Aspects of Contracts and Negligence

This report explores aspects of contract and negligence law for businesses. It begins by defining contracts and their essential elements (offer, acceptance, consideration, capacity, intention, legality), illustrating these with case examples. Different contract types (face-to-face, written, distance selling) are discussed. The report then analyzes contract terms: conditions, warranties, innominate terms, and exemption clauses, using case studies to show their effects. The second half compares contractual and tort liability, focusing on negligence. It outlines the elements required to prove negligence (foreseeability, duty of care, breach of duty, causation) and discusses vicarious liability. Several case studies illustrate the application of these principles, analyzing scenarios involving agreements, consideration, exclusion clauses, implied terms, and the voiding of insurance policies due to breaches of condition or warranty. The report concludes by summarizing the key differences between contractual and tort liability and emphasizing the importance of adhering to contract terms.

Aspects of Contracts
and Negligence for
Business

INTRODUCTION
Contacts are basically referred to an elemental consideration among two or more parties.
It is where the individuals are interconnected with a fine association of contractual term between
them. This is however in relation with a legitimate consideration among both the involved
parties. They are hereby bound to frame the vital definitions of their agreement with a
collaborative sense. This will significantly result into an undisputed method of forming the
contract with certain lawful proceedings by them. It is mainly for refereeing to some primary
components of a legal contract with a fine inclusion of its certain mandate principles. These laid
down policies configure them together to perform the mandate customs of their ascertained
clauses (Abn, 2009). A contract exists with some enumerable formations along with their
variedly distinct striking expressions. However, it entirely depends upon the interested parties to
opt for a particular format. Below report is to demonstrate about some relative orientation of a
legally valid contract where it has together outlined a major counter factor of neglecting the
mandatory impositions of an agreement. It is significantly based upon some conferred case
scripts to briefly refer to each of its vital affiliations.
TASK 1
1.1 Formation of contracts and importance of various elements into it
This is basically with reference to state about the vital cogitations of an individual named
Peter Abram as per the given business scenario where he is presently willing to set up his own
contractual business (Adamson and Morrison, 2011). It is however with a fine cogitation of
commencing it with all legitimate procedures into which the below delineated elements are
referred to be some essential constituents of a legally valid contract that gives it a judicial
outlook- Offer and acceptance- This is with reference to define the foremost element of a
contract where Peter as a contractor will be primarily responsible to enact the part of an
offerer. This is where he is supposed to propose a considerable offer of working for his
clients and customers. Acceptance is thus a relative element of the proposed offer,
according to which, the interested parties will accept the made deliberations of Peter
into his given proposal (Bisso and Choi, 2008). Case: Thornton v Shoe Lane
Parking [1971].
1

 Capacity- This is where both the parties who are refereeing to involve into a contractual
term should be enough competent for such participation. This is mainly due to some
other significant norms of handling the minor age parties or mentally incompetent
bodies like prisoners, etc. Consideration- It is referred to yet another vital association of the above considerate
offer and its acceptance. This is where Peter is supposed to ask for a nominative fees
for his work firm the interested base of service users (Deakin, Johnston and Markesinis,
2012). However, it should be primarily included into the proposed offer made by Peter
to the interested parties with a specific constituent of such consideration into it. Case:
Re McArdle [1951]. Privity- This is with a rigorous reflection of the legal bodies where such contracts with
their primary constituents can be only negotiated by its leading involved parties. It is
thus with no prior involvement of any third party into the critical discussions upon its
negotiant terms. Peter should therefore follow this specific concern of not including any
third party to get into the negotiation between him as an offerer and his acceptance
body. Legal intention of getting into a contractual term- It is where both the parties of offerer
and acceptance should go ahead with a legal semblance of their legitimate deliberations
of involving into a contractual term. It should be thus with no subsequent existence of
any unwilling approach where it may lead to the breach of any significant contractual
term (Friedman, 2011). Both Peter and his respective client and customer should thence
get into the agreements with their own vital cognition. This is where the built in and
referred consideration of their respective contracts should be without any pressurizing
imposition upon one other. Case: Balfour v Balfour [1919].
 Lawful objectification of the built in agreement- This is where the contract should not
be involved into any fraudulent prospect. This is where each of its preposition should
reflect a legal cause and evidential genuineness of both Peter and his clients and
customers.
2

