Aspects of Contract Negligence for Business

BTEC HND IN BUSINESS

Aspects of Contract
Negligence for Business

Sanjeyan Balasubramaniam
HBM12/14/12

SEMESTER 2

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 Aspects of Contract Negligence for Business

Declaration of Authenticity

I certify that the work submitted is my own. Where the work of others has been
used t support my work then credit has been acknowledgment.

Signature: .. Date: ...

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 Aspects of Contract Negligence for Business

Acknowledgement

I would like to sincerely and gratefully thank my lecturers, project

coordinator and the people who supported me to complete this assignment.

I would like to extend my gratitude to the management of British College of

Applied Studies for providing me all the materials required to complete this
assignment.

Sanjeyan Balasubramaniam

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 Aspects of Contract Negligence for Business

Contents
Essential elements of contract
Vicarious liability

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 Aspects of Contract Negligence for Business

Task 1.1
What are the essential elements which are important for the
formation of a valid contract?
There are six element for the formation of a valid contract. Those are:-

Privity

Agreement (offer and acceptance)

Intentions to create legal relations.

Consideration

Capacity

Legality

These are the important elements of a valid contract formation. Also these elements must be
there for the formation of a valid contract. Otherwise there will be some issues rise up.

How these essential elements important for the valid contract?

Privity- Privity is a special bond which is very strong and cannot break so easily. This is very
strong because this is recognized by the law. So this is important to make the special bond.

Agreement- Agreement is a type of arrangement which is between two or more parties to the
attachment of a contract.SO to make the attachment agreement is very important.

Intentions to create legal relations- Intentions to create legal relation means the parties who
have a bond with the contract are ready to undertake the legal attachment to the contract.

Consideration- Consideration is legally valuable thing which is promised when making a

contract. When making legal value this consideration is an important item.

Capacity- For a person or organization consideration helps to practice the act to bind with the
contract. By this an organization or a person has an ability to perform the act.

Legality- Legally binding with this is called as legality. It is very important to the contract to the
legal attachment.

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How different types of contracts can impact on the said contracts?

We can divide these varieties into 4 categories because there are 4 varieties of contracts.
Those are: written contracts, verbal contracts, standard form contracts, Period form contracts.

Written contracts- written contract are made in the written formats and also it is a most
powerful thing because it is having the proof with it. Written format is a best proof to show in the
legal form. This can impact through its written format value. Written contracts are usually used
in the society because the people know the value of it.

Verbal contract- Verbal contract is made in the verbal format but comparing with written format
it has less value. So it has less power and also it has no proves to show if anyone want to show
that there is a contract has been made. When a problem rises just like this they cant show it.
This will impact the said the contract.

Standard form contract- Standard form contracts a pre-prepared contracts. It means it has
already printed and we need to fill the information in the blanks. This is a valuable contract type
and also it has the legal power too. This is also used as a proof when a problem rises So this
can impact on said contract through this.

Period contracts- Period contracts are related to the hired contracts. It means these contract
are already hired in the contract form because of that this is called as period contracts. This can
be the good contract type comparing with the other contracts. So this can impact on said
contract through this.

What are terms in contracts and their effects?

The term can be divided into two categories. Those are:-

Express terms

Implied terms.

What is express term?

An express term is made during the contract and also it is agreed by both the parties. It can in
the written format or else it can be in oral statement. Express term is the best variety of term
because this is made according to the satisfaction of two parties. Whenever the problem rises
they can prevent it by showing this agreement. So most of the people use this term to prevent
their issues which they face in their future. If there is not an agreement they have face for many
problems. If the agreement is made with the two parties there will be less problem which rise in
the future.

What is implied term?

Simply we can tell Implied term as not express terms because express terms are agreed with
the two parties but here of course they have follow the rules and regulations. So they cannot do
anything according to their opinion. They only have to follow the rules and regulations.

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M 2.3

Principles of English contract law

Offer

Offer something related to the agreement. It means the offer is kind of a promise which is made
in an agreement. This can be a first stage in the contract law because if this is already
happened only they can start the other step. It means if the contract has to be function the offer
must be there or else it wont work.

Acceptance

The acceptance and the offer are like two elements of a contract. These two must be there for a
formation. If the offer made in the legal terms we call it as offeror and also if the acceptance is
made in the legal terms we can call them as offeree

Consideration

In English law we can describe this as is one of the four main building blocks of a contract.
Anyhow it has a value in it. It can be a good or service which can determine with the value.

Contractual intention

This is mainly made not to the court actions. This consideration never leads in all the court
actions. Only in some situation only it works.

Form

A standard form contract is referred as contract of adhesion too. Sometimes this is called as
take it or leave it contract. This includes two parties in the contracts but only one of the party will
set the contract.

