Aspects of Contract Law Report

This report provides a comprehensive overview of contract law, focusing on the essential elements required for a valid contract, different types of contracts and their effects on individuals, and various terms of contracts and their impacts. It also delves into contractual liabilities and their relation to tort liability, including negligence and vicarious liability. The report analyzes business scenarios to illustrate the application of legal principles and concludes with a summary of key findings and recommendations. The document also includes a detailed reference list.

ASPECTS OF CONTRACT

TABLE OF CONTENTS
INTRODUCTION .........................................................................................................................3
1.1 important elements which are needed in formation of contract ............................................3
1.2 Types of legal contract and their effects on individuals.......................................................4
1.3 Different terms of contracts and their impact........................................................................5
TASK 2 ...........................................................................................................................................6
2.1 elements of legal agreement in given business scenarios......................................................6
2.2 Various terms of contact.......................................................................................................6
2.3 Effect of law terms in given situations..................................................................................7
TASK 3 ..........................................................................................................................................8
3.1 Contractual liabilities and their relation to Tort liability.......................................................8
3.2 Negligence and their liabilities..............................................................................................9
Negligence...................................................................................................................................9
3.3 Business can be vicariously liable.......................................................................................10
TASK 4 .........................................................................................................................................10
4.1 factors of tort negligence in context to various situations...................................................10
4.2 factors of vicarious liabilities in context to different types of situations.............................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
In UK there are different types of laws and regulation which apply on individual before
making ant type of contract. There are several aspects of contract which need to be fulfilled in
order to make valid contract. A contract can be defined as legal agreement which take place in
between two or more than two parties. It creates legal responsibility for each individual who are
involved in making contract (Berger and Lester, 2015). The present report is based on the aspects
of contract under UK law and describing elements which are involved in making valid contract.
This report make analyze of different types of business situation which are given such as
different types of legal terms which are used for making contract. In addition, it makes analyze
on Contrast liability in tort with contractual liability.
1.1 important elements which are needed in formation of contract
Contract is a deal . We can write it or read it. Term of contract can be official or
unofficial. It can also be describe as agreement between two parties. Mainly there are six type of
essential elements of contracts which make it valid. Following are important element of
contract (Bowyer, 2016).
Offer
It is type of promise which make by one party towards another party. It is also called as
half agreement and if another persons agrees then can combine both parties. A offer must be
certain and valid.
Acceptance
Another element of valid contract is acceptance. A offer can be called agreement unless ir
is accepted by other party. To make contract valid it is important that to make acceptance by
parties to whom offer is presented without any condition (Berger and Lester, 2015)..
Consideration
In order to make contract valid there must be consideration. In exchange of promise
consideration is important (Connolly and Hoar, 2014). Consideration must have some value so
contract become valid.
Intention to create legal relation
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All the contract which are made in between two or more than two persons. It is important
that follow all legal requirement. Aim of both the parties is to maintain legal binding through
either express or implied contract.
Certainty
The most important element of agreement is its surety. The therm and regulation is
governed in contract must be implied by both parties of contract. And in case contract has no
surety then it is not justifiable.
Capacity
Parties which have legal ability to do contract is known as capacity in contract In the
capacity of contract it is important that both the parties have more than 18 years and have
capacity of contract (Costello and Hancox, 2014). Capacity means that person should understand
condition of agreement.
1.2 Types of legal contract and their effects on individuals
In UK, various kinds of agreements are applied to every individuals who are making
contract. Each contract consists with different types of condition and have different impact on
both parties. Following are the types of contract and their impact.
Valid contract
A valid contract is defined as justifiable if it is governed by law and all important
components are are present in it. A contract should be officially combined and in this all
important aspects of agreement should be involved. Impact of this type of contract is that it
create legal restriction on both parties in which contract have been prepared.
Voidable contract
Legality of contract becomes over if the consent of one part is not free and this is known
as voidable contract. A agreement is declared voidable if it lacks necessary elements of contract.
Then it is called voidable contract. Impact of this contract is that party which does not have free
consent is not bound to follow any type of rules and regulation.
