot negotiate. It will reduce the cost of business as
individual deed will not be required for the each transaction. Further, standard form of contract
will make reduction in “unforeseen anomalies” as Salvatore will be prevented from inserting
changes to the contract without informing the client.
2. Description of term offer and acceptance along with the suitable case reference
Validity of contract is judged by legislation after formation of agreement between parties.
Further, agreement is said to be created, if offer given by one party is accepted by another party
in similar sense. Offer and acceptance are considered as the basic elements of contract which are
necessary to be expressly satisfied (Zoll, 2012).
Offer can be stated as proposal provided by an individual to another individual (bilateral
offer) or to the general public (unilateral offer) in order to complete certain act. In accordance
with the English contract law, an offer is said to be valid if it is certain and lawful. However, it
must be different from invitation to treat because; it is merely a way of showing willingness for
entering into negotiation. In addition to this, response of invitation is treated as offer on which
other party is entitled for its acceptance or rejection. For this aspect, case of Pharmaceutical
Society of Great Britain v Boots [1953] 1 QB 401 can be considered. Offering party can
terminate the proposal prior to the acceptance else; it will not be considered valid. For this aspect
4
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case of Dickinson v Dodds (1876) 2 Ch. D. 463 can be referred. In this case, court of law had
treated revocation invalid because it was not in reasonable time and party was held liable for the
performance.
Acceptance is said to be consent given by the party to whom offer was provided. As per
the provisions of English contract law, an offer is said to be valid, if it is not supported by any
condition or modification and it is certain (Engler and Heyman, 2011). Case facts of Hyde v
Wrench states that conditional acceptance is counter offer in eyes of law in which further
acceptance is required by the parties. Further, it must be communicated to the person who had
provided the offer else; it will be considered effective for formation of contract. This aspect was
clarified in the case of Entorres v Miles Far East [1955] 2 QB 327.
3. Assessment of existence of contractual relationship in given case scenario
In accordance with the provided case scenario; Salvatore and Markus had provided
invitation to offer for the sale of mechanic equipment to the various parties. As response to their
invitation, parties had provided offer to both Salvatore and Markus. However, they are obliged
for the acceptance in accordance with the legal provisions of invitation to treat.
Markus had accepted offer provided by Mike while Salvatore had accepted the offer
given by Danny. Further, money received on the remaining offers has been refunded by the
Salvatore (Friedman, 2011). In the described case, Salvatore had contractual obligations towards
both Mike and Danny as offer provided by them was accepted. Further, possession of the good is
transferred to the Danny thus; Salvatore will be obliged for the compensation of injury of Danny.
In this aspect, he will be required to pay additional amount to be incurred by Danny for the
purchase of similar equipment. It is because; Salvatore had accepted the proposal given by
Danny through phone call due to which he has obligation to communicate this fact to his son.
4. Analysis of term in contract with reference to their meaning and effect
Damages for the breach of contractual terms is provided by English law by classifying
terms into conditions and warranties. Conditions are primary stipulation to the contract which
describe its objective. Further, warranties are ancillary terms which clarify the primary obligation
of the parties. By considering this aspect, in situation of breach of condition entire contract can
be terminated by the parties and damages can be claimed. However, breach of warranty only
5
treated revocation invalid because it was not in reasonable time and party was held liable for the
performance.
Acceptance is said to be consent given by the party to whom offer was provided. As per
the provisions of English contract law, an offer is said to be valid, if it is not supported by any
condition or modification and it is certain (Engler and Heyman, 2011). Case facts of Hyde v
Wrench states that conditional acceptance is counter offer in eyes of law in which further
acceptance is required by the parties. Further, it must be communicated to the person who had
provided the offer else; it will be considered effective for formation of contract. This aspect was
clarified in the case of Entorres v Miles Far East [1955] 2 QB 327.
3. Assessment of existence of contractual relationship in given case scenario
In accordance with the provided case scenario; Salvatore and Markus had provided
invitation to offer for the sale of mechanic equipment to the various parties. As response to their
invitation, parties had provided offer to both Salvatore and Markus. However, they are obliged
for the acceptance in accordance with the legal provisions of invitation to treat.
Markus had accepted offer provided by Mike while Salvatore had accepted the offer
given by Danny. Further, money received on the remaining offers has been refunded by the
Salvatore (Friedman, 2011). In the described case, Salvatore had contractual obligations towards
both Mike and Danny as offer provided by them was accepted. Further, possession of the good is
transferred to the Danny thus; Salvatore will be obliged for the compensation of injury of Danny.
In this aspect, he will be required to pay additional amount to be incurred by Danny for the
purchase of similar equipment. It is because; Salvatore had accepted the proposal given by
Danny through phone call due to which he has obligation to communicate this fact to his son.
4. Analysis of term in contract with reference to their meaning and effect
Damages for the breach of contractual terms is provided by English law by classifying
terms into conditions and warranties. Conditions are primary stipulation to the contract which
describe its objective. Further, warranties are ancillary terms which clarify the primary obligation
of the parties. By considering this aspect, in situation of breach of condition entire contract can
be terminated by the parties and damages can be claimed. However, breach of warranty only
5

provides entitlement for the claim of damages and parties will be still in obligation for the
completion of their contractual performance.
