ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS

Aspects of Contract and Negligence for Business



Aspects of Contract and Negligence for Business

Introduction

This study intends to expound the understanding of different aspects of contract and tort with the emphasis on the formation, operation and negligence for business. The study emphasizes on developing the in depth understanding of various essential elements of a valid contract in business, impact of different types of contracts and how these elements can be applied in business situations. As the system of contract law enables the agreement between the individuals to be bound in the contract legally in the court of law. Whereby, the study primarily aims to deal with the key elements of contract law and other relevant things pertaining to different situations of contractual liabilities and negligence in detail. In short, this study is the great source of different concepts which primarily aim to strengthen the understanding of business law.

Discussion

The contracts are the part of business dealings which is simply a mutual promise between the parties to conduct business or exchange things of values. The valid contract can be defined as the one which complies all of the essential and legal elements that make it valid and hence it can be enforced by all of the agreed parties. It is basically a law binding agreement which is required to be signed by all of the involved parties (Hagen, 2009). This is how it becomes valid. However, every agreement which is enforceable by law has some essential elements. According to Section 10 the valid contract can be described as:

“All agreements are legal contracts if they are made with the mutual consent of all of the involved parties that are competent to contract based on a lawful object, and are not expressly declared to be void”.

P1: Essential Elements Required for the Formation of Valid Contract

A legally binding agreement needs to meet with the formation requirements of the contract where one party offers something and the other one accepts it. For instance, in case when one party wants to get their house painted by the other party against the certain amount of money, in such case, the other party must accept the offer based on its mutual consent with the offering party. Also, the court would enforce the contract if it includes the legal as well as valid consideration (Huntington, 2013). There are numerous elements of the contract but only six elements are considered as essential that makes the formation of the agreement valid which are described as following:

Offer and Acceptance: the agreement is considered to be formed when one party makes an offer and it is accepted by the other one. However, this offer can either be oral or written as long as it is not required to be written by the law. The offer is supposed as the definite expression which initiates the legitimate contract which requires to be clear as well as unambiguous. It extenuates the promise among the parties and spells out in specific and certain terms ...