Express contract
Under this type of contract parties make contract in terms of oral or written format. Both
the parties accepts the terms and conditions of each other and also accepts the offer given by
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each other. Impact of such type of contract is that it not essential to follow such type of contract
unless all elements of contracts are made (Dorfman and Cather, 2012).
Implied contract
Implied contract is defined as the offers and acceptance is made by the conducts of
parties. Impact of this type of contract is that it create a sense of responsibilities for both parties .
Along with this create obligation on both individuals.
1.3 Different terms of contracts and their impact
In a contract it is important that all parties are involved in making to know certain term
which are set in this process. An agreement should necessarily have the following condition
which are important to follow and explained below (Connolly and Hoar, 2014).
Implied term
Under this type of contract terms and conditions are not stated. It kind of moral obligation
which creates duty and responsibilities for both parties. Main goal of such type of contract term
is to make agreement more effective (Koutsias and Willett, 2012).All these expressions helps in
fixing the terms and conditions in trustworthy
Express terms
while making an agreement Express terms must be properly defined All parties must be
necessarily involved in making terms by signing contracts and expressed in terms. Both the
parties which sign the contract must be agreed on terms and also expresses terms are
compulsorily defined in it.
Exemption clause
In this clause breaching communities limit the liability of damages. At the time of
making contract it is important to make communication with another party (Lai, 2015). While
making contract with each other it is very important that liable and unlawful use of exemption
clause should be avoided.. Few communities can take advantage of this clause in improper
manner which leads to breaching of contracts.
Innominate terms
These are those terms and condition which are not explained and describing under
contracts. As this terms are very hard to understand it causes importance of contracts also
decreases. These terms keep vary little importance whenever any agreement is signed.
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Condition
Under this term and condition are explained in agreement and it is important to follow
each and every terms which are mentioned in contract (Liau, 2015). If in contract any individual
break or ignorance of any situation then other community can take official action against another
party.
TASK 2
2.1 elements of legal agreement in given business scenarios
Contract is legal agreement in which diverse terms and condition are signed in between
two or more then two parties. In the given case scenarios Ivan saws a HND law book which was
placed in the bookshop takes that books and went to counter to pay the amount of book which
was $50, but owner said that original books already have been sold and this is just a copy of the
book. The owner realizes his mistake and feels sorry for not removing the book which is already
sold by him to another person (Marks, Marks and Jackson, 2013). Ivan got disappointed after
this.
As according to UK law and contract for making a valid contract it is essential that all
important aspects of contracts are made. In the give case Ivan went to shop of owner and make
offer to purchase of contract. But Tandor refuse to accept offers which is second element of
contract so it is not considered valid contracts for the Ivan because element of contract are not
available.
2.2 Various terms of contact
There are different types of term which are associated with terms. There are various kinds
of elements that are important to make agreement for making a effective contract. Diverse
element which are treated in sales of contract act are given :-
Condition
In the selling contract it is important for the vendor to mentioned all points and condition
in contract which belongs to trader commodities (McInnes, Kerr and VanDuzer, 2013). In the
selling contract buyer defined as person who buy goods and seller is that person who sells goods
and services. The conditional term laid down all condition of contract which are in contract need
to be perform. In case of the any individual is fail to perform to any type of condition which laid
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down in contract then it is considered as breach of contract. In that case injured party has the
right to file suit in court and ask for damages.
Warranty
Seller gives the warranty of the the quality of product which he sells under Sales of goods
. In this contract Warranty are given on certain goods and products as according to their term and
conditions (O'malley, 2012). In this act, if any condition or term are not fulfilled then any party
which injured in this process have rights to claim damages. This act is basically related to quality
of products which are offered by them.
Innominate term
There are different types of term which are controlled by sales of products which are
defined clear in contract due to their unclear nature. It is very important that that these terms
should be properly defined in at mentioned space and in particular manner. It is type of
condition and warranties which need to follow in a contract.
2.3 Effect of law terms in given situations
As according, to the given scenario John went to the park that can be governed by
members of council He saw an information board in which states that“ chairs are available for
hiring and it costs 50.00p per hour”.He can get the chair by paying the the amount mentioned in
the board. Some troubles occurred and he makes compliant against management (Sprague,
2016). He was reduced to pay amount and reason stated that on the behind of tickets it is said
that “In case of any injury or damage no liability is accepted for any hired equipment”.
