Unit 5 ACNB Solution Assignment

Unit 5 ACNB Solution Assignment

Unit 5 ACNB Solution Assignment


When any agreement is enforced by rules and laws then it turns into a contract. All kind of contract can be considered as agreements but all agreements cannot be considered as contracts. There present different valid rudiments that are essential in an agreement for converting it into a contract. The rules and laws can be conveyed as the collection of guidelines that are simply developed with the help of authority of state and government of the state. On the basis of the business framework, there presents various kinds of rules and laws but still the quite vastly used rules and laws into the business are the contract laws. Now a day, inattentiveness is increasing day by day in a rapid manner in the business world, so it has become a phenomenon of compensating people in the conditions of business. Here in this paper, the researcher has reflects the essential rudiments that are essential in order to create a lawful contract through the help of rudiments that involved within the contract during the period of different separate business situations.

Unit 5 ACNB Solution Assignment

Task 1

Lo 1.1

When any agreements are enforced through the legislation and rules then it turns into a contract. It is described that all contract can be agreements but all agreements cannot be a contract. There are various types of rudiments of legalizedcontracts which are quite significant and vital to be enforced with the rules and legislations(Cartwright, 2007). The various rudiments are significant for the legalized contract as well as if any of the rudiments of legal contract is missing then the agreement will not be able to consider as a contract. Offer and acceptance are the initial steps in a contract for the creating a contract andimplementing it. In this initial step, one individual creates an offer at the time of acceptance that converts into promise.

The second cause of promise converts into consideration as well as without consideration a contract is termed as void as consideration can be unlawful and the court can term it as illegal as well as fraud or theft. A contract includes a statement of power and it refers the reason for manufacturing a legal impact, it is important for formulating a legal contract. Various individuals who are inclusive in a contract should have the potentiality as well as the capability for creating a legal contract(Extempore.ie, 2016). The potentialityand capability describe that both the parties should be an adult, even must be mentally sounded. So, in the case of Peter Abraham, he is liable for creating a legal contract as he is an adult and even mentally sounds.


Various legal contracts are created with the support of different types of terms and conditions, and these terms and conditions provide the contract in a complete way. Before formulating any contract different kinds of statements must be created by an individual for encouraging the other individual for entering into the contract. The individual who is involved under the contract is guaranteed only by its conditions and terms.

  1. Face to Face Contract: Under this type of contract, a contract which gets initiated with the help of face to face communication that is actually void and is not valid. For establishing a business strategy contract it is essential to provide proper rudiments of the contract details(Jewell, 2002). In this specific case, Mr. Peter Abraham needs reflecting the demand of this particular case as it is legally not valid. Under face to face contract formation, the parties are not able to take any legal action as it is not permitted as appropriate rudiments are basically omitted in this case.
  2. Written Contract: This kind of contract is basically the contract under which the individuals who are included in the contracts makes a contract in writings instead of oral conversation and that contract are concerned to be an as written contract(Routledge-Cavendish., 2008). The written contract can be calculated as a legally valid contract. The contract is referred to be as written contract only when the contract is authorized and submitted to licensed lawyer. A written contract is referred to be legal as the contract bears judiciary limit. So, in case of Peter Abraham, it is suggested that he can create a written contract as this kind of contract will be safe for him from the contrary results of losses in business.
  3. Distance Selling System:Under distance selling system the contract can be created amongst the contracting bodies through the help of different ways like telephone, internet and much more. This way of contract can be made with the help of telephonic communication and also oral communication on the internet(The Law Handbook, 2015). This mode of the contract is same as face to face communication within which a contract is created with the mode of telephonic conversation as well as with the help of online oral conversation. But still, this kind of contract is referred to be legally unacceptable as it does not make any written rudiments as well as does not give security for any condition of the breach. The contract is created with the help of guidelines of this particular system are omitted a legal end of that contract relies on the perceptions of the individuals included in the contract.


Condition- In the matter of permitted association of the contract created a condition that is referred as the most important term in the contribution to the formulation of contracts. In order to apprehend the impacts of the space of a condition, it is quite essential for highlighting that space of a condition that may convert a normal aspect for damages and losses(Young, 2010). In this specific case, the innocent individual has the legal strength for terminating the contract and rights for the compensation legally for the survival of damage sand losses because of the breach.

Warranty- This is referred as the extra responsibilities which are not an important portion of an agreement but it functions as an assertion to the contract created(Andrews, 2011). Correspondingly, as a breach of condition, the breach of warranty allows the innocent party in order to claim compensation in a legal mode but the right for ending the contract is not permitted.

In nominate Terms- In order to consider legal inferences of contract an innominate term is represented which is not associated with the word condition as well as is not aligned to word warranty in the contract. Demanding compensation is allowed and at the same time valid in this case and still, it is dependent on the affects formed through a breach.

Exemption Clauses- under the English Contract Law and rules, the implementation of the clause that is proper and is dissimilar under this case where the included individuals have controlled regulate from performing the duties of the contract(Cornford, 2008). The proper clauses are extended under two characteristics like true exclusion and limited clause.

