Aspects of contract and negligence in business

Contents
Introduction......................................................................................................................................3
Task 1: Scenarios.............................................................................................................................3
Discussing with peter Abraham on how a contract is actually formed and demonstrating the
importance of various elements of contract.............................................................................3
Offer-........................................................................................................................................3
Acceptance-..............................................................................................................................3
Consideration-..........................................................................................................................3
Intention to create legal relations-............................................................................................3
Face to face-.............................................................................................................................4
Written contract-.......................................................................................................................4
Distance selling-.......................................................................................................................4
Condition-.................................................................................................................................4
Warranty-..................................................................................................................................4
Exemption clause-....................................................................................................................4
In nominate term-.....................................................................................................................4
Task 2: Case studies.........................................................................................................................5
Making use of the various elements of contract with an analysis of a given business scenario
..................................................................................................................................................5
Making use of law on the following terms of contract.............................................................5
Assessing the effect of different terms over the stated contracts.............................................6
Task 3: Vocational scenario.............................................................................................................6
Presenting a discussion on the similarity as well as highlighting the difference between
liability of tort and contractual liability along with a demonstration of an example...............6

Giving an explanation on the fact how negligence is mainly determined to take place and
demonstrating the conditions which are required to meet the claimant which highlight the
negligence act...........................................................................................................................6
Discussing the meaning of vicarious liability and stating how an organisation would be held
as vicariously liable with example...........................................................................................7
Task 4: Case studies........................................................................................................................7
Evaluating the elements of tort of negligence and defences....................................................7
I) When can the hospital be held liable for negligence in perspective of its activities?...........7
II) For what situation the hospital should not be held liable?..................................................7
Making use of the different elements of vicarious liability for a given business scenario......8
Conclusion................................................................................................................................8
References-......................................................................................................................................8

Introduction
In reference to this assignment, contracts refer to some kind of deal that is supported by some
legal rules and principles and is amended by two of the business parties who have decided to
enter into business agreement. Basically a business contract is determined as countless
transaction that takes place between two of the business parties also including household
purchases and goes to the extent of different types of international business acquisitions that is
amended by two of the business parties involved in the agreement (Cavico, et al 2010). Almost
all the contracts which are developed between different business parties there are breaches for
which either of the business party have to experience its consequences. Negligence over the rules
and disagreement in any form by the business parties does make the party ay fines or damage
rate. It is essential for the both the business parties to consider the principles of liability of
negligence so that it becomes easier for them to handle any kind of business situations.

Task 1: Scenarios
Discussing with peter Abraham on how a contract is actually formed and demonstrating
the importance of various elements of contract
A contract is determined as a kind of agreement formed between two business parties and this
agreement is further enforced by law along with specific requirements. As stated by the court of
law, every contract should have some vital elements that includes, offer, acceptance,
consideration and the intention to develop a legal relation, otherwise the contract decided in not
determined as valid (Dandridge, 2009). Peter Abraham should be aware of the different elements
of contract so that he would be have to pay for any kind of damage and create any kind of breach
over contract.
Offer- an offer is determined as one kind of promise which bound both the business parties
together. A party is only able to withdraw the offer once made only before the offer has been
accepted by the other party.
Acceptance- this takes place when one of the parties who have also shown their interest to get
bound into the agreement and has accepted the offer made (Fisher et al 2009).

Consideration- in legal terms consideration is estimated as the price value that is paid by either
of the business parties. This consideration does not mean that every time a money amount of has
to be paid rather it could be any kind of value over the promise made
Intention to create legal relations- the business parties who have made themselves involved
into any kind of legally binding agreement should intend to state it explicitly and should also
gain the capability to be able to infer it from the circumstances considering which the business
agreement was established (Gaber, et al 2010).
Illustrating the effect of contracts that might be experienced by Peter Abraham by different
means
Once peter Abraham is not able to successfully set up a self employed building contractor he has
to pay some compensation rte for the breach over contract.
Face to face- this type of contract might be oral or written. In this type of contract it is noticed
that parties either enter into agreement with oral promise made between each other or by
considering the terms and conditions stated under the written consent (Grundmann et al 2011).
Written contract-In this type of contract mainly it is noticed that the terms and conditions which
has been developed in perspective of this agreement should be considered. In case of written
document it is mainly noticed that the different formal requirements are perfectly executed s
deeds that requires a signature, and should be sealed before delivery.
Distance selling- this types of contracts are basically developed through the internet and is
developed through internet technology as it takes place between two business parties who are far
apart from each other and could not meet physically on setting a contract (Lawson, et al 2011).
Making an analysis of the different terms of contract which may be applied to peter Abraham
along with a discussion of its meaning and effect
Condition- the terms of contract are estimated as something very much important without which
either of the business parties are not liable to enter into any kind of business contract. A breach
over condition is considered as a contract which is void. Peter Abraham should be aware of the

