Comprehensive Analysis of Contract Law: Key Elements and Applications

This report provides a comprehensive analysis of contract law, covering essential elements for the formation of a valid contract, including agreement, consideration, certainty, and lawfulness. It discusses various types of contracts such as unilateral, bilateral, void, voidable, and distance selling contracts, illustrating their effects with examples. The report also examines express and implied contract terms, contrasts tort and contractual liability, and explores the tort of professional negligence misstatement and vicarious liability. Furthermore, it analyzes contract terms based on different case scenarios, including the supply of mobile phones and the validity of exclusion clauses, providing a thorough understanding of contract law principles and their practical applications. Desklib is a platform where students can find similar solved assignments and study resources to enhance their understanding of complex legal concepts.

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Table of contents
Task 1 Contracts and their aspects.............................................................................................3
1.1 Legal elements for formation of a valid contract.................................................................3
1.2 Discuss the effect of various type of contracts with examples............................................4
2. Void and Voidable contracts..................................................................................................5
3. Distance selling contracts.......................................................................................................6
Task 1.3 Analysis of following terms related with contracts.....................................................6
Task 2 Terms of contract based on different case scenarios......................................................8
2.1 Analysis of terms of contract and assess whether the parties in the case have at all made
any contract by applying each of the essential legal elements of a valid contract....................8
2.2a Supply of mobile phones....................................................................................................9
a. First situation..........................................................................................................................9
b. Second situation.....................................................................................................................9
2.2b Advices to Cathy whether the exclusion clause incorporated in her contract with Brake’s
Limited by the use of Common Law rules is valid....................................................................9
2.3 Evaluation of the effect of exclusion clause and unfair contract terms on Cathy’s contract
..................................................................................................................................................10
Task 3 Torts of negligence and contractual liability................................................................10
3.1Contrast liability of tort with contractual liability...............................................................10
3.2 Nature of liability...............................................................................................................11
3.3 Vicarious liability...............................................................................................................11
Task 4 Applying elements of tort of negligence and defenses in different situations.............11
4.1 Describing liability of tort of professional negligence misstatement.................................11
4.2 Applying elements of vicarious liability in different business situations..........................13
Conclusion................................................................................................................................14

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Introduction
The theory of contracts base aspects is one of the most essential subject for discussion in
business base financial economical prospects and analysis of company depending on norms
or principles of contracts and efficient mechanisms for use of the same due to various kinds
of mechanisms and methods of use of them for the suitable functioning of the company on
the basis of negotiations and agreements and mutual sense of understanding between the
companies being jointly producing gods or in engaging in joint ventures of producing goods
and services in terms of the features and guidelines mentioned in the aspects of contracts
(Dellinger, 2016).
Task 1 Contracts and their aspects
1.1 Legal elements for formation of a valid contract
The different elements of legal statute for a valid contract are explained below as follows:
Agreement on contracts: The presence of an offer and its acceptance are the two different
modules of agreement on contracts based on certain procedures is the agreement on contracts.
Common consent among the business parties is the main component based on which the
agreement between different parties of contract is signed or made for execution of agreed
strategies in the future (Twomey, Jennings & Greene, 2016). For distant communications, it
is important that both business parties can make a satisfactory remote communication that
contract may remain sustainable and satisfactory for both. Postal acceptance rule has directed
both parties that an acceptance can be made according to response of the other. Some of the
reward related cases i.e. offers, this prospect is highly evident. As for example, in the case of
R vs. Clarke, certain charges are made to accused after denying an offer (Odinet, 2016).
Consideration on contracts: Consideration in contracts can be defined as legal benefit of
any of the engaged party of an agreement. There are different forms of considerations like
capitals, property or future profitability according to the promissory.
This is the value given by the parties of contracts for the guidelines based issues or
guarantees that is constantly made and it takes the form of manifestations of ideas based on
cash, property and administrations based considerations. The consideration is based on
different scenarios and criterions of business processes depending various types of contract
based reforms and acts and regulations related with contracts.

