Business Law: Contract and Negligence in Business - Report

This report delves into the crucial aspects of contract and negligence within a business context. It begins by outlining the essential elements required for the formation of a valid contract, including offer, acceptance, mutual consent, and consideration, and discusses the impacts of different contract types, such as unilateral and bilateral agreements, and the importance of written versus oral contracts. The report then analyzes various contractual terms, including express and implied terms, conditions, and warranties, and examines their significance in business operations. Furthermore, the report applies these legal principles to a case scenario involving a breach of contract by a car dealership, evaluating the elements present, applicable laws, and available remedies. It also contrasts tort liability and contractual liability, explaining the nature of negligence and vicarious liability, and applies these concepts to a scenario involving negligence. Overall, the report provides a comprehensive overview of contract and negligence law, offering insights into legal principles and their practical application in business.

ASPECTS OF CONTRACT AND NEGLIGENCE FOR
BUSINESS
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Table of Contents
Introduction....................................................................................................................................3
Task 1............................................................................................................................................3
1.1 Explaining elements needed for formation of a valid contract.................................................3
1.2 Explaining and discussing impacts of different contracts........................................................4
1.3 Explaining and analysing several forms of contractual terms..................................................4
Task 2............................................................................................................................................6
2.1 Applying law on necessary elements related to scenario........................................................6
2.2 Applying law on terms.............................................................................................................6
2.3 Evaluating remedies available relating to the scenario...........................................................7
Task 3............................................................................................................................................8
3.1 Contrasting tort liability and contractual liability.......................................................................8
3.2 Explaining nature of negligence liability...................................................................................8
3.3 Explaining the ways for business being vicariously liable.......................................................9
Task 4..........................................................................................................................................10
4.1 Applying elements of negligence tort along with possible defences......................................10
4.2 Applying law on vicarious liability relating to scenario...........................................................11
Conclusion...................................................................................................................................11
References..................................................................................................................................12
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Introduction
Contracts abound legally inform of agreement which act as one of the most important aspect in
every business. It is crucial and Sir an important role in the maintenance of the sanctity of the
business. There are several form law identified and recognised for the smooth operation of the
firm and the business in the society. The clear understanding of the views and the components-
power fascinates and benefits of the law and the order. The contracts in the business serve
generously in providing important information regarding the smooth operation of the business.
The contracts faces constant threat of fraud, thus several forms and bonds are signed in order
to restrict fraudulent activities in the name of law and order. The government laws however,
provide confidence in the aspect of understanding the minimum chances of fraud in the society.
The assignment here discusses regarding the different laws and the torts of negligence in the
society. The elements of the contracts are also discussed here in terms of respective scenarios
and facts.
Task 1
1.1 Explaining elements needed for formation of a valid contract
As the assigned representative of a law centre, it is very evident that a valid contracts demands
of few important criteria to be fulfilled. The constituents of valid contracts are discussed below.
Acceptance and offer
The two counter side of a valid contract is the acceptance and the offer. The contractual
agreement constitutes the agreement and the offer in terms of stepping the first foot for being a
valid contract in terms of law and order. The offer is a certain type of promise that is made by
one party to another which is to be executed in future. The agreement on the other hand
includes the acceptance of the offer with the total consent of another party accepting the offer.
Mutual consent
The parties involved in the agreement author contract are mutually in and situation of
understanding and acceptance. It can be so said that the parties are subjected to a matter of
mutual understanding with the acceptance of the offer. The terms and conditions are mutually
set and I want to be followed by burly parties. As mentioned in the contracts with the mutual
acceptance the parties cannot break the mutual consent without prior notice. As suggested by
no contract can be set final without mutual consent between two parties.
Consideration
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The consideration is generally formed of demarcation between gifts and contracts. I suggested
by the amount of consideration proposed by one party to another must be under mutual
consideration. The consideration is regarded as the mutual bonding between two parties with
the exchange of contracts and gifts. It helps in developing a better understanding between two
parties for the proper maintaining of the law sanctity.
1.2 Explaining and discussing impacts of different contracts
As supported by Andrews (2016, p.174), contracts have different distinguishing features which
acts upon the business setups. The distinguishing features work in accordance to the setup of
the business and the form of Consent said by both the parties. Unilateral and bilateral forms of
contracts occur in the premises of the business. It is evident that the even eternal agreement is
simple and occurs between one group and individual whereas, on the other hand, the bilateral
contracts occur between two or more groups and even individuals. The effectiveness and the
success of the Evil lateral business is evident because of the lack of mutual constellation
between two parties.
