AN ASSIGNMENT ON

ASPECT OF CONTRACTS AND NEGLIGENCE’S FOR THE BUSINESS

SUBMITTED:

NAME:

ID:

SUBMITTED TO:

DATE OF SUBMISSION

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EXECUTIVE SUMMARY

In order to become one of the best TAM’s college has decided to go into contract with

marketing agencies and NAMS brought the best offer for TAM’s college to help TAM’s

in their quest of becoming one of the finest. They also appointed legal advisors to gaze

over the legal issues of the TAM’s college. TAM’s college has also faced the legal

actions against them due to the misfortune of one of their staffs for not wearing the

proper apparel on duty. The TAM’s college has to bear the legal penalties because of

the vicarious liability doctrine in the business.

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TABLE OF CONTENTS

Executive Summary............................................................................................................................................. 2

Task 1................................................................................................................................................................. 4

1.1 Essential Elements of a Valid Contract.......................................................................................................4

1.2 The Impact of Different types of Contract..................................................................................................5

1.3 Analysis of Terms in Contracts................................................................................................................... 6

Task 2................................................................................................................................................................. 7

2.1 Application of the Elements of Contract....................................................................................................7

2.2 Application of the Law.............................................................................................................................. 8

2.3 Evaluation of the Effect of Different Terms................................................................................................9

Task 3............................................................................................................................................................... 11

3.1 Contrasting Liability in Tort with Contractual Liability..............................................................................11

3.2 The Nature of Liability in Negligence.......................................................................................................11

3.3 Vicarious Liability in business.................................................................................................................. 11

Task 4............................................................................................................................................................... 13

4.1 Application of the Tort of Negligence and Defences.................................................................................13

4.2 Application of Vicarious Liability............................................................................................................. 14

Conclusion........................................................................................................................................................ 15

References........................................................................................................................................................ 16

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TASK 1

1.1 ESSENTIAL ELEMENTS OF A VALID CONTRACT

There are eight elements of valid contract. These elements are important in order to

make a valid contract.

The essential elements of a valid contract are given below.

1. Free Consent

2. Possibility of Performance

3. Lawful Consideration

4. Enforceable by Law

5. Formal Relation

6. Offer and Acceptance

7. Writing and Registration

8. Certainty

Free Consent: To form a valid contract the two parties must provide their free

consent, otherwise the contract will be considered as a void contract and it will be

avoidable (Kennedy, R. D. & McMullen, S. Y. 1968).

Possibility of Performance: A valid contract should have the possibility of

performance because if the contract cannot perform the issues then it will not be

considered as a contract (Wood, D. and Smith, P. 1989).

Lawful Consideration: An agreement lead to a contract when the person

accepting the offer takes decision based on some lawful consideration (Myer, J.

W. 1978).

Enforceable by Law: A valid contract is enforceable by law otherwise it will be

considered as the event of breach of contract (Hampton, J. 1976).

Formal Relation: Formal relation has to be present in order to make a valid

contract (Roberts, M. & Zahay, D. 2012). Any act of informal agreement cannot

be considered as a formal contract, for example; a person gave promise to

another person that he would give him some money but he did not mention any

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time. So, it will not be count as a contract because there was no formal relation

present.

Offer and Acceptance: In order to form valid contract an offer has to be made

and it is the first step towards an agreement (Horton, C., 2012). Followed by the

offer the interested party has to accept upon the offer and thus form an

agreement.

Writing and Registration: A formal contract has to be in written and registered

by the government authority to make the contract valid (Kennedy, R. D. &

McMullen, S. Y. 1968).

Certainty: Each and every element of a contract has to be certain so that each

parties are able to realize the issues regarding the contract (Roberts, M. &

Zahay, D. 2012).

1.2 THE IMPACT OF DIFFERENT TYPES OF CONTRACT

There are many types of contracts that are;

Express Contract: Express contract is one of the numerous kinds of contracts. It

is either in the formation of a written document or it can even be in the oral

pattern which is acknowledged to the governing body that focuses on the

permission to periods (Kennedy, R. D. & McMullen, S. Y. 1968).

Executed Contact: It is a kind of agreement where both parties execute the

periods and conditions of the agreements before they go in to an agreement and

there is not anything to be worked out by each party (Hampton, J. 1976). The

performance of the parties signifies that there is no contract, and then it is a

performed contract.