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Certainty on contracts: The agreements on contracts are needed to be certain in terms of
execution and operation principle that would be conspicuous and clear based on realization of
terms and conditions of contracts provided due maintenance of the criterion or condition
there is minimum possibility of breach of contracts by any party having consent in the
contract for the purpose of carrying out business and marketing operations.
Lawfulness on contracts: Every principle based on contracts is based on several legal norms
or principles and it is due to the various lawful features that the contract is fully being
responded by the business entities in terms of meeting with their goals or norms in terms of
satiation of principles of contracts based on system of corporate governance. In terms of
electronic communications, there are certain fields that laws and regulations are not
applicable. It may possible that due to internet glitches and slower communication, a
respective receiver may not get concerns of contracts just in time. In order to manage all of
these misconducts Postal Acceptance Rule has denied considering time related glitches in
electronic communications and agreements.
1.2 Discuss the effect of various type of contracts with examples
1. Unilateral and bilateral contracts
Unilateral contract is based on the decision and action taken by the single party or party on
side of the decision or one party in terms of which the decision or superiority of one party is
considered a superior as against the action or strategy plan taken or adopted by another party
of lesser or null relevance in the contract. Most important example of unilateral contract is
reward contract where one party or group or people who say have lost something posts an
advertisement in a public newspaper in terms of grant of prize money to anyone who will
return him the lost item somehow depicting a scenario of unilateral contract
(Fettahlioglu&Afsar, 2016). As for example the case of Carlill v Carbolic Smoke Ball can be
referred. According to the advertisement made by Carbolic Smoke Ball Company, a person
would be rewarded with an amount of 100 Euro if the product fails to treat influenza. When
the respective buyer failed to experience remedy, she made an appeal to be paid of the said
amount. When, the court accused the firm, it said that it was not a serious agreement or
contract and they are not liable to pay the amount, but finally, court made the decision in
favor of the applicant. This is one of the burning instances of unilateral contacts.
Bilateral contract is a contract based on the decisions or actions or strategies to be
implemented by both parties engaging in the contractual process of agreement based

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decisions and implications of the well decided norms and principles of agreement. Bilateral
contract is based on type of contracts in terms of simultaneous strategies or actions taken by
both of the contractual parties. Example is treatment based contract with a doctor who in
order to check up your metabolism for treating you from your illness engages in a contract in
terms of treatment being provided to you against receiving some desired amount of fees or
payments (McCaffrey, 2017). Offer related contracts are mostly bilateral contracts. The major
difference with unilateral contract is that both parties have engagement in such contracts. For
example if a respective person promises for an offer in certain conditions, and any of the
reward receivers accepts the same, it is termed as bilateral contract. This type of contracts are
evident amount two or more people after having an acceptance by all.
2. Void and Voidable contracts
A contract can be termed as a void contract when one of the engaged parties reject due to
unavailability of satisfaction or in other terms. Generally, when a contract is made one of the
parties holds optimum engagement or bound to the same whereas another one is not bound. A
voidable contract is supposed to be enforced but cannot be repudiated by any of the parties.
The authority is bound to the respective head who is not bound to the contract.
If the policy negates or is abolished or becomes nonexistent due to some repercussions in the
economic structure then it cannot be enforced under any condition by either of the two parties
engaging in the contracts (Henry, 2016).
The contract which is either enforceable or can be made redundant by one or the other party
is known as a voidable contract. As a reason, the contract is known as voidable in case any
party in the contract would reject the terms and end the contractual relation at any point of
time. An example of this type of contract is if Mr. Jordan threats Mr. Smith to sell his newly
made garden to him which will amount to the damaging of property of latter by former, then
the contract is termed as a voidable contract if the consent of Mr. Smith is not free of cost as
he can avoid his damage by listening to Mr. Jordan or simply by avoiding him to go in favor
of selling his house.
3. Distance selling contracts
Distance selling contracts are those contracts for which the process of accesses of contractual
policies or programs by the persons entering into contracts are not possible and the items
agreed to be bought or sold to and from between persons in forms of transaction of goods and
payments regarding the same are not done tangible but by online mode or manner but a

