Aspects of Contract and Negligence for Business
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In this age of globalization
necessary of business contract knows no law. In everyday transaction any
business organization of the world need to make and goes through many legal
systems, for that they need to make contracts about their required activities with several business organization and parties.
In this assignment we just go to know about many legal rules and regulation as
well as many outside and inside things of business contract. For making an
organization more effective and more successful the organization need to make
it all contracts successful.
Contract is an agreement of two
business party under the acceptance of law. An agreement or contract will call
valid if it fulfill some essential elements and have create a legal validity
under the law of contract.
Essential elements required of a
formation of a valid contract are illustrated in below with their importance.
The offer: It is just a willingness of any business party for
making a business contract with any business organization. The offer is called
the first step and the first initial point of any business contract and with
this step the formation of any business contract just start its journey.
Acceptance: When any offer
is offered to a certain business organization, then that party will thing about
their part and benefits from that contract. Then the business party will thing
about the acceptance of that offer. If acceptance is find by an offer that it
can called the perfect offer(Goodchild, Herring,
and others 2000).
Competency of the party: With
the following of the law of valid contract any parties can’t enter into a valid
freely because their some competency required by the contract law like proper
age, stability and maturity of mind of the parties.
Free consent: Any party
can’t force any other party to make business contract with them. Every party of
the contract will give their consent to the contract in freely(Goodchild, Herring, and others 2000). Without
it a contract will considered as void.
Consideration: That means the exchange between two parties of their
price. It is another significant element of a valid contract.
Lawful object: any contract in business contract is must formed
with some object. It may be one or more. But those need to be lawful. That
means any objectivity of the contract may not be anti-law of the country.
Enforceability of law: the whole activities and point of the
contract need to be enforceable by the law of contract.
Those elements have a great
importance in formation of a valid contract.
Expressed and implied contract: if offer and acceptance of contract
is making in word, this called an expressed contract. But in sometimes those
two essential elements of contract may not be expressed in language. Any party
can make its offer to another party by any activities of them (Wang, and Huo 2007). It is like an indirect
offer and indirect acceptance of a contract. By this types offer and acceptance,
here have the possibility of creating some misunderstandings. After all of
that, these types of contracts are available in field of business.
(explain a case as an example )
Valid contract: when a contract able to fulfill its entire requirement
under the rules and regulations provided by the contract law of business. We
know that contract is like an agreement of two business parties. If their
agreement comes to find enforceability by existing law, then the contract will
declared as a valid contract.
(explain a case as an example )
Voidable contract: those type contracts are just going to be
declared as void but those are not actually void. It becomes as showing some
sign of voidable contract. Before of fulfilling general requirement of valid
contract its look like a voidable contract. This is not the ultimate situation
of a contract (Wang, and Huo 2007). These
types of contract must result in other categories of contract like void
contract or valid contract.
(explain a case as an example )
Void contract: a contract may turn into a void contract for many
reason like fraudulent, illegal objectivity, minor or unsound minded party,
forced concerned etc. A void contract has no value about to any parties of the
contract. It has no impact on the business activities of the related
organization.
(explain a case as an example )
Unilateral and bilateral contract: every business contract between
any parties must create some obligation on them. As an example, john and Michel
have made a contract of buying and selling a house. By this contract john has
obligation of selling and Michel have obligation of buying. This is a bilateral
contract. But if Michel has no obligation of buying that house, this will be
called as a unilateral contract.
Unilateral Contract: use at least case -
(explain – Carhil VS Carbolic
drinks, or Harris vs Times ) need to explain one of them )
(explain a case as an example )
Analyse Analyse contract terms
with reference to their meaning and effect like-
Condition : (meaning, and
effects )
Warrenty : (meaning, and effects
)
(every points needs to
Exclusion Clauses : (meaning,
and effects )
Innominate Term: (meaning, and
effects )
In a contract business
organization as well as parties use many terms like
Implied term, expressed term,
content of agreement etc.
Content of agreement: any contract is an agreement of two parties,
that’s why in this agreement two of them need to have a free consent to the
agreement. Every inside and outside point of that agreement must need to be
clear to every party because they will give their free consent on it. That
point has a significant effect on overall situations and implementation of the
contract.
