ASPECTS OF CONTRACT & NEGLIGENCE

Aspects of Contract & Negligence

Aspects of Contract & Negligence

Introduction

The contract law and the law of negligence play an important role in the transactions held by the businesses. The clear understanding and the exhaustive understanding of the legal terminologies and concepts aids the businesses to comply with the legal regulations and therefore, to avoid any unnecessary litigation costs that businesses might have to bear because of non-compliance or not doing the activities as per due conduct or procedure.

The research paper is written with an aim to describe the understanding about the essentials elements of the contract as per the contract law and its application, to develop an understanding about the principles of liability in negligence in the conduct of the business activities and their application in the context of the business situations.

Discussion

Q 1.1 - Essential elements of a valid contract

A contract is an agreement that is legally enforceable (Helewitz, 2010, pp. 15-24). A valid contract is a contract that complies with the essential elements outlined for a contract in the contract law i.e.

Offer

Acceptance

Consideration

Intention

An offer is a tentative promise that is subject to a specific condition, made by the offeror and does not binds the offeree until a valid acceptance comes into an effect. Acceptance is the second most essential component of a valid contract. Acceptance means, according to the contract law, when the counterparty in the contract to whom the offer is made accepts the terms and conditions (Young, 2009, pp. 40-69). The third essential component for a contract to be valid is consideration i.e. a valuable thing in the view of law and something that is received by the promisee as promised by the promisor. The element intention means that for a valid contract, the promisor shall intend to fulfil and bound to do as per the promise made.

Capacity is the ability at law to bind the individuals/parties to the contract. The individuals that cannot enter into a valid agreement are insane, drunken, corporations, labour unions, bankrupt individuals and minors.

Example of Case

The extent of the losses that Iron is liable to endure stem from several accounts. Starting with the claims that Peck will be lawfully able to register against Iron, there are many claims indeed. Peck can claim the medical losses for his treatment in the hospital from Iron. In this regard, he may furnish his medical release which will allow all his injury records and the amount that was spent on his treatment to be available as evidence. Through the court, Peck may recover these losses. This is not the only damages that Peck can recover. He can make claims for the injuries that fall under the medical pay coverage. Apart from claiming for injury, Peck may also file damages for the lost wages that he suffered on account of not working during his course of treatment and recovery (NEW HAMPSHIRE BAR ASSOCIATION, 1994, PP 23-24).

Peck can file a lawsuit and win compensation that would allow him to pay for ...