Comprehensive Report: Contract and Negligence in Business Operations

This report provides a comprehensive analysis of contract and negligence within a business context. It begins by outlining the essential elements of a valid contract, including offer and acceptance, intention to create legal relations, certainty, completeness, consideration, and capacity of the parties. The report then delves into different types of contracts under English law (face-to-face, written, and distance contracts) and their respective impacts. It also examines various terms in contracts, such as innominate, implied, and expressed terms. Furthermore, the report explores real-world scenarios, such as a bookshop scenario, and analyzes the application of contract law principles. It also covers the differences between contract liability and tort liability, including their definitions, proof of guilt, and non-liability agreements. The nature of duty of care and negligence are discussed, as well as the defenses available in different business situations. The report concludes with a summary of key findings and implications for business operations.

Aspects of Contract and Negligence for
Business

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
1.3.................................................................................................................................................5
Task 2...............................................................................................................................................5
2.1.................................................................................................................................................5
2.2.................................................................................................................................................6
2.3.................................................................................................................................................6
Task 3...............................................................................................................................................7
3.1.................................................................................................................................................7
3.2.................................................................................................................................................8
3.3.................................................................................................................................................9
Task 4.............................................................................................................................................10
4.1...............................................................................................................................................10
4.2...............................................................................................................................................10
Conclusion ....................................................................................................................................11
REFERENCES .............................................................................................................................12
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INTRODUCTION
Aspect so contract are very important for execution of desired function of any business
and there should be proper understanding of it. A contract is a written or verbal agreement
between to parties and that is intended to be enforceable by law. In the preset report the essential
elements required for the formation of a valid contract has been explained. The impact of
different typed of contracts is also discussed. Along with this, terms in contracts with references
theirs meaning and effects has been analyzed. Apart form that the elements of Tort of negligence
and defenses in different business situation is applied
TASK 1
1.1
The contract is legal binding agreement between two or more competent parties. All the
essential elements should be fulfilled for making a contract valid (Connolly and Hoar, 2014.).
For making the contract enforceable is must be legal and not be in violation of law or against
public policy.
The following are the essential elements required for the formation of valid contract:
 Offer and acceptance: For creating valid contract is is important that there should be
lawful offer by one party and accepted by other party without breaking law (Carter, and
Courtney, 2016.). Further if there is no offer or acceptance then contract cannot be made.
 Intention to create legal relationship: Every party should have an intention for making
any lawful relation (Martin and Van Linden, 2015). If other party have no such intention
then contract cannot be states a valid contact.
 Certainty: The terms and condition should be clearly define so that contract remain
certain. If the contract is not clear then it cannot be enforceable by law (Sweetand
Schneier, 2012). The terms of agreement should be clear and exact so that party realize
that they are willing to make a contract.
 Completeness: Both the party who is making contract and other who is accepting the
contract should agree and complete all the legal formalities. However, agreement should
not remain pending before it performances (Forstenlechner And Lettice 2008).
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 Consideration: Consideration means deciding to person who give benefits to other party.
The example of considerations is goods, money and services etc (Miles, Fleming and
McKinney, 2010.). the contract is made on exchange of promises.
 Capacity of the parties: The parties who are entering into a contract must be above the
age of 18 year and should not be unconscious at the time of entering any legal contract
(Olander and Norrman, 2012). Th person who is lacking in a legal capacity are invalid
and cannot make any type of legal contract.
1.2.
Under the English law there are different types of contract and its impact on the contract
formation. The circumstance and situation decide which type of contract can be formed and it
also has positive and negative impacts (Dorfman and Cather, 2012). Following are the three type
of contract under English law.
 Face to face contract: In face to face contract two party make any legal agreements by
sitting together. The both party agree with points which are included in agreements.
Since, there is no clear evidence in the face to face contract because agreements is done
by the words of mouth (Marks, Marks and Jackson, 2013). There is no document signed
by any party in case if any party break the rules then other party cannot claim in front of
court. The verbal contract is made in the case of Fisher V/s Bell.
