Comprehensive Report on Contract Law: Key Aspects and Case Analysis

This report provides a comprehensive overview of contract law, including essential elements such as offer, acceptance, competent parties, consideration, and free consent. It differentiates between various types of contracts, including unilateral, bilateral, contracts under seal, simple, written, and verbal contracts, as well as face-to-face and distance selling agreements. The report also examines the importance of contract terms, distinguishing between express, implied, conditions, warranties, and innominate terms, and analyzes the function and validity of exclusion clauses. Furthermore, the report includes case studies to illustrate the application of contract law principles, such as unilateral contracts and the limitations of exclusion clauses, providing a thorough understanding of the legal implications and practical applications of contract law. Desklib provides a platform for students to access past papers and solved assignments for further assistance.

ASPECTS OF
CONTRACT

INTRODUCTION
Contract is an agreement after accepting the terms of the contract that binds the parties
and which is enforceable by law. This report gives an idea about the contract law where parties
create rights and liabilities to complete their duty. There are few elements that follows by the
party offer, acceptance, competent to mnake a contract and legal consideration. It binds the party
by enforcing law to complete their part of performance. If any party breaks terms of agreement
then it arises the breach of contract (Appleman, Appleman and Holmes, 2015). Tort law governs
where by act of a person causes damage to another person by his negligence. . A person must
owe the duty of care in his activity and in case other party suffers any damage then they are
liable to pay the amount of loss. This report stated that if an employee has done an act and it
created some loss to him or another party then he is liable for the loss occurred. There is the
vicarious liability of employer to compensate the injury of other person. A person who does not
owe the reasonable care in his task must be liable for damages.
TASK 1
1.1
Parties are making an agreement to deal with the goods and services by following the
terms of contract (Ayres and Ayres, 2012). There are various elements that should be followed
by the parties to make an agreement.
Offer: A person makes a proposal to another party to do something or not to do. Offeror
gives an offer to accept it for a particular task. Offer is inviting to the public to accept by
negotiating the price.
Acceptance: Where another party accepts the offer, it becomes the contract in same
sense. A person who accepts the offer must communicate his consent to person who made the
same (Bochicchio and Longo, 2011).
Competent parties: Parties should have the competence to make a contract. A person who
made a agreement must be of eighteen years or above to accept the contract terms. Parties must
have sound mind at the time of giving consent.

Consideration: To accept the agreement , there must be a valid consideration to make a
contract. Parties should give their consent to accept the terms and amount specified in contract. It
must be legally valid and according to the terms of contract in monetary or kind The price of
the contract must not be in past or future. It bounds the parties to complete the contract.
Free consent: Parties to the contract must give their free consent to agree on the terms of
contract. No one can influence parties to accept the offer by making agreement. A contract
agreement which is influenced by other parties does not make a valid contract (Boddewyn, 2015)
. In this case, Allcard v Skinner (1887) 36 Ch D 145 court held that undue influence on the part
of plaintiff and the gift were voidable. She was not liable to recover the due amount because
negligence on her conduct.
1.2
A contract has various types of transactions to deal in a business by the persons. Parties
are bound to follow the terms of documentby making a valid contract (Combs and McClung,
2016). Here are various types of contracts that are needed to be discussed by the parties-
Distinction between various types of contracts made between the parties:
Unilateral contracts: This type of contract
only by one party and no promise exist
between both the parties. A Person cannot sue
to other person by not to performing an act.
Eg: A lost his purse and B find and send it to
A. in return he is offering him some amount to
accept this.
Bilateral contracts: his the The teo sided
contract where parties making a promises
between them. Eg: If one party made a promise
for buying his computer then parties are bound
to complete the agreement.
Contract under seal (Deed): This contract
must be in writing with the seal attached and
there is no need to give any consideration by
the parties (Fargion, 2016). It contains the
intention of the parties with their signatures to
deliver them.
Simple contracts: It can be in writing or oral
and does not have signed by the parties and no
record of this contract.
Written contracts: It is a contract where
parties have given their consent in writing and
Verbal contracts: It is a contract where parties
accept the offer by various communication

