Aspects of Contract and Negligence for Business Assignment Solution (GC01590)
Table of Contents
Unit 5: Aspects of Contract and Negligence for Business.
Introduction.
Task 1: Understand the essential elements of a valid contract in a business context
1.1 The importance of essential elements required for the formation of a valid contract
1.2 Discuss the impact of different types of contract
1.3 Analyze terms in contracts with reference to their meaning and effect
Task 2 Be Able to apply the elements of a contract in business situations.
2.1 Apply the elements of the contract in a given business scenario.
2.2 Apply the law on terms in different contracts by explaining, what are the consequences of classifying terms as;
Task 3 be able to apply the principles of liability in negligence in business activities.
3.1 Contrast liability in tort with contractual liability.
3.2 Explain the nature of liability in negligence.
3.3 Explain how a business can be vicariously liable.
Task 4: Be Able to apply principles of liability in negligence in a business situations.
4.1 Apply the elements of the tort of negligence and differences in different business situations.
4.2 Apply the elements of vicarious liability in given business situations.
Conclusion.
Introduction
The business contract refers to a group of regulations that are generally made by several rules and administrative policies. A business contract is accountable for implementing following the law created by several authorized bodies. To understand a business contract, three issues must become under consideration, which are conception, fascination, importance and power. The significant resources of a business contract are equity, constitution, administrative law, common law, stature, etc. Several types of contract laws are applied in the current business world. Contract mainly refers to a commitment or agreement which provides the authorized obligation according to law. This coursework discusses several factors of aspects of contracts in terms of several business case seniors.
Task 1: Understand the essential elements of a valid contract in a business context
1.1 The importance of essential elements required for the formation of a valid contract
A contract that lawfully created by the companies is known as an agreement (Business Law, 2010). An applicable or lawful contract must be created following a number of elements. These are offer, acceptance, consideration, agreement, and purpose to make a lawful relation or ability. The contract is mainly going through acceptance and offer. A company creates an offer where the other company recognizes this offer to make a valid agreement.
Offer
Offers is the primary and first element of a valid agreement conducted by the business organizations. This element is applied to establish an acceptance live among the “offeree” as well as the “offeror”. The offer wants to be recognized in the appropriate manner. Thus, it must avoid the possible faults. The acceptance will not be legal and valid, if the offer is not proper. (Business Law, 2010). This means an offer can be established to make a valid agreement.
In this case, Ivan just made an offer to the bookshop to buy the HND law book, where this offered was not accepted by the bookshop. This means there was no valid agreement between the bookshop and Ivan. Thus, Ivan does not have the right to force the bookshop to sell the book to him.
Acceptance
Acceptance refers to the willingness or the expression of the offer (Business Law, 2010). According to the laws, and acceptance can be conducted through formal expressions or a set of conditions. A valid acceptance should follow the following regulations:
- The contract has to be certain or clear: The acceptance has to equivalent to the expression of the offer. If shows two offers in expression; it assumed that there is no agreement (Tinn, 2012). In addition, the offer has to be a logical or strong-minded object. The agreement could not be imposed, if the offer was very much unclear (Ouston, 2014)
- Acceptance has to be by the individual to whom the offer is created: the offeree has to show the acceptance directly or indirectly to the offeror. The silence does not signify acceptance, acceptance has to be responded to. As a result, to specify the acceptance, the offeree has to articulate it by expressions or act or throughout behavior like the term
Consideration
Consideration in a business contract is formed with a number of interest, benefit, right or profits. It may also include a number of self-control, disadvantage, defeat or accountabilities (Business Law, 2010). Basically, consideration is a dealing between the promisee or promisor. Each party will get a profit as well as endure a loss. No agreement can be valid without consideration. Consideration has to be adequacy, However, no want rather than sufficiency. It means consideration has to give profit or endure loss however it is not actually big worth. On account of the sovereignty of agreement, the companies can choose the value by themselves (Thomas, 2013).
Intention to create legal relations
A contract will just turn into a valid agreement if the company creates legal relations with this. This will be powerful recognized in the term of company contract (Business Law, 2010). A domestic agreement, such as a contract between wife and husband, recognizes that there is no objective to make lawful relationships. On the other hand, wife and husband can go through a connecting agreement in the term they showed to plan to be clear by rule. In terms of Merritt v Merritt, the husband goes away from his wife. They did create an agreement. The husband decided to give £40 each month. The home has to be reassigned into the wife’s surname while she compensated off the credit. The husband signed in agreement the document. On the other hand, he rejected to reassign the home after the wife compensated off the whole credit (Merritt, 2012). This is a divorced agreement. Thus, they come out to plan to be clear by rule. In case. The husband must provide the house to the wife because the husband did a written agreement………………..
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