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detailed description of goods of contract is mentioned or available to the online buyers and
also services of shipment are also made available to the online buyers for the sake of making
comprehensible the online shopping process to the buyers (Al-Nuemat& Mohammad, 2016).
For example a customer buying a Video accessory from online shopping store namely flip
kart is given the information that his bought good will be delivered to him within the requisite
period for the sake of his online payment through payment through debit card mode or credit
card mode and all the necessary details of business are made available to the customer
instantaneously at the period after making payment.
Task 1.3 Analysis of following terms related with contracts
Express terms:
Mean: Express terms are mentioned and agreed by both parties in a contract either in written
document or verbally. In most of the case, it is not included within a contract as it does not
make sense commercially.
Effects: As mentioned in Esso Petroleum v Mardob [1976] QB 801, the company want to sell
2000,000 gallon of petrol however it was not mentioned . Due to this the company was made
a loss of £5,800.
Implied terms:
Meaning: Implied terms are settling down of default rules that have been given in a contract.
The rules need to be recognized in a legal manner and must be consistent with express terms.
Effects: National Minimum Wage Act 1998 state that the contract made before joining that
all worker should be paid the minimum wage that is set by the Parliament .the minimum
wage for each hour is £6.19 since October 2012.
Condition:
Meaning: Conditions within a contract are various clauses that have been agreed by both
parties and set down in the contract.
Effect: These helps in understanding the clauses and requirements of the both the parties.
This also helps in meeting the stated rules within stipulated time.
Warranty:

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Meaning: It highlights the time for which the contract is valid. The validity is dependent on
the parties issuing the contract.
Effect: It affects the condition of the contract made by the two parties and the extent to which
the clauses can be made.
Inanimate terms:
Meaning: Inanimate terms is a part of implied term which cannot be classified as condition or
warranty. It is an imtermediary term (Bagheri&Hassan, 2015).
Effect: It help in determination of a contractual term is a condition and depend solely on the
party that is bound to perform.
Exclusion clause:
Meaning: Clause based on the fact of restricting the rights or schemes offered to certain party
or parties affiliated to the contract.
Effect: It limits the rights and privileges of undeserving employees.
Task 2 Terms of contract based on different case scenarios
2.1 Analysis of terms of contract and assess whether the parties in the case
have at all made any contract by applying each of the essential legal
elements of a valid contract
The analysis of terms of contract and assessment of the parties in the terms of legal based
essential components of a valid contract can be analyzed with three criterions of terms of
contract:
The goods based on contracts were either not described properly or of inferior quality or were
not suitable for the purpose of meeting the contracts (Bogdanova, 2015).The terms of the
contract based on the scenario of sale of Airbus 321 is valid as condition of the sale of Airbus
321 to the aviation industry for 1.04 million pounds is not met then the condition of sale of
the airplane to the other will not suffer but since the managing director under the guidance of
C.E.O is aware of the promise that the latter will not allow the Airbus 321 to be sold to

