Law of Contract and Tort Analysis

This report provides a comprehensive analysis of contract law and the tort of negligence, using various case studies to illustrate key concepts. It covers essential elements of a valid contract, different types of contracts, and the implications of contract terms. The report also delves into the differences between contractual and tort liabilities, explaining negligence and vicarious liability. Through detailed case analysis, the report offers insights into legal responsibilities and potential remedies for breaches of contract and negligence.

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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...........................................................................................................................................7
2.3...........................................................................................................................................9
TASK 3..........................................................................................................................................10
3.1.........................................................................................................................................10
3.2.........................................................................................................................................11
3.3.........................................................................................................................................12
TASK 4..........................................................................................................................................12
4.1.........................................................................................................................................12
4.2.........................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Contract is considered as a legally binding agreement developed by the mutual consent of
two parties. Here, the parties may be known to each other or may be strangers as in case of
software companies and the downloaders of software. Such contract among parties make the
contract legal and valid. In contrast to this, there is a clear relationship among individuals which
is formed and governed by creating a valid contract (Ahmad, 2012). However, in the contractual
relationship, nature of obligation is determined by the terms of contract. Also, through entering
into the contract, parties agree to accept the obligations. On the other hand, it can be stated that
there is no complete freedom of contract since certain contractual terms would be restricted by
statute. For instance, as per the Unfair Contract Terms Act 1977, it can be stated that complete
freedom has not been provided as there are certain restrictions. However, with regard to make a
contract to be binding, the parties are required to intend and develop legal relations and
contractual obligations with their mutual consent.
In the present report, different cases have been identified in order to analyse the aspects
of law of contract and tort of negligence. Study focuses upon evaluating the case scenarios of
Peter Abraham and others as well as discusses different aspects of contract and legal
relationships. Further, impact of breach of contract has been assessed and provide essential
information to overcome the remedies for negligence within business operations.
TASK 1
1.1
Peter Abraham is required to possess significant knowledge regarding different
components to form a valid contract. Thus, it helps him to start his new venture easily and
develop a sound relationship with different parties. In order to form a contract, sound
relationship needs to be built with individuals. Following are the importance of different
elements of contract:
 Offer- It plays a crucial role within every agreement and binds different parties to form a
valid contract. Further, it is provided as a proposal that shows the will power of parties to
perform duties, actions and obligations in an effective way (Chamallas, 2014). Offer
mainly involves the major content of contract and involves progressive participation of
offeror who carries out a strong bond with the offeree. Nevertheless, offer has been

provided for specific time period and it gets collapsed at the time when not accepted by
the party within particular time frame. [Harvey v Facey (1893)].
 Acceptance- It is another element of contract in which offer made by the offeror is
accepted in the same manner by offeree (Chen-Wishart, 2012). Further, if different
individuals enter into the contract then they need to undertake certain conditions of
acceptance such as-
1. Terms of acceptance should be similar with the terms of offer.
2. Contract needs to be certain for specific event.
3. Acceptance of offer needs to be communicated clearly with the offeree.
 Contractual relationship- Here, it can be considered that both the parties need to be in
contact with each other in order to form a contractual relationship. Further, parties who
are entering into the agreement should not possess any type of fear or pressure from other
individuals [Jones v Padavatton (1969)].
 Consideration- It is considered that the contract which is taking place between parties
should have certain legal consideration. Moreover, both the parties involved within
agreement should obtain profit either in the form of tangible or non-tangible form
(Chapman, Wilder and Millar, 2014). Consideration needs to be exchanged with each
other and the promise needs to be made in writing which is signed by both parties
entering into the contract.
 Capacity- Capacity can be stated as state which assesses the capability of both parties
before entering into the contract. It is essential for the individual to be in his sound mind,
above the specified age limit, etc. in order to make the contract valid.
1.2
Following are different types of contracts which are discussed underneath-
 Face to face contract and distance contract- Face to face contract is formed in the
presence of both parties and thus, they need to be agreed upon the terms and conditions
of contract. On contrary to this, distance contract involves those parties who are not
physically present to involve within contract at that particular time. In such type of
contract, consent of offeree takes more time and thus, it comes into consideration when
both offer and acceptance are satisfied. In order to make the distance contract successful,

