Detailed Analysis of Contract and Negligence Law in the UK Context

This report provides a comprehensive analysis of contract and negligence law within the UK legal framework. It begins by exploring different types of contracts, their impact, and essential elements like offer, acceptance, and consideration, supported by relevant case references. The report assesses the existence of contractual relationships in given scenarios and delves into the meaning and effect of various contractual terms, including express and implied terms, conditions, warranties, and exclusion clauses. It then contrasts contract liability with tort law, examining the principles of negligence, provisions of vicarious liability, and available defenses. Through case studies, the report illustrates the practical application of these legal principles, offering insights into real-world scenarios. The report concludes with a summary of the key findings and recommendations based on the analysis of the provided case facts.

Aspects of
contract

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1. Types of contract and their impact..........................................................................................3
2. Description of term offer and acceptance along with the suitable case reference...................4
3. Assessment of existence of contractual relationship in given case scenario...........................5
4. Analysis of term in contract with reference to their meaning and effect.................................6
Task 2 ..............................................................................................................................................6
Contractual terms and its impact.................................................................................................6
Case a...........................................................................................................................................7
Case b...........................................................................................................................................8
Case c...........................................................................................................................................9
Case d...........................................................................................................................................9
Case e.........................................................................................................................................10
Task 3 ............................................................................................................................................10
Contrast contract liability in contract with tort..........................................................................10
Principles of liability in negligence...........................................................................................12
Provisions of vicarious liability.................................................................................................14
Task 4 ............................................................................................................................................15
Defenses ....................................................................................................................................15
Conclusion ....................................................................................................................................18
References......................................................................................................................................19
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INTRODUCTION
Legislation is developed by UK parliament to maintain decorum and prevent unfair acts
in the society. Civil law of UK deals with the daily activities in the nation in order to protect
interest of public. For this aspect, contract and negligence law is introduced which is mandatory
to be complied by individuals and business entities in their code of conduct (Adams, 2010).
Contract law is applicable in situation where parties enter into agreement through their mutual
consent while negligence law is applicable in absence of contractual relationship. Parties are
required to pay damages if they fail to act in accordance with the cited provisions by the
legislation.
Present study is focused on the description of significant provisions of contract and
negligence law in order to provide justifiable recommendations in the given case scenario. For
these aspect; essential elements, types and terms of contract will be explained with reference to
the suitable case precedents. Further, principles of negligence will be described along with the
provisions of available defences and vicarious liability. Described provisions will be applied in
the provided case facts in order to provide suitable advice to the parties.
TASK 1
1. Types of contract and their impact
Different forms of contract have different impact on the performance of the contracting
parties. By considering this aspect, Salvatore is required to select suitable form of contract in
order to attract customer from the further field (Appleman, 2014). Description of different types
of contract along with their impact to Salvatore is enumerated as below: Face to face contract: This contract is informal form of contract which is generally not
supported by the written deed. These contracts are supported by verbal agreement
described by the parties. If there is dispute in such contracts, then situational approach is
adopted by judicial parties to resolve the case as there is absence of deed that can provide
description of original terms (DiMatteo, 2012). Distance contract: The stated contract is selected by parties in case where they are not
able to meet at common place for the formation of agreement. Due to this aspect,
agreement takes places through mail or telephonic communication. Validity of distance
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contract is determined by the applicability of postal rule according to which acceptance is
considered valid if it is communicated to the offeror (Garriga, 2013).
 Written contract: This is the standard form of contract in which contracting parties is
required to prepare in order to describe their contractual obligations. This deed is
considered as legal evidence in situation of dispute. Due to this aspect, court of law
considers contractual deed to provide damages to the aggrieved party(Lockwood, 2011) .
By considering the provided case scenario, Salvatore is recommended to make use of
distance form of contract. For this aspect, he can create trading website which can upload
available second hand car along with the appropriate information and pictures (Bennett, 2011) .
In this manner, he will be able to attract large number of customers in minimum cost and time
consumption (Garriga, 2013). This will be considered as invitation on which offer will be
provided by customers through telephone or e-mails. In this manner, he will be able to know
about order placed by the customers and further he can deal accordingly.
Preparation of standard contract will be convenient for him while dealing with the small
garages. It is because; in this contract, entire terms and conditions will be pre-stated which will
be considered as a part of contractual deed (Giliker, 2010). Due to this aspect, parties contracting
with the Salvatore will be required to comply these terms. In this manner, MotorsRus will not be
required to prepare different contracts in transactions. However, if they want to make
modification then they can make modification or addition in that particular contract.