made a legal contract by both of them.
Example: Aloy makes an agreement to supply
the goods to his Agent Lomi. After accepting
the terms of contract to bind each other to
complete it.
ways such as Mobile, Radio and others.
Face to face: Parties agreed on a particular
task by making a conversation between them
(Fisher and Kalbaugh, 2012).
Distance selling: Making various agreements
through different types of modes like internet,
e-mail and TV. etc.
1.3
Terms are an important part of contract to understand in a legal way. Parties giving his
consent to the contract after accepting on all the terms to the agreement.
Express Terms: This term is agreed by the party in the document which specified in the
words. This term is written in the contract by stating various terms of the contract like wages,
increment period, timing in the office etc.
Implied Terms: Parties are silent in the agreement and it implied by the law, custom and
according to the facts of the case (Forster, 2010). There are so many act that has implies term
according to the Consumer Rights Act that a consumer must have the goods from its supplier in a
standard quality.
Conditions: This is an important part of contract that has many conditions that need to be
fulfilled by the parties in their act. If any party does not follow the terms of contract, it arises the
breach of the contract. In this situation, person has a choice to repudiate the contract or claim for
damages.
Warranties: This is not so important because parties does not need to state the warranties
in their contract. They are not focusing on this and if any party breaks this then another one can
claim for loss but cannot cancel the contract (GU, XU and GUO, 2012).
Innominate Terms: This term can repudiate the contract or gives injury to the contract.
In this case, The Mihalis Angelos [1970] 3 WLR 601 court held that it was not a fact but a
condition and no loss to defendant. Classification is a condition in the shipping contracts for
commercial requirement.

Exclusion clauses: This clause contains no liability on the other person's part. This is the
clause which gives an exclusion from the liability of contract. Parties may rely only when it is
incorporated in the document and validity to this. In a situation, Bally maintains a park and
charges for entry tickets. It includes a notice that if any injury happens to the person then they
are not liable for this. It excludes form the liability but it is an unfair clause that is not valid.
Task 2
2.1
In this case A car company making an advertisement in local newspaper. Company
offering to general public to get anew car by finishing the task they have stated in their offer.
Abel wants to do this task and he accepts their offer by run up to the mountain within the
specified time (Guo-sheng, 2013). Abel reads the advertisement which stated that the person who
run up to the mountain on 1st November by taking the ticket form his agent on the mountain and
return within three hours at his showroom surely they will get new cars to first three persons.
Company showing his proposal in a serious way by putting his three cars at the front of the
showroom where any person can see this and public passes by here. Company gives his offer and
after that cannot revoke his offer after accepting by the other party. Abel has successfully his
work on recorded time and able to get the car by completing his challenge. Abel accepts the offer
and get their task in demanded time to complete this. After completing his task Abel now asking
for his reward but the manager of the car company rejected to give him a car which he had won
by fulfilling the challenge. Abel seeks for reward and company denied to give him car.
This is the unilateral contract made by the parties where no promise made between the
parties but one person in on obligation to do the same (Hakanen and Roodt, 2010). Abel and Car
company has made no promises between them but after completing the challenge by him,
company is on obligation to give him car which he specified in his offer. Car company is liable
to give him car with the terms of the contract.
2.2
Exclusion clause must be incorporated in the terms of the contract and discussed with the
parties. This clause is not valid according to the law because it is unfair at sometime. This clause
excludes the liability and limit to a person. This clause in not valid according to the law terms.
This term can be included in the contract and parties work according to the term. It can limit the