different tools such as e-mail, telephone, etc. are undertaken in order to attain mutual
consent.
 Written and verbal contract- Within written contract, contractual obligations for
contract are provided in the written form and thus, it develops an effective form of legal
formalities. Here, offeror provides offer to offeree and tries to obtain their acceptance in
the written form. Such type of contract is the most effective form to enter into the
contract and to be shown as a valid proof when either party breaches the terms and
conditions of agreement (Chidananda and et.al., 2014). Nevertheless, it is considered as a
lengthy process but helps in achieving the desired objectives of contract. On the contrary,
verbal contracts are such which are carried out orally. Here, both the parties work upon
the basis of trust and execute the relationship to meet objectives. Sometimes, parties face
issues when they formulate verbal contracts because there is no legal proof of the
contract.
 Bilateral and unilateral contract- Within bilateral contract, it involves the parties in
order to enter into a legal relationship and also, promises each other to execute the
operations. However, such acts are performed while making the contract to be legal and
contractual obligation needs to be attained (Johnson, 2015). On the other hand, Unilateral
contract is formulated on open basis and thus, here offeror makes a contract through
providing open offer to offeree and waits for their consent to be received.
1.3
It involves certain terms and conditions that needs to be analysed by the parties before
entering into the contract. However, such terms of contract could be either in written or oral form
and possess certain impact upon the execution of the agreement. Following are the different
expressed terms of contract that needs to be applied to the terms of Peter Abraham-
 Conditions- It is stated as an crucial component because parties involved within the
contract needs to identify the conditions involved within agreement. However, it is stated
as the principle reason for formulating the contract (Kodilinye, 2014). In such case,
injured party possess the ability to deny the contract and also sue the person who has
provided harm. Further, the compensation will be given by the person who breaks the
contract.

 Warranties- It is considered as less crucial component within expressed terms and does
not require to be involved within the foundation of contract. Warranties also does not
possess any relation with the presence of the agreement (What are warranties, conditions
and innominate terms?, 2012). For instance, within warranty when one party breaks the
contract then the another party is liable to ask for compensation but could not leave the
contract.
 Innominate terms- Such terms are intermediate terms and could not considered as either
conditions or warranties (Palmer, 2014). Further, such terms came into existence by
considering the situations that exists within the contract.
 Exemption clause- Further, it is considered as the agreement within the contract that
guarantees that party is limited or excluded from the liability. Such clauses sometimes are
used unfairly that may provide disadvantage to individual. Therefore, it is essential to
bring possible changes to the law in order to create more fairness and also limit the use of
clauses.
TASK 2
2.1
Case 1- Agreement
From the given case, it can be evaluated that Carol's apartment was not furnished and
therefore, she approached an online advertisement regarding purchasing a nice brown leather
couch at £600. After seeing the advertisement, Carol e-mailed the seller for buying the couch.
Application of legal provision
Through the above scenario, it assesses that there involves invitation to treat that is
accepted buy the offeree. Thus, it involves offer and acceptance but it does not involve legal
consideration (Pathak, 2013). Moreover, there was no response from seller in lieu to the e-mail
sent by Carol that whether the acceptance made is agreed or not.
Decision
Within the above scenario, it involves certain elements of contract therefore, the
agreement to the contract will not be taken place. It assesses that there are various elements that
needs to be fulfilled while, here only offer and acceptance is done. Furthermore, other