Task 2


Case 1

For an agreement to be lawful, it is essential that it is developed under the indulgent of two different parties. The agreement should be developed for the construction and implementation of a valid contract. From the scenario presented in case 1, it can be identified that the situation falls under the segment of invitation to treat(Burrows, 2011). The two involved parties in the case are Carol and Vendor. An invitation to treat is a promotional activity done by vendors to attain the customers to make an offer to them. In the given case, Carol has approached to give an acceptance to the offer which is not correct. She is the one who has to give the offer as the vendor has given an invitation to offer to the public. Another element which is missing from the case is mutual approval of the parties along with a written document about the contract. Thus, the provided scenario leads to an invalid contract.

It is very important to understand that there is a difference between an invitation to offer and an offer. An invitation to offer is the invitation to the public or some specific person to make an offer to the proposer(Casebrief.me, 2016). The major objective in an invitation to offer is to receive an offer from other individuals. It is generally made for general public. The case of Partridge versus Crittenden (1968) can be stated here for example.  

Case 2

From the given case scenario, it can be identified that Devi’s father Preston has promised to pay George a sum of amount if he hires his son for a job. But George in absence of the knowledge about the amount hires Devi for the job. So, the consideration made by Preston is the consideration made in the past. As George has already appointed Devi for a position in the company, he cannot claim for the compensation from Preston(Austen-Baker, 2011). A consideration to be lawful must be made in the present and must not be done in the past. The assurance given by Preston to George for appointing Devi for a job has expired due to the fact that he had already appointed Devi. The best example for the given case would be the case of Roscorla vs. Thomas (1842).

A consideration to be lawful must be of a valid nature, should be sufficient to both the parties if not adequate. It needs to be made in the present and should not be made for a task made in the past. The consideration must be derived for the conditions mentioned in the contract.  


Case 3

The given scenario in the case 3 falls in the segment of exclusion clause of contract law. The two engaged parties in the following case is the owner of the restaurant and the couple that went to the restaurant for dinner. At the time of entering the restaurant, the gate-keeper handled a notice about the liability of the materials in the restaurant to the couple, without getting into any communication with them(Netk.net.au, 2016). In the notice, the terms of the liability of the material were written. In the following case, the major issues are the absence of message or communication between the porter and the couple. The restaurant owner cannot legally rely on the terms of exclusion clause for the lost materials(Smith, 2011). The gate-keeper must and should have made an effort to be in a communication with the couple about the liability terms.

Case 4

Implied terms are the terms that are developed for the preparation of avoidance rule formulation of the contract in the business law. For the following case, the best example would be the case of Liverpool City Council vs. Irwin (1977), which goes parallel with the situation of this case. In the given case situation it can easily be identified that Aaron and Zehphra are the two engaged parties. The contract form between them had all the essential elements. The contract had a mutually intent, a proper consideration of a proper offer and acceptance. The contract was legal and lawfully permissible. But the contract comes to an end with the sudden death of Zehphra. In the borrowed premises, Aaron had made significant changes in it(Cooke, 2009). As the contract was suddenly terminated due to the death of one party, he can demand the compensation for the expenditure he had made.


Case 5

In the provided situation of case 5, it can be identified that the insurer and the policy-holder are the two engaged parties. It is important to note here that the policy-holder did not provide any incorrect information to the insurer. The terms of any previous policy cannot be imposed on the situation of any current policy. As the policy-holder had an awaiting theft privilege, still the information about that is not required for the claim of current policy(E-lawresources.co.uk, 2016). The insurer had no authority or right to reject the current policy on the terms of any previous awaiting theft privilege. It is also important to mention here that there are some key fundamentals that are linked with a voidable agreement. An innocent party has an approved right to execute a legal contract but a contract cannot be legally imposed on an innocent party.

Case 6

The situation provided in the case 6, is a very complicated case. In the given case, a policy of a car is involved in which the engaged parties are the policy-holder and the insurer. From the situation given in the case, it can be identified that the policy-holder has given incorrect information to the insurer. Though the claim for any previous policy cannot be implied for the rejection of a current policy, the incorrect information provided about the modification done in the car has given a right or power to the insurer to terminate the contract(E-lawresources.co.uk, 2016). The incorrect information about the modifications done in the care indicates that there were changes made in it due to which the insurers had gained the power. Though the incorrect information & knowledge can be termed as an error but it cannot be presented as a defense in the given case situation.    