Contract under Seal: The customary method of making an agreement legitimate

is the closing of the legal document that is enforceable (Wood, D. and Smith,

P. 1989). It is significant to mark the document with diverse closures and the both

parties are liable to accept the outcomes of the affirmation after it is sealed.

Implied Contact: To pattern a legitimate agreement free permission is significant

of the both parties. But in case of implied agreement it will be considered as a

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valid agreement if one party does not give free consent (Myer, J. W. 1978). This

kind of agreements happens when an individual imagines owning any assets and

selling it. For example; if a servant deals his or her owner’s stuffs as if s/he is the

owner of the assets without the free permission of the proprietor then it will be

advised as an implied agreement.

1.3 ANALYSIS OF TERMS IN CONTRACTS

It is significant for the parties to realize the different kinds of agreements, terms,

elements, and clues which not only assists the parties to comply with the agreement but

also assists to weaken agreement administration charges (Bucher, C.A. 1983). There

are numerous objectives of agreements.

The TAM’s college is trying to become one of the best informative institutes in UK. So,

they are endeavoring to capture the vigilance and hiring agencies and lawful advisors to

help them to the quest. In alignment to become the best informative institute in UK they

are going into contracts with some agencies for their trading reasons and explaining the

legal issues. To pattern a legitimate agreement there should be some dissimilarity

amidst the exchanging of periods, concerns and bargaining of the parties and TAM’s is

endeavoring to convey the dissimilarities.

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TASK 2

2.1 APPLICATION OF THE ELEMENTS OF CONTRACT

The parties must respect the terms and situation of the agreement and if one party or

the other party disagrees from the promise of affirmation then the party honoring the

affirmation can go to court and take lawful actions (Marsh, P.D.V. 2001).

The basic elements of the contract with NAMS are:

Legitimate affirmation is enforceable by law. NAMS were incapable of delivering the

promised help to TAM’s college so they have has taken lawful undertakings against

NAMS. The administration of TAM’s college has the proof that NAMS has broken the

affirmation and their primary status.

TAM’s college wanted to take their reputation high and help them to become one of the

best educational institutes in the UK. So that, NAMS provided offers for intensive

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Offer

Acceptance

Free consent

Formal relation

Enforceable by law

Figure: Basic Elements of Valid Contract

promotion for one month to help TAM’s in their quest. In a formal legitimate agreement

offer is the initiation of an agreement with another party and types an enterprise

relationship.

TAM’s college has acknowledged the NAMS trading offer for one month and paid the

primary fee of £2500 and went into in to a legitimate contract. In order to make a valid

agreement the terms and situation of the contract has to be acknowledged by the

parties taking part in an agreement, else it will be considered as a void agreement. Both

the parties in the agreement entered into the agreement with free consent and with a

written documentation turned the contract in a prescribed relation

2.2 APPLICATION OF THE LAW

Important parts that are crucial to the agreement need to be punctual in alignment to

conceive a legitimate affirmation (Marsh, P.D.V. 2001). Perspective of the parties might

contradict from the affirmation that was likely to be in use as easily a pre-declaration of

the legitimate affirmation and consequently not a part of the affirmation (DiMatteo, L. A.

1998). Parties to an indenture pursue solely its time span, not by any minor affirmations

that will not be accomplished.

To form a valid contract certain requirements are needed. Such as;

Collateral Contracts

It is one reasonably to accept that the terms and scenario are usually in writing

because the cornerstone of the affirmation. While the declaration are conceived

and intended on to double-check and induce the most contracts (DiMatteo, L. A.

1998). Adjudicators are coordinated to search out a security scopes somewhere

to conceive the agreement legitimate and help the parties acquiesced upon the

agreement.

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Contract Includes Conditions and Warranties

The more imperative terms are describing "Circumstances", the smaller

allowance important periods are called "Warranties”. These components are so

important that in absence of any one or supplementary of the parties would not

proceed into the indenture. The indenture itself provides motivation to the both

parties (Kennedy, R. D. & McMullen, S. Y. 1968). In making a decision as to if a

period is a condition or a warranty; the court will consider all the surrounding

attenuating factors, including the gravity of the penalties if the agreement is held

to be non-binding and the aims of the parties at the time they made the contract.

2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS

Some periods are enclosed inside the agreements and a couple of them are just for

formalities (Okeke, C.N. 1988). These are the formation of affirmation and it is

absolutely vital to be in an exceedingly in writing and also the closed is needed to line

up.