 Written contract: In the written contract any type of legal agreement is made in written
form. It is contractual relationship which can be maintained in written form. It is a written
document signed by both parties by agreeing all the terms and condition legally
(McInnes, Kerr and VanDuzer, 2013). The impact of this contract is that it create a
sense of trust and confidence between two parties. When contract is break by any party
then other party can also claim in front of court. It can explained in appropriate manner in
the case of Spencer c/s Harding.
 Distance contract: In the distance contract there can be a contract can be formed in
verbal form or in written form. According to the case of Harvey v/s facey contract is
made through a telegraph (Thampapillai, Tan and Bozzi, 2012). The impact of this type
of contract can be positives or negative. There may be any confusion or misunderstanding
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created because both the party is not present at same place. Even in distance contract
delay of time can lead to rejection of contract.
1.3.
There are various terms in contract are as follow
 Innominate term: Innominate is a term in the contract which lies between warranty or
condition (Appleman, Appleman and Holmes, 2013). It is a remedy of breach and
depend on the effects of break of contract. This is flexible then a condition in contract so
it is favorable term.
 Implied term: it is a responsibility which one party should follow in contract (Berger
and Lester, 2015). For example, if a person went to market for buying a fruit is implied
that person need to pay some amount of money for buying the fruits.
 Expressed term: Expressed is a term in which both the party offer and offeree should
agreed in a specific manner at the time of making a contract (Berger and Lester, 2015.).
It can be in oral or written form for example if any person want to sell his bike and other
want to buy it and both party agree with a same amount then it termed as express
contract.
TASK 2
2.1
There are various type of contract such as verbal contract, distance contract and written
contract. All these contract have negative and positive impact on both the parties. According to
the given scenario, Ivan want to buy a HND book which is displayed for sale by Todor's
bookshop (Lando and Beale, 2009). At the time when Ivan goes for paying the amount of book,
Todor refused to sell her book because it is the only copy and book was already sold by him to
Carl. He forget to remove it from display so this contract is face to face contract because both
parties were present together for making agreements.
At the time of formation of contract there was a positive impact but confusion was
created and it was solve on the spot. In this case one party want to made a contract but other
party reject the contract because it already made a contract with other party (Vashist and Talwar,
2014.). It is a fault of Todors that he forget or remove the books from display and it create a
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confusion. However, Ivan cannot claim in front of court because she contract is not completed
and she also not have any written evidence.
2.2
The law on terms in different contract are as follow
 A condition: It is a important term in contract which goes to the root of contract. If the
condition is break then other party can end the contract and claim for the damages in
front of courts (Nystén-Haarala, Lee and Lehto, 2010). In the case of Ivan v/s todors, the
shopkeeper refused to a contract there is no condition and it cannot be claimed by other
party because she not have any written documents
 Warranties: Warranties is not as much important as like condition because if the party
breached the warranty then it other party can claim to pay for damage but cannot end the
contract (Marks, Mars and Jackson, 2013). It is guarantee which is provided by one
party to other party that a particular condition or thing will be done.
 Innominate terms: It is a term which cannot be classified as condition or warranty. The
innominate term is not yet defined in a clear manner so it significance remain unclear in
all the contract (Miles, Fleming and McKinney, 2010). If a situation comes under the
contract of sale it is show the particular condition or warranty.
2.3
According to the case John pays the 50p and give a ticket by the parking attendant and
get a chair. But chair was broken and he was injured badly and his clothes as also damaged. John
is required to complain and claim compensation from the council. Local authority refuse to pay
compensation to john (Nystén-Haarala, Lee and Lehto, 2010). At the behind of ticket it is
mentioned that damage will be paid as the case the ticket is not a part of contract because ticket
is made after completing the contract. Park authority is liable to pay the damages because ticket
is not a part of contract. The breach is supported by a law because all the essential elements are
included in a contract if park authority refuse to pay. John observe a notice in which is is clearly
mentioned that chairs are available for the hire and he can take it by paying 50p per hour.
John is interested in the offer and he also pay for it. When he got a chair he found a
trouble then he goes for claiming tot he park authority but they refuse to accept the claim. But in
the case message is printed at the back of the tickets all the condition are written. So the
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management park cannot move away from its responsibility (Connolly and Hoar, 2014.). Of
paying the damaged. It is important that claim against the failure of hired equipment which lead
to damage and injure to john.
