Вы находитесь на странице: 1из 13

Aspects of Contract and Negligence for Business

Aspects of Contract and Negligence for Business


Page | 1

Aspects of Contract and Negligence for Business

Aspects of Contract and Negligence for Business

Page | 2

Aspects of Contract and Negligence for Business

Table of Contents
Introduction4 Explain the importance of the essential elements require for the formation of a valid contract .5 Discuss the impact of different types of contract5 Analyze terms in contracts with reference to their meaning and effect...6 Apply the elements of contract in given businesses scenarios.7 Apply the law on terms in different contracts..7 Evaluate the effect of different terms in given contracts....8 Duty of care in the tort of negligence & Difference between liability in tort and contractual liability.8 Explain the nature of liability in negligence9 The concept and elements of vicarious liability in business..10 Apply the elements of the tort of negligence in business situations..12 Apply the elements of vicarious liability in given business situations12 Reference.13

Page | 3

Aspects of Contract and Negligence for Business

The purpose of this report is to identify the aspects of Contract and Negligence for Business. Now days, the business environment is full of agreements between businesses and individuals. While oral agreements can be used, most businesses use formal written contracts when engaging in operations. Written contracts provide individuals and businesses with a legal document stating the expectations of both parties and how negative situations will be resolved. Contracts also are legally enforceable in a court of law. Contracts often represent a tool that companies use to safeguard their resources. On other hand, negligence has rapidly developed into the cornerstone of our system for compensating people for accidental damage and injuries. This is because it allows the courts to award damages in tort in some circumstances where it is not possible to do so in contract. It has also been used creatively to compensate people for nancial losses in business contexts where no other remedy was available.

Page | 4

Aspects of Contract and Negligence for Business


Explain the importance of the essential elements require for the formation of a valid contract

Agreement (containing offer and acceptance): The presence of an offer and an acceptance are a method of dissect the procedure of arrangement to choose whether an agreement has been made and assuming this is the case, when it was made. Common consent of the party is the essential of an understanding.

Consideration: This is the worth given by the party for the guarantee that is constantly made. Generally thought takes the manifestation of cash, property and administrations.

Capacity: Only party who have limit have the ability to enter the introduction a legitimate and enforceable contract. Persons who are under time of have genuine mental incapacity don't have lawful limit to enter into contract. Consent: If the party doesnt enter onto the assertion readily, the understanding could be viewed as invalid. Certified assent into an agreement might be influenced by various issues.

Certainty: All the terms of an agreement ought to be clear and exact such that the party realize that they are consenting to.

Lawfulness: any consent to disregard the law or any assertion illegal by law is void. Contracts are illicit for two explanations: firstly, in light of the fact that their article is unlawful: besides, since despite the fact that the item is superbly legitimate, the way of making it is against the law.


Discuss the impact of different types of contract

Bilateral and Unilateral Contracts In the event that two substances trade a shared and equal guarantee that ensnares the execution of a gesture, a commitment or a transaction or avoidance from execution of a demonstration or a commitment, concerning each gathering included in the agreement, is termed as bilateral contract
Page | 5

Aspects of Contract and Negligence for Business

in the dialect of law. It is likewise called a two-sided contract in light of the two-way guarantees made by gatherings included in the agreement.

An unilateral contract is a guarantee made by one and only gathering. The offeror guarantees to execute a certain gesture or a commitment if the offeree coincides on performing an asked for act that is seen as a lawfully enforceable contract. It simply requires an acknowledgement from the other gathering to get the agreement executed. Subsequently, this is an uneven contract since just the offeror is certain to the court of law. One significant purpose of this sort of agreement is that, the offeree can't be sued for refraining, forsaking or actually neglecting to execute his demonstration, since he doesn't guarantee anything.

If two entities exchange a mutual and reciprocal promise that implicates the execution of an act, refraining, abandoning or even failing to execute his act, since he does not promise anything.

1.3 Analyze terms in contracts with reference to their meaning and effect (A) CONDITIONS A condition is a significant term which is basic to the principle reason for the agreement. A break of condition will qualifies the harmed party for deny the agreement and case harms. The harmed party may additionally decide to happen with the agreement, regardless of the rupture, and recoup harms. (B) WARRANTIES A warranty is a less essential term: it doesn't head off to the foundation of the agreement. A rupture of warranty will just give the harmed party the right to claim harms; he can't revoke the agreement. (C) INTERMEDIATE TERMS It may be difficult to characterize a term perfectly ahead of time as either a condition or a warranty. A few endeavors may involve a moderate position, in that the term could be surveyed
Page | 6

Aspects of Contract and Negligence for Business

just in the light of the outcomes of a break. Assuming that a rupture of the term brings about extreme misfortune and harm, the harmed paty will be qualified for revoke the agreement; where the break includes minor misfortune, the harmed partys cures will be limited to harm. 2.1 apply the elements of contract in given businesses scenarios

In contract law the offer and acceptance is extremely conventional and essential thought to be acknowledged. The principle of offer and acceptance incorporates a quality offer, acceptance and correspondence around the two party or people making the agreement is significant.

