CONTRACT AND NEGLIGENCE

Aspects of Contract and Negligence for Business

[Unit]

[Lecturer's Name]

Table of Contents

Introduction2

Discussion2

Essential Elements required for the Formation of a valid contract3

Offer3

Acceptance3

Consideration4

Intention4

Certainty4

Different types of Contracts and Examples5

Adhesion Contract5

Aleatory Contract6

Bilateral and Unilateral Contract6

Express Contract7

Terms and Representation7

Breach of contract and Remedies8

Dragontree Ltd v. The Friendly Fryers Ltd.10

Conclusion12

References13

Aspects of Contract and Negligence for Business

Introduction

Business laws are mandatory to safeguard the civil community and employees from protection risks. A contract is formal and most important part of a business signed and agreed between two or more parties related to a specific matter. It comes under law and legal aspects. This law assists buyer, seller and supplier or manufacturer in case of any conflict and commitment. It covers a wide range of subjects and businesses such as sale of goods or services or property and contract of employment terms and conditions (www.expertlaw.com). Negligence is defined as the carelessness shown under any circumstances. A sensible person would definitely not exercise this kind of failure. Sometimes it's also known as “lacking due care.” If lack of due care becomes the basis of physical, financial or psychological destruction to the petitioner, the panel perhaps is responsible to compensate destructions (www.enotes.com).

Discussion

The courts are not responsible to create a contract for the parties involved; however, it is there prime duty to enforce it. It is a necessity for a contract to be valid and existing so that the court can impose any legal binding between the two parties. The court makes it obligatory in its policies that contracts should be formed to ensure security to both and to prevent from any misdoing or fraud (Hugh, Collins. 1999).

Essential Elements required for the Formation of a valid contract

A valid contract plays an essential role to protect risks at both parties, particularly in business context. An understanding of the law of contract is necessary for every business. There are few critical elements of a valid contract. The first two steps in developing an agreement that might form a legal contract are “offer” and “acceptance.”Discussion on further elements is as follow:

Offer

At the first and foremost stage, offeror makes an offer based of certain terms and conditions related to the nature of the business. The information and figures included in an offer would be the only part of the contract. It will then further continue at the second stage. Offer perhaps is considered as an invitation to a profitable business plan (an invitation towards negotiations). However, they should be differentiated from each other to know that which offer is for which party. Goods on the display, on the shelves in a store or showed in an advertisement, newspaper or catalogues also act as an invitation or an offer (www.oup.com/uk, p. 1-2). In an English case of Smith v Hughes, the emphasis of the court is not on the intentions of each party but the how the situation is viewed from a reasonable point of view. Therefore, the least requirement of any offer includes the date, price, terms of payment which contains all the other ...