Detailed Report: Contract and Negligence Law under English Law

This report provides a comprehensive analysis of contract and negligence law, focusing on key elements required for a valid contract, different types of contracts under English law, and their implications. It explores the importance of offer and acceptance, competency of parties, and consideration in contract formation. The report also examines the impact of various contract terms, including conditions, warranties, and innominate terms. Furthermore, it contrasts contractual liability with liability in tort, specifically negligence and vicarious liability, highlighting the elements of the tort of negligence and potential defenses. The report includes case studies to illustrate the application of legal principles and concludes with an overview of the legal responsibilities and potential liabilities of businesses. This report is a valuable resource for students seeking to understand the complexities of contract and negligence law, and is available on Desklib, a platform offering AI-based study tools and resources.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Importance of essential elements required for the formation of a valid contract.............1
1.2 Impact of different types of contract in terms of forming, biding and enforceable contracts
under English law...................................................................................................................2
TASK 2............................................................................................................................................4
2.1 Understanding of essential elements of a valid contract..................................................4
2.2 Apply the law on terms to Rani and Eric case..................................................................4
2.3 The effect of different terms and remedies available......................................................5
TASK 3............................................................................................................................................6
3.1 The contrast the liability in tort with contractual liability................................................6
3.2 The nature of liability in negligence.................................................................................7
3.3 Business can be vicariously liable....................................................................................7
4.1 The elements of the tort of negligence and possible defences ........................................8
4.2 The law on vicarious liability ..........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Contract is defined as a legal agreement among two or more parties that is abided by
legal authorities to form a valid contract. However, governmental bodies are also focused on the
different aspects of contract and negligence law which assist them in providing guidelines and
standards that need to be followed by the organization in order to protect the right and interest of
public (Collins, 2014). Present report will focus on diverse aspects that are related with
negligence and contract. It will also provide information about different kinds of contract that
can be consider by management of business organisation. Study will also focus on contractual
liability and other aspects that are related with working of organisation.
TASK 1
1.1 Importance of essential elements required for the formation of a valid contract
As per detailed study, there are various elements that are essential to consider in
formation of valid contract. Classification of key elements can be as offer and acceptance,
competency of parties and intention to create legal relationship.
Offer and acceptance: It has been noticed that offer and acceptance must be considered
as essential element by both parties so that valid contract can be taken into account. It means one
party need to present an offer and other party must accept the offer presented so that valid
contract can be framed (Epstein, 2013). If offer is made but it was not accepted by another party
then it will not be considered as valid contract. Message must be conveyed in appropriate manner
for accomplishment of objectives.
Competency of parties: It is another element which is also needed to be consider in
appropriate manner for effective formation of valid contract. In addition to this, it is necessary to
make sure that party that enters in the contract is suitable for entering in contract (Giliker, 2010).
Person must be 18 year old so that he can present competency while entering in the contract.
Mental conditions of individual also need to be refer effectively so that valid contract can be
framed. Other than this, it is also necessary to make sure that person entering in contract is
holding positive concern so that better protection can be built (Faure, 2009). Along with this,
mutual understanding and acceptance also need to be effectively from the management so that
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goals and objectives can be accomplished. If both parties are having legal intention then it will
allow to have valid formation of contract.
Consideration: It is referred as value which helps in ensure that key standards of contract
are well maintained. It is mainly is exchanged for the performance or promise of performance by
the other party. In addition to this, it is significant to make sure that consideration is being
exchanged with the consideration.
Other essential: Offer can be explained as proposal to the contract the two persons are
bind to complete a contract (Carlill v Carbo,ic smoke Ball co.) As per the case, a remedy for a
flu was found in which if the manufacture is not able to bind the buyer works then he will be
awarded £ 100 which is a considerable amount. In addition to this, intention to create legal
relation also need to be evaluated effectively. If any one of party is not focused towards creating
legal relationship then aspects of valid contract can be impacted effectively. Parties must have
capacity to enter into a contract. It means minors and mentally disable person can not participate
in the interview. For better understanding about the concept the case of Carlill v Carbo,ic smoke
Ball co.can be referred effectively.
Acceptance can be defined as requirements of the elements in order to form a legal bind
contract. In addition to this, acceptance is an expression in which the parties are bound to
contract legally.
1.2 Impact of different types of contract in terms of forming, biding and enforceable contracts
under English law
It has been noticed that there are number of contract in terms of forming, binding and
enforceable contract. With an assistance to this, the contractual relationship can be build in
appropriate manner. Classification of contract types can be as face-to-face, written, etc.
Face to Face: In respect to face to face contract, it can be said that it is a form of
contractual aspect that allows to have construction of contract and exchange of promises with
other party. In this, different methods of communication is being used by parties such as
telephone.