2. Description of term offer and acceptance along with the suitable case reference
Offer and acceptance are the basic elements of the agreement to be fulfilled by the
contracting parties (Manuel, 2011) . Offer can be defined as proposal given by one party either to
specific party or in general for the completion of certain performance. Offer provided by the
party is considered to be valid only if it is certain and lawful. It can be revoked by offeror prior
to the acceptance else revocation is not considered valid (Jennings, 2010). This aspect was
clarified in the case of Dickinson v Dodds (1876) 2 Ch. D. 463. Further, invitation to treat does
not have similar legal status to the offer. It is because; invitation to treat is merely a way to enter
into negotiation thus; it will not be considered as offer. In accordance with the case facts of
Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401, advertisement and good
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display in shops will be considered as invitation and shopkeeper has option to accept or deny the
offer provided by customers (Morris, 2010).
Binding contract is said to form only if valid acceptance is provided by the party to whom
offer was made. Acceptance is considered valid, if following aspects are satisfied:
 Acceptance must be communicated to the party by whom offer was provided (Entorres v
Miles Far East [1955] 2 QB 327)
 Terms of acceptance must be similar to the terms described in offer (Hyde v Wrench
(1840) 49 ER 132)
 It must be certain (Sudbrook Trading Estate v. Eggleton [1983] AC AC 444)
According to the case facts of Hyde v Wrench, conditional acceptance will be considered
as counter offer on which further acceptance is required to create valid contract. In addition to
this, counter offer revokes previous offer of the party.
In addition to the offer and acceptance, following element are also required to be covered
in agreement in order to make it enforceable:
Consideration : It is defined as mutual exchange of promises by the contracting parties, it
can be monetary and non -monetary value against the performance providence by the parties.
Intention : Both the parties of contract must have an intention to perform their duties
which is the foremost required of making a contract legal (Keenan, 2012).
Capacity of parties : The parties of the contract must legally capable which is the
foremost requirement of making a contract valid and enforceable. According to this parties may
be free of Mental Illness (Olander and Norrman, 2012) .
3. Assessment of existence of contractual relationship in given case scenario
By considering the described case scenario, it can be said Salvatore and Markus had
provided invitation to the various parties for the purchase of mechanic equipment. In this aspect,
various offers were provided by the parties. Salvatore had merely provided invitation thus; he is
in position to make decision of acceptance or rejection for the available offers.
On the basis of case facts, Salvatore had contractual relationship with the Mike. It is
because; offer provided by Mike has been accepted by the Markus. Further, money availed
through other offers have been refunded by Salvatore (Mann, 2013).
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However, Salvatore had also accepted the offer given by Danny through phone call thus;
he had responsibility to communicate this fact with the Markus but he failed to do so. As a
consequence, he will be liable to pay damages to the Dany i.e. additional cost for the purchase of
similar parts.
4. Analysis of term in contract with reference to their meaning and effect
Remedy to the contracting parties is provided in accordance with the classification of
contractual terms into conditions and warranties. Conditions are the primary stipulation of the
contract as it defines the main objectives for which contractual relationship was formed
(Pesqueux, 2012). If contracting party is not in position to satisfy conditions of the contract then;
innocent party has right to terminate entire contract and can sue faulty party for the damages
(McKendrick, 2012). Further, warranties are minor stipulation that provide clarification to the
main obligation of the parties. In situation where warranties are not satisfied by performance of
parties, then aggrieved party has only entitlement for the claim of damages.
In accordance with the provided description, condition of the contract is breached
because provided parts are not working in an appropriable manner. By considering this aspect,
Salvatore will be required to provide refund to the buyer. However, in situation where if some
parts were slightly different to the others in colour because of place where they had been stored,
then obligation will be only for compensation.
TASK 2
Contractual terms and its impact
Contractual terms can be defined as statements inserted to described obligations of the
parties. By considering these terms standard of contractual performance is determined by the
court of law (Nystén-Haarala, 2010). Bifurcation of contractual terms can be done in following
manner:
Expressed Terms
Expressed terms are inserted by considering mutual consent of the contracting parties.