By applicability of above cited provisions in the provided case scenario it can be said that
Salvatore will be liable to refund the entire payment to the buyer because main term to the
contract is not satisfied as purchased equipment was not working effectively. Further, in situation
where there is difference is only in colour then obligation for refund of payment cannot be
imposed on Salvatore. It is because; change in colour will be considered as breach of minor for
which compensation of damages can be paid.
SCENARIO 2
Parties in the contract are required to comply express as well as implied terms in order to
discharge their contractual obligation in a proper manner. Expressed terms are cited by the
mutual consent of parties either in written or verbal manner. Objective of these terms is to
describe obligations that are required to be satisfied through performance. Further, implied terms
are assumed to be part of the contract in order to protect the interest of contracting parties and to
provide effect to their obvious intentions. In situation where parties fails to satisfy these terms
then they are held liable for the payment of damages in order to compensate the injury of the
aggrieved party.
Case a)
According to the provided case situation, apprentice of the garage had mistakenly painted
the Mercedes of customer with the wrong paint. Due to this mistake, customer is angry on the
owner of the garage. In accordance with the provisions of English contract law, garage will be
required to compensate the injury of the customers. It is because; they were obliged to work with
the standard care in order to discharge contractual obligation. However, in cited scenario they
failed to do so thus they are required to pay damages for the same (Friedman, 2011).
Case b)
In the described case situation, Mr and Mrs Cooper had purchased the new car from the
showroom of Salvatore. This car was on display with the statement that sold as seen and
warranty for 3 months only. Two day before the completion of three months, couple had
complained for various problems in the car in garage. According to Salvatore these problems
were minor and they had resolved it. However, four days later couple found that there is
6
completion of their contractual performance.
By applicability of above cited provisions in the provided case scenario it can be said that
Salvatore will be liable to refund the entire payment to the buyer because main term to the
contract is not satisfied as purchased equipment was not working effectively. Further, in situation
where there is difference is only in colour then obligation for refund of payment cannot be
imposed on Salvatore. It is because; change in colour will be considered as breach of minor for
which compensation of damages can be paid.
SCENARIO 2
Parties in the contract are required to comply express as well as implied terms in order to
discharge their contractual obligation in a proper manner. Expressed terms are cited by the
mutual consent of parties either in written or verbal manner. Objective of these terms is to
describe obligations that are required to be satisfied through performance. Further, implied terms
are assumed to be part of the contract in order to protect the interest of contracting parties and to
provide effect to their obvious intentions. In situation where parties fails to satisfy these terms
then they are held liable for the payment of damages in order to compensate the injury of the
aggrieved party.
Case a)
According to the provided case situation, apprentice of the garage had mistakenly painted
the Mercedes of customer with the wrong paint. Due to this mistake, customer is angry on the
owner of the garage. In accordance with the provisions of English contract law, garage will be
required to compensate the injury of the customers. It is because; they were obliged to work with
the standard care in order to discharge contractual obligation. However, in cited scenario they
failed to do so thus they are required to pay damages for the same (Friedman, 2011).
Case b)
In the described case situation, Mr and Mrs Cooper had purchased the new car from the
showroom of Salvatore. This car was on display with the statement that sold as seen and
warranty for 3 months only. Two day before the completion of three months, couple had
complained for various problems in the car in garage. According to Salvatore these problems
were minor and they had resolved it. However, four days later couple found that there is
6

expenditure of £5,000 while making assessment in another garage and for this they sued
Salvatore. By considering the case situation, it can be noticed that warranty period is expired
thus parties are not in position to claim compensation for the damages.
Case c)
Salvatore had rented the upper portion of showroom to the computer design company.
During the weekend, company had made arrangement for wiring for set up of the workplace but
there was severe blunders due to which entire lighting of showroom has not been working on
Monday. For the repair of this incident specialist electrician was required but he can't be there for
another four day. As a consequence, Salvatore has to suffer from business losses. For this aspect,
he is entitled to make claim for damages of loss of business from the computer design company.
It is because; it is standard responsibility of parties to complete contractual terms without
affecting interest of other contracting parties (Zoll, 2012).
Case d)
In accordance with the described scenario, Salvatore had made various blunders in the car
of Mr Dodsworth as wires have been crossed in the process of repair. As a consequence, there
are severe issues in functioning of the car. It is contractual obligation of Salvatore to provide
appropriable repairs services to the customers without making such blunders. However, he failed
to do so thus he will be held responsible to rework on the car or to pay damages in monetary
terms in order to compensate the injury of Mr Dodsworth.
Case e)
As per the cited case situation, Salvatore has brand new Defender Land Rover in the
showroom. Production of this car has been stopped due to which various parties are interested in
the purchase of this car. Meanwhile, two invitation were provided by Ahmed and Shakeel for the
purchase of car at desired price. Salvatore had accepted both the offers and asked them keep their
money ready by 7 pm. In the described case, offer provided by the parties is not valid because it
is not specific. In this aspect, initially Salvatore is required to quote the price of the car and then
new offer should be furnished and car to be sold to the party who is ready to accept the provided
offer (Engler and Heyman, 2011).
7
Salvatore. By considering the case situation, it can be noticed that warranty period is expired
thus parties are not in position to claim compensation for the damages.