damages that would take place due to breach over condition so that he could set up the self
employed building contractor (Lipner, et al 2009).
Warranty- a warranty is determined as something less valuable that is required for the formation
of a contract and it could also be determined as a kind of security which entitles one of the
business parties to make purchase of underlying stock at a fixed rate before the date of expiry.
With the help of warranty the business parties are determined to hold some special rights so that
they are liable to carry out business activities with some amount of security (Luik, et al. 2011).
Exemption clause- this is estimated as one kind of legal agreement which highlights the fact that
the party is limited accessibility over some kind of business activities which might be unfair.
Certain changes in law have taken pace which now highlights the limitation in the use of
different clauses.
In nominate term-this is estimated as some terms of contract which is neither a proper part of
the conditions or warranties, but lies somewhere between those. The in nominate terms of
contract are totally depended on the breach over any condition or warranty considering which
both the business parties have made an agreement to enter into a contract (Mel, 2009).

Task 2: Case studies

Making use of the various elements of contract with an analysis of a given business scenario
The different elements of contract are determined as offer, acceptance, the intention of the
individuals or business parties to develop a kind of legal relation with the other individuals or
with the other party involved and the various facts of consideration. An offer is something which
takes place for period of time and is often considered as negotiable. On the other hand
acceptance is the all about considering the offer which is made by the other party involved in the
agreement. Legal relationship is also determined as one of the most valuable element (Nash,
2009). By developing legal relationship an offer is made valid and consideration is determined
as some kind of exchange which would take place between the two business parties for the
purpose of experiencing some kind of benefit. In the first case it is noticed that carol does not
have any kind of contract with the seller and it is just an offer of a leather couch which is to be
sold at $600 and according to the advertisement details carol decided to buy the couch. In the

second case study it is noticed that George who could not make enforcement over the promise
because the offer which was made has already been accepted and the contract of that George
promised to pay the IT firm $1, 50,000 further made the contract valid which could not be
withdrawn under any circumstances.
Making use of law on the following terms of contract
The basic purpose of exemption clause is just to limit the liability of either of the business parties
have been noticed to breakdown the various terms of contract.
Exemption clause- in the case of exemption clause where it was noticed that a couple came up to
book a table at the restaurant of London and while entering into the hotel the man did hand over
his coat which had his wallet along with money. After entering into the restaurant he was handled
over with a receipt that clearly stated an exclusion clause which highlights that all the materials
should be removed from the pocket because in case any material is missing the hospital would
not be considered liable for so (Rabin, 2010). After the meal when the person intended to pay
the amount he found his wallet missing which the restaurant would not refund because it has
been clearly stated under exemption clause of the receipt. Therefore, as per this case is concerned
the liability of the individual is limited and the person could not now even file any kind of cases
for such as exemption as it has already been stated.
Implied terms- the implied terms of contracts which are mainly determined to form part of the
contract even if they are totally not involved in the actual part of contract. Basically the implied
term of contracts are those which have been provided in the contract settled between two parties
either for the same or supply of different goods (Reinecke, 2009). In the case study of Aaron it
was found that he rented a warehouse from the zephra and he decided to repair all things of the
house for which Zephra stated that she would have take up any kind of rent from for the
upcoming 5 years. But later, after the death of Zephra when yeti inherited the property, he
increased the rent upon which the Aaron refused to pay and produced the claim that was settled.
But, it was refused because this implied term of contract was done in an oral manner and it does
not have any kind of written deeds which would prove that the claim is not false.

Assessing the effect of different terms over the stated contracts

For the stated contract it is determined that has a huge impact over the implied terms. From the
case given it was found that the insurance is right to void as the insurer was previously noticed to
have made a theft claim just after his motor cycle was stolen and also did make a rejection over
the policy holders claim upon which the policy holder did make continuous argument that the
insurer did not close down this theft claim as he decided not to meet it (Rosenberg, 2009). Later,
in this case it was found that the persons wife did make a claim which is estimated as a third
party claim and even it was stated that the persons wife did bring up the car with all sorts of
modifications for which the claim has been finally rejected.

Task 3: Vocational scenario

Presenting a discussion on the similarity as well as highlighting the difference between
liability of tort and contractual liability along with a demonstration of an example
The difference between contractual liability and liability of tort is that contractual liability is
helping either of the business parties to govern contractual agreements that take place between
both the business parties. A contractual liability is determined to be formed between the business
parties outlining the duties and business responsibilities over each other. Contractual liability is
determined to highlight different types of transactions that take place between two different
business parties for the sale of goods as well as services. Also it has been found that contractual
liability is only takes place if any party breaches their contractual duty (Stroud 2009). In contrary
to this, tort liability is something when a person is harmed or injured. Tortuous liability is mainly
determined to cover different form of violations in which a party intentionally harms the other
party. Also tortuous liability is highlighting the different types of harm where either of the party
is found to act intentionally also including negligence claims. Tort liability actually highlights the
outcome of the party who had been made responsible for the monetary damage to so that the loss
would be compensating to a certain degree. The similarity that exists between contractual
liability and tortuous liability is that both consist of breach over duty.