These terms can be stated either in written or in verbal manner. Expressed terms are required to
be inserted prior to the formation of contract. In accordance with the case precedent of Chapleton
v. Barry Urban District Council (1940) if terms are inserted after formation of contract then it
will not be considered effective. Further, segregation of expressed terms can be done into
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conditions, warranties and exclusion clause. Conditions are the main stipulation while warranties
are the ancillary stipulations of the contract (Partington, 2013.). In accordance with the case of
Poussard v Spiers (1876) 1 QBD 410), conditions describes primary obligation of the parties, if it
is not satisfied then innocent party can repudiate the contract. However, in situation where
warranties are not satisfied then only claim of damages can be made. Case of Hong Kong Fir
Shipping v Kawasaki Kisen Kaisha [1962] 2 QB 26 had introduced approach of innominate
terms according to which terms are not classified into conditions and warranties. Instead of this,
impact of breach is considered to provide remedy to the innocent party.
Implied Terms
Implied terms are assumed to be part of the contractual deed. Objective of insertion of
these terms in to provide effect to the general intention of the contracting parties (Thomas,
2015). Introduction of implied terms is done to protect the interest of weaker party and to
eradicate the effect of unfair contractual terms. Case precedent British Crane Hire Corp. Ltd. v.
Ipswich Plant Hire Ltd. (1975) clarified that implied terms can be introduced through facts,
custom or trade usage. Example of implied term is described is provisions described in Sales of
Goods Act.
Exclusion Clause -
These terms are inserted in contract in order to reduce contractual obligations in situation
where they are not able to satisfy their duty through performance. In accordance with the case of
Chapelton v Barry UDC [1940] 1 KB 532, exclusion clauses are considered to be effective if it
appropriately incorporated and supported by legislatory provisions. Case fact of Thornton v
Shoe Lane Parking [1971] 2 WLR 585 shows that if exclusion clause is contradictory to legal
provisions then it will be not be considered effective and defendant cannot avail the benefit of
the same. Similar aspect is described in the case of Olley v Marlborough Court [1949] 1 K.B.
532.
Case a
Issue
In accordance with the described situation, apprentices had painted the car without
checking. By mistake, apprentice had used black paint of Peugeot for the Mercedes due to which
client is angry.
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Legal provisions
According to the provisions of English contract law, contracting parties are required to
act in diligent manner in order to satisfy contractual obligations in an appropriable manner.
Breach of non compliance of this term will lead to the liability for payment of damages
(Twomey and Jennings, 2010).
Advice
By considering the described legal provisions, it can be said that customer is in position
to make claim for damages as garage has provided non-satisfactory performance.
Case b
Issue
As per the provided scenario, Mr and Mrs Cooper had purchased car displayed by the
MotorsRus with a statement that sold as seen and warranty for three months only. Prior to two
days of the completion of warranty period, Mr and Mrs Cooper had complained for the faults in
car in the garage ((Zoll, 2012). In accordance with the viewpoint of garage these complaints
were related to the minor faults and consequently they had resolved it. However, after
completion of warranty period, couple had found that there is expense of additional £5000 on the
car while consulting in another garage. Due to this aspect, they had complained to the MotorsRus
for further repairs.
Legal provisions
Obligation for contractual parties is described by the deed of contract. Thus, claim made
by injured party must be supported by term described in the deed. Claim contradictory to the
terms in contract will not be entertained as legal remedy by the court of law (Schwenzer,
Hachem and Kee, 2012).
Advice
On the basis of legal provisions, Mr and Mrs Cooper do not have right to make claim of
additional damages because warranty period is expired. However, if this expenses has been
notified prior to the completion of period, then MotorsRus will be considered liable for the
payment of damages.
Case c
Issue
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According to the described case, Salvatore had rented out the upper portion of his
showroom to the computer design company. Due to the tenants, there was no electricity in the
showroom as new cables used by them had cut off the electricity supply everywhere. Salvatore
was informed that this work need specialist electrician and he is not available for next four days.
Due to this factor, Salvatore has to face business loss because management of organization will
not be able to carry out their work.
Legal provisions
Contracting parties are required to act in a responsible manner in order to prevent loss or
injury of other parties. In situation, where they fail to comply this obligation then they are liabe
to pay damages occurred due to their fault (Bennett and Gibbeson, 2010) .
Advice
Salvatore is in position to make claim of damages on the tenant because due to their
conduct he has to born business loss.
Case d
Issue
In the described case situation, Salvatore had wrongly repaired the precious classic car of
Mr Dodsworth. It is because, management of garage had used wrong parts (Contract and Tort
Law. 2014). In addition to this, the wires of the car have been crossed in the process due to which
entire functioning of car is mismatched.
Legal provisions
Contracting parties are required to provide standard performance in order to discharge
their obligation. In situation where they fail to comply with these aspects, then they are held
liable for the payment of damages.
Advice
Case facts of the provided situation clarified that Salvatore had not provided standard
performance as there are severe defaults in the classic car after the repair. Due to this aspect,
garage has obligation to rectify these faults or they should pay compensation for their actions.