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another authority in spite even if another buyer is available and entices the Director to do so
by a promised payment of 100,000 pounds if the airbus is not sold to another buyer apart
from the aviation industry for five days when C.E.O is off for a business trip. This case
depicts a scenario of valid contract in terms of all essential features of quality legal properties
starting from strong and intense agreement procedure, true consent , true condition for
approval of the contract by the managing director of EMA(East Midland Airways )bus and
the legal issues or laws dependent on the same in terms Of Sales of Goods Act will also hold
suitable for the terms and conditions of the Act because the product or item of sale that is
Airbus a321 manufactured by EMA is always a good quality , properly described goods and
fitting of goods for the purpose of sale that is for use by the aviation industry for air services
to be catered to the nation of United Kingdom because there will be least chances of breach
of contract and tort of negligence as the C.E.O is witnessed to take such a step that there will
be no inefficiencies in terms of sale of the product Airbus 321 (Johnson, 2015).
The elements of valid contract are offer, which is an agreement made in the contract to
validate the contract. The contract needs to be accepted by both the parties in order to
validate the contract. The intention to create legal relation is an important element because
according to the Contract Act of 1950 it is prime factor for creating a valid contract. The next
element is certainty in which the parties need to agree on the entire clause incorporated in the
contract. The last element is capacity that refers to the legal capacity of the contract. For
example, to be a party in a contract the age requirement is 18 years or above.
2.2aSupply of mobile phones
a.First situation
In case of purchase of 300 mobile phones by an UK company for its immediate use in the
United Kingdom. Though the mobile phones supplies were illegal in the United Kingdom, a
little modification will cause the use legal in the United Kingdom but under the condition that
the company will not be using the bought cell phones. This is a pure case of breach of
contract in terms of the breach of a particular condition or conditions of fruitlessness of some
terms and condition of manufacturing of mobile phones which may be suitable. Business
based standard quality maintenance and lags in certain manufacturing criterion by the foreign
manufacturer for which there is a case of breach of contract by the foreign company which

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was noticed in form of lags in the business process of the manufacturer of land abroad from
United Kingdom (Odinet, 2016).
b.Second situation
The second situation of non-fulfillment of a particular term of business process is felt by the
anomaly seen in the mobile phones for which it was not suitable for immediate use by the
United Kingdom due to tuning inefficiencies and this is a case of tort of negligence as can be
determined from the scenario because the tuning frequencies may be improperly designed
due to absent mindedness or lack of concentration or negligent role played by the
manufacturer of the foreign designed mobile phones for its sale in the United Kingdom
(Gergen, 2013). In a similar case of Carlill v Carbolic Smoke Ball Company, there was
negligence as a result smoke ball was advertised.
2.2b Advices to Cathy whether the exclusion clause incorporated in her
contract with Brake’s Limited by the use of Common Law rules is valid.
As per the terms and conditions of Common Law Rules, it was described that it was definite
to advise Cathy based on the inclusiveness of exclusion clause in the contract between Cathy
and Barker’s Limited based car repairing company because of certain features of tort of
negligence which caused the car accident for improper functioning of tort of negligence as
per the terminologies of Common Law Rules based features.
Common law rules is a legal precedent made by judges that is a codified by the parliament
and is constant changing. Statutory rules are employed in public to prohibit certain activities,.
This is case the illegal supply of mobile phone is a statutory rule.
2.3 Evaluation of the effect of exclusion clause and unfair contract terms on
Cathy’s contract
Unfair contract terms based practices of UCTA 1977 and UTCR 1999 do not accept all
contract terms but it considers only exemption clause based on business liability based
decisions but in terms of exemption of judicial clauses and other company related clause
liabilities of business in terms of limit in the fixation of contracts or terms of business liability
based processes based on set of mutually exclusive or exhaustive list of exemption clauses of
business which will surely depend on certain features of unfair practices based norms
(Rahman &Yazid, 2015). In case of Cathy, the norms and practices of UCTA 1977 and

