ACNB: Comprehensive Report on Contract Law: Elements, Types, and Terms

This report provides a comprehensive overview of contract law, examining its fundamental elements, including offer and acceptance, competency of parties, and intention to create a legal relationship. It differentiates between various contract types, such as unilateral and bilateral contracts, written and verbal agreements, and face-to-face versus distance selling contracts. The report also delves into the significance of contractual terms, distinguishing between expressed terms like conditions, warranties, innominate terms, and exclusion clauses, and implied terms. Furthermore, the report analyzes two case scenarios, applying the principles of contract law to assess the presence of essential elements and the implications of exclusion clauses and breaches of contract. The analysis includes considerations of offer, acceptance, consideration, and the liabilities associated with contractual agreements.

ACNB
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
1.3.................................................................................................................................................5
TASK 2............................................................................................................................................6
2.1.................................................................................................................................................6
2.2 & 2.3......................................................................................................................................7
TASK 3............................................................................................................................................7
3.1.................................................................................................................................................7
3.2.................................................................................................................................................8
3.3.................................................................................................................................................9
TASK 4..........................................................................................................................................10
4.1...............................................................................................................................................10
4.2...............................................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
The English Legal System mainly focuses on the provision of different laws such as the
law of contract, law of tort and the law of agency (Huang, Yang and Zhang, 2012). The law of
contract is essential for the business as well as contractual parties those who are agreeing into the
contract so that they may perform proper activities so that it might not impact the other party.
The law of contract also protect the interest and right of the weaker party from the offensive
action performed by the other party. The present report focuses on different scenario that would
support in analysing the key elements and terms within the contract. Along with this, report will
also focuses on the explaining different types of contract that must be formulated by the parties.
Moreover, different terms within the contract is also assessed by the parties so that they may
easily engage in the formation of valid and legal contract. Lastly, it will also focuses on
contrasting the liability in contract with the tort liability as both are the different in nature but the
key similarity among both of them is that they protect the interest of innocent party.
TASK 1
1.1
As per the Law of Contract it has been assessed that for formulating the valid contract it
is essential to meet the different elements of the contracts. The contractual agreement is said to
be valid in the circumstances when it possess the elements as well as enforceable by the judicial
proceedings. All the elements plays significant role in the contract as it support in demonstrating
the legality of the contract (Oya, 2012). The elements includes- Offer and Acceptance- The key element required for formulating the valid contract
include offer and acceptance. The term is offer is defined as the proposal that is given or
provided by the party to specific individual or to general public. Therefore, in the
situation when the individual or party accept the offer that is provided by the offeror then
there is formation of the legal and valid contract. Through considering the case scenario
of Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401 it has been stated
that advertisement or showcase of the products or goods will not be consider as the offer.
According to the judicial proceeding it is termed as invitation to treat (Soares, 2015).
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 Competency of parties- Another essential element in the formation of contract include
competency of the parties. In which the law has stated that parties must only be entered
into the contract if they are competent in nature that is they have attain the age of 18
years, must be of sound mind at the time of formulating the contract, the person may not
be in the drunken or lunatic etc. If all the conditions are met by the party then they are
eligible for formulating the valid contract (Gross and Lentin,2012).
 Intention to create legal relationship- Another essential element accordant with the Law
of Contract include intention of the parties while formulating the contractual agreement.
In the situation if there is illegal intention of the parties then the contract is not consider
as valid in the situation. The legal authorities has stated that agreement that was
formulated on the ground of social and domestic nature do not consider as the legal
relation (Sheblé, 2012).
1.2
The legal representative has stated that there are different types of contract that is
formulated by different parties within the business organization it mainly include- Unilateral and Bilateral contract- The key type of contract is unilateral and bilateral
contract. In the Bilateral contract parties within the contract mutually constitutes a
promise for rendering effective performance that would benefit both the parties. On the
other hand, Unilateral contract are the one in which single party gives the offer to other
party and they perform their actions by accepting their offer (Leon, Garcia and Marco‐
Contelles, 2013). The impact of Bilateral contract is that it mutually benefit both the
parties as it represent a promise for a promise. On the other impact of Unilateral contract
is that it represent promise for enabling the execution of performance by the other party. Written contract and Verbal contract- Another type of contract include written and
verbal contract. The written contract ensure proper formation of contractual deed with
stated mutual terms and condition that need to be binding on both the parties. On the
other hand, verbal contract is different from the written contract (Lebowitz, 2012). Verbal
contract ensure parties orally agreeing to the terms and formulating the contract without
any written deed. The impact of written contract is that it act the key proof to the party at
the time of dispute that they have entered into the contract. On the other hand, the impact
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of verbal contract is that at the time of conflicting situation it may not consider as the
evidence therefore party is not liable to pay for the compensation. Face to face contract and Distance selling contract- Another form of contract include
face to face contract in which the parties are physically present at the time of formation of
contract (Bardovi‐Harlig, 2012). On the other hand, another form of contract include
distance selling in which the party contract with the other party that is at the distant. The
contract is formulated via email, letter or over the telephone.
