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Aspect of Contract, Tort law, Elements of contract

Table of Content

  1. Introduction


There are many kinds of contracts and relationship in any business scenario that specifies certain rules and regulations. These norms act as a guiding principle and bind the parties to act in a particular way. The law of contract has a significant role in corporate cases that helps in explaining the different rights and duties of contracting parties. Another prevalent law in the business environment is headed by Law of Tort which stipulates necessary obligations in case of civil proceedings (Appleman, Appleman and Holmes, 2015). This necessitates the inclusion of all elements that are involved in these laws to have a smooth functioning of business and saving the rights of each party against any defaulter party.

The present report is based on Aspects of contract where different types of contracts and their elements have been discussed along with their implications. Further, the report will focus on defining the principles of liabilities and the principle of negligence as well with the help of different case studies. Moreover, various terms of the contract and their applicability in various types of situations have also been discussed which will help in understanding the importance of these acts in practical life.

Task 1

To form a contract two or more than two parties with their free consent get into a legal agreement (Braga, 2011). The two parties involved in the contract are offeror who gives some offer and another offerre who accepts the offer given by offeror. Thus, the agreement completes with a promise made to have a useful consideration in return. For a good understanding of Peter Abraham related to contract and its elements the following section will help him:

Offer: This is the first stage of the beginning of an intention to enter into the contract. Here, one of the party uses to express his/ her intention to form a contract by offering something to another party.

Acceptance: The another element of acceptance is stipulates that after the offer is made by an offeror, it is necessary to show the willingness by offerre towards the offer inclusive of all its terms and conditions (Kreitner, 2011).

Legal relation: This is the important side of any contract which states that any contracting parties should have an intention of making legal contract. Hence, in case of Balfour vs. Balfour (1919) contract was not valid as they did not have any legal intention in making contract.

Consideration: Any contract which is made without valid consideration in return cannot be held as a valid contract. It is necessary that each party agrees to give something valuable in return so that the contract can be made on a valid basis.

Capacity to contract: To make a valid contract the parties involved should be of age above than 18 years, should have a sound mind and not a declared insolvent.

The law has specified that the valid contract can be made in two forms that is either orally or in written way. The primary thing which should be borne in mind by the parties is to fulfill all the essential elements of a valid contract (Bochicchio, Longo and Mansueto, 2011). The contract can be made in the form of implicit and explicit forms.

Face to face: The promises that are made in a face to face meeting will be equally enforceable by law as in case, made in the form of written agreements.

Written contract: It is apparent worldwide that written contracts are more helpful than a verbal contract as it is supported by all needed documents that can be used in future references (Wills and Napier-Munn, 2015).

Distance selling: Any promises or contracts entered into via emails or telephone calls can also develop into a valid contract, providing all essential elements of the contract should be existing.

To make a valid contract that has all essential elements and enforceable in the right manner Peter Abraham should have complete knowledge of other types of contracts that may have an impact in the corporate world.

Conditions: Conditions are the core part of any contract as they have a significant role in binding the parties to the contract (Friedman, 2011). Thus, the conditions of a contract state various obligations of involved parties and give them a right to deny the whole contract in case of breach of conditions by either party

Warranties: The warranties show some conditions where one of the parties gives assurance to another party about the form of any product or service. In the business world, warranty plays the role of ancillary terms which helps in supporting various terms of the contract.

Innominate Terms: These terms used to see into the matter to check the degree of harm that is caused by the defaulting party to the plaintiff. Therefore, the court use to investigate whole case so that determination can be made about the loss of the suffering party due to breach of terms which also took the right of the party to take any privilege.

Exemption clause: This clause makes a provision in the contract according to which, one of the party used to limit the liabilities against any damage, or losses originated due to negligent or non-performance of act.

Task 2

Case 1

Carol use to dwell in an unfurnished student's apartment thereby, she needs a couch which she found through an online ad Gumtree. On that basis, she expressed her wish to buy that couch which was priced at £600 by dropping a mail to the company.

Case 2

In a large IT firm Devi was confirmed at the position of cyber-security with George, Smith and Fogarty Inc. as on 12th April, 2015. As Devi did not want any intervention of his father, he did not communicate about it to his father.

Case 3

In a popular restaurant of London, a couple booked a table where the man came and handed his overcoat containing £500 at entrance to attendant. In return, porter gave him receipt which clearly mentioned leaflet that the hotel will not be responsible for any valuable items that remains in jackets or pockets.

Case 4

Aaron entered an agreement to take a rented house with Zehphra which needed a repair as it was not in good condition. It was promised by Zehphra that rent of house will not be raised till next five years, but she died after a year.

Case 5

The form of insurance filled by a policyholder, mentioned that he has not claimed any type of insurance in last five years in response to the asked question by the insurer. Later on, insured made a claim against theft for which insurance company found that the policyholder has previously made a claim in five years period of time.

Case 6

The above case states that information furnished by the policyholder was not right ion response to modifications in a car along with any kind of claims in the previous 5 years. The insurance company refused to make any claim and terminated the contract from the start date after founding the reality that the car has been modified and also claimed two times in a stipulated time period.

Task 3

Case 7

Mr. Brown went to Goodmayes hospital, due to a chest pain and some breathing problem. A nurse attended him and called a doctor on duty to inform about the patient. Doctor did not come to see the patient and replied on the phone by instructing the nurse to give him some pain killer tablets. On next day, Mr. Brown died due to pneumonia caused as a result of toxic mold in his house.

Case 8

The driver of a chauffeur company was driving after drinking alcohol and consequently, he met with an accident. This makes the chauffeur company to be vicarious liable for the losses as he was acting in a negligent manner.

Case 9

In the mentioned case study, it is evident that an accident happened at the time when Jones was acting on behalf of his employer. Jones was carrying out his duty of loading palettes where the accident caused a serious injury to his one of the colleagues.

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