Legal Agreements and Liability in Business Law Report

This report provides an in-depth analysis of key aspects of business law, focusing on contracts, legal agreements, and liability. It begins with an introduction to business law and its importance, followed by an examination of contract elements, including offer, acceptance, intention to create legal relations, capacity, and free consent. The report differentiates between various contract types, such as written, verbal, unilateral, bilateral, valid, void, and voidable contracts. Case studies are used to illustrate contract formation and application. The report further discusses terms of contract, including express and implied terms, and the implications of conditions. Finally, the report touches on promissory estoppel and the importance of terms and conditions in mitigating liability, supported by case scenarios. The analysis draws on UK government regulations and legal principles to provide a comprehensive understanding of the subject.

ASPECTS OF LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1...........................................................................................................................................3
1.2...........................................................................................................................................5
2.1...........................................................................................................................................5
D1...........................................................................................................................................6
TASK 2............................................................................................................................................6
1.3...........................................................................................................................................6
2.2...........................................................................................................................................7
2.3...........................................................................................................................................7
M2...........................................................................................................................................8
TASK 3............................................................................................................................................8
4.1...........................................................................................................................................8
3.1...........................................................................................................................................8
3.2...........................................................................................................................................9
TASK 4............................................................................................................................................9
3.3...........................................................................................................................................9
4.2.........................................................................................................................................10
D3.........................................................................................................................................10
CONCLUSIONS............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business law is very important aspect in order to survive business activities and functions
in a proper and legal manner. UK government has been formulated some kind of legal rules and
regulation which have to followed by every business organisation in order to make agreement
valid. The government liability and regulation has formulated by civil law that assist in
regulating the business contracts and agreement. In the context of business law, contract is an
agreement which is enforceable by law (Cross and Miller, 2011). It is an agreement which made
between two or more than two parties. Company's operation and brand name is highly affected
by the UK governmental law and regulation. In this project reports , legal agreement and
regulation has been addressed with respect of various scenario. This project report gives a depth
knowledge and understanding about the law and legal obligation of the business enterprise. In
addition to this, various elements of contract and nature of liability in negligence has also
discussed in this report.
TASK 1
1.1
In the context of business law, all agreements are not a contract but all contract re an
agreement. A legal agreement must possess all essential elements of valid contract and it is
enforceable by law. According to the UK government in a valid contract all essential elements
must included and parties who are involve in the contract must know the terms of valid contract.
Following are some elements of valid contracts- Proper offer- As per the UK government, when between two parties a legal contract are
going to create then there must be a proper offer. It mean one party offers for develop a
contract to another party. Offer is a proposal by one party which includes expression of
terms and condition of contract (Cross and Miller, 2011). The person who develop offer
is called as offerer and a person to whom the offer is being made is called offeree. Proper acceptance- According to business law if one person offer another to caret a legal
contract then there must requires a proper acceptance. It may be oral or written and must
have includes legal terms and conditions (Bix, 2011). Offer is being followed buy only
legal acceptance of other parties who accept the offer. The offer should be accepted

unconditionally because if any additional condition added by offeree than contract being
made as counter offer. Intension to create legal relationship- As per the UK government, in the legal contract,
both party have intension to create legal relationship while they enter in to the valid
contract. Further both parties make sure that they are not involves another outside
pressure and influence. Capacity to enter into contract- Another major important element of valid contract is
capacity. There must have capacity of both parties to enter into contract. It means both
parties should have ability to implies the legal rights assigned to form the valid contract.
Further both parties have age of majority and in sound mind. Free consent- As per this state of valid contract, both parties have free consent to enter
in to the contract. It means they are not caused by fraud, misrepresentation, coercion,
undue influence and mistake (Isaksson and et.al., 2010). If the consent of both parties is
not free the no valid contract comes into existence.
An invitation to treat
The concept of invitation of treat is that under which person offer certain things or services to
another person in intension to entertain them. This type of contract is most often used when one
party is selling and handling goods on behalf of another. As per the given case scenario, Williom
wants to create contract by sell its shop so that he advertise his business in a specialist trade
journal. So it can be said that William comes in to the invitation to treat (Bix, 2011).
1.2
As per the UK government, there are various types of contract and they are made for different
intension. These contract are as follows- Written and verbal contract- Written contract is a contract under which terms and
conditions are written on paper (Bix, 2011). Further under this not only promise made on
it but also serve as its proof that the promise to be made. Written contract is most safe
and secure form of making contract because all terms and condition are made in written
form and both parties put their signature on the contract documents. On the other hand
verbal contract are generally made between both parties by use of words and expression