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The Patrol Evidences Rule

It is a role that includes oral evidences. Oral evidence may not be adduced to adjoin to say that the opposite to or shown to be a bogus written article (Wood, D. and Smith, P. 1989). The contract always tries to the law of confirmation and applies not only to contracts but also all kinds of credentials.

Establishing Implied Terms

There are some situations in which contracts need to establish the implied terms formally and it is made from one person to another person (Okeke, C.N. 1988).

Various Types of Conditions

Various types of conditions may affect the contract and technical judiciousness of the word is a good amount of central grouping of contractual expression (Okeke, C.N. 1988). The preparation for committing a breach of circumstance at universal law is refutation and indemnity.

Figure: Effects of Different Terms

The Up-To-The-Minute Observation

The opposition of a circumstance allows the overhead misgiving accumulating to

unaccountable applying the indenture as turned down, and therefore the parties are

endowed to compel to the undertakings and performance (Collins, Hugh. 1999).

In the scenario listed, TAM’s college and NAMS has bound themselves in a formal

contract based on NAMS oral evidence of providing the best promotional facilities only

for £6000 and established an inferred agreement between TAM’s college and NAMS. 

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TASK 3

3.1 CONTRASTING LIABILITY IN TORT WITH CONTRACTUAL LIABILITY

Tort and contact liability:

The guideline of tort and of agreement is categorized as part of the "Law of

Obligations", but the law of tort concerns to every person that it is applicable to, while in

the guideline of affirmation or in trusts obligation is "Voluntarily presumed" (DiMatteo, L.

A. 1998).

3.2 THE NATURE OF LIABILITY IN NEGLIGENCE

1. DUTY: If any of the party deny a pre-existing impulse and improves heedlessly

(Chen L., Law S. and Lee S. 2003). The glue of communal obligation is that the

beam that binds humans to one another in groups while preferences are

proposed unsuitable. The duty may be a sense of obligation of a person to

another person.

2. Breach of Contract: Break of affirmation is most important factor inside the

affirmation misconduct of negligence. It is the kind of the actions of the

individuals that is irresponsible on behalf of the party and not performing the

obligation of the contract terms and conditions (DiMatteo, L. A. 1998). NAMS has

broken the affirmation after they have halted the trading of TAM’s for one week.

3.3 VICARIOUS LIABILITY IN BUSINESS

In the English doctrine of tort negligence law, the employer can be suspect for the

wrongdoings of the workers. Usually, a supervisor is going to be command chargeable

for any tort finished while a worker is bearing out their obligations (Leibee, B. C. 1976).

Vicarious blame implies that anyone can be detained lawfully to accuse for the

inattentive activities of a decisive one-by-one even in spite of the detail that the suspect

swamps no error in furtherance of the inattentive or tortuous activities (Chen L., Law S.

and Lee S. 2003).

The non-teaching individual who got injured did not pay attention to the organization’s

principle and so that, the administration refuted to present any reimbursement to the

11

casualty although The authority of TAM’s college are compelled to pay the

reimbursement ascribed to the conviction of vicarious liability. 

The management of TAM’s college fell inside the English doctrine of vicarious liability

be obliged to the night guard’s family has taken lawful activities against the association.

Though the supervisors were notified regarding the misfortunes and were also projected

to wear proper attire for the non-teaching staffs to avoid injuries.

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TASK 4

4.1 APPLICATION OF THE TORT OF NEGLIGENCE AND DEFENCES

There are some elements of the tort negligence and defences in various business

situations, they are given below

Tort Negligence Law: It is a sort of regulation all through that it will be maintained and

functioned inside the realm of intentional wrongdoing of law and furthermore the reason

for negligence guideline, is to organize and defend the employees from cuts affiliated to

their line (Leibee, B. C. 1976). TAM’s college’s non-teaching employees were advised

to use shielding attire for his or her security.

Duty of Care: Somebody might owe an urge of care to imagine that they are not

bearing from any awkward wound (Leibee, B. C. 1976). If such obligation is broken, a

lawful liability is enforced. TAM’s college staffs were alerted in quotation to the damage

and deficiency that the employees might face.