components such as contractual relationship, consideration and capacity of party are not taken
into consideration and thus there is not contract being made between Carol and seller.
Case 2- Consideration
From the stated case, Preston's son Devi was seeking a cyber security position with
George, Smith and Forgarty Inc. company which is a large IT firm. However, Devi was
independent and does not want any interference from his father. Company also decides to hire
Devi and made him an offer to join the firm (Petrin, 2010). Devi accepted the offer on April 12,
2015. However, Devi's father was unaware regarding the fact that his son has been hired by firm
and thus he mailed a letter to George on April 13 in which he made a promise that he would give
£150,000 to firm if they hire his son.
Legal provisions applicability
Within such case, all the elements of contract has been fulfilled between Devi and IT
firm. Nevertheless, Preston was unaware about the selection of his son and without knowing this
he offered George £150,000. At this point of time, it is not possible for either party to revoke the
contract.
Decision
It can be evaluated that once the contract has been made and all the parties within the
contract accepts the terms and conditions involved within agreement then, it will be considered
as the legal contract. Here, offer has been made by Preston and same was accepted by George
with certain legal consideration of £150,000. Hence, now George could not revoke the contract
and enforce it again.
2.2
Case 3- Exclusion clause
From the given case, a couple booked a table at a popular London restaurant. While,
entering the restaurant the man handed the coat which contains his wallet with £500. Porter of
the restaurant provides an receipt on the back of which it states an exclusion clause that assesses
that “all valuable must be removed from the jacket pockets as the restaurant will not be held
responsible for items missing or stolen”. Later, the man was about to make payment and then he
realized that he left the wallet in the overcoat and went to collect it. He founds that the money
has been stolen from the wallet which he sought to recover from the restaurant. However,

restaurant refused that they have made a clear notice which is printed on the back of the receipt
that excludes them from any liability.
Application of legal provision
From the given scenario, it assesses that conditions of exclusion clause has been fulfilled
as business have stated clearly that they will not be responsible for any valuables stored or
misplaced. However, it was considered as the carelessness of the person as he left the wallet in
the overcoat. Business fulfils the conditions of exclusion clause and relies upon their decision of
not paying the damages.
Decision
Person was unaware regarding his wallet and therefore due to his negligence it lead to
losses. However, if the person proves any drawback of the restaurant than he could held the firm
responsible for his losses. But it could not be possible because restaurant has already made an
exclusion clause in which they could not be held liable for any losses. However, if there is not
properly printed on the receipt or in small letters then the firm is held responsible to pay the
damages.
Case 4- Implied term
Furthermore, in such case scenario, it can be evaluated that Zehphra rented a warehouse
to Aaron which was vacant from long time and had fallen into disrepair. Because of this Aaron
has made significant improvement within the warehouse. Further, the owner assessed that he will
not increase the rent for coming five years. After a year, Zehphra died and thus the value of the
property enhanced due to the repairs carried out by the tenant. Yeti the nominee of the Zehphra
increased the rent. Thus, Aaron denied to accept the rent and stated that Zehphra promised that
the rent will not be increased for coming five years.
Application of legal provisions
Here, the implied terms are those terms that one can clearly identify. From the given case,
it can be evaluated that if the price of the property raises then the rent will automatically increase
(Wong and Deubert, 2010). Hence, it is essential for Aaron to pay high rate as per the
enhancement of the property value.
Decision
Considering the Landlord Act, tenant is required to pay the rent or price for the same at
an increased rate. Also, the improvement made within the warehouse was for the comfort of