In the given situation we see the samples of making an agreement is when Mr. John was relegated the duty of securing new PC framework and he choose to buy that from "Best Computers", and marked a business concurrence with that organization for the supply of new machine frameworks.

Accompanying is provision of guideline of offer and acknowledgement to the above expressed contract.

In business concurrence with Best Computer the terms and states of the agreement was insufficient clear, and Mr. John sign that without giving legitimate regard for the all provisos of the assertion, which lead him in a bad position simply few days later when the organization neglected to supply the starting cape of machines on time and a large portion of them were harmed. Thus the issue was not clear offer and acknowledgement of the terms without comprehension the essentialness of every last one of terms composed in the offering contract. The offer must be unequivocal and immediate methodology to an alternate party to contract.

2.2 apply the law on terms in different contracts The law of standard structure is sort of agreement which is between two parties who don't permit transactions. Like take it or leave it strategy.

Page | 7

Aspects of Contract and Negligence for Business

In the situation we saw accurate sample and provision of the law of standard structure contract when John was about the sign an agreement with Best Computer and he question on one condition of the agreement that the organization won't be answerable for damages initiated by deficiency in PCs, and John was told that a heading organization in business can't change this for a singular client. 2.3 Evaluate the effect of different terms in given contracts

Following are some of the terms of John's contract with

The vender will be not at risk for any damage or misfortune initiated by any flaw in workstation A party could end the request by furnishing three days former notice without acquiring any obligation for any misfortune whatsoever. Any value recently paid by the client should be relinquished by the organization in the event of cancellation of the agreement.

These terms inside the John's contract with the supplier of machine are of just as essentialness, since it is the obligation of the supplier to guarantee that they are furnishing right machines or whatever available item and that may not acquire any mischief to human health, and the giving organization ought to be answerable for any such occurrence, so this condition must be incorporated in the understanding. Setting legitimate framework for cancellation of agreement is additionally imperative and was well done throughout the above expressed contract, yet keeping a few terms escaped the individual who is tolerating the agreement is not lawful, all the terms and conditions incorporated in an understanding must be clear and well defined.

3.1 Duty of care in the tort of negligence & Difference between liability in tort and contractual liability. Duty of care in the tort of negligence: The first element of negligence is the legal duty of care. This concerns the relationship between the defendant and the claimant, which must be such that there is an obligation upon the
Page | 8

Aspects of Contract and Negligence for Business

defendant to take proper care to avoid causing injury to the plaintiff in all the circumstances of the case. There are two ways in which a duty of care may be established: The defendant and claimant are within one of the 'special relationship'; or Outside of these relationships, according to the principles developed by case law.

Difference between liability in tort and contractual liability: Generally, contractual obligations are voluntarily undertaken, while tortious obligations are imposed by the law. This means that you have a free choice as to whether you wish to enter into a contract and be bound by obligations. As regards tortious obligations you are not given a choice. So we are all under an obligation not to defame other persons, not to trespass on property belonging to other persons etc. A person who enters into a contractual obligation owes a duty only to a party to the contract. In tort we owe a duty to everyone not to defame them, not to trespass on their property etc. There is a historical difference. The law of tort is primarily derived from the writ of trespass. The law of contract developed mainly from the three forms of action known as debt, covenant and as sumps it. Generally, liability in contract is strict, while tortious liability is based on fault. So, if you buy a tin of baked beans from a supermarket and when you open it you find bits of glass mixed with the beans, you can sue the supermarket in contract, without having to prove that the owner of the supermarket was negligent. If, however, when you are crossing the road you get knocked down by the driver of a car, you will have to prove that the driver was negligent, if you want to get compensation in an action in tort. 3.2 Explain the nature of liability in negligence In the given scenario the management of Best Computer is responsible for the harms and injuries caused by the slippery floor of their office, and they should also be good enough to consider themselves reliable for the damages or harms caused due the faults in their products. Strict obligation is risk without flaw (was the harm sensibly predictable) recollect strict risk is not categorical obligation and is worth researching of the law on this zone. As depicted prior that tortious obligation rotates around obligations settled by law. While strict risk is a standard for obligation which may exist in either by a criminal or civil connection. A

Page | 9

Aspects of Contract and Negligence for Business

rule defining strict obligation makes an individual legitimately answerable for the harm and misfortune brought on by his or her enactments and oversights paying little heed to culpability. In the given situation the administration of Best Computer is answerable for the damages and wounds brought about by the tricky floor of their office, and they might as well likewise be sufficient to view themselves as dependable for the harms or damages initiated due the issues in their items.