Expressed terms & implied terms: some terms of contracts are
described clearly and accurately because those are the most important key in
implementing the contract. But in contrast there have also some terms, which
are not directly expressed. In the time of forming contract, every party of the
contract have to be understand those automatically
(Wang, and Huo 2007). Those terms are hide from contract but shown in
the mind setup of the parties. Court and statue, do that kind of implementing
factors or terms in most of the time.
Important and relative terms:
there have some of the most intellectual, significant and obligatory
terms in the field of contract. The ultimate implementation and achievements of
the contract depend mostly on those terms. That’s why there has a most
clearance about those types of terms to the two parties of the contract.
Limiting and excluding terms: by those types of terms, rights or
obligation or other relative parts of any parties are determined (Wang, and Huo 2007). How much a party can
gained and how time a party can hold on that contract are also determined by
that types of terms. In these activities, previous records and law of courts
etc. also play an important role in the way of limiting and excluding terms.
Business scenarios: suppose claimants of
London telex to defendants of Amsterdam about making a contract. The fact is
that, the claimants interested about buying a horse from defendants.
According to this business
scenarios claimant just make an offer to defendant about buying a horse. This
is the applying of the first elements of contract.
Then defendant thinks about his
outputs and other things in this stage. After thinking those, he or she will
give his or her opinion to this offer. If he agrees about this offer and give
agreement, we can call that as an acceptance. This is the applying of the
second and most important elements of the contract.
The claimant and defendant, two of
them need to have certain age and need to bear a sound mind (Robinson, and Morrison, 1995). We know about
the point “competency of party”. This is the implementation of those elements
of any contract.
Free consent is another significant
element of contract. Here the claimant and the defendant need to give their
free consent about transaction of that horse. If anybody of them forces another
one to make this agreement, then this contract will fall in a void contract.
Lawful activities are the fact that
any contract of the country in inter the country of outer the country need to
keep accordance of the state. In these scenarios, here the contract is going to
make between two different countries (Robinson,
and Morrison, 1995). If there have any lawful restriction between UK and
Holland about business then two of them could not be able to make their
contract.
At last there must have
consideration about transaction of price and interchange between the complaint
and defendant.
Every point of contract need to
follow must for making a contract perfect and success and make the way of
implementing of that contract.
Advise Mr. Peters if he can
claim for damages or not by applying the law on terms in different contracts:
Yes, he can claim compensation :-
·
Unfair
term – UK Unfair term guideline (VLE) –
·
(explain
as an example – Thornton vs Shoelane parking )
The notice was not visible –
No, he cannot claim damages - (need to explain under the above example ) –
There are several terms of law of
contract, we described in previous questions. Content of agreement, implied
terms, expressed terms, limiting and excluding terms, important and relative
terms are the major terms of the contracts.
In an expressed contract, different
terms and law of the contract are very must component and have a good accuracy
of the terms (Kennedy, 1981).
In a valid contract, terms are
expressed in most of the time. If there
have any limitations and excluding terms those are clearly expressed and
written in valid contract.
Keeping accuracy and clearance
about terms, rules and regulation in the contract have a great effect on the
implementation of the contract (Kennedy, 1981).
Business contracts are mostly used in every business situation and corporate
companies of the world in this age of globalization.
Some contracts are called as a void
contract. The reason behind turning into void contract is not adopting and
keeping clearance of all of the terms of the contract. Voidable contract means
a situation of contract which may be turn into void or valid. After adding
every point and terms to the contract, that gradually makes the contract to
valid. In contrast absent of those terms make a contract to void gradually.
2.3 Evaluate
the effect of the contract term quoted above in the contract in the following
situations:
Evaluate the effect of the contract term quoted above in the contract
in the following situations:
Need to explain – ?
condition: ?
Breach of condition: ?
Breach of warranty : ?
According to the question ----
Conditions are one of the most
important terms of the contract. In the business scenarios we come to know that
the claimant offer to defendant about buying a horse. In terms of contract,
here will have illustrate some conditions like that the damages of the
contracted things, time of interchange etc. according to this term two of the
parties will be able to know about uncertain condition of the product or the
things(Rousseau, and McLean, 1993). By
that way there will not crate any misunderstanding between two parties.
Warranties are the terms of
contract not so much essential as conditions. This is the surety of giving the
money in exchange of the amount of damages in the time of implementation of the
contract.
Several Intermediaries terms always
have an influence on contracts. Now we just go to see the different types of
contracts and their situation under business scenarios of contracts.