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UTCR 1999 does leads to the violation of certain criterions of contract for sale because the
sales based repairing criterion of steering mechanisms lead to several distortions based
deformities featuring tort of negligence in the matters of Cathy’s conflict with Brake’s
Limited based steering company. In terms of judgment of pattern of reasonability of UCTA
and UTCR related contracts violation of any feature of the unfair practices is strictly against
the formalities and ethical norms of the act. In terms of violation of certain criterions of
unfair practices of the UTCR and UCTA, it is not legally binding for the customer to follow
legal proceedings because violation of private cause or scenario is not always under the
provisions of unfair practices act.
Task 3Torts of negligence and contractual liability
3.1Contrast liability of tort with contractual liability
Liability of tort is a condition when injures someone in a way due to utter negligence for
which the wronged person may criticize the wrongdoer for his negligence which is the
concept behind tort of negligence. On the other hand contractual liability is a term when
either party engaging in contract does not perform according to the terms and conditions of
business (Burnham, 2014).
Tort of negligence is inform of defamation based negligence based situations and
circumstances while contractual liability does not have such provisions. Tortuous liability
arises because of breach of any condition of contract fixed by laws fixed under private or
public means and can be redressed under conditions or strategies based on unsolicited
damages. Contractual liability holds the opposite position of business as it is a case of breach
of terms and conditions of business by either entity of parties being engaged in contracts for
which the responsibility of business loopholes is responsible to be cured by both parties
engaged in business processes (Burnham, 2014).
3.2Nature of liability
The nature of liability in negligence faced in business due to tort of negligence is based on
the concept of negligence of duty due to the condition or scenario that the restaurant
authorities are neglecting their duties on the basis of extreme absent mindedness in terms of
preparation of quality food and even failure to prepare clean and proper food least suitable for
eating because the customers Carlos and Janet are even not receiving food which is digestible

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as Janet feeling ill due to the unsuitable food provided to her by the restaurant which is of
otherwise a restaurant of class mark.
3.3Vicarious liability
The manner by which a business can be vicariously liable is that the business is earning the
reputation of being corrupt or becoming bankrupt even though it is not so or even though it
has not committed any crime or blunder (Muhammad &Kusuma, 2014).
Task 4 Applying elements of tort of negligence and defenses in different
situations
4.1 Describing liability of tort of professional negligence misstatement
Professional negligence refers to the act where a party that owes a duty of care to the
defendant fails to provide the same to the concerned authority. Business organizations are
liable to its customers when committing any wrongful act during their interpretations.
Professional negligence misstatement occurs when organizations make inaccurate statement
in an honest but careless manner to the other party in form of advices (Sharkey, 2016). These
advices are made by party having specific skill or knowledge to the other party not
possessing relevant skills where both the parties have a relationship such that the first party
has a duty of care to the other one. Liability of tort entails that such misstatements or actions
are brought to the knowledge of the court of law where punitive or civil actions are initiated
against the guilty.
In order or prove professional negligent misstatement, it is required that appropriate elements
of negligence are breached and the same is proved in the court of law.
Element of fault: element of fault depicts that the plaintiff has to produce proof denoting the
other party committed has been negligent in providing professional service either
intentionally or unintentionally.
Element of actual damage: The plaintiff needs to prove that they have incurred actual loss,
damage or injury out of the negligence behavior or act or statement made in the context of
providing service to them (Barker, 2015).

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Element of remedy: The liability of tort as applied by the courts enforces that the plaintiff
are placed into the same position in pretext of the health or job that they enjoyed before
subjected to severe actions.
Element of duty of care: The onus lies with the concerned plaintiff to prove that they owed
a duty of care from the other party and that it has failed to maintain that law and liable for
negligence
Identifying rights and remedies, based on legal principles of tort of professional
negligence misstatement and vicarious liability
In the given case, while providing services to Angelina in assessing the value of antiques
furniture’s possessed by her, Brad, an employee of Christian Auctioneers, showed
professional negligence when Angelina enquired about the value of a painting she inherited.
He did so because he was instructed by his employer Christian Auctioneers not to advise
anyone outside his field of expertise. This act by Brad under instructions of his employer is
liability to tort under legal implications of professional negligence misstatement and
vicarious liability. According to legal principles of Professional negligence misstatement,
Brad has commitment wrongful act and betrayed professional oath by not providing
necessary information to his client Angelina. He has failed to perform his duty with dignity
and truth conveying false statement to Angelina that her painting was not worthy. She
incurred loss as she sold the painting for mere £100 believing to Brad’s statement. As per the
legality of vicarious liability, the employer here Christian Auctioneers is also liable to legal
proceedings for negligence of its employee Brad while convening his duty even though the
act was not performed in employer’s presence. It entails that employer cannot run from its
responsibilities and should monitor actions of its employees (Barker, 2015). The case
becomes stronger by the fact that the instruction was conveyed by the employer itself
allowing Brad to show negligent behavior.
In this regard, Angelina enjoys certain rights under which she can take legal actions against
Christian Auctioneers in the Court of tort. She can claim that Christian’s employee acted on
its instructions thus provided her with inaccurate information in the line of duty. The
employer is as responsible as the employee and liable to punitive measures (Morgan, 2015).
This can be suggested by certain cases for example Hedley Byrne & Co Ltd v. Heller &
Partners & Esso Petroleum Co Ltd v. Mardon and Bayley v Manchester, Sheffield and
Lincolnshire Railway Co.