Case law
Case law is a kind of laws which already exists. It means those are laws which previously
created. So for the people who needs get the problem solve can get solution from these case
law which has already created. For each and every they have the case law which will be
solution to their problem. So it is very easy to the people who needs the solution for the issues.

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Roman Dutch law

Roman Dutch law are the laws which are created according to the roman law system. In 17th
and 18th century only it has started to apply in Netherland. But this Roman Dutch law system is
practiced around some countries in the world. This law specially practices in the Europe. The
above countries practice this roman Dutch law:-

South Africa (and its neighbors Lesotho, Swaziland, Namibia, Botswana & Zimbabwe)
Guyana
Indonesia
East Timor
Sri Lanka

Modification of contract law by trade, practice and customs

Modification of contract law is differentiate according to the sector. Those are trade and
customs. According to the sector only the modification also changes. For an example trade is a
type of sector which always modify its self-according to the requirements and the legal situation.
If these factors change the contract law also will change.

Practice and customs mean the practices which are practices by the government. So this make
the changes in the practice and customs. The government of a country will not chat easily. If
there is a must only the government changes its policy and etc. So according to this change
the contract law also changes.

Modifications through legislation (UCTA)

Modification through legislation is an important part in this section. The laws which are already
exist can affect according to its needs and regulations. The term legislation means that it is law
and legal criteria. UCTA is a short form of Unfair Contract Terms Act 1977.

England and Wales; Scotland; Northern Ireland are the territory for this UCTA. Simply if we want
to explain about this we can tell this the controller who regulates and put some restrictions to
control some terms of contracts.

This UCTA limits the contract laws limitability. It means it doesnt allow the people to use and
get the whole benefits of contract law.

References- www.outsourcing-law.com, www.unidroit.org, www.lawplainandsimple.com,

www.londoninternational.ac.uk

Access to justice book, Fundamentals of legal writing

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Learning Outcome 03

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Task 3.2 (D3.4)

Vicarious liability
Yes, this is a true statement which state for some harm during the working hours. In the other
way if we see the employer is entitled to get the benefits such as the employees labor,
knowledge , time and employees precious talent. So the benefit is eligible to get from the
employee and it is also entitle to get and face the issues from the employer.

How a business can be vicariously liable?

The business or the business organization vicariously liable when an issue arises through the
regulations of law. If the issue is acceptable according to the contract law it is vicariously liable
to enter into a contract. For these type of issues I have given some examples below:-

1) In some places some drivers cannot drive their vehicle to go inside some specific place
but they go through that way and they get accident. In this situation there is a rule called
not to go inside through that specific path. Here of course the injured person vicariously
liable to enter the contract. Though it is not eligible to the contact he or she is entitled to
enter because he or she is get injured in another type of contract. So for this the other
case is applicable to this.

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Learning Outcome 04

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Task 4.1 (D1.2)

a) Mrs.Dorothy cannot claim the damages for breach of contract from the manufacturer
because she hasnt sign in the contract.
b) Can, because the definition of tort of negligence is harm caused by carelessness. Here it
is applicable. The manufacturers carelessness is the reason for this issue.
c) For this issue I suggest Donoghue V Stevenson. Donoghue V Stevenson is law which is
the same in the issue. So Mrs.Dorothy is eligible to enter the contract for the problem
which has raised.
d) I dont agree with the manufacturers argument because here the manufacturer is saying
it is kind of an issue which is against to the public policy but Mrs.Dorothy is arguing for
the publics goodness.

Task 4.2
a) This is a good statement to keep. The manufacturer says that it is done by the employee
of the manufacturer but it has done with the permission of the manufacturer. The
manufacturer is the person who giving and instructing the information, advice, instruction
and etc. The manufacturer is the in charge person but he is not involved in this matter
directly. So the manufacturer is not vicariously liable.
b) Suggestions:- If the manufacturer is directly involved in this matter he or she is highly
involved with the vicarious liability but here of course the manufacturer is not directly
involved here. The employee has done his or her job through the instructions of the
manufacturer. So here the manufacturer doesnt have the vicarious liability. If we change
the way which I mentioned earlier is suitable to the modern business world. It has done
by the employee because of his or her carelessness. So no one can avoid this problem
as well. This is a common problem in the modern business world. Most of the food
companies are doing because of their carelessness. This expresses their irresponsibility.
If the manufacturer is vicariously liable he or she needs to make the product directly.

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References

www.outsourcing-law.com

www.unidroit.org

www.lawplainandsimple.com

www.londoninternational.ac.uk

Access to justice book

Fundamentals of legal writing book

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