Unit 5 Aspects of Contract Law Negligence in Business Solution

Unit 5 Aspects Contract Law Negligence in Business Solution

Unit 5 Aspects of Contract Law Negligence in Business Solution


A contract is formed when an agreement is enforceable and permissible under contract law. A contract is formed after the stage of becoming an agreement. This report is developed to understand the aspects of law of the contract and its negligence in business. The study will also illustrate the elements required for a valid contract and its importance. It will also provide the information about impact of forming contracts by different mediums. Various case studies are also highlighted here to demonstrate the elements ofcontract in different business situations. This study will also outline the principle of liability for negligence in business activities along with its implications in different business situations.

Task 1



An agreement turns into a contract when it is enforced by the laws and rules under the contract law. Every contract can be considered as an agreement but every agreement cannot be considered as contract. In order to become a valid contract there are different important aspects necessary for the agreement. All these aspects are quite essential for any agreement for becoming a contract. In order to initiate a contract, the first most stepsareanoffer that is the promise of something through an individual to anotherindividual. After this happens, then the second element is the acceptancewhich comes into action that is performed for the promised offer performed by the first individual. After considering the acceptance, both the parties decided the contract according to a valid consideration(McLean, Mason and McLean, 2004). After this consideration has beenaccepted, the next aspect which is necessary that is the intent of the parties for forming a contract. The ability of the parties for commencing the terms of the contract is quite essentialelement of any contract.
Offer-This is the forts most step of any contract. An offer is formed by the promisor that contains the terms and condition of the contract. This is the significant statement regarding the conditions and terms of the contract. An offer should be legal as well as must be expressive enough.

Acceptance- An acceptance is the second most step of a contract after the offer is transferred. The acceptance of the offer transfers from the second individual. An acceptance of any offer is quite essential for the creation of the contract. An acceptance are basically like the offer that is should be legal and at the same time expressive. This should be started by the means of ideal interaction. All validcontracts should contain a lawful term of acceptanceperformed by the second individual.

Consideration- Consideration has much essentiality in the creation of any lawful contract. A valid contract is a step under which a lawful contract is created. A consideration require to be legal, it must be of lawful nature and even must be enough to the both the individuals and at the same time must be consideration is formed in the past(McLean, Mason and McLean, 2004). This must be consequent form the conditions and terms stated in the contract.

Intent- Both the individuals who are entering into any contract should have mutual agreementandunderstanding as well as intent for the formation of the contract. Any proposal which is formed forcefully will be considered as unlawful and also considered the contract as void. The intent of both theparties led the contract to be enforceable by the contract law and rules. And without the mutual agreement andunderstanding, contract will be void and unlawful before the eyes of the law and rules.

Ability- The other Marketing essentials aspect which is needed for the creation of a lawful contract is the ability of both the individuals. Both the individuals must be at adult age, mentally sounded as well as must own a stable financialstatus for meeting the conditions and terms of the contract.


Face to Face- This is a contract which is interacted with the face to face communication that is generally void and also it is not valid. For initiating a valid contract, it is important for forming lawful documents about the information of the contract. An applicationwhich is developed with the help of face to faceinteractions is not valid as the creation of the contractcannot be able to be imposed for legal terms. A face to face communication developed contract that is also not enabled as appropriate documents that are important and needed for the necessity of the contract are fully missing.

Written Document- This is kind of contract in which the aligned parties forms agreements in a writing form. It is basically considered as the valid contract. A contract that is written in legal documents is authorized and submitted to a licensed lawyer. It is determined legal as it contains the points of the legal terms(Schmerler, 2008). So, it can be considered that individuals must develop lawful documents before arriving into a contr5cat as it will be safeguard for them by the contrary results that occurs from the violation of the contract.

Distance Selling- It is the phenomenon in which the contract is formed amongst the approved andagreed parties through the help of interaction channels such as telephone, internet and much more. This kind of contract can be formed with the help of communication mode like cell phones and with the help of verbal interactions in the internet. The mode of developing a legal contract is determined as null as this medium has no lawful documentations can be formed that is aligning to the contract breach. The agreements that are initiated over direct selling absences the help of legal documents, so, it is generally considered as an illegal contract.


When any individual is trying to enter into a contract, there are few elementswhich are not to be observed for. Individuals should have clear perceptionsandconception regarding the content on which the contract is created. These contents are important because these will be including the terms and conditions of the contract(McLean, Mason and McLean, 2004). The information of the contracts varies from contract to contracts that are mostly established through the associated parties. Some of the similar problems which are accessible in the terms of the contract are mentionedin the following:
Condition- This is one of the most important elements needed for the creation of a lawful contract(Schmerler, 2008). For understanding the effects of the breach of contract, it is quite essential to firstly understand the features of expulsion. If conditions are prescribed in the contract, then it turns to quite easy for the guiltless party for gaining power opposed to nay illegality done by the other party.