of spoken word. Both parties agree upon the terms and condition by verbally and there
are not any written prof of contract. Unilateral and Bilateral contract- As per this types of contract, both parties has to fulfil
their obligation at the time of the formation of contract. In other word it can be said that
Unilateral contract involve an action undertaken by one person or group alone. On the
other hand Bilateral contract is an general agreement which may happened in every
person life in every day (Freedland and et.al., 2016). For example, service taken at beauty
centre, order a meal at restaurant, receive treatment from doctor etc.
 Valid , void and voidable contract- Void contract is that which is not enforceable by law
and that have not any legal rights and obligation. On the other hand the contract which is
totally enforceable by law is known as valid contract. Further, a voidable contract is that
which is framed in compliance with the legal enactment prevailing.
2.1
As per the given scenario, William is offer for sale his shop so that he advertise his
business in a specialist trade journal for 144000. By this statement in the scenario, it can be said
that William have capacity to enter into the contract because he has his shop or property of
business. Further he advertises his business in a specialist journal so it can be said that he have
intension to create a legal and valid contract with someone (Kreitner, 2011) On the other hand
under this case, the element of free consent is also included because there has not any type of
fraud, misrepresentation and any undue influence over the parties that is William and Richard
who are involved in the contract. An interested buyer, Richard wrote to William offering him
108000 for the ship. The conversation between William and Richard are in the written form so it
can be said that there was a written contract between them. On the other hand in the case of
William and Danial, Willam wrote a letter for sale his car for 4,500 so it can be said that
William have also intension to create a legal contract with some one and he have capacity for
create contract. In the second case there is also written agreement between the parties.
D1
Promissory estoppal is intended to stop the promiser from arguing that an underlying promise
that was made should be not be legally upheld or enforced. It is a types of legal principle which

is enforceable by law. It is apply on the contract of the contract if even that made without formal
consideration.
TASK 2
1.3
Generally terms are defined as the set of rules and regulation charged on the contract by
the legal bodies, government or any other authorities. Parties who are involved in the contract are
liable to followed the term which have made by the government. They are bound only by term ,
not by other statements made in pre contract talk (Braga, 2011). The term are directly impact on
the entire process of contract and it define how the contract is being survival between parties. In
order to maintain the interest and consent between both parties and avoid the situation of
negligence, fraud and misrepresentation's, the term of contract is very helpful. There are various
terms of contract which are as follows- Express term- This types of term expressed in the written and oral words between the
parties. This term can be implemented between the parties by mutual consent and by
discussion (Warren, 2012). Further, the parties who are involved in the contract then they
supposed to express their contract by either word or written form. In addition to this
under this term of contract the entire information about the contract like condition,
warranty and innominate term are included. Implied term- This types of contract is made by the third parties like government or any
other legal authorities. Under this contract parties involved are able to follow the rules
and regulation which has made by third party which is not member of contract (Van , Puil
and Weele, 2014).
 Conditions- Condition is a term under which parties have to follow that term of contract.
This condition is determined at the time of contract and parties who are involve in the
contract has to follow that condition. If any party breaks the rules and regulation and not
follow the rules and regulation over the contract then aggrieved party can sue for damage
and the contract can be determined at its option.

2.2
As per the given case scenario, A renowned singer and dancer Katherine has signed a
contract to perform as an opera singer for 3 month for the royal opera house. But unfortunately
she become ill five day before the opening night and was not able to perform for the first four
night as per the contract. The Royal opera house replaced Katherine . So that Katherine has sued
against the royal opera house. In such case it has been ascertained that there was expressed
contract made between the Katherine and royal opera house because Katherine has signed upon
the document of contract (Sumner and Williams, 2010). According to the terms of expressed
contract the contract can made by ether written and oral word so Katherine has made expressed
contract with opera house. Katherine can sue to against the opera house according to expressed
contract.
As per the scenario, Katherine agreed by contract to perform as an opera singer for another
company .She again ill and missed 6 days of rehearsals. The employer sacked her and replaced
her with another singer. As per this statement, Katherine has agreed by a contract so it can be
said that there was an implied contract between them.
2.3
As per the given case scenario, the claimant was a farmer who had a tendency on the
defendant field. Before the field was due to be harvested the tenancy was terminated. The
claimant then submitted a bill to the defendant for the work and cost of seed spent ion the field as
was customary in farming tenancies (Stone, Devenney and Cunnington, 2011 ). The defendant
refused to pay stating there was nothing in tenancy agreement that such compensation was
payable. As per the scenario it has been founded that there has implied contract because there
was not any kind of written and oral contract but if that party terminate the tenancy contract
before the termination date then they are liable to pay the bill to claimant.
M2
As per the case scenario, Sam is not competent to get the pay or remedies for the damage
his bike because shop has clearly expressed terms mentioned in the form of sign board so that
shop is not responsible to pay any loss and damages.