Aaron and this situation possess no relation with the increase in the rent of the property. Thus,
Aaron will not be liable for the compensation and Yeti will be getting an increased price of the
rent from Aaron.
2.3
Case 5
It can be evaluated from the case that policyholder has applied for motor insurance. From
the proposal form it assesses that “Have you or your anyone who will drive been involved in any
motor accidents or made a claim during the last five years”. However, the answer from the policy
holder was no . Later, when the policyholder car was stolen the insurer came to know that he had
made a theft claim earlier under the previous motor policy act within five year time frame.
Through identifying this, insurer has voided the policy from start date and also rejected the
claims of policyholder.
Legal provisions application
Within this, implied terms will be involved into action as such terms are specified and
one have to follow specifically without being informed regarding the same. As per the given
case, when the insurer asked the person that whether he has taken any sort of claim or not, then it
is clear that will be able to cover the accident, theft as well as other losses.
Decision
Here, the insurer possess the right to void the contract because the policyholder has
already taken the theft claim in the last five years and thus it revokes the contract as he is not
liable to make the accident claim again. It is essential for person to possess specific knowledge
for the same and thus the terms which are implied should be in one's mind before getting into
any type of contract.
Case 6
In this case, it can be assessed that insurer investigates the new claim regarding the car
which have been fitted with oversized alloy wheels, spoilers and chrome wheel arches.
Moreover, the policyholder assesses that at the time when she purchased the car it was complete
with all modifications and assumed that the parts as original. Further, she was also not knowing
regarding both the claims taken by her husband.
Application of legal provisions

From the above scenario, insurance company rejects the policy from the start date.
Because it is essential for one to possess prior knowledge regarding their parts which should be
genuine. Also, it is not the concern of the insurer that whether one should know that thing or not.
Hence, the insurer has accepted that the policyholder believes that the car was actually modified
with all the changes at the time she purchased the car.
Decision
It can be assessed that the issue identified in the case was clear and explicit the details
regarding any damage that irrespective of whether the claim was made. Furthermore, individual
was also not aware about the modifications made in the car. Hence, party was not liable to claim
damages for many times on single object (Zoll, 2012). Thus, it is clear that insurer has right to
avoid the policy from the start date. Here, warranty can also come into play as one party can
claim for damages and could not end the agreement.
TASK 3
3.1
It can be assessed that such liabilities arises at the time when party is not able to achieve
the conditions of contract and the same leads to breach the agreement. However, the similarity
among the tort and contractual liability is that they form civil liability and thus related identical
structure could be followed. Following are certain differences present within the tort of
neglectful and contractual liabilities that are discussed underneath-
Basis Contractual liability Tort liability
Meaning Contractual liability is
considered as the action that
generally imposes upon the
party when they do not
perform the actions as per the
specified terms and conditions
(Chetwin, 2011).
Furthermore, tort liability is
generally assessed because of
the act of negligence. Hence,
one can state that the given
liability occur when the person
get injured because of the
negligence of the individual.
Limitations Within contractual liability,
parties involve within the legal
actions will be stated a liable
While, in tort each and every
party who are connected
within the contract even they

for the actions. are indirect will be treated as
liable (DeMitchell, 2006).
Decisions Decisions within contractual
liability for damages are taken
into considerations on the
basis of formed contracts.
Here, decisions are related to
damages in tort as per the court
of law.
3.2
Negligence can be stated as the situation in which the contract is considered as void
because of lack in efforts among the parties involved within contract. Moreover, nature of the
liability that exists in negligence is stated as tortuous action. Action of negligence has been
treated as an action that causes injury or harm to another party involved within contract. Thus,
such cases are generally involved upon contractual relationship among two or more persons
(Geistfeld, 2011). Also, from the past several years cases for tort of carelessness has been taken
into consideration and there are different mischances taken into consideration that is paid by
other party. Following are the different components of law of negligence such as-
 Duty of care- Within the duty of care, it is essential for both the parties to possess
appropriate duty of care for each other so that best results can be attained. Also, it is
essential for each and every party to possess contractual relationship until the contract has
been accomplished.
 Breach of duty- Further, it can be stated that if any of the party within the contract is not
able to fulfil their duty or actions then they will be treats as breach or revocation of the
duty within the contract.
 Remote damages- It assesses that the innocent party could claim for the damages only at
that time when the injury causes to them is forseeable.
 Causation- Here, prior reason behind the injury caused to the innocent party must be due
to the negligence of the plaintiff. As per the case of Donoghue v Stevenson, claimant has
faced injury because of negligence of beer bottle manufacturer.

