CONTRACT AND NEGLIGENCE IN BUSINESS

Aspects of Contract and Negligence in Business

Aspects of Contract and Negligence in Business

Task 1 - Understand the Essential Elements of a Valid Contract in a Business Context

When two or more parties agree to an agreement with an intention of creating an obligation that is legal, is known as a contract. It is a promise that is enforced legally by one party to another. The agreement binds the parties to be concerned about the bargain which is commercial and involves the hiring as well as sale of commodities (Stone, 2009, pp.56). In English law, the contract is a promise or an agreement reached on a set of promises. The breach of contract is recognized by the law and legal remedies can be made.

1.1 A contract can be defined as a legal act by which the contracting parties establish their respective rights and obligations on what they want to accomplish. A contract in order to be valid must have the basic essential elements. The contract should therefore describe in detail what to build, and how they will pay for the buildings. For this, the contract must include the following essential elements:

Project /Deal

It is appropriate that part of the contract the entire project, because if it is a good project, it includes not only the description and detailed graphics of each and every one of the work to be done, but also conditions, quality of execution, and forms payment of each of the units (McKendrick, 2005, pp. 2). From a purely legal standpoint, often specify the project documents that are contractual, that are legally part of the contract and even the order of priorities in case of differences between them and other documents (Carter, 1984, pp. 287). General Conditions

In the general conditions of the specified responsibilities, duties and powers of each of the contracting parties and their competency in the respective fields of action Offer

It is the compromise document, signed by a party and accepted in writing by the other party, which sets the price offered and the time given for completion of work, subject to the conditions specified in the Contract.

Explanatory Documents

Of a possible difficult or important point of agreement, such as that of the bond, awards or penalties for delays, how to act in case of occurrence of unpredictable emergencies, risk sharing, etc.

Contract it

It is the document signed by both parties be bound by the terms set out in the documents described above are summarized (Williams, 1951, pp. 137).

1.2 Following are the different types of contracts and their impacts:

The final (main) contract, which is based on the direct appearance of various rights and obligations of the parties, coupled with the movement of material goods (for example, to transfer the goods, to undertake the work to assist in the provision of services, etc.)

A preliminary agreement is the so-called agreement to further the conclusion of the final agreement. In the preliminary contract, there must be clearly established deadlines ...