Warranty- This can be considered as an extra responsibility and duty to the parties for the basics of the contract law and rules. The term of breaching any contract is similar as the breaching of the warranty(E-lawresources.co.uk, 2016). Warranty basically enables the guiltless party for claiming anddemandingcompensation for the losses andinjuries caused by another party.

InnominateTerms- Innominate terms are the guidelines which are nit described under the warranty or under the conditions(Lindemann, Kadue and Lindemann, 2012). This terms are the guidelines provided by the court, for the appropriate initiation of thecontract.

Exemptionclause- The exemption clause are described where the associated parties have forbidden regulate over the duties of the contract, exemption clause are categoriesinto two sub parts that are trues exclusion clauseand limited clause(Legislation.gov.uk, 2016).

Contact us

Get assignment help from full time dedicated experts of Locus assignments.

Call us: +44 – 7497 786 317
Email: support@locusassignments.com
BTEC HND Assignment Experts

Task 2


Case 1- Agreement

In order to create a valid contract, it is necessary that it is started under two distinct parties. The first party or individual has to form few valid and law ful offers and the other party has to form a lawful andvalid acceptance to the provided offer. After observing andverifying the situation presented under the case 1, it can be seen and observed that the same provides the highlights of invitation to treat that is quite distinct from a standard offer. Carol and the vendor are two included individuals in the provided case situation. Under the contract law and rules, an invitation to offer is the endorsed act performed by the vendors for attaining the consumers for creating an offer to them. In the presented case, Carol has managed to create an agreement to the offer that is inappropriate(Cooke, 2009). She has to create an offer to the vendor because the vendor has only provided an invitation to do the offer. There is not creation of a lawful contract because there is not written rudiments established in this case. The shared agreements amongst the both parties are also omitted which creates the recent case situation unlawful to contract a contract. An invitation to offer is quite distinct from a standard offer. An invitation to offer is the invitation to customers to create an offer(Netk.net.au, 2016). It is the scenario where a person describes something to the other individuals for inviting him to create an offer. The main aim of invitation to offer is actually for receiving offers from other individuals. This is mostly performed by vendors for creating customers create an offer(Austen-Baker, 2011). When a person responds the provided invitation to offer, it turns into an offer from the individual perception. It is basically established for the public for receiving offers as well as to establish a lawful contract after it. The most suitable example for those cases is the case of Partridge vs. Crittenden in the year 1968.

Case 2- Consideration

In the provided situation of the case, it can be observed that Devi’s father Preston has promised George, the owner and proprietor of the IT firm, for providing an amount if he chooses his son for the interviewed job. George in absence of the stated promise formed by Preston chooses Devi for a position in his organization. As George has earlier chooses Devi for a job, he cannot demand for the compensation form Preston for his stated promise. As the promise for the consideration created by Preston which is now turns into a consideration created earlier that is illegal(Casebrief.me, 2016). On the basis of the English Contract law, a consideration should be created earlier as well as requires being lawful. The declaration provided by Preston to select his son to George expired because of the matter that the firm has already selected Devi. For this case, the most suitable example would be the case of Roscorla vs. Thomas in the year 1842. In this case, the consideration created on the basis of the creation of the contract cannot be associated with the capability for altering the settlement under a negotiation.

Case 3- Exclusion Clause

In the provided case situation, the couple and the owner of the restaurant are the two involved parties. The main notable point that is to be notice in this case is the absence of message amongst the couple and Porter for the liability of the things(Smith, 2011). In this provides case, the Porter only provide a receipt to the couple in that the liabilityconditionand terms were illustratedwithoutgetting indulged in any kind of interaction with the couple. The point was not created for reading to the couple who are concerned as the second individual or party in the presented case situation. The proprietor of the restaurant cannot fully imply on the exclusion clause. Managing only the receipt for the liability conditions and terms is not sufficient for having the advantage of the exclusion clause(Burrows, 2011). The most suitable example for the given case scenario would be the case of Olley vs. Marlborough Court Hotel, 1949. The given case scenario is very much parallel to this case.

Case 4 – Implied Terms

Implied Terms in the contract law are established in order to create the avoidance law creation of the contract(Andrews, 2011). In the presented case situation, it can be observed that a law ful contract was created amongst Aaron and Zehphra. They were the two associated parties in a lawful contract. The contract formulated amongst them was lawful and also was approved along their mutual agreement andunderstanding. But the contract was ended because of the unexpected expiry of Zehphra. Aaron, to the rented premises in the contract, had created some important modifications in it. As the contract was accidently completed, he can claim for the compensation for the modifications he had created in the rented premises. In this case, the best example is the case of Liverpool City Council vs. Irwin in the year 1977.