Case c)
Salvatore had rented the upper portion of showroom to the computer design company.
During the weekend, company had made arrangement for wiring for set up of the workplace but
there was severe blunders due to which entire lighting of showroom has not been working on
Monday. For the repair of this incident specialist electrician was required but he can't be there for
another four day. As a consequence, Salvatore has to suffer from business losses. For this aspect,
he is entitled to make claim for damages of loss of business from the computer design company.
It is because; it is standard responsibility of parties to complete contractual terms without
affecting interest of other contracting parties (Zoll, 2012).
Case d)
In accordance with the described scenario, Salvatore had made various blunders in the car
of Mr Dodsworth as wires have been crossed in the process of repair. As a consequence, there
are severe issues in functioning of the car. It is contractual obligation of Salvatore to provide
appropriable repairs services to the customers without making such blunders. However, he failed
to do so thus he will be held responsible to rework on the car or to pay damages in monetary
terms in order to compensate the injury of Mr Dodsworth.
Case e)
As per the cited case situation, Salvatore has brand new Defender Land Rover in the
showroom. Production of this car has been stopped due to which various parties are interested in
the purchase of this car. Meanwhile, two invitation were provided by Ahmed and Shakeel for the
purchase of car at desired price. Salvatore had accepted both the offers and asked them keep their
money ready by 7 pm. In the described case, offer provided by the parties is not valid because it
is not specific. In this aspect, initially Salvatore is required to quote the price of the car and then
new offer should be furnished and car to be sold to the party who is ready to accept the provided
offer (Engler and Heyman, 2011).
7
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TASK 3
Contrast liability in tort with contractual liability
Provision of liability in contract and tort law is governed by legal norms described by
civil law. Both the liabilities have common objective to compensate the injury occurred to
aggrieved party occurred due to non-satisfactory performance of faulty party. Despite of these
common factors there are certain differences in provisions of contract and tort liability.
Initial difference between these liabilities is reason of occurrence. Liability in tort is
raised because individual fails to take care of their general duties due to which injury is occurred
to the other innocent party (Volokh, 2010). On the other hand, contractual liability is raised in
situation where parties are not in position to satisfy terms of the contract in a proper way. In
contractual liability, there is pre-existing relationship between parties as initial agreement was
supported by their mutual consent. However, in tort parties are stranger to one another prior to
the negligent action thus relationship is imposed by court of law.
Other difference in provision of tort and contract liability is of availability of remedy. In
tort damages are provided if principles of negligence are satisfied. Further, in each situation
damages will vary as per the injury occurred. In contrary to this, in contract damages are
provided if there is breach of condition or warranty as per contractual deed.
Principles of negligence
Negligence can be defined as misconduct committed by tortfeasor either deliberately or
innocently. This misconduct has been occurred because they failed to operate in accordance with
the expectation made from the prudent person in such similar situations. Claimant is in position
to make successful claim of damages if they are able to satisfy following four principles: Duty of care: Initially claimant is required to prove that there was standard duty of care
of defendant for the prevention of risk of injury in their actions. This duty has been cited
by Lord Atkin in the case of Donoghue v Stevenson through the principal of neighbour
love (Keenan, 2012). Breach of duty: After satisfying principal of duty of care, claimant is required to show
that defendant failed to act in accordance with this duty. This factor is required to be
supported by negligence act conducted by defendant.
8
Contrast liability in tort with contractual liability
Provision of liability in contract and tort law is governed by legal norms described by
civil law. Both the liabilities have common objective to compensate the injury occurred to
aggrieved party occurred due to non-satisfactory performance of faulty party. Despite of these
common factors there are certain differences in provisions of contract and tort liability.
Initial difference between these liabilities is reason of occurrence. Liability in tort is
raised because individual fails to take care of their general duties due to which injury is occurred
to the other innocent party (Volokh, 2010). On the other hand, contractual liability is raised in
situation where parties are not in position to satisfy terms of the contract in a proper way. In
contractual liability, there is pre-existing relationship between parties as initial agreement was
supported by their mutual consent. However, in tort parties are stranger to one another prior to
the negligent action thus relationship is imposed by court of law.
Other difference in provision of tort and contract liability is of availability of remedy. In
tort damages are provided if principles of negligence are satisfied. Further, in each situation
damages will vary as per the injury occurred. In contrary to this, in contract damages are
provided if there is breach of condition or warranty as per contractual deed.
Principles of negligence
Negligence can be defined as misconduct committed by tortfeasor either deliberately or
innocently. This misconduct has been occurred because they failed to operate in accordance with
the expectation made from the prudent person in such similar situations. Claimant is in position
to make successful claim of damages if they are able to satisfy following four principles: Duty of care: Initially claimant is required to prove that there was standard duty of care
of defendant for the prevention of risk of injury in their actions. This duty has been cited
by Lord Atkin in the case of Donoghue v Stevenson through the principal of neighbour
love (Keenan, 2012). Breach of duty: After satisfying principal of duty of care, claimant is required to show
that defendant failed to act in accordance with this duty. This factor is required to be
supported by negligence act conducted by defendant.
8

Causation: This element states that, negligent action of defendant must be primary
reason for the injury of the claimant. In addition to this, claimant must not have ant
contribution in the act of negligence else they will not be in position to make claim of
damages (Matteo, 2012).