TASK 3
3.1
Difference between contract liability and tort liability are as follow
Basis Contract liability Tort Liability
Definition In this the liability which have
been assumed while entering
into a contract and get failed in
performing it in relation to
terms mentioned in contract
Legal obligation between one
party with a victim party
because of injury or civil
wrong (Sweetand Schneier,
2012). Then action is required
for a remedy from the court.
Proving guilty At the time of signing a
contract failure party is liable
for damage predictable
(Carter, and Courtney, 2016).
In this defender have right to
claim damage either it is direct
or indirect, foreseeable or
unpredictable.
Non liability agreement In a certain limit non liability
clause are valid and parties
may change within a certain
bound in the contractual
liability.
In the case of non liability
agreement offense are
crucially null.
Here are many similarity and liability in tort liability and contractual liability. The
liability is posed due to contractual obligation. If there is negligence in liability then the party
who is not enter in a bound contract, then it give rise to tort contract (Miles, Fleming and
McKinney, 2010). In the case of contractual liability the party will need to take responsibility of
paying for damage. While on the other hand in the tort liability all individual are liable for
following term. It is stated that the duty of care and negligence can cause serious damage .
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The parties which are involved in contractual agreements have right to choose the
liability while in tort liability it is obligatory by legal framework. Mostly the liability in contract
is based on strictness while the tort liability its is based on fault (Olander and Norrman, 2012.).
For example, if in super market you buy a fruits packed and if you open it all are damages then
supermarket can be sue in contract, without making any clearance that owner of the supermarket
was negligent.
3.2
The nature of liability in negligence and employer's liability
Negligence means if any person fails to take legal duty of care or avoid injury of other
person (Marks, Mars and Jackson, 2013). In there term it be stated that is is a break of duty of
taking care of other person. There is not only individual is responsible for the intentional injury
but
Following are the elements which can prove that negligence
 Duty of care: it refer that law give rise to a legal duty of taking care of a person. If any
person fails in performing its duty of care or break it then it results in damage of other
person or get injured (Thampapillai, Tan and Bozzi, 2012). Hence it can be claimed by
the injured person and can defendant must owe then duty of care. At the time when law
recognize the relationship between plaintiff and defendant then duty arises.
 Breach of duty: it states that a person fails to perform a duty of care on which the
person is owing to the party (Vashist and Talwar, 2014). In which other person face
owing on the party and face damages and injury in form of law. In a case of john the
responsibility is of park person to take care but a defendant break a duty of care which is
decided.
 Cause in fact: In this negligence it is necessary that injured person must proof that
defendant action actually caused a injury to plaintiff' (Contract law. 2015). In the case of
John is injured to negligence of park owner
 Proximate cause: In the proximate defendant in a negligence case is responsible for the
harms got to john if defendant have foresee through his or her actions. This elements is
also related with other three elements (Olander and Norrman, 2012.). In the above case
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person is owes a duty of care if duty is breach then is cause direct damage tot he plaintiff
and it proves that injured person is responsible top prove losses and injuries.
Breach of contract is not limit for any person of for professionals and individual are responsible
for taking acre of others. If there is direct cause then it is significant elements which is needed to
be considered and also responsible for liability of nature. It is vital that if any person suffer from
and injury or damage by other then claims against the person who caused harm to the person.
3.3
vicariously liability is known as situation where individual is responsible for the action of
another person. Under the doctrine of common law liability is arise, so it is necessary that
manager of company should make a proper instruction direction to the subordinate and
employees (Marks, Mars and Jackson, 2013). However, if any person is get harmed or injured
at the time of performing his work for the company, then business is responsible to pay
compensation tot he injured person. The duty and responsibility of company owner is to to keep
a health safety equipment provided and insurances for the employees. It is natural that
management should be liable for the damage and injury caused to workers. According to the case
of London general omnibus company the employer will not be liable for negligence of the
conductor it is described by court.