Giving an explanation on the fact how negligence is mainly determined to take place and
demonstrating the conditions which are required to meet the claimant which highlight the
negligence act
Negligence over activities is determined as some kind of breach over the responsibilities that
either of the business parties who have made themselves in the involvement in the different kind
of business agreement, but they have likely failed to carry out the business activities accordingly.
For the negligence over activities it is noticed that either of the business parties have to pay the
damage rate. Some of the elements of negligence are determined as duty of care, breach over
duty, direct cause and harm (Waldburger, et al. 2009). The act of negligence does take place
when there is any kind of misconduct between the two different business parties who are
involved in the agreement. On the other hand the some conditions that would be required for the
purpose of meeting the claimant like all the business activities should be carried out with ample
care and there should not be breach over duty so that as this would damage the reputation of the
organisation.
Discussing the meaning of vicarious liability and stating how an organisation would be held
as vicariously liable with example
An organisation is held vicariously liable when the organisation does not feel it important to
carry out different type of business activities. Also an organisation is determined to be held
vicariously when one of the parties found does carry out different business activities without any
kind of conduct made with the other party. An organisation would be held vicariously liable if it
does not care for the employees needs and the leaders are often found busy in their own work
rather than feeling it important to satisfy the needs of their working employees (Cavico et al.
2010). Other than this an organisation would be held vicariously liable if it is found that they are
not considering the legal rules and policies and have to experience different types of business
issues which would damage the reputation of the company and restrict it from gaining
competitive advantage. To overcome vicarious liability is the most vial function of the
organisation leaders, managers and owners that they make sure about the functioning of the
company whether it is considering all the legal rules and policies, whether all the working
employees of the company are made satisfied.

Task 4: Case studies

Evaluating the elements of tort of negligence and defences
The element over tort of negligence which has been determined does include breach over duty,
harm, and the negligence over the duty of care. a breach over duty simply means that the one of
the two business parties who have showed their interest to enter into a business agreement has
not considered the responsibilities are valuable and accordingly has not carried out the business
activities which has developed a negative reputation of the company in the market and has
restricted it to achieve competitive edge (Dandridge, et al. 2009). With a breach over the duty
sometimes it is notice that the opposite party have to experience certain harm and for such they
need to pay some amount of compensation rate. The duty of care in perspective of the business
parties includes a proper attention towards the needs and safety of the different working
employees so that they could be felt satisfied. A negligence over the duty of care simply means
that the leaders of the organisation does not consider it important to look into the changing
demands of the employees and causing higher level of dissatisfaction.
I) When can the hospital be held liable for negligence in perspective of its activities?
The hospital would be held liable for negligence over its activities since without looking into the
problem of the patient the doctor through a telephonic conversation with the nurse suggested the
pain killer for relieving the pain of the patient. However in such medical emergencies it is
important for a medical professional to have thorough knowledge of the patients suffering and
examine the patient before suggesting for a drug administration (Fisher, et al. 2009). So in this
case the hospital is liable and can be booked under a case of negligence for the adverse condition
of the patient after the drug administration.
II) For what situation the hospital should not be held liable?
On the other hand a hospital would not be held liable for negligence over its duties because at the
time when the doctor was at leave, the nurse had a communication with him for prescribing the
patient with some kind of medication.
Making use of the different elements of vicarious liability for a given business scenario
Vicarious liability is not determined to have any kind of elements which would create much
pressure over the stated business situation. In the given case study the chauffer company is

considered liable for the negligence of the driver because driving after consumption of alcohol is
unlawful and for this as stated by the court of law the company from which the driver belongs is
liable for the damage of the individuals has been clearly stated or he himself would have to suffer
some kind of legal issues (Gaber, et al 2010). Since the driver is a direct employee it is noticed
that he should have been aware of the different types of rules and regulations in order to maintain
the standards and reputation of the company.
Conclusion
Laws are mainly designed to make any company or the business organisation to perform
business activities legally and by following these rules it helps the company or the organisation
to keep themselves safe from different kind of business risks which might damage the reputation
of the organisation. To enter into a legal contract, both the business parties who are interested
should possess the capability of entering into the valid contract (Grundmann, et al. 2011). Some
level of negligence over the reach over warranty of contract does not help in making any kind of
termination over the contract which has been assigned between two of the business parties. When
either of the business organisations does create negligence over their duty it gives rise to
contractual liability and the party have to pay a compensation for the damage it has done.

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