Foreseeability: In accordance with this element of negligence, injury occurred to the
claimant must be foreseeable in nature and it must not be too remote for the claim of
damages.
If all the cited principles are satisfied, then claim made by injured party will be
considered successful in court of law and they will be entitled to attain damages for the injury.
Case study 1
Issue
In the given case situation, important documents of the customers has been damaged by
temporary drivers during operational conduct because Salvatore had not kept it at proper place.
Legal provisions and recommendations
In accordance with the principles of negligence, Salvatore has duty to take care of
important documents of customers. Further, in similar situation a prudent person is required to
kept such documents in proper place (Thomas, 2015). However, careless act of keeping papers
outside shows breach of duty. Due to negligent action of Salvatore injury has been occurred to
the customer and further damages were foreseeable in nature. In this case, all the four principles
of negligence are satisfied thus Salvatore will be held liable for the payment of damages.
However, in situation where valuable miniature painting of customer is damaged then in
such situation Salvatore will not be liable for the payment of compensation of injury (Mann,
2013). It is because; in such situation occurred damages will not be considered foreseeable as
there is no standard duty of individual to take care of belonging kept in the bag of customers.
Provisions of vicarious liability
Vicarious liability can be defined as a situation in which one person is held responsible
for the misconduct of another person. It is form of strict secondary liability in which responsible
person was in position to the influence the action of another party. As a consequence, if they had
acted diligently then negligence can be prevented. It is supported by doctrine of agency
respondeat superior. In accordance with this approach, business is held vicariously liable for the
9
reason for the injury of the claimant. In addition to this, claimant must not have ant
contribution in the act of negligence else they will not be in position to make claim of
damages (Matteo, 2012).
Foreseeability: In accordance with this element of negligence, injury occurred to the
claimant must be foreseeable in nature and it must not be too remote for the claim of
damages.
If all the cited principles are satisfied, then claim made by injured party will be
considered successful in court of law and they will be entitled to attain damages for the injury.
Case study 1
Issue
In the given case situation, important documents of the customers has been damaged by
temporary drivers during operational conduct because Salvatore had not kept it at proper place.
Legal provisions and recommendations
In accordance with the principles of negligence, Salvatore has duty to take care of
important documents of customers. Further, in similar situation a prudent person is required to
kept such documents in proper place (Thomas, 2015). However, careless act of keeping papers
outside shows breach of duty. Due to negligent action of Salvatore injury has been occurred to
the customer and further damages were foreseeable in nature. In this case, all the four principles
of negligence are satisfied thus Salvatore will be held liable for the payment of damages.
However, in situation where valuable miniature painting of customer is damaged then in
such situation Salvatore will not be liable for the payment of compensation of injury (Mann,
2013). It is because; in such situation occurred damages will not be considered foreseeable as
there is no standard duty of individual to take care of belonging kept in the bag of customers.
Provisions of vicarious liability
Vicarious liability can be defined as a situation in which one person is held responsible
for the misconduct of another person. It is form of strict secondary liability in which responsible
person was in position to the influence the action of another party. As a consequence, if they had
acted diligently then negligence can be prevented. It is supported by doctrine of agency
respondeat superior. In accordance with this approach, business is held vicariously liable for the
9

actions of employees. For this aspect, tortfeasor must have status of employee and negligent
action must be conducted in course of employment.
Case study 2
Issue
In accordance with the described case situation, driver of the Salvatore was in hurry and
he met with the accident. In this accident, several passengers were injured and they were
immediately taken to the hospital. However, one of the passenger i.e. Sarah is still not able to
recover after six months. Due to this aspect, she is not able to leave home and requires help to
look after her two young children.
Legal provisions and recommendations
By considering the legal provisions of the vicarious liability, Salvatore was obliged to
provide proper guidelines to the employees to not work in hurry in order to prevent such kind of
accidents. However, he failed to do so and act of negligence was conducted by employee due to
which injuries were occurred to the passengers (Volokh, 2010). Tortfeasor has a status of
employee and negligent act has been conducted in course of employment. On the basis of the
described provisions, Salvatore will be obliged to compensate the injury of Sarah by paying
damages in a suitable manner.
Case study 3
Issue
As per the described case situation, showroom of Salvatore has general policy to close
work after 11 am in weekends. One day the showroom was open till 3 pm because there was
number of families. Due to this aspect, manager was called in emergency but other employees
left. On this day, one family was busy is seeing vehicle and meanwhile there little son Johnny
tramp away. All of a sudden, all individuals in panic were running around and as a consequence
their son fall into the inspection pit (Keenan, 2012). Due to this incident, Johnny suffered from
serious injuries. This accident was occurred because; some individual had left the door open of
workshop with the signs of “No entry”.
Legal provisions and recommendations
In the described case situation, legal norms of Occupier's Liability will be applicable. In
accordance with the provisions of this Act, employer is required to take care of premises for the
10
action must be conducted in course of employment.
Case study 2
Issue
In accordance with the described case situation, driver of the Salvatore was in hurry and
he met with the accident. In this accident, several passengers were injured and they were
immediately taken to the hospital. However, one of the passenger i.e. Sarah is still not able to
recover after six months. Due to this aspect, she is not able to leave home and requires help to
look after her two young children.