Duty of conductor is to collect the fare from passenger not to drive a bus. So the
conductor have nor right to ask company for compensation and cannot claim damage against the
company owner. Vicarious liability occur accountability of the employee if fault made by the
employee of the company. The vicarious liability of the legislation apply when there is
discrimination and harassment take place within the employees (McInnes, Kerr and VanDuzer,
2013). The employer require to held vicarious liable for the actions of employee for removing a
discrimination and harassment form the company. In then case of Colin a head chef became
violent roger because because he was frustrated from his behavior. It is unlawful to knock frying
pan on other person head and getting violent. Colin not knocked the frying pan on the roger head
but complained to Ben Under the vicarious liability employer is responsible for all the unlawful
act of Colin Roger can file a case against Colin.
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TASK 4
4.1
According to the given scenario David is driving 35MPH in 25MPH zone at four lane
street where children are playing. A nine year old Kevin, runs and in street for chasing a soccer
ball. Then avoiding Kevin the David hit the telephone pole and Kevin seriously and permanently
injured. David and local phone company Teleco is responsible for all the injury. The Teleco
company should not put the telephone on street (Nystén-Haarala, Lee and Lehto, 2010). And
David should not drive with a high speed. There is a physical damage to Kevin so per the tort
negligence and defenses a driver is considered because an occurrences of this mischance happens
and it creates risk of life of Kevin. On the other hand telephone company is also responsible for
all this accidents because it is owned by them. It show the that David is careless person due to
which accident occur and little kid got harmed. If David take a proper care at the time of driving
not rum it with high speeds then accident can be avoided. It show the lack of negligence by the
David. On the other hand if Teleco company not put the Telephone booth in the mid of street
then also Kevin get secured but careless of both lead to accident. Parents of Kevin who sis
suffered from the injury have right to sue a case in front of court. It can take legal action against
the people who are responsible for the causing the trouble to their child. In this case it is clearly
reflects that lack of care of people and telephone company. In the category of contributory
negligence it covers this case (Miles, Fleming and McKinney, 2010.). If David drive the car at
street with norms speed that this accident can be easily avoided. But now he is liable to pay for
compensation for the kid he injured badly. While the telephone pole located at the road side was
a misappropriate location it is their negligence and they are responsible for the accident.
4.2
According to the given scenario , Colin is working for a head chef Roger hotel. The Colin
was fed up with the hotel owner because he is not happy with the behavior shown by Roger for
him. At the time when Colin not bear the behavior of Roger h knocks him with a frying pan. As
Roger was seriously injured but he also refused to go to hospital (McInnes, Kerr and VanDuzer,
2013). Under the vicarious liability is is a responsibility of owner of the restaurant to pay for the
mistakes and take action on misbehave of its staff. In this case of Roger and Colin it is necessary
to take action against the Colin who is the manager of the hotel.
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After happening all this case it is a responsibility and accountability of the owner to keep
a safety equipment for staff and appropriate protections. It is also necessary to take any legal
action if any staff member misbehave or get violent with others (Sweetand Schneier, 2012).
There should be right provided to the staff members if they face any problem or think that are not
secure on that place. In the Vicarious liability shows the responsibility of the employer under
which they are responsible and accountable for any harm. In the case of Colin the same situation
occur Colin who was the manager not like the attitude and behavior of Roger.
One day at the them of working in the restaurant Roger suffers from the injury and he
gets some physical damage. By the manager he got offered for help and insist that he can go to
hospital but he refused to do so. Here is mistake made by Roger as he offered to take a medical
help he should accept it (McInnes, Kerr and VanDuzer, 2013). But he refuses it and it lead to
suffer more. It is lack of Negligence shown by the Roger now it cannot take action against the
employer of the firm. As per the vicarious liability it is a responsibility of Colin to pay roger as
he suffered from injury because of his mistakes.
CONCLUSION
From the above report it can be concluded that there are various significant elements of
contract such as offer and acceptance, capacity etc. which are very important for completing a
contract. There are different types of contract such as written contract, verbal contract etc and it
all have positive and negative affects on both ofrer and oferee party. There are many terms in
contract which are very important for the making any agreement such as Exemption clause,
innominate terms etc. the law of terms in different contracts are warranty and condition, the
condition is very important elements without it contract cannot be made. Further it can be
concluded that, there are many elements of nature of liability of negligence such as duty, breach
of contract etc. the way through which business can be vicariously liable is described. Further it
is a responsibility of business houses to pay for the damages caused by the mistakes of staff
members.
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