A Comprehensive Analysis of Contract Law: Elements, Types, and Terms

This report provides a comprehensive overview of contract law, delving into its fundamental aspects. It begins by defining contracts and highlighting their importance in both personal and business contexts. The report then explores the essential elements of a valid contract, including offer, acceptance, consideration, capacity, and agreement. Various types of contracts are examined, such as unilateral and bilateral contracts, contracts under seal, written and verbal contracts, and face-to-face versus distance selling contracts. The report also analyzes contractual terms, differentiating between express, implied, and innominate terms, along with the implications of breach of contract. A case study is used to illustrate contract formation and breach of contract. The report concludes with a summary of the key concepts and their practical applications.

Aspects of Contracts
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INTRODUCTION
Contract is very important because it can be used in the legal system in the parties to
ensure that their rights are safe. contract is legal agreement these may or may not be in written
format. Contract are used personal but mainly it used in business solutions. the contract must be
made on the lawful object so that that can enforceable by law. In business contract are very
essential contract secure the rights of employee and employer and customer or buyers. A contract
that give a better understanding to the parties about their rights and also describe the duty of the
party and explain that in which circumstance contract will breach (Cuello-Garcia, 2013). In this
project this will explain about the importance of the contract and how it is effectively important
tin business as well as in personal. Contract secure the rights of both the parties that is very
necessary to protect the right of every individual.
TASK 1
1.1
A contract is a legal binding agreement between two or more competent parties.
Contract are usually in written form but contract can be spoken or implied. There is certain
element in the contract which need to be fulfil for a valid contract these are: -
 offer a valid offer must be made by the party this is the first element and this is important
element in the contract because the whole e contract is based upon a valid offer is not
valid at the time of performance the contract will be void. An offer can make to whole
word or may be to a specific person.
 Acceptance it occurs when the party accept the offer or a party answering on the offer.
When a offer accepted by the parties then it make a contract. Acceptance of offer is the
second element of the contract and the elements of ta valid contract must be in the
contract and if party not expressly accept the offer than the offer will not valid.
 Consideration in contract law consideration means a detriment to the person who made
the promise or a benefit conferred on the other party, both of which are measurable in
economic terms (Berger, Lester, 2015). Example of the consideration are money or goods
and, also, services.
 Capacity of party’s person who come into a contract they must have the capacity to make
the contract as the contract act the person who is minor means less than 18-year-old or
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the person who is unsound mind and the bankrupt person in some contract they cannot
make contract and as well as there are some exception is also there in contract law
relating to this.
 Agreement in contracts absolutely prohibited by statute will be void, whether the parties
know of the illegality or not. To make a valid contract there must be a valid agreement
where all the terms and conditions are mention according to the parties all the legal terms
must be mention in the contract that makes a contract valid.
1.2
There are so many kind of contract to take care of business or personally both. There is some
contract which are:
 unilateral and the bilateral contracts – in simple means unilateral contract means that to
involve an action undertaken by one person or group alone. In unilateral contract only
one person is allowing to make a promise or agreement (Book, Gruhn, Striemer, 2016).
example of unilateral contract is insurance contract.
Bilateral contract this is more common contract a bilateral contract is an agreement in
which each of the parties to the contract makes a promise or promises to other party. Example of
the bilateral contract is contract for sale of a home. The first difference is number of the parties
in bilateral contract there must e two or more parties and in unilateral contract only obligate
action on one part.
 Contracts under Seal (Deed) and simple contracts most contract made in writing will be
known as simple contract and the deeds are used because either the law require their use
or there is some advantage in the deed. There is some difference in both the contract
a simple contract can be entered into orally but a deed must be in writing. In simple contract
party have to give the consideration (Vagts, Koh ,Dodge, 2015). on the other hand, do not
require consideration in order for them to be valid.
 Distinction between written contracts and verbal contracts an agreement made on a
printed document that must be signed by both the party. written contract is legally
binding of the parties.
Verbal contract a agreement made with the spoken words or either their is no writing or
may be partially writing. And a verbal contract is also valid as well as written contract.