Legal provisions and recommendations
By considering the legal provisions of the vicarious liability, Salvatore was obliged to
provide proper guidelines to the employees to not work in hurry in order to prevent such kind of
accidents. However, he failed to do so and act of negligence was conducted by employee due to
which injuries were occurred to the passengers (Volokh, 2010). Tortfeasor has a status of
employee and negligent act has been conducted in course of employment. On the basis of the
described provisions, Salvatore will be obliged to compensate the injury of Sarah by paying
damages in a suitable manner.
Case study 3
Issue
As per the described case situation, showroom of Salvatore has general policy to close
work after 11 am in weekends. One day the showroom was open till 3 pm because there was
number of families. Due to this aspect, manager was called in emergency but other employees
left. On this day, one family was busy is seeing vehicle and meanwhile there little son Johnny
tramp away. All of a sudden, all individuals in panic were running around and as a consequence
their son fall into the inspection pit (Keenan, 2012). Due to this incident, Johnny suffered from
serious injuries. This accident was occurred because; some individual had left the door open of
workshop with the signs of “No entry”.
Legal provisions and recommendations
In the described case situation, legal norms of Occupier's Liability will be applicable. In
accordance with the provisions of this Act, employer is required to take care of premises for the
10
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reduction of risk of injury to trespassers and visitors. In order to comply with these provisions,
occupier's are required to make safety arrangements in work place. If they failed to do so, then
they will be held liable for the payment of damages for the compensation of injury. In this case,
merely keeping a warning sign is not a proper way to reduce risk of injury thus Salvatore will be
required to make payment of damages.
TASK 4
Defences available for the prevention of liability in negligence
Individual will not be required for the payment of damages in act of negligence in
situation where they are able to avail benefit of one of the following defence: Ex turpi causa: As per this defense, in this condition when it is required to carry out
negligent behavior for defendant, then in such circumstances he or she is not liable to pay
for the damages to the pitfall party (Matteo, 2012). Considering the example, in case if
customer broke glass of showroom, with the motive to protect himself from fire then in
such case person is not liable to pay for damages. Further, in such circumstances it is
possible for defendant to defend himself by conveying that main reason behind breaking
glass is to escape from fire. Therefore, through this case it can be easily conveyed that act
of consumer is not at all negligent as it was necessarily required to break the glass in
order to save himself from possible injuries. Contributory negligence: This type of negligence generally takes place at the time when
plantiff is also held responsible for the damages or loss suffered to him or her. Further it
is necessary to consider that plaintiff is held responsible for the damages which have been
held for him or her for personal protection (Keenan, 2012). In some conditions when it is
not possible for specific party to deliver reasonable care and in the condition where party
fails to meet obligations, then it is regarded as contributory case, with conduct of
defendant and in relation with the injury made to plaintiff. Considering the example when
walker with intention walks on street and ignores traffic and in case if he or she hits by a
car. Therefore, such type of condition is regarded as contributory negligence.
Volenti non fit injuria: This type of defense is associated with the case in which plaintiff
believes risk in task which is dangerous. Further, individual is well aware about the fact
and knowingly is involved in the activity. So, in this kind of conditions, he or she is not
11
occupier's are required to make safety arrangements in work place. If they failed to do so, then
they will be held liable for the payment of damages for the compensation of injury. In this case,
merely keeping a warning sign is not a proper way to reduce risk of injury thus Salvatore will be
required to make payment of damages.
TASK 4
Defences available for the prevention of liability in negligence
Individual will not be required for the payment of damages in act of negligence in
situation where they are able to avail benefit of one of the following defence: Ex turpi causa: As per this defense, in this condition when it is required to carry out
negligent behavior for defendant, then in such circumstances he or she is not liable to pay
for the damages to the pitfall party (Matteo, 2012). Considering the example, in case if
customer broke glass of showroom, with the motive to protect himself from fire then in
such case person is not liable to pay for damages. Further, in such circumstances it is
possible for defendant to defend himself by conveying that main reason behind breaking
glass is to escape from fire. Therefore, through this case it can be easily conveyed that act
of consumer is not at all negligent as it was necessarily required to break the glass in
order to save himself from possible injuries. Contributory negligence: This type of negligence generally takes place at the time when
plantiff is also held responsible for the damages or loss suffered to him or her. Further it
is necessary to consider that plaintiff is held responsible for the damages which have been
held for him or her for personal protection (Keenan, 2012). In some conditions when it is
not possible for specific party to deliver reasonable care and in the condition where party
fails to meet obligations, then it is regarded as contributory case, with conduct of
defendant and in relation with the injury made to plaintiff. Considering the example when
walker with intention walks on street and ignores traffic and in case if he or she hits by a
car. Therefore, such type of condition is regarded as contributory negligence.
Volenti non fit injuria: This type of defense is associated with the case in which plaintiff
believes risk in task which is dangerous. Further, individual is well aware about the fact
and knowingly is involved in the activity. So, in this kind of conditions, he or she is not
11

allowed to claim for the damages and nobody will be held responsible to claim for the
damages occurred to them compensated with the overall losses. The defense is applicable
in the type of case where plaintiff is having direct knowledge of the overall risk involved
in the case (Volokh, 2010). Apart from this it is also required that risk has been accepted.