Verbal: In addition to this, it can be said that verbal contract can be framed by having
appropriate conduction of meeting. It allows to have discussion between both parties in regard to
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contract formation
(Bennett, 2011). This type of contract is not documented as well as it also has lack of evidence or
record of being entering into the contract. In this contract the business firm may face critical
issue if contract is being breached by other party because it does not provide any kind of
evidence in respect to legal agreement. In addition to this, it can be said that such methods are
mainly considered as distance selling methods. By having an effective use of telephone for the
verbal communication the parties can have discussion regarding contract. Mutual understanding
can be developed with a help of distance selling contracts.
Written: Other than this, written contract is also one of contractual aspect that allows to
meet have legal agreement between parties. In this, written form agreement is being considered
as critical aspect. One of key benefit of such contract is that evidence in conditions of agreement
breach are properly available. In this, different terms and conditions are need to be followed by
parties. If any kind of breach activity is taken into account then contractual aspects will also be
followed as per different terms and conditions that are framed during formation of valid contract
(Gillies, 2004). Along with this, claim can be taken into account as per mutual understanding of
key elements of contract.
Unilateral and Bilateral contracts: Unilateral contracts are those in which one party is
involved at the time of taking action. In addition to this, it can be said that Only one party makes
promise and what is expected from the other party. Respective action can be taken from other
party. Bilateral contract is the one in which the involvement of two parties are considered. In
this, both parties are focused towards promises which need to be made from both parties. Under
seal contract is a contract in which the consideration of other part is not required. This contract
must be in written formate.
1.3 Different contract terms
In order to have better formation of valid contract, it is significant for parties to have
appropriate selection of contract. It has been noticed that contractual agreement is considered as
a provision under which parties have formation of contract with reference of diverse terms and
conditions. It is necessary to make sure that mutual understanding between both parties is being
developed so that goals and objectives can be accomplished (Goldman, 2013). There are
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different contractual terms that are imposed in the contract which can be classified as conditions,
warranties and innominate terms.
Conditions and warranties: Conditions is referred as a duty of both parties who have
involvement in the contract. It allows to complete duties in appropriate manner as per
consideration of contractual agreement. It is one of most essential section of the contract. If one
party fails to meet the obligations and breaches the conditions then another party can have claim
against the activity. Warranty is kind of term that is being referred under contract (Lockwood,
2011). It is considered as a guarantee or promise which is made by one party to benefit another
party. With an assistance of this, better protection can be offered to traders for specific time
period. Immediate claim can be made if any party breaches the key values of contract. Condition
is the main matter in the contract where if it is breached the party who is innocent has right to
end the contract. Warranty is a minor term in which if the contract is breached then the innocent
party will be entitle for the damages.
Innominate: Innominate terms is a term which is referred as condition or warranty. By
having improved focus on innominate terms the consequences on innocent party can be taken
into account. It has been noticed that by having effective consideration of terms and conditions
the parties can easily protect rights in respect to damage conditions (Magnus, Casals and Boom,
2004). Duties and responsibilities can also be accomplished in appropriate manner.
Expressed and implied terms: in case of expressed terms the contract is made on the
basis of oral or may be in written. But in case of implied, there is no expression of the contract
between the two parties. In addition to this, it can be said that for better understanding of the
implied terms the case of Hutton. Along with this, it can also be stated that consideration of case
of Hutton V Warren also helps in understanding the expressed and implied terms. Case of
Moorcock and Liverpool City Council also provide understanding about expressed terms.
Exclusion and limiting clause: It has been noticed that such kind of aspects are mainly
inserted with the aim to exclude or limit one party liability in regard to breach of contract or
negligence. Along with this, party reliability is over clause if such aspects are incorporated into
contract. Moreover, matter of interpretation, it extends to the loss in question. Its validity will be
tested under unfair contract term act 1977.
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TASK 2
2.1 Understanding of essential elements of a valid contract
As per the detailed study, it has been noticed that there are number of essential elements
of valid contract that need to be consider in appropriate manner. It is beneficial to provide better
support to parties and have proper formation of contractual relationship. Car saleroom has
offered a free cars to three persons who visit to the store in limited time period. Abel has
accepted the offer and reached to the store in given time period. Offer key standards are being
accomplished by Abel that means contractual relationship is there (Manuel, 2011). Above case
indicates that offer and acceptance are key essential part of agreement. Company is accountable
to the meet provide free car to Abel. As in given case, company is refusing to provide car to Abel
that means it will be referred as breach of contract. In this respect, Abel can claim for the damage
under terms and conditions of contract (Marsh and Soulsby, 2002). However, it can be said that
the car dealers have made a unilateral offer and that Abel accepted by performing the act
requirement. It has been noticed in the analysis, Abel is 22 year old which also reflects the
capacity to have involvement in the contract. Along with this, offer and further elements are also
well maintained. Essential elements of contract are well satisfied, it means Abel can sue in
respect to breach of contract. If car is not delivered then these aspects can be considered.