As supported by Ciacchi (2016, p.8), the category of the business, the premises of the business,
and the mindset of the business determines the form of work or the impact that the contract may
lay on. Being the legal representative of a law firm proper information in terms of the contracts
are demanding. The oral and the written form of communication are the two form of contracting
in a business. As supported by Knuplesch and Reichert (2016, p.212), the oral contract most of
the threat in fraud in contrast to the written form of contract.
Sealed contract are comparatively more trustworthy than simple business contracts. It is evident
that simple business contracts are found to be more fraud prone. Fraud in the form of contract
affects the daily operation of the business. Frauds cheap may cause damage to the operation of
the business and the property that the business centres open. The face to face contracts are
preferably made at distance since they have an easy form of guarantee to deal with. Hence the
information and the different form of contracts have different effect on the operation of the
business and the formation of the contract on the basis of law and order.
1.3 Explaining and analysing several forms of contractual terms
Referral form of terms and conditions need to be maintained being a legal representative of a
firm house. It is essential to remember and practice all the terms and condition required for the
better performance of the contract in the business. As supported by Robertson (2016, p.190),
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the express terms and the implied terms are described in the matter for the involvement of the
amount payment and the hours for working in the holidays. The implied terms demands the
keeping in mind of the information regarding sanitary rights that part that demands in equal pay
off and caring of the duties performed by the workers of the organisation and their business.
The Esso Petroleum VS Mardon (1976), help in the better understanding of the maintenance of
the statutory rights with the help of the implied terms. Regard to the case the essay petroleum
entered into an agreement claiming and the owner of the business and Sir heard on high
amount of loss due to the breach in the warranty period.
The terms and conditions play an important role in contract. Conditions and warranties helps in
the better understanding of the contract between two parties. As suggested by Trosborg (2015,
p.89), failing to abide by the conditions and the warranty of the contract may result in the
cancelling of the contract in between two individual party
As mentioned by Weale (2016, p.3), the excluding of the terms of the contacts in the following of
the contract would result in the penalty clause of the law and order of government. The terms
state that the lost amount from any side of the party is completely refundable by the other party.
In terms of the case study provided Olley Vs marlborough (1949) on entering an hotel they
signed in t an contract of being the security of the own product. The fur coat of the lady was
stolen. On comparing the contract she was made the bearer of her own product. Although she
did recover the fur coat but was unable to recover the lost property.
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Task 2
2.1 Applying law on necessary elements related to scenario
Considering the case scenario, it could be stated that the case reveals the matter of breach
committed by the City Car Dealers. The contract has been observed to be unilateral since the
terms and conditions had been set by only one party, City Car Dealers and were agreed upon a
number of purchasers who wanted to buy car from the retailer. Abel being the first of all the
customers had fulfilled the challenge of purchasing the car had claimed his deserving reward
but unfortunately he was betrayed. The City Car Dealers seemed to be a fraud and cheated him
by not giving the amount. The elements which were present in the contract included offer,
acceptance, consideration and mutual consent. The intention being present ought to be unlawful
and indecent since it was not honest. City Car Dealers tended to cheat and hence the contract
turned out to be a breach.
Under the eye of law, any contract that would turn to be a breach would be considered as a
criminal offense and hence it would be regarded as unlawful. As per the observations of Henry
(2016, p.510), the law applicable to the case scenario justifying the elements found under the
contract would be Unfair Terms in Consumer Contracts Regulation (1999)
(www.legislation.gov.uk, 2016). According to the statements of this law, any individual is
punishable under the court of European law and is subject to receive hard punishments. This is
because, due to the activity of breach, Abel had to undergo through the loss of money as well
as mental stress. According to Thomas and Wright (2016, p.67), the car dealers was bound to
pay the penalty and get punished on a sincere note. The law even states that Abel would
receive the money he deserved to get from the City Car Dealers as the advertisement in the
newspaper proved the authentication of the contract. Hence, the elements and the law suitable
for the cases have been supportively mentioned.
2.2 Applying law on terms
For each of the contract types in any business, specific terms are to be regarded before signing
up the contracts since they forms the essentiality of the agreement. In the suggestions of
Becker et al. (2016, p.331), the various terms might include express terms, implied terms as
well as innominate terms. Express terms can be regarded as those terms which could be
expressed in written or verbal forms. Implied terms signify that the contractual terms might not
be expressed in legal terms and hence parties might be unaware of the fact about the effects or
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after-effects of the contract execution. Innominate terms are such terms where no proper
illustration about the terms is provided and the contracts mainly turn out to be void. As per the
observations of Hiles (2016, p.45), void contracts does not exist and are considered to be illegal
or unlawful terms.