Case e
Issue
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By considering case facts of the described situation, it can be noticed that Salvatore has
branded new Defender Land Rover in his garage. Further, production of this car is restricted due
to which it had generated lot of interest in consumer market (Hernandez, 2010). As a
consequence, Salvatore had various buyer for this cars. However, none of them had specified the
price they are required to paid.
Legal provisions
Provisions of English contract law states that an offer is said to be valid if it is certain and
specific. Thus, offeror is required to provide clear terms on the required performance to the
parties whom offer is made. Further, contract law is not focused on fair consideration as they are
not interested in the bargaining power of parties. Due to this aspect, consideration is required is
to be justifiable in eyers of law but it is not mandatory to be supported by fair value ( Taylor,
2011).
Advice
On the basis of described aspect, initially Salvatore is required to determine value of car
to state price for the specific offer (Vicarious Liability, 2015). Further, this price will be
communicated to the parties and they will be invited for the offer. By making comparison of
these offers, Salvatore can select suitable buyer for the limited Defender Land Rover.
TASK 3
Contrast contract liability in contract with tort
Provisions of contract law and negligence law are both part of civil legislation. In both
these laws, provision of liability is introduced for the compensation of injury occurred to the
innocent party due to faulty action of another party. However, there are certain differences in
both these liabilities. Description of differences in contract and tort liability is enumerated as
follows:
Basis of difference Contractual liability Tort liability
Reason of occurrence Contractual liability is
imposed on the individual in
situation where they fail to
comply with the contractual
Liability in tort is imposed on
the faulty party in situation
where they do not act in
accordance with the prudence
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conditions in an appropriable
manner through their
performance.
Avery v Bowden (1855)
concept and injury is occurred
to the innocent party.
Barnett v Chelsea &
Kensington Hospital [1969] 1
QB 428
Relationship between parties Contract is formed by the
mutual consent of the parties
thus in contractual liability
there is pre-existing
relationship between them.
Scammell & Nephew v.
Ouston [1941] AC 251
Tort liability is occurred due to
act of negligence in which
parties are known to one
another. Thus, in tort
relationship is imposed by
court of law.
Donoghue V Stevenson
Basis of damages Objective of contractual
liability is to bring claimant in
situation where appropriable
performance has been
provided by faulty party for
discharge of obligation
(Elements of a contract. 2015..
Thus, deed is considered by
court to compensate the injury.
Dahlia v Four Millbank
[1978] Ch 231
Objective of liability in tort is
to ensure prevention of
omission in order to reduce
risk of injury. Due to this
aspect, there will be situational
variation in the standard
performance. Henceforth,
damages provided by court of
law will vary in accordance
with the injury occurred to the
innocent party and act of
negligence conducted by faulty
party.
Henderson v Merrett
Syndicates [1995] 2 AC 145
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Principles of liability in negligence
Negligence can be defined as civil wrong in which individuals fail to take care of
responsibilities expected from prudent person in similar situation. Objective of negligence law is
to impose obligation on business entities and individuals to conduct their activities in accordance
with the certain legal standard. However, if parties fail to act in accordance with these standards
then they are held liable to compensate the injury of innocent parties. For the successful claim of
negligence following principles are required to be satisfied: Duty of care: Initially claimant is required to satisfy the fact that they owe duty of care to
defendant. Duty of care is obligation to take standard care in actions in order to prevent
possibility of injury to the related parties. This aspect is clarified in the case of Donoghue
v Stevenson in which Lord Atkin had stated of principal of neighbour love. In accordance
with this principal individuals should take care of related parties by acting in a responsibe
way. Breach of duty: Defendant must be failed to comply with the standard care because of the
act of negligence. In the cited case of Donoghue v Stevenson, defendant was
manufacturer of beer and he was responsible to accomplish production process in a
proper way in order to prevent injury of customers (Contract. 2006). However, consumer
had discovered decomposed snail while consuming the beer. This act shows breach of
duty on the part of defendant.
 Causation: Under this element, claimant is required to show that injury occurred to them
is caused due to act of defendant (Lockwood, 2011). Causation is satisfied through
following three liabilities:
◦ Strict liability: Strict liability is imposed of obligation on the individual without
finding their fault. In this liability, claimant is required to proof that tort was occurred
and defendant is responsible for the same.
◦ Absolute liability: It can be defined as standard of legal obligation which is found in
tort and criminal law in accordance with the several legal jurisdictions (Manuel,
2011).
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