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Angelina can also file legal cases against Brad as he did not carry his duty within professional
ethics and failed to maintain the dignity of his profession. His mistakes in statement and
negligent about the painting accrued potential loss to her.
4.2 Applying elements of vicarious liability in different business situations
Defining three available defenses: A defense in legal terms is defined protective measures
to avoid legal claims in terms of civil or criminal activities against society. In a breach of
agreement, there are some possible fields that an accused can manage for a defense. On of the
most popular defense may termed as affirmative protection. In this concern, an accused and
hired lawyer mostly concentrate on reducing the factors and responsibilities of causes that
have been resulted into contract breach (Shoptaw, 2014). Practically, a business contract
needs some beneficial aspects for any of the engaged party when there is a matter of breach
available. On the other hand, some common affirmative defense tends to engage some
required evidences. Those evidences include violation of norms instead of having valid
agreement paper and inadequacy of engaged parties to maintain norms. In different cases
defense party treats all such basics of protection that a respective accused can overcome the
criminal charge (Brown, 2017). In this regards, the tests of vicarious liability is significant
enough to evaluate the criminal charge as stated below:
 Cox vs Ministry of justice
 Mohamud vs Wm Morrison Supermarket Plc
 Claimants vs Catholic Child Welfare Society
In the referred case study, there are certain fields that Angelina can make a charge and claim
of violation business contract against Christian Auctioneers and especially the agent breach,
but at the same time, there are some scopes that both possible accused parry can prepare a
stronger defense. Available plots of defense are as follow.
Defense in favor of Christian Auctioneers: As it has been stated and justified above that
Angelina carries enough options that she is misguided by the concerned professional group
Christian Auctioneers, The reason is valid as having proper information regarding the vintage
painting, Angelina should not sell it at a cost of $100 only. On the other hand, the accused
may create a defense that the respective group was not informed about such valuable painting
that exits in UK. Besides this ethical consideration, Christian Auctioneers can levy entire
blame on the engaged professional. One of the stronger defense can be claimed that there is

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no valid contract or statement managed from both hands that the respective professional
group holds the responsibility of auctioning the vintage property at the right price (Grenieret
al. 2015).
Defense in favor of Brad: There are also provisions that Brad can be charged under the
norms of negligence and tort of business responsibilities. Angelina has shown the property
and Brad have not provide valued information reporting price and possibilities of sale. In that
concern, Brad can be termed as guilty of misleading a client, but at the same time he can
manage a stronger shield as he has been instructed by the superior professionals. Besides that,
a respective professional is not bound have all of the information regarding products and
service available in the market. Therefore, business ethics are the basic supportive defenses
that Brad can prepare. After that, likewise Christian Auctioneers, Brad can get the advantage
that there is no record kept by any hand that the professional has visited the property in terms
of making business. All these events may work in favor of Brad. On the other hand, Brad
may face threatening concerns of the organization as Christian Auctioneers can make a claim
against Brad in order to save entire group of professionals and the respective organization.
Conclusion
The interpretation mentioned here is that the process of contracts formation and maintenance
and aspects of breaching of them and torts of negligence witnessed in terms of defying the
contracts in one way or another is seriously being felt in the business based on contracts
formulation and their effective obeyance by the firms or persons engaging in contracts in the
form of agreement,consent , consideration and laws based criterions.
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