Along with this, competency of parties is also valid that frames valid contract between
both pdarties. According to key terms and conditions the participant must be 18 years old and
Abel is 22 years old that means contract framed between both parties is valid. It also indicates
that valid contract terms and conditions are applied in the contract. Any kind of legal action can
be taken against car saleroom (Manuel, 2011). During the formation of contract when offer made
by car dealer the positive intention was presented. It means the key elements of valid contract is
being developed by both parties. In this respect, the Abel can claim for the damage so that legal
values can be promoted in appropriate manner. Therefore, both the parties have mutual intention
to create a legal relationship which also promotes the formation of legal documentation.
2.2 Apply the law on terms to Rani and Eric case
It has been noticed that there are two kinds of terms that are being applicable in the
present case study. Implied and Exclusion term is being applied in the contract. According to
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given case study, it has been noticed that in contract it was mentioned under exclusion term that
no liability is accepted for death, personal injury, damage to property which arise from driving a
car. This is considered as expressed terms that are involved by the parties in the contract
(Magnus, Casals and Boom, 2004). However, the implied terms is also applicable to the contract
because these kinds of terms are applicable by legal arrangements.
It has been noticed that while entering in the contract the Eric has signed all the standards of
contract as per key legal values. Contract was signed between car dealer company and Eric as
per key standards. As car dealer has mentioned that they are not accountable for any kind of
damage during car driving and Eric has also signed for the same. It means company does not
hold any kind of liability against the damage (Lockwood, 2011).
As per the implied term that is The Consumer Right Act 2015 the exclusion term is not effective
as consumer has right to acquire quality goods by the seller. According to implied terms the
owner is holding an accountability in respect to damage. It means the Eric can have claim against
the damage as per consideration of implied terms. According to the Sales of Goods Act seller are
duty-bound to provide the superior quality merchandise to the customers so that it may reduce
the possibility of causing injury. In addition to this, it can be said that sales of good act 1979 is
one of critical aspect which need to be evaluated in desired manner. Sales of good act can be
used to claim against damage so that issues can be referred in appropriate manner. Eric is entitled
to claim compensation for the defective car and the repair costs. It has been noticed that Eric can
only claim against the damage in circumstances where the sales of goods act is applicable. Under
exclusion term the Eric cannot have any kind of claim against the damage.
2.3 The effect of different terms and remedies available
Above study of key aspects indicates that there are various remedies that can be taken
into account by Eric in present case study. For example, according to act of sales of good act and
implied terms the car provider must focus on quality of product during the supply of goods. It
means car dealer firm must ensure about the working of car during the sale of car product to
Eric. Company has not considered any kind of such activity as critical aspect so Eric can have
claim against the damage (Goldman, 2013). As it has been noticed that defective car has been
sold to the Eric so company holds the liability against the damage. Eric can have compensation
in respect to damage which can be considered as great remedies available to Eric. However, as
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per the Consumer goods act departmental store needs to deliver quality products to the customers
and they have right to replace the products in case of failure or faulty products.
In addition to this, it can be said that exclusion term is not valid because Eric holds the
remedies against car dealer (Gillies, 2004). If the clause was not drafted under contract then it
will be referred as implied term. It clearly indicates that company holds great liability against the
damage that harms Eric.
The consumer can adopt the three structures which are given below.
 Short term right to reject
 Right to repair and replacement
 Final rejection of the product.
TASK 3
3.1 The contrast the liability in tort with contractual liability
As per English Law Contractual liability and obligations of Tort highlyare widely
different in terms of performance. When one or more than one individual is unable to fulfil duty
of contract contractual liability is performed (Goldman, 2013). The second one takes place when
the company or person does not perform standard care of duty and causes damage to others due
to act negligence. The differences between the mentioned terms are stated below:
Basis Contractual Liability Tort Liability
Relationship between Parties This kind of liability is
developed between the parties
due to mutual consent which is
developed through elements of
offer, acceptance and legality.
It is imposed by law if the
defendant avoids the basic duty
of care.
Characteristics of Obligation Terms of Contract provides
with the duties of contractual
liability.
No presence of mutually agreed
obligation because it is imposed
by legal authorities.
Reason of occurrence Claimant will suffer the losses
when defendant is unable to
If claimant proves that damage
or loss being caused was due to
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comply to the terms of contract
(Conason, Moore and Shoot,
2015).
negligence of defendant and for
not performing standard duty of
care it is said to be tort liability.
Basis Of Damages Noncompliance of the terms of
contract results in breach of
contact.
Act of negligence leads to the
liability for the claimant for the
loss of damages caused.
Probable decrease in Damage Damages could be adjusted
from the amount the claimant
has been unable to mitigate the
losses.