 Contract under Seal (Deed) and simple contract: Contracts under seal is a kind of
formal contract that has a seal of the signatory on it. These types of agreements are
developed without any considerations and produced in physical form i.e. on the paper. On
the other hand, simple contract is not necessary to be produced on paper. It can be
developed in writing or orally with valid considerations. The deed has to be made with
clear and loud intentions declared on the contrary, simple contract may or may not
produce intentions related with the contract.
 Difference between deed and simple contract: As per the fundamentals of law, it is
important to have offer and acceptance, intention of being legally bound and
consideration so as to convert an agreement to a contract. Contract can be in oral or
written format. However, in case of deed it is important that it is in written format.
Additional requirements with respect to signatures are required in case of deed. However,
the same is not valid in case of contract. In contracts, statutory limitation period with
respect to claim for breach of deed. However, in case of deed the period can be extended
to twelve years.
1.3
Through considering the Law of Contract, legal representative has explained that for
formulating the valid contract parties must pay proper attention to the different form of
contractual terms (Arlen, 2013). As, the terms are entered within the deed that ensure contractual
parties are bind to follow accordant with the terms and conditions. The different forms of
contractual terms are-
Expressed terms
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The foremost form of contractual term include expressed terms, these are those terms that
are clearly stated and expressed within the contractual agreement and that need to be bind by the
parties (Gifford and Robinette, 2014). It has been analysed that in the situation when parties are
unable to perform accordant with the expressed terms then parties are liable to compensate for
the breaching of terms.
 Condition- The key expressed terms within the contract include conditions. These are the
essential terms on the basis of which contract is been formulated among the parties. In the
circumstances if party breaches the condition then the other party has right to claim for
the remedies or terminate the contract (Xinyong, 2013).
 Warranties- Another terms include warranties these are the secondary terms expressed
within the contractual agreement. These terms are only imposed in the agreement to
support the main terms of the contract. In the situation if warranties term are not
accomplished by the party then the remedy that is available is providing compensation
(Li-juan, 2013).
 Innominate terms- Another expressed terms within the contract are Innominate term
these are the terms that are not considered as condition nor they are termed as the
warranty. According to the case precedent of Hong Kong Fir Shipping v Kawasaki Kisen
Kaisha [1962] 2 QB 26 the term can be further referred. Exclusion clauses- Another expressed term within the agreement include exclusion or
exemption clause. Imposing this clause within the contractual deed will confine the
liability of organization from the wrong activities performed by their staff. This can be
referred through reviewing the case of Chapelton v Barry UDC [1940] 1 KB 532.
Implied terms
Another key terms within the written agreement include implied terms these are those
terms that are not imposed in the contractual agreement by the parties (Illingworth and et.al,
2015). Under the English law these are the terms that are impose by the court and aren't clearly
stated within the agreement.
TASK 2
2.1
Case Scenario
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The case scenario states that there was an advertisement that was publish in the local
newspaper from City Car Dealers. The advertisement was seen was Abel. It clearly mentioned
that three new cars will be given to the first three person those who reaches at the city mountain
on 1st November and collect the ticket from the representative and then return back to the
showroom within the stipulated 3 hours (Shepherd, 2013). In order to show the sincerity three
cars were displayed to the public. Abel has taken the challenge and perform their services and
arrived at showroom in the stipulated time period with the ticket. But the City Car Dealer has
refuses to give the car. Thus, in this situation he could challenge the company in the court of law
for their actions.
With the help of scenario, it has been assessed that there are different essential elements
within the contract that is applied in the case (Gurney, 2013). It mainly include- Offer and acceptance- The case accomplish the key element of contract that is offer
through making offer in the newspaper and the offer is accepted by the Abel and he
renders performance through running to the city mountain and then return to the
showroom with collecting ticket (Love, 2013).
 Consideration- Another element of the contract within the case include consideration, it
mainly include exchanging the value for the another. Through reviewing the case
scenario there is consideration given that is three cars in the exchange of individual
performance (Moore and Viscusi,, 2014).
2.2 & 2.3
Case Scenario
The case scenario states that Rani owns business of selling car on the 50% off. Eric read
the advertisement in the newspaper and goes to the showroom for buying the cars where he sign
the contract that clearly mentioned that no liability is accepted for the injury and death of the
person from driving the car which is purchased from the showroom. Without reading this Eric
sign the standard form (Avraham and Schanzenbach, 2015). When the Eric was driving car he
come across the signal and put the break to stop the car but as the failure of break it looses
concentration on the car and crashes into the bus. Thus, it results in arising severe injury to the
individual that results in the loss of work.