3.3 The concept and elements of vicarious liability in business. Vicarious liability means liability for the torts of others and arises because of a relationship between the parties. It is a doctrine of English tort law that imposes strict liability on employers for the wrongdoings of their employees. Generally, an employer will be held liable for any tort committed while an employee is conducting their duties. An employer, regardless of their size, may be legally responsible for discrimination and harassment which occurs in the workplace or in connection with a persons employment unless it can be shown that all reasonable steps have been taken to reduce this liability. This legal responsibility is called vicarious liability. All reasonable steps is not defined in the legislation because what is reasonable for a large corporation may not be reasonable for a small business. Rather it is worked out on a case-by-case basis. However, it does mean that employers must actively implement precautionary measures to minimize the risk of discrimination and harassment occurring. An all reasonable steps checklist is included as a guide in this fact sheet. Where is vicarious liability applicable? The vicarious liability provisions of the legislation only apply where the alleged discrimination and harassment occurs in connection with the persons employment. This means the employer may be held vicariously liable for the actions of employees if they have not taken all reasonable steps to prevent the discrimination and harassment from occurring both within the usual work environment and at employer events, such as sponsored seminars, conferences, work functions, Christmas parties, business or field trips. Whose conduct is covered?
Page | 10

Aspects of Contract and Negligence for Business

An employer may be vicariously liable for the conduct of: individual employees or groups of employees directors, supervisors or managers workplace participants (where two people work on the same premises, but have different employers) agents (e.g. insurance salespersons operating on a companys behalf ) contract workers or people being paid commission a partner of a company harassing another partner members of organizations which grant occupational qualificationsa person employed by a trade union harassing a membera person operating an employment agency who harasses someone who uses the agency Liability of individuals The vicarious liability provisions of the legislation do not preclude individual persons from being held liable for their own discriminatory or harassing behavior in the workplace or in connection with their employment. It may be that both the employer, who has been found to have not taken all reasonable steps to prevent the discrimination and harassment from occurring, and the individual, who is the alleged discriminator or harasser, will be held jointly liable for the behavior. Factors for employers to consider When deciding what level of preventative action is reasonable, an employer should consider: the size and structure of the organization available resources the nature of the work undertaken gender imbalances in the workplace the employment of women in nontraditional areas the number of junior staff the workplace culture cultural diversity in the workplace any history of harassment
Page | 11

Aspects of Contract and Negligence for Business

any relevant provisions in industrial awards or agreements working hours level of supervision Any other relevant factor, such as geographic isolation of the work location, duties which require working in close physical proximity, live-in arrangements, etc.

4.1 Apply the elements of the tort of negligence in business situations There are diverse components of Negligence which obliges that an offended party demonstrates the accompanying four variables by a "dominance of the proof": The litigant owed an obligation to the offended party (or an obligation to the overall population, incorporating the offended party); The litigant abused that obligation; As a consequence of the respondent's violation of that obligation, the offended party endured damage; and The damage was a sensibly predictable result of the litigant's activity or inaction.

In the given circumstance the innocence is happened when various people got slipped at office floor of the Best Computers, in light of the fact that they may as well give thought and information regarding wet floor and show that for people entering to their office premises. 4.2 apply the elements of vicarious liability in given business situations It is the obligation of the occupier of premises to guarantee the health and security of the individuals working there. In the given situation it was obligation of the Best Computers to guarantee that their business settings premises are sheltered for its specialists. The risk appropriate in the given situation will be Direct Liability on the grounds that the administration of Bob's Company is specifically obligated for the wounds created at their premises.

Page | 12

Aspects of Contract and Negligence for Business

REFERENCE Andrew Burrows,Ewan McKendrick,James Edelman (2007). Cases and materials on the law of restitution 2nd Edition. New York: Oxford University.

BPP Professional Education, (2004). Mandatory Unit 5 Common Law I supporting foundation degrees. West Midlands, England: W M Print.

Rose, Nelson (2003). Gambling and the Law: Status of Gambling Laws. California: Whittier Law School.

Page | 13