BUSINESS LIABILITY

Business Liability



Business Liability

Question 1

Clifton does not have a valid contract with Sherman because they were looking after each others properties in good faith. There was no legal contract between the two. But ethically speaking, Sherman should return £150 to Clifton because it has been spent on his property in his absence and his brother Clifton has spent the amount in good faith. The object and purpose must be legal for a contract to be legal. If its purpose is illegal because of statue of common law, the contract may be void. If the formation or the performance of a contract is illegal, resulting in a crime and/or tort, or opposing public policy or interest, the contract is usually considered void. For example, any contract that involves purchasing a stolen item or an illegal drug, or involves fraud or harming someone would be considered void. If a contract can be rejected by one of the perties on legal grounds, it is called a voidable contract. A voidable contract is valid and binding unless the entitled party (the party wha has legal grounds to reject the contract) voids it. A defect exists. The defect may be cured by ratification of the entitled party.

Question 2

Legally speaking, Clifton's claim would not be successful because there was no legal agreement between the tow. Although lots of contracts are filled with mind-bending legal gibberish, there's no reason why this has to be true. For most contracts, legalese is not essential or even helpful. On the contrary, the agreements you'll want to put into a written contract are best expressed in simple, everyday English. All that is necessary for most contracts to be legally valid are the following two elements: --All parties are in agreement (after an offer has been made by one party and accepted by the other). --Something of value has been exchanged, such as cash, services or goods (or a promise to exchange such an item) for something else of value.

Although it may seem like stating the obvious, an essential element of a valid contract is that all parties must agree on all major issues. In real life, there are plenty of situations that blur the line between a full agreement and a preliminary discussion about the possibility of making an agreement. To help clarify these borderline cases, the law has developed some rules defining when an agreement legally exists.

Question 3

Consideration in English law is one of the three main building blocks of a contract. Consideration can be anything of value (such as an item or service), which each party to a legally binding contract must agree to exchange if the contract is to be valid. If only one party offers consideration, the agreement is not legally a binding contract. In its traditional form, consideration is expressed as the requirement that in order for parties to be able to enforce a promise, they must have given something for it (quid pro quo): something must be given or promised in exchange or return ...