Further, it can be noticed that assumptions are not at all applicable to damages which are
additional or unknown. Considering the example the participants in the cricket match are
not allowed to do complain for the damages as they are aware about the damages and can
be suffered for loss or injury being caused to them.
Case a)
Issue-According to the given case scenario electricity problem took place at Motorbus and
during its recovery one of the sockets was left exposed. At this juncture, maintenance manager
tried to fix the socket with application of appropriate tools. Though, he it not an electrician but
he was still trying to get the problem solved. During the process of fixing, maintenance manager
got electric shock and remained hospitalized for a week. Also, he would require few moths to
recover at home. Furthermore, employment contract of Salvatore has provision that no one can
be grated sick leave for more than one week.
Legal provisions and recommendations-According the prevailing situation it can be said that,
maintenance need to take care when there was insecurity. However, it is not perfect in the field
of electricity hence it should not try to fix the exposed socket. In addition to this, volenti non fit
injuria has been applied because owner is not responsible for damages caused to maintenance
manager. Owing to this, he cannot pay for more than one week. Here, he must take care while
assessing risk associated with particular areas and accordingly do the actions. At this juncture,
Motorbus has authority to deny for paying more than one week (Spindler, 2011). Hence, by
applying volenti non fit injuria Salvatore can be safe from paying more than what is expected.
Also, it is valid as per the employment act and internal regulations of corporation. Accordingly,
Salvatore can defend himself with proper understanding of scenario and applying prevailing
employment policies..
Case b)
Issue-Under the given scenario Mr. and Mrs Augustine visit showroom with their twins Billy and
Bella. Here, couple instructed to keep their twins under control but still they did not take
12
damages occurred to them compensated with the overall losses. The defense is applicable
in the type of case where plaintiff is having direct knowledge of the overall risk involved
in the case (Volokh, 2010). Apart from this it is also required that risk has been accepted.
Further, it can be noticed that assumptions are not at all applicable to damages which are
additional or unknown. Considering the example the participants in the cricket match are
not allowed to do complain for the damages as they are aware about the damages and can
be suffered for loss or injury being caused to them.
Case a)
Issue-According to the given case scenario electricity problem took place at Motorbus and
during its recovery one of the sockets was left exposed. At this juncture, maintenance manager
tried to fix the socket with application of appropriate tools. Though, he it not an electrician but
he was still trying to get the problem solved. During the process of fixing, maintenance manager
got electric shock and remained hospitalized for a week. Also, he would require few moths to
recover at home. Furthermore, employment contract of Salvatore has provision that no one can
be grated sick leave for more than one week.
Legal provisions and recommendations-According the prevailing situation it can be said that,
maintenance need to take care when there was insecurity. However, it is not perfect in the field
of electricity hence it should not try to fix the exposed socket. In addition to this, volenti non fit
injuria has been applied because owner is not responsible for damages caused to maintenance
manager. Owing to this, he cannot pay for more than one week. Here, he must take care while
assessing risk associated with particular areas and accordingly do the actions. At this juncture,
Motorbus has authority to deny for paying more than one week (Spindler, 2011). Hence, by
applying volenti non fit injuria Salvatore can be safe from paying more than what is expected.
Also, it is valid as per the employment act and internal regulations of corporation. Accordingly,
Salvatore can defend himself with proper understanding of scenario and applying prevailing
employment policies..
Case b)
Issue-Under the given scenario Mr. and Mrs Augustine visit showroom with their twins Billy and
Bella. Here, couple instructed to keep their twins under control but still they did not take
12

appropriate care. Their children were playing with cars and keep opening and closing doors of
cars. During this process one of the twins suddenly let the door off and it caught his/her arm
under it. At this juncture, ambulance came and took them at hospital. Furthermore, Mrs.
Augustine got serious shock and she was unable to leave home ever after completion of a six
month. Furthermore, Mr. Augustine has employed someone who can complete all work related
to taking care of children.
Legal provisions and recommendations-According to the given case, contributory negligence
will be applicable because of fault of both parties. It is prime responsibility of Motorbus to
provide proper security and safety of children. For example, they may restrict entry of children
inside the showroom because of security purpose. At the same time, Mr. and Mrs Augustine need
to be concerned when they warned regarding taking care of their babies. Owing to this, Salvatore
is advised to pay for partial damages but not the full amount. However, they consider that it was
part of their own fault. Apart from this, damages for Mrs. Augustine will not be paid by
Motorbus because it did not take place because of negligence of showroom. Therefore, Salvatore
is liable to pay for the damages. However, party cannot be sued for whole damages because they
already informed to customer to keep eyes on their children.
Case c)
Issue-As per the given case Salvatore always keeps some money in showroom with proper
safety. However, he did not face any issue related to money in part but before sometime issue
has been occurred in draining pipe. An individual noticed the same issues and decided to enter
into showroom. However, Salvatore was not aware of this issue and it is the reason that
individual decided to enter into property. In addition to this, corporation can easily protect itself
from such kind of harms by taking protective measures such as effective infrastructure facilities.