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After discharging from the hospital he goes to showroom and meet Rani and demand for
the compensation. He also demand for the damages to the car and cost of repair. Where rani
point out to the terms mentioned into the contract (Huang, Yang and Zhang, 2012).
With reviewing the case scenario, it has been applied that there are certain law on the terms to
the scenario it mainly include exclusion clause. Rani has clearly mentioned exclusion clause in
the contract that mainly exclude their responsibilities from the personal injury, damages or death
of the individual arising from the driving a car. The exclusion clause was clearly mentioned in
the contract that has not been seen by the Eric. Along with this, the scenario also apply the
implied terms that is Sales of Goods Act. According to this act Rani is duty bound to provide
quality goods and products to the customers (Oya, 2012).
On the other hand, it has also evaluated that there are certain remedies that are available
to Eric that include Rani must provide them damages related with the car. The remedies mainly
focuses on that Eric must be compensated by the Rani as there was defect in the car. Along with
this, another remedies that is available for the Eric include that he must get compensation of the
physical injury that is occurred from the defective product and goods under the Occupier
Liability Act. Under this act the owner is solely liable for the injury and is also accountable for
the compensating to the injury.
Another remedy can be approaching to consumer court as per The Consumer Rights Act
2015. According to this law, unfair terms in the contract or faults in purchased goods are some of
the key points which can be used by the consumer for getting appropriate compensation from the
court. Eric can include these points in the legal allegation that is to be filed against Rani. The
Consumer Rights Act helps in safeguarding individuals from the unfair trade practises which are
non-beneficial to the customers of a product or service. Hence, fault in the product i.e. car and
unfair terms in the purchase contracts is a strong point of concern which can be used for getting
appropriate compensation. It is right and duty of an individual to receive quality product from
seller. Breaching of this implied contract gives right to the buyer to approach to the court and
demand compensation.
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TASK 3
3.1
The liability in tort and contractual liability are classified under the civil law. Both the
liability focuses on protecting the right and interest of the innocent party from the other party so
that they may easily perform their activities in the proper manner (Soares, 2015). Along with this
there are certain difference among the both the liabilities that are on the basis of different
grounds it mainly includes-
 The foremost difference among both the liabilities are on the basis of their origin. The
contractual liability arises when the party within legal agreement terminate the
contractual terms that affect the other contractual party in such situation contractual
liability get arises (Gross and Lentin,2012). On the contrary to this, liability in tort arises
when the individual performs their actions and it directly harm or physically injured other
individual.
 Another difference include that for attaining the contractual liabilities it is required that
parties must be entered into legal and valid contract. On the other hand, in the tort
liability parties are unknown to each other there is no contractual relationship among
them (Sheblé, 2012).
 Another difference among both the liability include that under contractual liability the
philosophy of Privity of contract is applicable in the situation. While, in the tort liability
the doctrine of privity of contract is not relevant in this liability of tort (Leon, Garcia and
Marco‐Contelles, 2013).
 Another difference among both the liability is that in contractual liability the provisions
related with vicarious liability is not been applicable. On the contrary to this in the tort
liability provision related with vicarious liability is applicable.
 The contractual liability can be understood through reviewing the case scenario of Avery
v Bowden [1855] (Lebowitz, 2012). while, the tort liability must be understood through
reviewing the case scenario of Barnett v Chelsa & Kensington Hospital [1969] 1 QB 428.
3.2
Negligence is characterized as the wrong activities that is performed the individual whose
result may be in the form of personal injury or harm to the other party. The liability of
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negligence often arises in the situation when the party is unable to perform their activities or
unable to exercise their duty with care that results in harming the other party (Bardovi‐Harlig,
2012). The key objective of the negligence provision within the tort law is that impose
responsibility on the organization and individual so that they may perform or execute their
activities in such a manner that it would meet the standard criteria. In the circumstances if the
party is unable to execute their activities with proper standard and care then in such situation he
is responsible for providing them remedies to the injury (Arlen, 2013).