Sources of Negligence: Negligence is going to be notable as malfunction to desire

correct care of precaution. It is the unintentional shatter of a lawful obligation starting

impairment fairly predictable while not that the shatter would have not occurred (John

W. 2009).

Potential sources of negligence are:

Poor selection of activities: The activities that are beyond the capabilities of

individuals or inadequate knowledge of activities are poor selection of activities

(John W. 2009).

Inadequate protection: Inadequate protection refers to negligent behaviour on

part of the person who is unwilling to wear protective gears (Emenike, E.U.I.

1989).

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Defence against Negligence:

An act of God: The conditions or situations that is uncontrollable by human

beings. This assumption is only applicable when adequate safety measures are

taken to avoid injuries (John W. 2009).

Sudden emergency: Any act of immediate action to help the person in danger.

Such as, attempt to rescue a person drowning in the water is an act of sudden

emergency (Emenike, E.U.I. 1989).

4.2 APPLICATION OF VICARIOUS LIABILITY

The management of TAM’s college has imposed the carrying of correct guideline and

attire for college’s non-teaching staffs to bypass future accidents. Whereas the

masterful supervisors have unmarked the alert associated the misfortunes because of

not wearing the right apparel. It is against the enterprise principle.

Although throughout this state of activities the supervisors did not pursue the directions

and lead one amidst their staffs to obligation while not wearing. A supervisor has the

natural authority to control over the employees and therefore the supervisors were

asked to maintain the correct protected gears of the non-teaching staffs (Wood,

D. and Smith, P. 1989).

Although, vicarious responsibility means anyone can be detained lawfully to blame for

the inattentive activities of the employee. Here the supervisors were inattentive to the

main headings which lead one of their staffs to induce wound. Although the board of the

TAM’s college is exposed to the English doctrine of vicarious liability doctrine.

The TAM’s has rejected the settlement to the staff because he was not following the

orders of the management. Yet the Tam’s college is legally liable for the accident due to

the English doctrine of vicarious liability.

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CONCLUSION

TAM’s college have been endeavouring to develop their rank and trying to get the top

spot in the educational institute ranks within the UK. In order to pursue this objective

they were going along with the agencies for legal and advertising help to increase their

college reputation. On the third scenario of undertakings TAM’s college was susceptible

to reimburse an employee as a result of the employee has caught in an accident during

the work hours and TAM’s college had to face lawful undertakings attached to with the

incidence with the worker and might have to pay the reimbursement as a deduction of

“Vicarious Liability”.

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REFERENCES

Bucher, C.A. (1983). Administration of Legal Responsibilities. The C.V. Mosby

Company, St. Louis., vol. 32, no. 8, pp. 849-875.

DiMatteo, L. A. 1998. Contract Theory: The Evolution of Contractual Intent. East

Lansing: Michigan State Univ. Press.

Emenike, E.U.I. (1989). Safety Measures associated with Physical and Health

Education Journals. Vol. 3, No. 1, vol. 48, no. 1, pp. 54-82.

Hampton, J. 1976. “Legal Responsibilities in Business”, Reston: Prentice Hall.

Horton, C., 2012. Legal aspects in Business and Contractual Intent, Journals. Vol. 2, pp.

54-82.

John W. (2009) ‘Business contract and negligence in practice’ Journal, Vol. 7, No. 3, pp.

5-18

Kennedy, R. D. & McMullen, S. Y. 1968. “Contract Negotiation and Contract Theory”,

Home Wood, Illinois: Richard D. Inrurin.

Leibee, B. C. (1976). Tort Liability for Injuries to employees. Organisation and

Administration. Philadelphia W.B. Saunders Company Journal Of Tort Law ,vol.

18, no. 1, p. 1.

Marsh, P.D.V. 2001. Contract Negotiation Handbook: Burlington, Vt: Gower

Myer, J. W. 1978. “Negligence in Contract and practice”, Delhi: Prentice Hall of India,

3rd edition.

Okeke, C.N. (1988). Some Legal aspects of Organizations. A paper presented at a two

day conference organized by the National Sports Commission, Enugu, vol. 13,

no. 5, pp. 707-719.

Roberts, M. & Zahay, D. 2012, Laws and Regulation in practice in Business, 6th Edition,

Wadsworth Publishing Co, Belmont, USA.

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Wood, D. and Smith, P. (1989) practice of business law in contractual intent: First

Report on the 1987 Survey, Research Paper No. 63, London: Department of

Business law.

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