LAW

Contract and Negligence

Table of Content

Part A: Contract Law1

Task 1:1

Nature of Contracts in Modern Business Activities & Types of Contracts1

Express Contract1

Implied Contract1

Executed Contract2

Executory Contract2

Unilateral Contract2

Bilateral Contract2

Contract Is a Promise & Requirements for a Valid Contract3

Offer & Acceptance3

Consideration3

Capacity to contract3

Legality4

Intention to create a legal relationship4

Terms Classification - Cases & Remedies5

D1: Effect of Implied Terms on the Formation of a Contract5

Task 2:6

Legal Position of Dragontree Ltd and the Friendly Fryers Ltd6

The Scenario in Detail in Context of Various Elements of a Contract7

Part B: Negligence9

Task 3:9

Vicarious Liability & How Employers Can Be Held Liable For the Actions of Their Employees9

Difference between Contractual Liability and the Liability In Consequence Of Negligence10

Importance of Donoghue v Stevenson 1932 in the Development of 'Duty of Care'10

D2: When a Business Is Not Vicariously Liable For the Action of Its Employees11

Task 4:12

Situation 112

Situation 213

Situation 314

Situation 415

References16

Contract and Negligence

Part A: Contract Law

Task 1:

Nature of Contracts in Modern Business Activities & Types of Contracts

A legally binding agreement between parties or an exchange of promises enforced by law is known as 'contract'. Where, a breach of a contract is identified by the law and it provides remedies for it (Zarrokh, p.1). Throughout different business practices, many of the important business aspects that feed the business are defined by contracts. According to Alice G. Gosfield (2005, p.6), the foundation on which parties base their interactions, is provided by contracts. Contracts are present to ensure the meeting of minds of the parties involved in transactions (Gosfield, 2005, p.6). Thus, contracts hold immense importance in modern business world, whether it is about its application in practice from consumer transactions or commercial supply of services or sale of goods (www.insitelawmagazine.com).

Contracts can of different; the major types are given below with their examples:

Express Contract

Express contract is made by the words that can be written or spoken, must be clear and concise, thus leaves no room for interpretation (BMS, 2012, n.d; http://contract-law.laws.com). An example of it is parole contract.

Implied Contract

Implied contract does not require written or oral statements, rather it is simply inferred by the actions of people involve in agreement or by the circumstances itself (BMS, 2012, n.d). An example of an implied contract is the agreement between a contract bus and the passenger, where a contract bus offers transport to passenger and in response passenger it is implied that passenger will pay fees.

Executed Contract

A contract in which both the parties involved have to perform their respective obligations under the contract (BMS, 2012, n.d), for instance A offers to sell his bike to B of $100,000. B accepts this offer, A delivers bike to B, and B pays $100,000 to A. This is an executed contract.

Executory Contract

A contract in which involved parties are still needed to perform their respective obligations (BMS, 2012, n.d). For example, If B accepts the bike sell offer of A, but A still has to deliver his bike and B has pay him money, then this is an executory contract.

Unilateral Contract

A contract in which just one party has to ...