Relating to the case scenario, the terms of contract that is being projected regards to the implied
terms since the terms of purchasing the car were clearly stated in the contract yet Eric did not
bother to read the terms and conditions before purchasing the car. Hence, the terms being in
the written terms were fully ignored by Eric. This has resulted in huge physical damage caused
to Eric and even loss to his asset and his money. As per the contract, the money was not
redeemable and hence, they refused to pay for it. The physical damage has resulted in his
absence at his office for few months and undertaking his daily activities of life. Apparently, the
contractual terms contained exclusion terms as well since the business entrepreneur Rani, has
get the contract signed up wisely.
2.3 Evaluating remedies available relating to the scenario
After identifying the terms of contract, it could be easily stated that most part of the allegations
would be on Eric since he did not go through the contract properly. He must not have been
avoidable and negligible in signing a significant contract. Hence, the implied terms proved to
have a toxic effect on Eric after accepting the contract. As per the observations of Fettahlioglu
and Afsar (2016, p.470), every contract is proof-read before getting signed. However, people
like Eroic often seem to ignore these facts which are not supposed to be neglected. It had a
drastic impact on the business and its operations since whoever was known to Eric, he must
have shared this incident and they are even aware about the car owners being fraud.
According to the findings of Sachs (2016, p.259), other remedies might include lodging
complaints or casing a file against the car owner before they get success in betraying some
other customer. As a matter of breach, they might get punished since they did not force him to
read the contract neither verbally explained it when they had an idea that accidents might occur
riding the car. Hence, they were not supposed to cheat and break the trust of the customers.
The car owners must hold accountability of their fault and be admissible to the fact that they are
equally responsible for Eric’s pathetic condition.
In the suggestions of Oviedo (2016, p.720), before purchasing any product, customers are
suppose to ask for the warranty so that within a given time span, any damage could be
effectively compensated by the business owners. Therefore, it comes under the responsibility to
not neglect and ask for the warranty which could easily fetch them less damage or money loss.
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Task 3
3.1 Contrasting tort liability and contractual liability
As mentioned by Folladori et al. (2016, p.314), the tort and the contractual liability are the two
types of liabilities present in the field of contract. As selected as the legal representative of a law
firm, understanding an th distinguishing between the two liabilities are easily understood. As
supported by Sharkey (2016, p.269), tort liability refers to the wrong and injuries in the Civil
courts of law why a person or anything against the reputation of wrongful deals. Contractual
liabilities exist in contracts where both the parties are bound to be together and engaged if in the
contracts where they are found to meet the objective and the requirements of the contract.
As supported by Morgan (2015, p.138), the law of torts fills with the obligatory laws the
contractual law comes under the laws which are voluntarily assumed. As mentioned by Morgan
(2015, p.125), the tort and the contractual law differs from one another in great aspect. The tort
law is a resultant of the agreement between the parties. It is evident that, the loss suffered due
to the following of the tort is devastating. On the other hands the damages from the contractual
law and the liabilities can be compensated with time and amount. As supported by Eisenberg and
Engel(2016, p.151), the tort law suggest that the wrong deeds can be claimable from the
defendant. If proven guilty of the work, the claim asked for is bound to be paid by the person
committed the fraud.
3.2 Explaining nature of negligence liability
As supported by Wright (2014, p.3), the liability in the negligence of the contract offer is essential
liability to be held in the contractual agreement of the business. To prevent the loss and
suffering of the people in the society the agreement are made in order to maintain the support
towards the people of the society. The negligence liability is formed when due to the negligence
one’s life is endangered or brought into crisis. As supported by Ford (2014, P.1381), this kind of
liabilities is promising in bringing up of stiff nature in future of the society. Thus, it is evident that
the stiff nature of the liabilities is due to the negligence in the society and the fall in the guard of
the society in protecting themselves. The failure may rise in the causing of more severe making
and sufferings. The negligence liability may however, make one believe that the use of the
organisational negligence mainly demonstrates responsibilities of the society.
The situation of the organisation is mainly due to the failure of the duty performing by any of the
party in the agreement of the contract. The proximity causes were stated in the master of the
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injuries and the imposing of the legal duties for the utilisation of the reasonable care. The liability
of the nature is often rigorous and seems to often problematic for the gathering up of the pieces
into a singles piece of the frame. The problems of getting hurt or insecurity in terms hurting
themselves can be provided aid with the help of the organisational finance. However, as argued
by Andrews (2016, p.170), the aid is only provided for the time period of the valid contractual
period.