1.2 Impact of forming contracts by means of applying it to the given scenario of Peter Abraham
1. Face to Face Contract
This is amongst a vital types of framing a contract from some other variedly accessible
formats. It is where both the interested parties are primarily required to negotiate the required
principles of their agreement. It is however not suggested being a suitable formation of contracts
with a long term association among its involved parties. This is mainly due to its related
uncertainty which may consequently lead to raise some unwanted conflicts and disputes among
both the parties (Gunn and Johnson, 2009). This is in case they refuse to acknowledge each
other's prime considerations which were made at the time of discourse session among them due
to its implicit format. It is however with yet another major composition of rule where both the
interested parties of this peculiar type of contract obligatory to make a physical presence in front
of each other. This is basically for an expressive discourse session between them where they can
effectively present one other's varied remarks. Peter can however refer to such formation of
contacts at the time of any exigent state of work where his clients are in an urgent need of getting
their work done by him.
2. Written Contract
Business contracts and employment letters are referred to be some similarly related
illustrations of such type of contracts. It is however defined to be amongst the most
recommended format with its easy and quick methods of resolving any disputed consent among
the involved parties. Peter can hereby refer to such formation of agreements with his clients and
customers with a less possible chances of any conflicted issue between them (Colino, 2011).
For a more comprehensive form, one can refer to a factual case of Esso Petroleum v Mardon
[1976] where their written contract have enormously served in resolving the raised dispute
among the parties.
3. Distance Selling
This is with reference to depict some modern amenities of online booking services where
one can effectively relate it with the advanced version of technology these days. It is where one
can hereby refer to the online booking services of railway and airplane tickets into which hotel or
room bookings are also referred to be a relative part of it. Telephonic booking are also
considered to be a similar conception of distance selling where the traders are directly dealing
3

their customers on mere phone calls and rendering services at their doorstep (Kelly, Schwartz
and Partlett, 2010). Peter can thus implement a similar proceeding of his work where he is
primarily required to create an official website of his own. This is where the respective service
users can directly interact with Peter with his specified contact numbers and mail ID, etc., to
make a significant work related communication.
1.3 Analysing the following terms in contracts with reference to their meaning and effect
1. Condition
This is referred to be the foremost reflection of a contractual term among the two
involved parties of an agreement. This is where the condition term exists with an inflexible
approach of its vitally predefined principles whose breach can entirely dissolve the entire
contract among the involved bodies (Elliot and Quinn, 2009). It is therefore recommended to
Peter and his associated bodies of clients to rigorously refer to the vital constituents of their
contract without any ignorant outlook towards its adherence. A precise apprehension of this
particular term can be attained from a factual case scenario of Poussard v Spiers [1876] where
the overall agreement between the involved parties was rightly terminated due to a breakage into
the considerable condition terms.
2. Warranty
This is considered as another associative part of contracts where the warranty term is with
a slight permissive approach. It is where the defendant party on breaching the warranty terms of
an agreement is merely responsible to pay for its liable damages rather than dissolving or
terminating the entirely built in contract among them (Levy, Golden and Sacks, 2015). This is
however upon the claimant party to considerably negotiate upon the warranty terms of their
contract with a primary approach of acknowledgement to its leading participants. A factual
illustration of Bettini v Gye [1876] can be prescribed for a more clear understanding of such
warranty terms. It is where the entire contractual term among the parties was wrongly terminated
due to a mere breakage into the contractual term of warranties.
3. In nominate Terms
This is where the parties refer to any disputed conflict among them and subsequently
approach for a legitimate decision of court with a fine perspective of resolving it. The judicial
party hereby plays a vital role where after delineating the primarily built in constituents of a
4