The above scenario is based upon Chappelton v Barry UDC. In which goods are defined
as the offer rather than invitation to offers. This case study is based on the offer. Acceptance and
exclusion clause. As per order of court it is justifiable contract and no clearly mentioning of
exclusive clause.
In the given case whatever damages are made by John are refused by management of the
park All important elements are followed in contract (Sweet and Schneier, 2012). John then sees
a notice board which states that by paying 50.00p per hour he can hire the chair and that's why he
pay the same amount. After some time John found some troubles with chairs and claim for
damages from management of park, but he refused to pay amount. Reason was given that on
backside on ticket it is mentioned that “The damage or injury caused by failure of any
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equipment no liability is accepted ”. In the given case park management has to pay required
amount to John because exclusion terms are not mentioned on contract so they have to apply
damages to John.
TASK 3
3.1 Contractual liabilities and their relation to Tort liability
Tort liability
Tort liability is the one where individual breach contract of rights and loss one'sl along
with these rights. In this liability conditions and laws are mentioned clearly which need to be
followed in effective manner (Turner and Turner, 2014). This liability imposed by law and if
any type of mistake is occurred than he/ she will be responsible to paying damages.
Contractual liability
It is that type of liability in which when any party breach contract then it comes under
contractual liability and shall be punish by state. It is kind of criminal offence and injured party
can claim damages along with punishment.
Apart from definition, there are different types of similarities and dissimilarities in
between contractual contract and tort contract, but both liabilities are related to diverse interest
and condition which are different from each other (Whish and Bailey, 2015). In the contractual
liability it is important that mutual consent involved when they are making any type of contract
while tort liability is enforced by law and for the both parties it is important to followed each
instruction in effective way. Defendant is responsible for any any mistake committed by him and
also he has to pay for it . It is compulsory for everyone to follow Tort liability which is enforced
by the government. If anyone breaches contract breach contract then it becomes void and person
is liable to pay damages. Under contractual liability if breach of contract occurred then it is
considered as the criminal offence.
In the both contract it is injured party have right to claim damages and event ask to
punishment if any loss is occurred due to breaches of contract (Winfield, 2016). Under contract
both the parties should be involved so they can understand each and every condition which are
mentioned under contracts.
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3.2 Negligence and their liabilities
Negligence
It is stated that if a person is fail to perform any kind of situation or conditions. If any
mistake is done by is done by any person then it is known as negligence in Tort's law and loss
due to it is occurred without intention of harm to anyone. It is considered as legal offence and
person who fail to perform certain condition shall be punishable and person who suffers from the
loss can ask for damages. In negligence of contract there are many elements which are
responsible for it.
According to case of Donoghue v Stevenson [1932] AC 562 according to this case if in
nay contract any type of negligence occurred then claimant needs to prove some specific point
and damages which are occurred are due to negligence of an individual.
There are different type of elements which occurred in contract of negligence. Some of them are
given below.
Duty of care
Under this the person who makes the production is responsible for the liable for the consumers.
Breach of duty
Duty of care of plaintiff is the controller of the person . It cannot be limited to
professional or individual person or under the read or write contract. This law is further
applicable on the entire society and they are also comes under the duty to take care of each other
property.
Direct cause
If any person is suffered any type of direct case then injured party can ask for damages,
but is important that certain type of damage has been occurred due to negligence of duty of care
by persons (Berger and Lester, 2015).
Apart from the above elements there are certain elements are some other elements which
are related to negligence of contract. Such as remoteness of damages and harm and damages. If
in any contract any type of harm occurred due to negligence of contracts then it claimer can ask
for damages.
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3.3 Business can be vicariously liable
Vicarious liabilities are defied for business person and responsibility for business
owners. As according to this law someone is held liable for act or omission is doing by the other
person. At corporate workplace whenever any type of mistakes are take place by employees
them organization are liable to pay damages. In many business firms some employees are not
aware regrading to their duty and responsibility. This fact leads to them for making mistakes
because of this reason whole organization have top face problems. (Bowyer, 2016).
According to the case of Catholic Child Welfare Society v Institute of the Brothers of the
Christian Schools, it is stated that if any types of mistake are occurred by employees then
employer are responsible for act which done by them.