Suppose john and Michel has created
a contract about wool. John is eager to buy wool from Michel. That’s why he
sends a message as well as an offer to Michel by a letter. Michel accepts his
offer (Rousseau, and McLean, 1993). And
in the meantime john send letter about that he will send next letter for wool
as if Michel send wool before the next letter. But Michel misunderstands the
message of john. He sells his wool to another one.
In these types of situations of
contract, the amount or damage of misunderstanding and the process of solving
this, all of this will find a solution under the terms of the contract.
In most of the time two parties
need to go to the court about solving those uncertain situations of contract.
In the point as well as term of warranties have the definition about those
uncertainty (Rousseau, and McLean, 1993).
Despite of having so many things, sometimes there create unpredictable things
like that illustrated in scenarios of the question.
If any party wants to breach the
contract, he or she must need to show the reason for that according to the
terms of contracts. By the breaches of terms a contract automatically turns
into a void contract.
Terms of contract always vary from
contracts to contracts. With changes of the types of contract, the terms and
rules, regulations also vary. Lo3 Principles of liability in negligence in
business activities
Tort means the violation of any
law, which creates damages for another party.
Law of tort is one kind of law of civil wrong. Law of tort and law of
contract are the two ancient law of the business world. Although there have a
lot difference between contract law and tort law, they have some similarity
too.
At first the similarities between
them are discussed in below
Ø
Claimant need to prove the defendant as liable
for that damage according to the two forms of law.
Ø
Claimant only want to get the remedy to his loss
and he just can demand that but not the punishment of the defendant.
Ø
In the other sense we can say that two form of
law is in one single law. That is civil law.
Tort law and contract law are
different from one to another. Those are illustrated in below.
Relationship between parties: in a contract law, there have created
a good relationship between parties.
These types of their relation just depend on contract. By breaching this
relation and making loss for it are bring to remedy of complaint. In the other
hand, tort law doesn’t think about any contractual relationship. It is a
non-contractual law, by that law anybody can demand remedy.
Free consent: In a contract law, every party gives their concern in
free mind. Nobody can’t force them about their consent and their will create
the question of remedy with that. But in the point of tort law there has no
condition or question of consent. It is totally different from those conditions (Hansmann, and Kraakman, 1991). Consent of the
parties don’t considered in that field of law.
Purpose of award damage:the purpose of the claim in the contract
law different from tort. From the breach of contract, the claimant wants to get
remedy. His purpose is totally related to contract
(Hansmann, and Kraakman, 1991). On the other hand, in the tort law the
claimant doesn’t think about any types of contract. He just wants to get his
remedy.
( need to discuss with under example )
( need to discuss with under example
And based with the Question )
Negligence is the absent and
disorder mind of the defendant. If there has made any damage to the contract by
the carelessness of the defendant then the claimant can demand his remedy. But
first he needs to prove the defendant as a careless to the contract.
He can do that by three points.
Those are illustrated in below.
Duty of care: the defendant has to be careful to the right of the
claimant and he must need to take an extra care to the duties that are created
to him by the contract (Shavell, 1980).
If he doesn’t accomplish the contract with keeping accordance with the terms
and conditions of the contract, the claimant can define him as a careless and
foul to the contract. For the breaches of the contract, then he can claim his
compensation about contract. Without proving that no strong evidence will be
acceptable about the breach of the contract.
Breach duty of the care; a reasonable standard of a man:a man has
limitation of his own capability. So for the breach of duty of the care a
defendant can show is reason behind this. There are two major things about
that’s types of breach those are limitation of personnel skills and any
emergency reason (Shavell, 1980). The
court will must considered about standard able reason of a man.
Damage of claimant: the claimant has the right of making objection
and demand against the defendant. But there has some rules and limitation of
his demand. Those are like that, he must need to prove his defendant as liable
for that, and he will be able demand only his reasonable claim. The actual
damages of his resources can be demand as the compensation of his loss. And the
reason of his loss must need to be directly related to the breaches of the
contract.
The two parties have the chance of
proving them salves as pure in the court by showing their reasonable evidence.
( need to discuss with under example
And based with the Question )
------- …..
In any organization, there are many
people worked together. They are related to one another according to the many
reasons. Same place of work, same working time, similar level expectation those
are the sole reason of creating relationship. By any abnormal activities of
employees can harm the employers (Weber, 1991).