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In written contract all the terms are written on the legal paper singed by both the parties and their
legal representative and it is easier to find out what was the term and when some difficulty arise
it is easier to prove and it can be use as a evidence in the court but in oral contract their is
nothing in the writing so when some issue arise it is so difficult to find out what was the term and
condition (Twigg-Flesner, 2013).
Distinction between Face to face and Distance Selling Contract- face to face contract are where
both the parties are at same place they mutually decide to come in the contract and all the terms
were discussing by both the party. In distance selling contract both the parties are on a distance
from each other and they came into a contract (Sweet, Schneie, 2012). in online shopping both
the parties are at distance to each other and they don't know each other when the both the parties
do a transition that comes in distance selling contact.
1.3
Contractual terms are those terms which are included in the contract. All the provisions of
contract are the contractual terms. All the terms give rise to a contractual obligation, breach of
which can give rise to litigation. The terms which are the part of contract known as contractual
terms in the contract there are three types of the term describe as per the law these are -
 express term the terms that are actually stated in the contract. Can be written or verbal
and agreed before, or when, the contract is made. The rights and the duties which are
describe in the contract some of these terms are the express term. As per the name of the
contract this term specified the or expressly stated in the contract.
 Implied term these terms are put by the court or by the statute in the contract. There are
such conditions which are implied for all kind of contract that must be all kind of
contract. implied terms also include the statutory rights, such as equal pay and the duties.
 Conditions, Warranties and Innominate terms the term which is neither in implied nor in
express terms an innominate term is an intermediate term which cannot be define as
either a condition or a warranty. If a party fail to perform any one of the promises in the
contract, it is in breach and liable to pay damage (Skyrms, 2014). But not all the promises
in a contract have the same significance. Some breaches of contract not only entitle the
injured party to claim damages, but also entitle him to put an end to the contract. A party
may terminate a contract for breach of condition, but never breach of warranty
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(Azoulay ,2012). It may be possible to terminate a contract for breach of an innominate
terms if the breach is sufficient serious.
In contract to create the certainty, the parties may wish to limit the scope of what each
can claim for and that can do so using the exemption clause in the contract. The exemption
clause limits each party liability to that which is set out of the contract. There are certain limiting
terms which include in some contract parties listing certain type of loss the party won't be liable
to pay or in contract there is setting a limit of the damage on which party will liable to pay. And
there are some excluding certain remedies that would otherwise be available to the party that is
not n the breach.
Case related to this is Curtis V Chemical Cleaning Co [1951].
Olley V Marlborough Court [1949].
TASK 2
2.1
For the formation of a valid contract there must be all the element in the contract. The
certain elements that must be present for a legally binding contract to be place (Kőszegi, 2014).
For the valid contract there must be a valid offer and that must have accepted by the parties and
conditions must be clear from both the parties and the amount of consideration must be decided
by the parties that could be money or any promise and the object of the contract must be lawful
and the parties must be capable to come into the contract in the contract law there are some
person describe that they cannot come into all the contract these are minor person and the
unsound mind.
As per the given scenario Abel who is 22 years old sees an advertisement in the
newspaper from the car dealer as per the element context Abel he can come into contract he has
capacity to make contract. And according to the facts offer was made by city car dealer in local
newspaper the offer was for whole world and the offer is not for the specifies person this offer is
valid offer can make for the whole world this offer is valid and the condition in the offer was
also valid. The condition that first three persons who run up to city mountain on 1st November
and return to showroom within 3 hour will get the car (Cratchley, 2013.). At this side offer was
accepted by the Abel and he fulfil the condition of the offer and the as a consideration the car
company made a promise to give the car and that was on the newspaper and that is count as a
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agreement. In this scenario a valid contract formed by the parties and the breach of contract is
done by the car company and Abel and successfully challenge on the ground of breach of
contract done by the car company.
2.2
To understand the contract in better manner to understand the all the condition and the terms
there are some terms which explain all the conditions in the contract. The contract which
describe about that facts of the case. There are three terms in the contract usually use.
Implied term may be implied contract through statute or by the court. implied terms are also
including the statuary rights. Example of implied terms are equal payment and the maternity
leave these all included in the implied terms.
Express term that is expressly and specifically stated in the agreement. Either orally or
written specified in the contract (Chang, Narayanan, 2013). these are terms that have been
specifically mentioned, either in writing or orally, and have been agreed by both employer and
employee. In simple language the term laid down by the parties themselves.