Legal provisions and recommendations-The given case scenario reflects that corporation need
to claim for damages. This is because owner was not aware of the issues in draining pipe. This
caused loss of money (Nielsen, 2010). However, Salvatore can claim to insurance company for
recovery of damages. This facilitates to compensate Motorbus for its losses. Furthermore, owner
is advised to ensure safety of all its equipment and structure of corporation. In addition to locker
where cash is kept must be highly equipped. It reduced chances of theft and accordingly business
13
cars. During this process one of the twins suddenly let the door off and it caught his/her arm
under it. At this juncture, ambulance came and took them at hospital. Furthermore, Mrs.
Augustine got serious shock and she was unable to leave home ever after completion of a six
month. Furthermore, Mr. Augustine has employed someone who can complete all work related
to taking care of children.
Legal provisions and recommendations-According to the given case, contributory negligence
will be applicable because of fault of both parties. It is prime responsibility of Motorbus to
provide proper security and safety of children. For example, they may restrict entry of children
inside the showroom because of security purpose. At the same time, Mr. and Mrs Augustine need
to be concerned when they warned regarding taking care of their babies. Owing to this, Salvatore
is advised to pay for partial damages but not the full amount. However, they consider that it was
part of their own fault. Apart from this, damages for Mrs. Augustine will not be paid by
Motorbus because it did not take place because of negligence of showroom. Therefore, Salvatore
is liable to pay for the damages. However, party cannot be sued for whole damages because they
already informed to customer to keep eyes on their children.
Case c)
Issue-As per the given case Salvatore always keeps some money in showroom with proper
safety. However, he did not face any issue related to money in part but before sometime issue
has been occurred in draining pipe. An individual noticed the same issues and decided to enter
into showroom. However, Salvatore was not aware of this issue and it is the reason that
individual decided to enter into property. In addition to this, corporation can easily protect itself
from such kind of harms by taking protective measures such as effective infrastructure facilities.
Legal provisions and recommendations-The given case scenario reflects that corporation need
to claim for damages. This is because owner was not aware of the issues in draining pipe. This
caused loss of money (Nielsen, 2010). However, Salvatore can claim to insurance company for
recovery of damages. This facilitates to compensate Motorbus for its losses. Furthermore, owner
is advised to ensure safety of all its equipment and structure of corporation. In addition to locker
where cash is kept must be highly equipped. It reduced chances of theft and accordingly business
13
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can be operated in an effectual manner. Therefore, in present can Salvatore can be safe because
claim can be made to insurance company.
Case d)
Issue-According to the given case study Tom is appointed in MotorBus for lifting heavy objects.
Here, once builders across the road asked Tom to move some of the heavy objects. Owing to
this, Tom was completing his work and meanwhile cyclist get injured because of negligence of
Tom. This claim can on Salvatore because Tom was working for him but unfortunately incident
happened during working hours (McKendrick, 2014).
Legal provisions and recommendations-Under the given case scenario Salvatore is liable to pay
for the damages because injury took place because of his employee. Here, vicariously liability
will be applicable on case as negligence exist from the side of Tom. However, it was his prime
duty to take care of other while performing the task. Owing to this, cyclist will be paid by
MotorBus for damages occurred due to fault of Tom. On the other hand, if cyclist was
performing stunt of race with car on the road.
At that time, Motorbus is not liable to pay for damages. However, in that case company
will pay half of the damages but not full amount. It is because contributed negligence will take
place. It is because cyclist is not supposed to race with car on general road because any incident
could happen at that time (Giliker, 2010). Similarly, Tom may not take care of those vehicle
which are moving on road without without any stop. It depicts that corporation can easily deprive
from whole damages, instead part of the damages will be paid. Thus, in both cases situation will
be different and liabilities of parties will also be different. Accordingly damages will be paid to
respective parties. Thus, Salvatore is suggested to pay for the damages occurred to cyclists.
CONCLUSION
The aforementioned report concludes that negligence act of corporation should be
avoided to a great extent in order to perform in an ethical manner. It assists management to stay
free from any kind of harm and additional charges which are required to pay for damages can be
reduced. It can also be said that, parties enter into contract must perform their duties in right
manner which leads to ensure successful completion of deal. Furthermore, negligence law is
applied where there is absence of contractual relationship among parties.
14
claim can be made to insurance company.
Case d)
Issue-According to the given case study Tom is appointed in MotorBus for lifting heavy objects.
Here, once builders across the road asked Tom to move some of the heavy objects. Owing to
this, Tom was completing his work and meanwhile cyclist get injured because of negligence of
Tom. This claim can on Salvatore because Tom was working for him but unfortunately incident
happened during working hours (McKendrick, 2014).
Legal provisions and recommendations-Under the given case scenario Salvatore is liable to pay
for the damages because injury took place because of his employee. Here, vicariously liability
will be applicable on case as negligence exist from the side of Tom. However, it was his prime
duty to take care of other while performing the task. Owing to this, cyclist will be paid by
MotorBus for damages occurred due to fault of Tom. On the other hand, if cyclist was
performing stunt of race with car on the road.