Percentage till which claimant's
conduct has been added in the
losses can be adjusted from
damages (Cardi, 2014).
Contract Strict liability Tort-fault liability
Authorities Defendant has not carried out
promise to perform
Defendant does activity causing
harm to claimant
3.2 The nature of liability in negligence
Negligence means any risk arise knowingly or unknowingly in any circumsatnces or
situation by any parties .Any parties fails to take care of duty are liable for negligence the loss
come under situation are economic loss, financial loss , loss of any person property are come
under negligence . There are some elements under which party are negligence mainly there only
4 elements , they are discussed below :-11 Duty of care- In any circumstances if any one party injured another party and fails to
perform duty of care it come under negligence. Thus it is essentially for the person to
develop that the defendant must owe them a duty of care11 Breach of duty -It comes under negligence when defendant breaks such a duty not
perform well and injured another party and failing to exercise a reasonable care and other
party face any loss or damages .
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11 Damage caused -In this person is liable for negligence only when the party is suffered
from loss and damage due to breach of duty by a defendant. So the damage can be
recovered by paid to another party because a defendant can perform well and not take
care a reasonable care towards his duty.11 Proximate -In this element when the all above three elements are exist . A party protect
them by duty of care when another party not perform a reasonable care a breaches of duty
in a situation and it directly damage or loss to the plaintiff (Epstein,2013).11 Causation in law: It is considered as legal values which provide an explanation of further
values. In order to have better understanding about the nature the case of Tankship V
MortsDock can be considered as critical aspect.
3.3 Business can be vicariously liable
Vicarious liability is the one which is caused or aroused by one person for the other. In
other words, it can be said that vicarious liability is the one which makes one person the cause of
damage for the other due to negligence or unavoidable acts. This liability brings the cause of
damage for employer on the behalf of an employee. Legal obligation favours the same and brings
this into picture to make the legal clarifications for same. The influential relationship of the
parties brings liability into picture (Marsh and Soulsby, 2002). The employers pay compensation
to the employees to control the issue. This creates a tort liability for company of employer. The
employees of independent contractors are entitled for the claim as well. ‘Vicarious liability’
means that one person may be liable for another person’s tort. In addition to this, it can be said
that employer hold any kind of liability for the tort. But the vicariously employer is not in the
fault. In addition to this, it can be stated that vicarious liability is mainly imposed by business
firm if employee is involved in any kind of tort. It means the tort activity of employee is subject
to the vicarious liability and business firm is liable for any kind of damage taken into account.
The major intentions for considering the issues may be mentioned as follows:
Control: This is the condition where it is evident that the matter was in the control of employer
and the accident could have been possibly avoided by taking due care of the incident. This
occurs when the employees with low technical skills or qualification are hired or the basic
warnings about tasks are ignored by the party etc. Thus, the lack of control becomes a possible
reason for the happening of damage.
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Employment test: This is yet another measure which reflects the negligence of employer which
ultimately results in the occurrence of accident or damage to the third party. This is the measure
where check regarding actual person who is responsible for the act is made (Neethling and
Potgieter, 2012). Weather the company is responsible for the act, or the employee individually is
responsible . This act helps in defining the actual liability the damages.
TASK 4
4.1 The elements of the tort of negligence and possible defences
According to the case study, George are liable to all the activities which is occurred in the
restaurant. In this way, Emma suffer in personnel injury due to chef of the restaurant uses the
refreezing food and expired foods as well (Defence to Negligence Claims, 2015). In this
situation, employers are also liable to all the activities ion the firm under which they uses the
expiry food. It creates the personal injury of the consumer so that customers are liable to sue the
file for against the party. As per this, consumer sue on the company and their owner because
they knows all the things which occurred at the work place. In this situation, consumer follows
the negligence and defences like volenti for non fit the injuries and other one is contributory
negligence and Ex turpi causa. In volenti, the George knows that employees in the firm uses the
expiry food when they makes the meals. In this way, the George are liable to sue the employees
under which they knows the consumer takes the good there after is suffered from the personal
injury. Apart from this, contributory negligence under which defence to the claim is based on the
negligence. The George takes the liability for own negligence and claim the other person. In this
way, they contributing to the harm they suffered the consumer. Furthermore, the consumer are
cable for the claim the against the party (Bennett, 2011). On the other hand, As per the Ex turpi
causa, the consumer will be unable to pursue the legal remedy which is arisen at the work place
under which they particularly relevant in the law of the contract. In present case, the employee
was in breach of duty. It is significant for management to make sure that the employee is having
a reasonable forsee of key aspects. It will provide a better protection to the claimant's and helps
in deal with the damage situation. According to analysis, it can be said that any kind of claim
cannot be raised against Emma because negligence values are not well maintained. George are
liable to sue the employees under which they knows the consumer takes the good there after is
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