3.3
Vicarious liability can be stated as the situation in which honest person is obligatory for
injuries or damages because of negligent actions caused by other parties. It is also considered as
an alternative liability that undertakes within the doctrine of law (Zamore, 2015). However,
vicarious liability describes that the employer would be liable for the actions of the wrong act
that is done by their workers. It involves certain conditions within the act such as employee-
employer relationship and fulfils certain situations such as-
 It is essential to form a legal relationship among employee-employer.
 Any type of incident that needs to be happened within the course of employment.
 Employer needs to control the actions of the workers.
For instance, Colin who is the Chef of Regent Hotel is not satisfied from the work done
by Roger because of his attitude and anger. One day, Colin in anger from the work of Roger and
hits him on the head from the frying pan and because of such act, Roger got unconsciousness and
injured badly. Later, Colin was ready to take him to the hospital but Roger denied. Here,
vicariously liability is not satisfied because business will not be liable for damages. Moreover,
Roger was hit and thus Colin has asked him to take to the hospital but he denied. Hence, in such
situation elements of vicarious liability is not mitigated.
TASK 4
4.1
Case 7
As per the given case, Mr. Brown assesses that he was not feeling well and because of
this he went to the hospital complaining for the pain in the chest as well as breathing problem.
There due to the absence of the doctor on duty, nurse sees the patient and consult doctor on
phone for the medicines. Doctor informs nurse to prescribe him certain pain killers. Nest day the
patient died due to pneumonia caused from toxic mould in the house.
Legal provisions application
Here, the hospital will not he held liable because failure of doctor to see the patient is not
the cause of his death. However, it caused due to the pneumonia from the toxic mould in the
house. Hence, hospital is not considered responsible for the death of the person.
Decision

Nevertheless, if the doctor examines the patient and suggest him to undergo certain tests
instead of prescribing pain killers and then the patient dies. Due to such act of negligence,
hospital would be held responsible for the death of the person.
4.2
Case 8
From the given scenario, it can be reflected that the driver is working for a chauffeur firm
and he was sent to pick up a client at the airport. Since the flight was delayed and driver decided
to have few glasses of alcohol. However, while coming to the hotel with client, driver collapses
the car into the lamp post that causes sever injury to passenger.
Application of legal provisions
Here, vicarious liability is present within the case and thus the Chauffeur company
requires to pay for the damages because of the negligence caused by their worker.
Decision
Here, there is the liability of the employer as they have prior responsibility to develop
strict rules for their workers so that they need to perform their duty effectively. Therefore, here
driver was drunk and thus due to the employee-employer relationship it is essential for employer
to pay the damages to client.
Case 9
As per the given case, Mr. Jones works as a delivery driver within the supermarket. One
morning at the time of loading pallets into his truck he slipped on the tail gate and the pallet fell
over the another party and injured him.
Legal provisions applicability
Here, considering Occupier's Liability Act, employer is responsible to undertake
appropriate health arrangements within the business so that damages can be avoided. Further, if
employer is not able to accomplish the duty then he will he held liable to pay the damages to the
injured party.
Decision
Here, party who obtains damages claim for compensation but the supermarket deny to
give because at the time of accident, it was the responsibility of the health and safety was shifted
on another firm. Hence, with such incident, supermarket will be held liable for the act and if

applicant wants to claim for damages then he needs to sue the other firm who is responsible for
the health and safety of employees.
CONCLUSION
It can be concluded from the report that it is essential for parties to undertake different
components of contract before entering into any contractual obligation. Thus, from the present
case, it assesses different case scenarios that has been evaluated so that best decision can be
given for the same. Report has also identified different contract terms and provided best
knowledge to improve their legal relations with other parties. Also, within the contract it
involves various terms i.e. expressed and implied. Tort of negligence and vicarious liability also
establishes within the contract so that if any party breaches the contract then they are held liable
for the actions.

REFERENCES
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Online
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