contract between the parties, they are neutrally dissolved by the judiciary bodies (Giliker, 2010).
It further continues with a fine inclusion of some other new terms of conditions and warranties
that is basically to make an even decision for the conflicted parties. A factual case of Hong
Kong Fir Shipping v Kawasaki Kisen Kaisha [1962] can be referred for a more precise
apprehension of these terms.
4. Exemption Clauses
It is basically considered to be a powerful content to the retailers and manufacturers, etc.,
where they are permitted to exclude their certain responsibilities from any existed indemnities of
their products and services. These terms are also known as exclusion clauses that gives a prior
authority to the dealers for limiting their obligations from any occurred damages of their
rendered goods and services (McKendrick, 2014). Such clauses however should not conflict with
the legal deliberations of law. This is where the dealers should not attempt to fool and cheat their
consumers and rather deal into a legitimate manner. Perter is too referred to formulate with a
valid association of his offerings and other related dealings, etc., with no foul procedures.
Another crucial factor of legality for the traders is hereby considered opting for a primary
approach of informing the interested parties about such active existence of exclusion clause into
their business operations.
TASK 2
2.1 Applying the elements of contract into the given business scenarios
Case 1: Agreement
The conferred case have hereby represented an individual named Carol who basically
referred to an online classified site to purchase some requisite furniture equipments for her half
done flat for scholars. It is where she referred to an online site Gumtree that used to render some
similarly nature home products and other considerable goods and services as well. Carol as a
prior sense of buying furniture hereby selected a fine advertisement of couch. This is where the
owner of that particular couch have specified an “offer or invitation” to all its potent number of
buyers (Paquin, 2013). Carol together represented as a potential buyer of that peculiar couch
where she was highly impressed by its vital attributes and the given picture of it by the owner. It
is where the specified couch was brown in colour and was framed of leatherette material. Carol
thereby agreed of its “consideration” price of 600 sterling pounds. This is where she together
5

mailed the owner to show her “acceptance” for purchasing the couch brown leather couch. It has
together depicted her legal intentions of buying the product where she is also referred to be a
competent party. However, she did not receive any subsequent response from the buyer that
directly refer to a non existent agreement among them.
Case 2: Consideration
The given case have hereby represented a vital rule of the consideration element into the
contracts. This is where a person named Devi who belonged to a very potent father named
Preston have applied for an IT profile of cyber security into a well known firm named Fogarty,
Inc. It was reputed as a huge IT enterprise where it was difficult for Devi to get selected without
any prior reference of his persuasive father. However, he approaches the firm and applied to the
desired position with an independent stature without acknowledging his father about it. As a
result to which, he got appointed by the two vital bodies of the organisation named George and
Smith on a specified date of 12th April 2015 after considering his aptitude for few weeks. His
father with an unknown clause of his selection thereby sends a consideration mail to the
organisational bodies (Spindler, 2011). This was with a clear dealing of selecting his son for
which he was even ready to pay them a huge amount of 150, 000 sterling pounds. The mail was
refereed by George where he is now willing to apply it against Preston and his son. However, as
per the considerate elements of a valid contract, George is legally not entitled to go for such
decision where they have already proposed the job offer to Devi and it was subsequently
accepted by him. Furthermore, a third party interference of Devi's father Preston is strictly
restricted according to the privity element of contracts.
2.2 Applying the law on terms in the following contracts
Case 3: Exclusion Clause
This is with reference to define about the atrocious state of a couple who booked a dinner
table into a famed restaurant of London. On reaching the food place, the man was instructed to
submit his wearable jacket to the appointed assistant at the entrance of the food place. The man
however forgot to take out his money bag form his submitted coat and later remembered about it
at the time of paying the billing amount. In addition to which, he went onto claim for his
deposited coat and did not found his wallet into it. As a result to which, he went on to claim for
his lost money to the designated employees of the hotel (Ueda, 2012). On which, they clearly
6