3.3 Explaining the ways for business being vicariously liable
As suggested by Ittmann et al. (2016, p.56), the vicarious liability mostly abides by the rules and
the laws of the torts where most of the cases had been dealt under the civil courts. The concern
of the third parties in regard of the contract may not be directly related to the contract with the
both parties involved in the agreement. As supported by Oviedo (2016, p.720), the vicarious
liability is noticed at the times when the employee of the agreement commits wrong deeds,
which further affects the smooth operation of the business.
The company and the organization face a lot of problems due to the wrongful doing of the
organizational work. The wrongful doing affects the smooth operation of the business. As
suggested by Trosborg (2015, p.89), the situation of the organisation becomes, more
vulnerable, when the employees of the organisation are accused of the fraud. The breach of the
contract also forms one of the legal penalties in the organisation. As supported by Wright (2014,
p.5), the law of the vicarious liability supports the hiring of the deserving and efficient employees
for the smooth operation of the work. The hiring of the employees in terms of the skill and the
requirement of the organization by the employees of the organization would result in the
voluntary working of the new joining only with the help of the selected persons. The employer of
the business gets most of the acquisition in the lack of the attention in the premises of the
organisation.
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Task 4
4.1 Applying elements of negligence tort along with possible defences
Considering the case scenario, the elements involved in the negligence is significantly applied
and interpreted. The mentioned case scenario is about Emma and Denis who visited a
restaurant and after having their food, Emma started feeling unwell which was observed t be
food poisoning. Generally, according to the statements of Cavico et al. (2016, p.210), the four
principal elements to be identified under the tort of negligence includes- Breaches of duty, Duty
of care, proximate causes as well as causes of breach. The case scenario exactly fits to
describe and illustrate the elements to be notified under the tort of negligence.
Through the above mentioned case scenario, each of the elements could be exclusively related
to it in order to be interpreted. Th element of duty of care involves providing food to the
customers by the restaurant with utmost care and attention. Though attention was given yet it
lacked the quality of care provided to the customer's Emma and Denis. Due to their negligence
in providing absolute duty and care, Emma had to compromise with her health condition. The
loss to their mental and physical health caused by this insincerity is unjustifiable and does not
require any defence.
As per the opinions of Campbell (2016, p.213), breaches of duty as an essential element of tort
of negligence could be clearly established by analysing the quality of service provided to the
customers. The chef of the restaurant, George, turned out to be a fraud and committed this
activity of breach wisely. Denis was supposed to take legal action against such breach and
should have taken every possible step to delicense the chef from his duty. The case of the
incident apparently showed the negligence of the chef in delivering proper and healthy services
to the customers. Hard actions could have taken including destroying the reputation and image
of the restaurant. As a result of this breach of activity, customers could have complete loss of
faith which could result in a huge loss in the company.
The last but not the least, the element of proximate cause of this breach of activity could be
stated through the impacts on the health conditions of Emma after consuming such filthy food at
the restaurant. It could be elaborated from the fact that Emma was sincerely hospitalised and
suffered from physical disorder for a temporary span of time which increased the stress factors
in Denis. Thus, Denis, the defendant could have easily gained profits by applying favourable
elements of tortuous negligence for recovering the loss.
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4.2 Applying law on vicarious liability relating to scenario
The provided case scenario has proved to be the case of vicarious liability in the court of
European law and order. The most suitable and favourable law, that could be applied to this
case would regard law of Civil liability (Contribution) Act (1978) (www.legislation.gov.uk, 2016).
According to the observations of Lederman (2016, p.71), the law states that any individual who
had been suffering from activities relating to vicarious liability would be subjected to receive the
compensation or the value for the damage caused to Denis and his wife Emma.
By the viewpoints of Campbell (2016, p.55), as per the law statements, any individual who has
suffered from such a loss due to a activity of breach is obliged to recover his or er money as
compensation in terms of contractual; agreement. According to the law, Denis could easily gain
the amount of compensation from George proving his guilt that has evidently deteriorated his
wife’s health conditions. The elements constituted in vicarious liability have supportively justified
the ill deeds committed by George and hence induced Denis to confront the case and stand
against him as well as the company. In spite of getting an assurance of getting high quality of
food, due to George’s inattentiveness, Denis and Emma had to incur a great cost.
Conclusion
From the above study it is clearly understood that the aspect of the contracts are clearly
described. The negligence in the business has been clearly executed in the work above. The
elements of the valid contracts have been very well described with the help of the inferring of
the old case studies. Referring of the case studies in the above work has very well met the
criteria in the understanding of the matching point of the case study and the law discussed. The
information regarding the contracts, agreement and the liabilities are very well described.
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