TASK 3
4.1
As per the case Lan apples to the accountant for referencing relating to Luke's financial
situation. Luck is a tenant of Lan house. The accountant mark has confused that luck with
another client and does not bother to check the file properly. He replies that lan that luck is
excellent client with high income. But lucks bank was continuously over drafted and had been in
serious debt with various bank (Rush and Ottley, 2010). Along with different elements of tort of
negligence is also applied in the scenario that is he breaches their duty by not performing it
properly. He has not taken carte of their duty while reviewing the file of John before
recommending him to lan. Various elements of negligence are as follow- Duty of care- As per this element of negligence, if a person is found from any harm or
damage by another person negligence then victim have legal right to take action against
that particular one on ground of negligence.
 Remote of damage- If a victim person is able to show they have caused a physical or
financial loss due to negligence of another one then they are expected to increase
reimbursement.
3.1
Contractual liability arise in the circumstances
in which the parties breaches the stated terms
and condition that are imposed within the
contractual agreement.
The remedies or compensation is provided to
weaker party on the basis of terms and
condition (Ramanathan, 2014).
IN this contract the legal action and
punishment against the parties who are involve
in illegal action is limited.
Liability in tort arises in the situation when
parties engage in the tortful or negligent action
that cause harm and injury to the party
(Vicarious Liability. 2013).
The remedies are provided according to level
of injury and it is sated by law (Oya, 2012).
On the other hand inn this contact legal action
are dependent upon the crime and losses
caused by the parties.

3.2
Negligence is defined asd the aspect in which individual is unable to perform their
activities with proper care that ultimately result in aging injury to the other party (Negligence.
2015). The nature of liability in negligence is come into force through referring the case of
Donoghue v/s Stevenson 1932. Along with there case there was certain principles or condition
that will successfully p[rove the negligence. These principle are as follows- Duty of care- According to this concept, the party who injured has right to get remedies
from the party who negligence the care of him or his assets (Murfin, 2012).
 Breach of duty- This is for that person who terminate his duty. In the case of Donoghue
v/s Stevenson 1932., the beer manufacturer has terminate its duty by not checking the
beer while packaging the beer.
TASK 4
3.3
As per the given case scenario Jon is a local newspaper agent and contrary to express
prohibition from his employer ABC Ltd engaged a 14 year old boy to help him deliver
newspaper. Jon has not supposed to hire teenager boy and company is aware about this
arrangement but not taken any action (Giliker, 2010). As a result Jons careless driving the boy
was injured so it can be said that this is a case of negligence. The provision of vicarious liability
clearly states that jon and his company are to be hold by wrong cations. Along with this company
ABC is responsible to pay the remedies and expenses for the damages or injury of 14 year boy.
On the other hand the situation when employee perform the wrong action and it was not in the
employment period then in situation business can not held vicarious liable for the wrong
activities.
4.2
The act of vicarious liability is a kind authority and obligation for decreasing the damages
caused to party by the negligences actions or functions of other party. In other word it can be
said that vicarious liability is part of action under which one person is responsible to pay the
remedies and expenses in order to recover the damage of another parties. As per the given case
scenario Jon is a local newspaper agent and contrary to express prohibition from his employer
ABC Ltd engaged a 14 year old boy to help him deliver newspaper (Cross and Miller, 2011). Jon

has not supposed to hire teenager boy and company is aware about this arrangement but not
taken any action. As a result Jons careless driving the boy was injured so it can be said that this
is a case of negligence. Company is responsible to pay the expenses of damages and injured of
teenager boy. Various principles of vicarious liability are as follows-
 A per the principles of vicarious liability, every company is responsible to pay the
remedies of damages or injured if his employees are involved in the injuries.
 Each and every action of employees should control by the employers. Organisation is
responsible to for any illegal activities and actions of workers.
D3
Occupiers liability refers to the duty owned by land owners to the those who come onto
their land. However the duty imposed on the land owner can extend beyond simple land
ownership and in some instance, the landowners may transfer the duty to others , hence the term
occupier rather than owner (Blum 2007). In other word it can be said that occupier liability is
perhaps a distinct form of negligence in that there must be a duty of care and breach of duty
causing damages.
CONCLUSIONS
Business law is very important aspect in order to make business legally fair and take all
valid action for progress and objective. All contract are agreement bit all agreement are not
contract. A contract which is enforceable by law is known as a legal contract. From this project
report it has been ascertained that there are various elements of valid contract which assist in
becoming the business activities and action valid and escape from illegal activities. Further it has
also concluded that in order to successfully formulate the valid contract several elements needs
to be considered by the parties that mainly included offer and acceptance, competence of parties,
free consents etc.

REFERENCES
Books and Journals