Innominate Terms-Can be either conditions or warranties. Breach of them can be serious or
trivial depending on particular fact situation. If effects serious, they are conditions and vice
versa. introduction or recognition of this category of terms has given more flexibility to law, but
also created more potential for uncertainty (Robinette ,2014). Hence, courts have subsequently
been inclined to hold that certain terms will usually be conditions to give commercial actors in a
particular market certainty.
As per the given scenario the facts are Rani who owns a business in selling cars, and
advertise a sale of car in the showroom 50% off on market price. Eric show the offer and accept
the offer and he signed the contract but there was a term which was mention in the contract that
was '‘No liability is accepted for death, personal injury, damage to property or consequential loss
arising from driving a car which is purchased from the show room.’ In the given scenario the sale
of good act 1979 is applicable according to which once a product is sold is sold and the seller has
no liability against the same. This law states that once a contract is signed between seller and
buyer the seller is free from his liability and is not responsible for any damage if caused to the
product. Eric might not read that but he signed the document so they make a valid contract.
There is an express term mention in the contract and the contract was based on the that terms as
well as other terms. So, the term was already mention in the contract signed by the parties so
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they make a valid contract but he did not notice that terms. As per the scenario car selling
company will not be liable for anything because they signed a contract and the term was mention
it Eric fault that he signed the document without even reading it. So, he will not get any
compensation from that party.
2.3
As per the given scenario there are two parties Eric and the car seller as per the case they
come into a contract where it was written the condition 'No liability is accepted for death,
personal injury, damage to property or consequential loss arising from driving a car which is
purchased from the show room.’ the condition was expressly put into the contract and if Eric
signed the contract it means that he accept all the conditions which was mention in the
agreement. In this case the fault was made by Eric that he didn't even reads the document before
signing it (Pai, Black, Hyman ,2013). So, according to the law there are no remedies available
for the Eric because the mistake was made by the Eric the company was clear about on all terms
and conditions. Eric does not have any option of remedies. On the other hand, if the same
scenario is considered through consumer right act there is liability of the car seller as this law
extends the rights of a customer. It removes the unfair terms given in the contract and provide
power to customer in case of loss suffered due to purchase of a commodity.
TASK 3
3.1
Tort can be defined as a misconduct done by one person towards another. Due to the harm
caused to the diseased person he has the right to file a case against the other person. It required
that such powers are given so that unfair practices can be reduced. The business law is
developing day by day. The contractual liability and tort liability are one of the basic elements of
business contracts law. In a contract many civil wrong and harmful action by other party may
occur that is way these two elements are urgent for success contracts. Vicarious liability is
another important issue related with business contract.
Contrast liability in tort with contractual liability
At the present time when business laws have developed it become an important issue for
all forms of liability agreement that are tort liability and contractual liability. There are some
contrast matters in these two elements of business contract. In the general view tort liability is a
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common law for a civil wrong. In business tort liability refer the legal demand of one party of
contract for a victim which is the result of civil wrong or injury. The system of tort liability
arouses because of violating personal or organizational rights by the temper people or party
decisions that may damage the contract in any time (Sebok ,2016). When we compare tort
liability with contractual liability we easily see that these two elements are contrast.
Contractual liability is the safety for the obligation from one party of a business contract
and it must under the business terms and regulations. A person or a party gets contractual
liability at the time he accepts liability for the acts of another party’s agreement or contract that
must written. When a party signed a contract it provisions the acts that hold in future. It can be
said contractual liability is the systematic way to pay bodily injured or property damage reasons
and it mentioned on the agreement papers. So, torts are pay for wrongful acts and its results
losses, damage or harm of another party body or organization, or damage the legal rights. On the
other hand, contractual liability is the written liability of a party of contract for the injured or
property damage. Now it is clear about the contrast of these two matters.
3.2
Negligence is a failure to exercise the care that reasonably person would have in that
circumstance. Negligence involve harm caused by carelessness, not intentional harm.