In the contrast, any anti familiar of employer activities can also harm the
resources of employee.
Now we can see that How a business
organization can be vicariously liable. We can identify that trough using some
styles.
Relationship between employee and
employer: to measure the amount of compensation of damage is made by any
parties of the organization and determine the reason behind that. The court
must need to test the level of relationship between the employee and employer (Weber, 1991). The court can use some
technique to measure that like integration test, control test, economic test
etc.
The employee’s tort: The employee’s tort about making the fault to
the employer will make the organization vicariously liable. The employer will
not be charged as the liable of those types of reason. The main key points of
the vicarious liable are that the employee and employer must need to be
presence in the employment act. Out of the employment act any activities of any
party will not be considered as vicarious liable
(Hawes, and Sherrard, 1976). The main things of the vicarious liable are
the presence of two parties in the course of employment.
( need to discuss with under example
And based with the Question )
………. …………
In this case of john and Michel, we
just go to see how the elements of the tort of negligence and defenses apply in
different business situations. Suppose john is a mango seller. He sells mango
to Michel. Michel buys mangoes from john and after eating one of the mangoes of
those he get ill. Then Michel claimed his compensation of illness from john.
But the fact is that, john don’t do that in concentrate mind. Even he doesn’t
know about inside of the mango. But john will be liable for the illness of
Michel. Because was not careful about the standard of his mango. Thisis example
of negligence as well as the breach of the care of duty.
In the second scenario, Michel goes
to hospital for proper treatment of his illness. But the level of his illness
doesn’tlessen. In contrast it is getting high. In this situation Michel can’t
blame the doctor for his damage. That’s why he can’t make further amount of
compensation from the doctor.
From those two scenarios it is
clear that the blame of the breach of liability depends on the situations of
the incidents. It is not also true for john and Michel but also all of the
business sectors of the world.
( need to discuss with under example
And based with the Question )
…….. …………..
The elements of vicarious liability
are applied in two different business situations. Those are given in below.
Situations number 01: Suppose john is the owner of a medicine
company and Michel is his employer. Michel serves medicines to local market on
behalf of john. That shows there have a relationship between john and Michel.
Michel has found a motor bike from john for his work. There have a commitment
with them that Michel will use the bike only for the purpose of business. If he
will use it in other activities then john will not liable for that (Douglas, 1929). So this point proves that
there has also control between them. The fact is that, after someday Michel
committed an accident with a passerby. But in that time he was journey by bike
with his friends for pleasure (Douglas, 1929).
So in this situation john will not be liable for the compensation of passerby
because in the time of accident Michel was not in the course of time. John will
liable for that.
Situations number 02: Relating to the first situation, in this case
Michel was attacked by some of criminal in the time of carrying medicines. In
this situation, Michel was in the course of employment. That’s why john needs
to bear the compensation for the loss of Michel.
From the above two situations we
come to know about the systems of vicarious liability.
We know that, today is the day of
globalization in the field of economics, technology, business etc. all of the
sectors of the world. There are make several contract between a huge numbers of
people as well as business organization. A contract must need to be a valid
contract for better secured business in the field of the global technology. The
elements of contract must need to apply in making contract. There two part in
the making contract; those are the claimant and the defendant. They have to
concern about every terms of the contract for making it as a successful and
proper contract. By that they can believe one another for the future
transactions and contract, which has a great influence on the business of two
of them.
References
Ø Goodchild, A., Herring, C. and Milosevic, Z.,
2000, June. Business Contracts for B2B. In ISDO.
Ø Wang, M., Wu, M. and Huo, H., 2007. Life-cycle
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organizational behavior, 16(3),
pp.289-298.
Ø Schmid, B.F. and Lindemann, M.A., 1998,
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pp.1-1.
Ø Hansmann, H. and Kraakman, R., 1991. Toward
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Ø Shavell, S., 1980. Strict liability versus
negligence. The Journal of
Legal Studies, 9(1),
pp.1-25.
Ø Weber, R.R., 1991. Scope of employment
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Ø Hawes, D.W. and Sherrard, T.J., 1976. Reliance
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Ø Douglas, W.O., 1929. Vicarious Liability and
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pp.584-604.
Ø Marceau, J.F., 2007. Little Less Conversation,
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