Employers are can reduces their responsibility by offering appropriate direction and
guidelines so their workers complete tasks and duty. If members or organization are fail to
perform tasks which are given as per direction, then it becomes problems for everyone.
In case of the Lister v Hesley Hall Ltd in 2001, employer or company are held liable if
any type of mistake take place in organization by workers. As per the given, situation it is stated
that workers of company are involved in sexual harrsament and employer of organization are
unware about such activities. So UK court give decision that owner of company is also held
responsible for such activities. company shall also be punishable for any type of offence taken by
employees at workplace.
So from the above case study it is clear that employers are also equal responsible of their
mistakes (Connolly and Hoar, 2014). it is implied liability and accountabilities which also
apply to employer or company, any types of compensation are occurred by staff members and
they have to pay amount of damages as well.
TASK 4
4.1 factors of tort negligence in context to various situations
As per the present situation, David was riding bike more than 35 MPH speed. During
riding bike he moved to four lane where some children were playing football. At that time a Boy
came who was 9 year old which named Kevin, who is chasing his football. He was incognizant
about the situation and David was also not awre regrding to that children were playing games.,
he hits kevin shoulder and jumped into another lane. (Costello and Hancox, 2014).
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During this entire situation he hit pole which is owned by telephone compan nd he gets
bruised. That pole was owned by domestic com,pany due to accident pole get into two pieces.
So from the given situation it is clear that whole situation take place due to negligence
behaviour of David (About Us 2017). In the situation if David, take proper care than this accident
may be avoid. From the above siuation it has been assedd that there is lack of negligence which
is related to duty of care, because of this negligence Kevin and his parents had to suffered.
In the above case It is clear that Kevin and his parnets can claim damages from David and
telephone company. The given situation is related to case of contributory negligence in which
individual have to suffers due to negligence of two or more than two people. David was driving
bike at higher speed and this is main cause of accident which take place, it can be neglected if
David control his speed (Craig, 2015).so it is cleat that david is responsible for paying damages.
Along with this pole which owned by local company was also placed on woorng side. So owner
of telephone is also responsible for damages which was occurred. So in the given case it can be
say that it is part of contributory negligence in which David and owner of telephone pole both
are liable to pay compensation to Kevin.
4.2 factors of vicarious liabilities in context to different types of situations
It is defied as responsibility in which employers are responsible for any act which are
take place by employer at workplace. This act also stated that if any type of loss occurred due to
staff members of organization then employer is responsible and have to pay damages which are
occurred due to employee.
So it is duty of the organization to provide proper training to their staff members. So
mistakes can be avoided (Dorfman and Cather, 2012). Apart, from this, employer have to make
sure that workplace safety. Organization have to provide workplace safety to their workers so
they can perform their jobs in effective manner. In any employee injured during the workplace
due to negligence of employer then he/ she can claim damages from their employer.
As according to the given case study, Colin was leader of chef in regent hotel is getting
angry with his employees Roger who clean dishes in hotel. Colin was not satisfied with
behaviour of Roger (Public acts. 2016). One day Colin knocks Roger unconscious with a frying
pan. Under such circumstance it is duty of the Colin to make sure that workplace safety should
be maintained in effective manner.
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In the given case study it clary stated that Roger injured several times during the cooking
so vicarious liability occurred in case in which he owner of restaurant is liable to pay damages to
their workers if ant types of mistake take place (Koutsias and Willett, 2012). It is accountbility of
Colin to give accurate equipments which helps to mainates safety at workplace for employees
and workers of organization. . In types of injure take place in this entire process then injured
party have right to take action against employer.
CONCLUSION
Summing up the above report it can be concluded that before making ant types of
contract it is vital that essential elements of contracts are considered. At time of making contract
all the parties must be involved and have to understand each condition which stated in the
contract and accept each condition with mutual consent. There are different types of contracts
which apply to every individual an each contract have different types of term which need be
understand type of making of contract.
Summing up the present report it is also considered there are various types of contracts
which have different impact on individuals. There are some major difference between
contractual liabilities and tort liabilities. In vicarious act of contract it is responsibility of
employer to pay damages which are occurred by the employees at workplace. So it duty of
organization to give training to their employees.
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