Nature of the liability in negligence
Duty of care Duty of care refers to the circumstances and relationships which the law
recognizes giving rise to a legal duty to take care and if the defendant fails to take such care to
the applicant, the defendant will be liable to pay the compensation for applicant because
according to the law, the defendant had breach of duty of care (Bernstein, 2016).
Breach duty of care to successful in the claim of negligence, claimant must give
evidence that there was a breach of duty of care of defendant that caused the damage to him. the
court will consider whether the defendant's act fell below the standers of reasonable care, the
person concerned should do what a reasonable man would do.
Damage to the claimant only be compensated if he has suffered actual loss, injury,
damage or harm as a consequence of another's action.
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3.3
Vicarious liability is the form of strict liability. This is based on doctrine 'respondent superior'
which means that responsibility of the superior. A vicarious liability is a situation in which one
party is held partly responsible for the unlawful actions of a third party. The third party also
carries his or her own share of the liability. Vicarious liability can arise in situations where one
party is supposed to be responsible for a third party, and is negligent in carrying out that
responsibility and exercising that control. In the business vicarious liability arise in employee and
employer there are verity of situation in which third party may be charged with vicarious liability
(Garoupa, Ulen ,2014). In business for example an employer may be liable for an accident
caused by an employee as the result of the negligent operation of a delivery vehicle. Vicarious
liability can be established where a duty of care imposed on an employer has been broken, but
the claimant cannot identify which employee breached it. An employer, then, will not escape
liability where a particular employee of his cannot be identified to have been responsible for the
breach. The doctrine of 'respondent superior' is based on the employer-employee relationship.
The doctrine makes the employer responsible for a lack of care on the part of an employee in
relation to those to whom the employer owes a duty of care. This liability arises when a person
becomes answerable due to a third party. In case if employees are not treated well or haraced at
the work place than the direct question is asked to the management or owners of the organisation.
they are answerable to the harm made to diseased person even if they are not directly involved in
the misconduct.
TASK 4
4.1
Negligence is defined as the beach of a legal duty by not taking due care and cautions and
due to this legal right of a party violated OR negligence is an act which a normal prudent person
cannot do. There are certain elements of torts: -
1). Duty of care: - This is a legal duty of person to take due care and cautions while doing an act.
2). Breach of duty: - The duty of care which a person should have to take according to a normal
prudent person and violation of which results into the breach of duty.
3). Causation: Causation is the primary cause by which an injury or harm occurred to a person
by the violation of his legal right.
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4). Proximity nexus: It is a kind of foreseeability test that an act done by a person negligently
that the act itself foreseeable by other party or not.
And in the following case it was happened that in this case Dennis took his wife to a restaurant
for dinner. While eating, Emma is feeling sick and subsequently taken up for hospital. In
hospital it was found that illness was in result due to supplying expired food and subsequently
suffered by severe food poisoning. This really indicates the breach of duty for care and caution
and there is a causation also that due to this because severe poisoning happened for Emma. But
it can't be foreseeable by them because it is a normal thinking by a prudent person that in
restaurant expired food should not be served.
4.2
In this scenario it was expressly seen in case that chef supplied expired food to Emma
and due to that severe food poisoning happened to Emma and after the warning given by
restaurant authorities that these practices should not be entertained. Even this chef did that and
the reasoning behind this is that restaurant is vicariously liable for the act done by chef because
at that time chef is under the course of employment of restaurant and under the direction and
control of the restaurant authorities.
CONCLUSION
This project is about the aspects of contract and it shows that the importance of the
contract in the business and in personal also. Contract are very essential at this time for the
business purpose the contract keep all the right of employee and employer safe and it also define
the duties both the parties. The project showcases the value of the contract and tort and other
basic laws which was also define in the project and give the general overview on other topics as
well.
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REFERANCE
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Book, M., Gruhn, V. and Striemer, R., 2016. The Big Picture. In Tamed Agility (pp. 281-282).
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Vagts, D.F., Koh, H., Dodge, W.S. and Buxbaum, H.L., 2015. Transnational business problems.
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Twigg-Flesner, C., 2013. The Europeanisation of contract law: current controversies in law.
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Sweet, J. and Schneier, M.M., 2012. Legal aspects of architecture, engineering and the
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Skyrms, B., 2014. Evolution of the social contract. Cambridge University Press.
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