The nature of liability is negligence can also be refer through reviewing the case scenario
of Donoghue v Stevenson [1932] AC 562 Mrs. Donoghue went to the cafe with his friend to have
beer and ice cream. The beer comes into the opaque bottle therefore, the content of the beer was
not visible. Friend pour half bottle of beer on ice cream and eat it. Lastly, she pour down all beer
on ice cream and found decomposed snail emerging from the bottle. Therefore, Mrs. Donoghue
suffers personal injury. Through assessing the above scenario the the nature of negligence come
into the existence (Gifford and Robinette, 2014). Therefore, to claim for the liability in
negligence the claimant must focuses on proving the following situation- Defendant owed them a duty of care- The foremost principle of negligence include that
suspect owes proper duty of care that is they need to perform duty with proper care so
that it might not results in carelessness. Defendant was in the breach of duty- Another principle of negligence include that
suspect must have breaches or terminate their duty that results in causing damages to the
other party (Xinyong, 2013). Breach of duty caused damages- Another principle for successfully claiming for the
negligence include that defendant breach of duty outcome in causing physical injury or
damages to the other party.
 Foreseeability- The last principle in the negligence include foreseeability that is the
caused damages and injury must be anticipated in the nature (Li-juan, 2013).
3.3
The Law of Tort also focuses on the provisions of vicarious liability that mainly states
that owner or the employer is accountable for all the wrongful and neglectful activities executed
by their staff (Illingworth and et.al, 2015). For instance, an employer is held to responsible for
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the improper or illegal action performed by their employees that mainly include discriminatory
practices, harassment activities etc. even though employer has not committed the actions they are
accountable for the actions of their staff.
There are different condition that need to be consider in order to successfully explain that
business can be vicariously liable for the negligent or wrongful activities performed by their staff
and employees. It mainly ensure that employee who have engaged in the tortous activities must
be within the employment period (Shepherd, 2013). Along with this, the wrongful actions
performed by the individual must be staff within the business organization. The term vicarious
liability can also be referred to the case scenario of Mattis vs. Pollock. Through reviewing the
case scenario bouncer working in the nightclub was involved in the challenging activities with
their customers. The bouncer has injured customer through stabbing knife and that lead to
causing them serious wound. Thus, through reviewing the case it was also assessed that when
bouncer committed the action he was employed within the night club. The employer is entirely
accountable for the tortous and wrong action performed by their staff (Gurney, 2013).
TASK 4
Case Scenario
The case scenario states that Denis took his wife to the restaurant for having dinner.
While having dinner Emma feel sick. Denis took her to the hospital where it was recovered that
she had suffered from food poisoning due to taking improper care of the food while preparing. It
was also discovered that due to carelessness of the chef she had suffered from the food poisoning
(Love, 2013). The chef of restaurant George was using the expired food products for preparing
of the food despite of several warning from the management. But chef has ignored the warning
provided by the management that results in attaining the food poisoning to Emma.
4.1
Through reviewing the case scenario, there are certain defences that is used by the
defendants in the scenario. The defences mainly include- Volenti non fit injuria- The foremost defence which could be used is volenti non fit
injuria in which the defendant voluntary perform the action that results in causing injury
or damages to the individual (Moore and Viscusi,, 2014). In this situation defendant
voluntary put themselves in the situation where they are aware of the risk.
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 Contributory negligence- Another possible defence is contributory negligence in which
the parties are contributing their services as they are aware regarding the fact that there
contributory action would results in negligent action to the third party (Avraham and
Schanzenbach, 2015). Through reviewing the case scenario Contributory negligence
would be applicable as management of the restaurant was also knowing that activities of
chef would results in food poisoning. As, they have warned chef many of the times.
Therefore, here contributory negligence defence is applicable.
 Ex turpi causa- The last defence is Ex turpi causa according to this negligent activities
performed by the individual must be justifiable in the nature (Lankford and Blaze, 2015).
The elements of tort of negligence which are applicable to the problem of Personal injury
are discussed below:1. Presence of a Duty of Care: Every individual has certain set of duties which need to be
followed on that particular instance or situation. In the given case, the chef had the duty
to present fresh food and use ethical practises in governing the activities of restaurant.
Despite of the presence of Duty of care, the chef did not fulfil his responsibilities and
neglected the drawbacks that can occur because of this negligence.
2. Breach of Duty: The element of tort of negligence is breach of duty. Under this element,
when one person who is owing certain duties towards another person, breaches the rule of
conduct then a breach of duty is said to have taken place. In case of Denis and Emma,
there was a breach of duty from chef George's side. He neglected his responsibility of
assuring good food to the customers and served expired food. Hence, the second element
of tort of negligence is also applicable in this case.
4.2
Through considering the above case it has also apply the provision of vicarious liability.
As, the wrongful and tortuous action is performed by the chef of restaurant that is he uses the
long expired food items for preparing the food. Therefore, in such situation for the wrong
activities of the staff management is accountable. In this case scenario the situation of vicarious
liability often arises and the management of the restaurant is liable for all the wrong activities
performed by their chef as it outcome in food poisoning to the Emma (Keating, 2015). under this
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