rights of the parties under a contract (He and Li, 2011). In this case L'Estrange v Graucob [1934]
2 KB 394 court held that at the time of signing the contract both the parties are bound by all the
terms that are specified in the contract whether she had read it or not. She was not successful in
her claim. Where a person suffers form damage by this clause so he can claim for the damages
before the court. This clause can only be valid if they have been contained in the contract and not
invalidate the law. Sometime there are some clause that can be legal if it has implied term given
by any law that cannot be excluded (Kraft and Kwantes, 2013). A customer must have the right
to take the satisfactorily goods with follow certain standards under the Consumer Act 2015. He
has the right to take the goods in good quality at the time of purchase rather exclusion clause
includes in the document. If one party deals with the consumer to sale certain things by
following certain terms of a business, then the another party cannot limit his liability for breach
of contract. A company cannot protect himself by specifying the clause in the contract.
2.3
In this scenario, Rani is the owner of the car company and she advertises to sale the car
by giving discount on 50% on the market price. Rani is offering to public in general to buy his
car by them. Eric saw the advertisement and go the showroom to buy one cars. He signs a
contract by accepting the terms of the company (Kreitner, 2011). Contract has a exclusion clause
which stated that one party has no liability if any injury causes to another party in terms of the
contract. Under this a notice shows that company is liable for any damage of property, personal
injury or loss arises from driving a car which has buy from here. Even Eric ignored the
conditions and signed the contract by paying the amount of the car. Eric starts to drive this car
and meanwhile he breaks the car to stop and there was some fault and it creates damage to him.
He crashes the Car in another vehicle and serious damaged occurs to him. He is suffering from
this injury and not able to go for work and losing hi income also. He claims for the compensation
amount which he has suffered from this accident to Rani (Li-qin, 2010). She shows him the form
where clearly mentioned that owner of the car is not liable for any injury from this car. Eric
suffers from personal injury and exclusion clause is not considered as valid this time. In the case
of personal injury occurs to the person then other party is liable to compensate his amount of
damage. Where a contract has the terms then it must be followed by parties to make a valid
contract. Parties are bound to follow them but here exclusion clause is not legally maintainable
so Eric can claim for the injury amount.

Task 3
3.1
Contrast liability: This liability occurs where a person causing prejudice to anyone rights.
Under the New Civil code a person should follow the duty under the conduct which not affect6s
the right of other. A person liable for the act done if there was any negligence on his part. It is a
valid civil liability that precede the social life with the applicability of law (Liu and et. al., 2015).
In this case Barrett v MOD [1995] 1 WLR 1217 court held that The MOD were liable because he
becomes unconscious with intoxicated and has the responsibility in his actions and breaches the
duty of care.
Contractual liability: Parties are making a contract by following all the terms of the
contract. Parties after accepting the agreement they are under an obligation to follow the rights.
Under a business parties are making contract to deal with many transactions. If any one of them
breaks the conditions of the contract it give rise to the breach of contract. If a debtor fails to fulfil
its obligation under a contract then he is liable to pay the compensatory amount to the creditor. It
is a form of civil liability that requires to pay the amount by the injured party (Nystén-Haarala,
Lee and Lehto, 2010).
Similarities between Contrast liability and Contractual liability:
Contract has two or more parties and any of the parties breaches the condition then it
occurs the breach of contract. In tort law if by the conduct of any party any damage occurs to
other party then they are liable to pay the compensation amount.
Differences between Contrast liability and Contractual liability:
Under the contract law parties are making relationship between each other to make a
contract by giving their consent. But in tort law there is no consent given by the persons it is
imposed by the court of law. It involves the impossibility by the legal liability on a person
(Pandele, 2012).
3.2
Negligence is a situation where a person does wrongful act by his carelessness. It creates
harm to another person by his act of conduct with his negligence. To prove a negligence there are
some points which requires by the claimant:

