Unit 05 Aspects of contracts (GC0888)

Table of Contents

Introduction.

Task 1.

1.1 How a contract is formed and the importance of the essential elements required for the formation of a valid contract

1.2 Discuss the impact of forming contracts in terms of face to face, written, and distance selling

1.3 Analyze terms in contracts with their meaning and effect including remedies and damages

Task 2.

2.1 Application of elements of contracts in the given scenarios.

2.2 Apply the law on the terms in the following contracts.

2.3 Evaluate the effect of different terms in the given contracts.

Task 3.

3.1 Explain the similarities and differences of liability in tort with contractual liability.

3.2 How liability for negligence can arise and the conditions needed to be met for a claimant to successfully prove negligence.

3.3 Explain the terms ‘vicarious liability’ and how a business like Tesco can become vicariously liable

Task 4.

4.1 Apply the elements of the tort of negligence and defenses in the given business scenarios.

4.2 Apply the elements of vicarious liability in a given business situation.

Conclusion.

Introduction

A business contract is one of the most important topics in an organization. Business organizations need contract features as well as technical features. There is also some negligence in business sectors. This report focuses on four specific tasks. First of all, several elements of a valid contract are studied. In the next section, the importance of a valid contract is discussed based on different case scenarios. In the third section, differences and similarities are discussed between contractual and tort liabilities based on a particular company named Tesco. Finally, the tort of negligence and vicarious liabilities are discussed based on different case scenarios

Task 1

1.1 How a contract is formed and the importance of the essential elements required for the formation of a valid contract

According to Atiya (2013), a valid contract is a legal agreement between the two business groups. A contract that is not legally practicable is not a justifiable contract. A valid contract is divided into three major factors. These are face-to-face contracts, distance selling, and written contracts. Individual processes are applied to different types of business conditions. Valid contracts have several types of components. Valid contract’s major elements are defined as follows in terms of Peter Abraham’s business. Offer, acceptance, lawful consideration, etc are the most common factors. These are described below:

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Offer

According to Atiyah (2013), offer is the first and important stage of a valid contract. A valid contract begins with an offer. It mentions formal and compliance expressions from one group to another group. Two groups communicate with an offer. The acceptance withdraws the offer at a previous time.

In terms of Peter Abraham’s business, he deeds legal offers to his customers or clients and follows the legal law activities. Peter Abraham shows the formal manifestation to his customers to communicate and inspire them as a friend. So, the customers can withdraw the offer until the acceptance may come. Offer is the most important component of a legal and traditional contract in Peter Abraham’s business organization.

Acceptance

According to Atiyah (2013), acceptance is the second component of a valid contract. After the finishing of an offer, acceptance may come. Acceptance notes to the expression of an agreement to the terms produced in the offer. Acceptance is a term of agreement producing an offer. Peter Abraham should management legal agreements with his customers. Peter Abraham should communicate with his clients and a real proposal should be avoided. So, acceptance is also important in a business organization.

Intention to create a legal relation

A legal relationship is the third stage to make a valid contract. It is the most useful and most significant stage in a business organization. According to Atiyah (2014), there must be a legal relationship between the two groups. It can make a business more profitable and helpful. They make a promise to perform a business legally. Peter Abraham and his clients should have a clear motivation and create a legal contract. If Peter Abraham fails to do legal commitment, then the contract should be considered as a legal contract…………….

HND in Business

Unit 05 Aspects of contracts (GC0888)