Task 3

Lo 3.1

Tort is generally reflected for establishing within a condition when any individual is against the responsibilities of legislations and laws as well as anguishes the rights of the another individual. Tort is basically referred as the lawful duties of individual on the basis of the English Contract Law. The liability of a person establishes within the fundamentals of tort when a person breaches the condition describes into the contract. When the breach occurs then that person leads within the liability of the contract which is based on the agreement of the victim people. In the unlawful discussion of individuals contains in the contract, the opposite is punishable in the lawful terms as well as the person who survives can be able to demand compensation(Legislation.gov.uk, 2016). Entire liability which is described in the fundamentals of tort is basically relied on the liability for distress in order to exercise the responsibilities that limit with the help of legislations. As per example- if Mr. Z creates a contract in order to purchase a washing machine from Mr. X at $6000 and if Mr. X is not able to provide the product in the given time frame then he automatically turns into a contractually liable individual. And if Mr. Z is not able to pay the amount in the given time frame he turns to viable to Mr. X. Mr. Z has the accountability for controlling the transportation vehicle because if his labors do not work their tasks, then he will responsible for the tort liability.


Negligence within the contracts of business law and rules is described as a condition where a dutiful individual is not allowed to work in the task which he should have to do it. It takes place when an individual are not able to implement as well as performs his responsibilities for any cause(Schmerler, 2008). According to the principle of tort, if any individual is involved in performing any sort of aspects which are essential for being reflected in the negligence tort.

Firstly: the offended must have some responsibility to another party.
Secondly: the offended should fail in few paths to integrity the responsibility.
Thirdly: the requester should survive few type of injury
Fourthly: a reasonable individual requires imagining the offender’s breakdown


Vicarious liability is the liability of people that is referred as a principle for the execution of tort of another people and the people functions on the principle are referred as a negotiator. This is the situation on that an individual can regulate within the liability for the omitting of the performances accomplished by another person. Vicarious liability is actually the responsibility of the negotiator for the responsible individual. As for example, if nay producer of commodity and services of the company evaluates during the moment of driving, and at that time hits somebody then in this fact, the owner of the company as well as the driver of that company are responsible for giving the compensation to the losses of the injured individual(Lindemann, Kadue and Lindemann, 2012). It happens for theliability of torts of another person and describes vastly for the cause of interaction of the persons included.

Task 4

Lo 4.1

Case 7

Through the support of description in this specified case, it is quite essential that rudiments and the outcomes of tort of negligence and at the same time the results at the time when anybody did not respect his responsibility of protection and safety, within this specific case, Mr. Brown was the injured person which reflects that he suffered the results in the next day during the time of his treatment is carried out(McLean, Mason and McLean, 2004). The death of the injured individual happens as of the negative effects of toxic from his house and suffered pneumonia. But yet specific aspects of the case are considered, his widow i.e. Mrs. Brown can blame the management of the hospital for the death of his husband Mr. Brown. By supposing a fact where the death of the victim happens at the time of admitting him to the hospital. Mrs. Brown can claim compensation from the management of the hospital.

  • According to the case of Mr. Brown, it is at last proved that he expired for the reason of Pneumonia due to the toxic effects from his residents. And the another noticeable point is that there is no importance in that it can be proved that at the time of responsibility doctor and nurse can be blamed for any sort of negligence and so cannot be blamed on the lawful field. Moreover, it can be also identified that in terms of respect to profits of losses, there was medication and protection provide by the management of the hospital. The main view where the doctor accords the nurse for a prescribed medicine to the injured p0erson proved that they have legally presented in their services and duties.


Case 8

According to the English Contract Law, the legalized inferences of vicarious liability are permitted for examining the particular case. This particular case signifies the large negligence during the period of responsibility so the innocent person suffered losses can demand compensation from the company for which the chauffeurworked for. The innocent individual has the legalized ability and at the same time strength for demanding compensation from the company as the losses and damages takes place during the time of performance performed for the company(McLean, Mason and McLean, 2004). So, the innocent person of vicarious liability can be bale to demand legalized compensation from the firm for the losses and injuries on the basis of the act of Civil Liability Act, 1978.

Case 9

According to the English contract Law, the legal inferences of vicarious liability in the situation of offense of negligence it is quite important in order to consider that vicarious liability is not allowed for implementing in a particular company if any working environment safety, as well as healthy problems, have been vicarious to the other organization. But yet with the help of consideration the specified case in a detail, it is identified that the innocent individual confronted an injury under the supermarket but still he is not allowed for holding supermarket owner directly for the losses andinjuries suffered by the victim person because the proprietor of the supermarket has already distributed the chosen and executed the worker’s security and safety to the other company.


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Austen-Baker, R. (2011). Implied terms in English contract law. Cheltenham, UK: Edward Elgar.
Austlii.edu.au. (2016). Leslie v Graham [2002] FCA 32 (4 February 2002). [online] Available at:http://www.austlii.edu.au/cgibin/sinodisp/au/cases/cth/FCA/2002/32.html?stem=0&synonyms=0&query=title(Leslie%20and%20Graham%20) [Accessed 6 Jun. 2016].
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Cartwright, J. (2007). Contract law. Oxford: Hart Publishing.
Casebrief.me. (2016). Thornton v Shoe Lane Parking Ltd | Case Brief Summary. [online] Available at: http://casebrief.me/casebriefs/thornton-v-shoe-lane-parking-ltd/ [Accessed 6 Jun. 2016].