At that time, Motorbus is not liable to pay for damages. However, in that case company
will pay half of the damages but not full amount. It is because contributed negligence will take
place. It is because cyclist is not supposed to race with car on general road because any incident
could happen at that time (Giliker, 2010). Similarly, Tom may not take care of those vehicle
which are moving on road without without any stop. It depicts that corporation can easily deprive
from whole damages, instead part of the damages will be paid. Thus, in both cases situation will
be different and liabilities of parties will also be different. Accordingly damages will be paid to
respective parties. Thus, Salvatore is suggested to pay for the damages occurred to cyclists.
CONCLUSION
The aforementioned report concludes that negligence act of corporation should be
avoided to a great extent in order to perform in an ethical manner. It assists management to stay
free from any kind of harm and additional charges which are required to pay for damages can be
reduced. It can also be said that, parties enter into contract must perform their duties in right
manner which leads to ensure successful completion of deal. Furthermore, negligence law is
applied where there is absence of contractual relationship among parties.
14

REFERENCES
Books and journals
Adams, A., 2010. Law For Business Students. 6th ed. Pearson Education Ltd.Garriga, E., 2013.
Corporate social responsibility theories: Mapping the territory. In Citation Classics from
the Journal of Business Ethics. pp. 69-96.
Engler, M. L. and Heyman, S. B., 2011. Missing Elements of Contract Damages, The. Temp. L.
Rev. 84. pp.119.
Friedman, L. M., 2011. Contract law in America: a social and economic case study. Quid Pro
Books.
Giliker, P., 2010. Vicarious liability in tort: a comparative perspective. Cambridge University
Press.
Keenan, F., 2012. European Corporate Laws, Regulatory Competition & Path Dependence.
European Journal of Law and Economics. 13. pp. 43–71.
Mann, R., 2013. Business Law and the Regulation of Business. 11th ed. Cengage Learning.
Matteo, A. L., 2012. False dichotomies in commercial contract interpretation. Journal of
International Trade Law and Policy. 11(1). Pp.27-43.
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press.
Nielsen, B. B., 2010. Strategic fit, contractual, and procedural governance in alliances. Journal
of Business Research. 63(7). pp.682-689.
Nystén-Haarala, S., 2010. Flexibility in contract terms and contracting processes. International
Journal of Managing Projects in Business. 3(3). pp.462 – 478.
Partington, M., 2013. The psychological contract and implied contractual terms: Synchronous or
asynchronous models?. International Journal of Law and Management. 53(1). pp.32-50.
Spindler, J.C., 2011. Vicarious liability for bad corporate governance: Are we wrong about 10b-
5?. American law and economics review. p. 026.
Thomas, D. S., 2015. Social Aspects of the Business Cycle. Routledge.
Volokh, E., 2010. Tort Liability and the Original Meaning of the Freedom of Speech, Press, and
Petition. Iowa Law Review, pp. 10-15.
Zoll, F., 2012. The binding power of the contract: Protection of performance in the system of the
15
Books and journals
Adams, A., 2010. Law For Business Students. 6th ed. Pearson Education Ltd.Garriga, E., 2013.
Corporate social responsibility theories: Mapping the territory. In Citation Classics from
the Journal of Business Ethics. pp. 69-96.
Engler, M. L. and Heyman, S. B., 2011. Missing Elements of Contract Damages, The. Temp. L.
Rev. 84. pp.119.
Friedman, L. M., 2011. Contract law in America: a social and economic case study. Quid Pro
Books.
Giliker, P., 2010. Vicarious liability in tort: a comparative perspective. Cambridge University
Press.
Keenan, F., 2012. European Corporate Laws, Regulatory Competition & Path Dependence.
European Journal of Law and Economics. 13. pp. 43–71.
Mann, R., 2013. Business Law and the Regulation of Business. 11th ed. Cengage Learning.
Matteo, A. L., 2012. False dichotomies in commercial contract interpretation. Journal of
International Trade Law and Policy. 11(1). Pp.27-43.
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press.
Nielsen, B. B., 2010. Strategic fit, contractual, and procedural governance in alliances. Journal
of Business Research. 63(7). pp.682-689.
Nystén-Haarala, S., 2010. Flexibility in contract terms and contracting processes. International
Journal of Managing Projects in Business. 3(3). pp.462 – 478.
Partington, M., 2013. The psychological contract and implied contractual terms: Synchronous or
asynchronous models?. International Journal of Law and Management. 53(1). pp.32-50.
Spindler, J.C., 2011. Vicarious liability for bad corporate governance: Are we wrong about 10b-
5?. American law and economics review. p. 026.
Thomas, D. S., 2015. Social Aspects of the Business Cycle. Routledge.
Volokh, E., 2010. Tort Liability and the Original Meaning of the Freedom of Speech, Press, and
Petition. Iowa Law Review, pp. 10-15.
Zoll, F., 2012. The binding power of the contract: Protection of performance in the system of the
15

Common European Sales Law. Journal of International Trade Law and Policy. 11(3).
pp.259 – 265.
Online
Contract and Tort Law. 2014. [Online]. Available through: <http://www.legalmatch.com/law-
library/article/contract-and-tort-law.html>. [Accessed on 8th March 2016].
16
pp.259 – 265.
Online
Contract and Tort Law. 2014. [Online]. Available through: <http://www.legalmatch.com/law-
library/article/contract-and-tort-law.html>. [Accessed on 8th March 2016].
16
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