ASPECTS OF CONTRACT AND NEGLIGENCE

Aspects of contract and Negligence

Aspects of contract and Negligence

Case 1

Katie, who runs a local florist, is considering refurbishing the store to attract younger customers. Katie heard a lot about dishonest builders and wants to ensure that any contract, which she may enter into, will safeguard her interests.

Explain to Katie,

The importance of the key elements required for the formation of a valid contract.

The key elements that are required for the formation of a valid contract will be explained by me to Katie in this way: A contract is a legal document that is formed in order to formalize a mutual agreement among the parties. There are mainly three main elements that should be considered and should be available while getting into any legal contract. Those three elements are agreement, consideration and finally intention to form or create a legal contract among the two or more parties. The first key element that is “agreement” helps in ensuring the parties that all of them mutually agree on the terms and conditions decided while getting into a contract. The second key element is “consideration” that after agreeing on the specific terms and conditions, sufficient consideration must be given to the contract from the other party (Lando, pp.420). The last key element is “intention”; if this element is not there or is not positive then there will be no contract.

The usefulness of a standard form contract for business people

A standard form contract is of great importance for everyone. A contract among the two parties in which terms and conditions of the legal contract are designed by one of the two parties while the other party is placed in a situation of “takes it or leave it” with a little or no ability to negotiate terms that are more favourable to it. An example of a standard form contracts are insurance policies and those contracts that are formed with the government agencies. The usefulness of standard form contract for business people can be understood from the type of contract it is as the party who is selling its services and products holds an upper hand in the contract as he or she would be offering it. This gives the business people edge over the buying party (Denis, pp.99).

The impact of selling on the World Wide Web.

Nowadays, people are using World Wide Web for selling their products and services as it is the cheapest way of selling it to the direct customers. People can directly quote prices for selling their products and services without owning any shop, engaging retailers, arranging any extensive advertising campaigns and hiring staff for selling the products and services. Although, selling of products and services on World Wide Web (WWW) is not a reliable way of selling as there are many business sites, which are counterfeit and are committing fraud by engaging the money of others and not providing them what they were shown. There is no physical existence of World Wide ...