Duty of care: It is an circumstances where a person must have the reasonable care of his
legal duty. If the defendant fails to take care his duty, defendant will be liable tp pay the amount
of compensation. To prove the care of duty there must be the relationship between them,
defendant will be liable. In this case Topp v London Country Bus [1993] 1 WLR 976 court held
that the bus company must have the reasonable duty of care but he did not owe the reasonable
care. There was not predictable that thieves would issue with the bus and creates injury to the
woman by his act.
Breach of duty of care: A person must have the duty of care in case of any breach of care
and it causes harm to the person. Court will search that whether the defendant act below the
standard of work (Qi and Chau, 2015). Court consider many factors by showing following
factors:
If a person has the personal skill then it can not be the case of negligence.
Only emergency situation will be accepted in some cases.
Damage to the claimant: Where the person who suffers loss or injury by the result of
another person's action. In this case Fairchild v Glenhaven [2002] 3 WLR 89 court held that
claimant was successful in found cause. Under the Reform Act 1945 his damage would be
reduced. During the course of his self employment his risk were exposes.
3.3
Vicariously liability: It is a term which makes by the combination of two words the first
one is vicarious which means when somebody else do something on the place of someone else
and liability means whop is going to be legally bound to pay for that thing (Riesenhuber, 2011).
In simple terms, vicarious liability means when an employee commits any mistake or the thing
which is against the law and the employer become liable for that activity then the incident of
vicarious liability taking place. It can also be defined as when an individual is liable for the tort
of another person. In a case
According to business, when employer is become liable for the activity which is done by
employee of a firm, then it becomes the vicarious liability. Richard is a employee of Gibson,
Richard commits the mistake of delivering the expire product to the consumer and client sue
them in the court due to this incident (Rigby and et. al. 2015). So, now this time all the fault is
associated with Richard but Gibson become the liable to pay for this. It is concluded that all the

unlawful activity and the mistake is done by the Richard but the Gibson bears the whole activity.
From this case, it is concluded that vicarious liability means bearing the mistake of others
mistake by another person.
Task4
4.1
Negligence is the element of tort law where another person claims for damages by the
consequences of the action of other party. The defendant was negligent and it need to prove by
the court by many elements (Skyrms, 2014). If Defendant fails to care of his duty it breaches the
duty of care. There must be the relationship between the harm and act of the parties to prove a
claim. A person is negligence on his part of actions and responsible for the harm which could be
by his actions. A plaintiff must prove a legal harm which is of physical injury of him or loss to
his property. The failure of exercising the care in his work may cause damage to other person.
A person must shows the points to successfully defend his claim by various cause of act.
A defendant may get success in his claim or limit his liability by proving various factors.
Contributory negligence: A person can use it defence in the claim of negligence in part
of plaintiff. It occurs when plaintiff also negligence on his part and it occurs harm to plaintiff.
Eg: A worker is working in a factory without wearing the eye mask and it creates injury to both
him. He is negligent in his part also so both are equally liable for the damages caused to him.
Comparative negligence: In some cases it reduces the plaintiff's injury if the comparative
negligence applicable. Defendant is liable for the amount of damage in certain percentage (Sweet
and Schneier, 2012). Some cases there is the comparison between the damage if it is equal to the
defendant's negligence then also they are liable to the amount.
Remoteness: Defendant only liable when the damage causes with his act of conduct.
Defendant not always liable for all act which may be too remote. In this Re Polemis & Furness
Withy & Company Ltd. Court held that the defendant was liable for all the effect by plaintiff has
suffered. There was no obligation that damage was predictable.
4.2
In a case where a employee may do any misconduct then employee is liable in the course
of employment. Employer is always liable for the act done by the employee that occurs injury to
him or any other person. In this case Denis and his wife Emma going in a restaurant for dinner.

At the time of taking food she feels so sick and vomit all the food (TvarnÃ, 2010). She got admit
in the hospital and suffered from food poisoning due to expired food served by the chef George.
In this case employer is liable for all the damage cause to her because of his employee
negligence. There are so many cases where an employee works and occurs injury to another
person, but employer is liable for his injury (Wills and Napier-Munn, 2015). Persons must have
the reasonable care of his work and liable for the damages if any negligence arises on employee
part. Denis and Emma can get claim for the injury from the owner of the restaurant.
CONCLUSION
It has been observed that this report gives an overview about the contract act where
parties comes to on a term. They specified the terms of the contract between the parties and
bound to each other to complete their task. In a business various parties gives his approval to the
contract by following the duty of each other. If a party owe a duty and by his carelessness it
arises the damage to other party. Defendant is always liable in the case where plaintiff claims for
damages. Under a business employer need to compensate the amount of claim of another party
who has suffered loss. A business must aware of his duty in case of any damages occur with his
part.