Case 5

In the presented case situation, it can be observed that the policy holder has not got the part theft privilege. It is also be observed that the policy holder has not given any inappropriate details to the insurer because the condition of nay past policy as well as any awaiting theft privilege cannot be considers for nay recent policy of the policy holder. The insurer in the situation of any past policy profits no government to reject the recent policy(Young, 2010). In order to understand the case thoroughly, it is also essential to present here that there are few key documents which are aligned with the voidable agreement under which the party has the agreed right for executing the lawful contract but the guiltless party cannot be described to receive intricate in a legal agreement.

Case 6

The situation mentions in this case covey a quite contrasting situation under which the lawful determination of the policy holder is indulged. In the given case, the policy of the car is included. It can be observed through the provided case that the policy holder has presented inappropriate details to the insurer regarding the changes of the car as well as the part awaiting policies. As the inappropriate details regarding the past policy didn’t provide the freedom to the insurer for ending the contract but yet the inappropriate details regarding the changes performed. The incorrect matters given by the policy holder signified that there were modifications created with the help of the other demands in the provided time period of the insurer. Because of which the insurer profits the strength for ending the contract(The Law Handbook, 2015). As the matters given by the policy holder can be considered as mistake but the insurer because of this profit a lawful right to end the contract. It is even essential to point out here that lawful agreement doesn’t rely on any type of mistake that later on can be provided as a defense.

Task 3



Tort gets created in a situation where a person ruptures the obligations of the law and also affects the individual’s rights of other individual. The term Tort has been described as the legal responsibility of the person in English contract law. The accountability of the person gets developed under the fundamentals of tort, when an individual breaches the conditions described in the contract. When an individual breaches any part of the contract, he or she falls under the liability of the contract that is based on the agreement of the innocent party(Routledge-Cavendish., 2008). Under the lawful implementation of the contractual party, the defendant is punishable under the legal terms of the contract and the person who is innocent and is suffered can get the compensation. The accountability of the person mentioned in the segment of the tort is dependent on the liability of the failure to approach the duty obligatory by the contract law.
For illustration, suppose Mr. P promised and developed a contract to buy a computer from Mr. Q at $1000. If Mr. Q fails to deliver the computer within the given time frame, the he or she might gain a contractual liability automatically. Similarly, if Mr. P fails to pay the full amount within the mentioned time frame, the he or she might gains the contractual liability automatically.


Negligence under the contract law is mentioned as the situation where a responsible person does not work the task that he or she must have performed. Negligence in business happens when a person fails to operate and perform his duties under some reasonable circumstances. From the fundamentals of tort, if any individual is involved in the wrong things during his or her duties, it will be described as negligence(Jewell, 2002). There are mainly four factors that need to be considered at the time of negligence.
Firstly, the defendant should owe some sort of duty towards the other party. Secondly, the defendant must fails in some way in his or her duty. Thirdly, the petitioner must suffer some sort of harm or injury. And fourthly, the reasonable person needs to envisage the defendant’s breakdown.


Vicarious obligation is in point of fact the accountability of one singular person which is termed as a principle, for the tortious comportment of other as well as the individual carrying out on standard is termed as agent(Extempore.ie, 2016). It is ailment of dealings on which somebody is lead under the responsibility for the absent of the deed achieved by other specific person. Sympathetic liability principally is the obligation of the third person for the in charge person. As per example, Mr. X is a goods supplier of the well-founded institution measures off during driving and hits somebody, and then in that case both the administrator and its driver are responsible to fulfill the damages and injuries of the victim who got injured (McLean, Mason and McLean, 2004). It arises for the responsibility of the torts of other as well as exists majorly because of the suggestion of the parties.

Need help?

Get Complete Solution From Best Locus Assignment Experts.

Place an order

Task 4

LO 4

Case 7

From the scenario given in the case, it can be identified that Mr. Brown is the victim in this certain case that he has comforts the outcomes to the next day of his treatment. The death of the specified individual is happened due to the toxic impacts presents in his house. But when other areas of the case are looked over, his widow can accuse hospital for the passing of her husband. Mrs. Brown can blame the hospitality provision for the negligence supposing the state of affairs when the death of Mr. Brown occurred at the time of admitting him in the hospital.

From the situation portrayed in the case scenario, it can easily be identified that Mr. Brown passed away because of the toxic impacts presents in his house. The other point to focus is the presence of any significance in which it can be proved that the nurse and the doctor had not performed their duty during their duties time(Cartwright, 2007). There was medication provided to the patient as soon as he enters into the premises of the hospital, thus both doctor and nurse had perfectly performed their duties.  

Case 8

As per the Contract Law, the legalized insinuations of sympathetic liability are permissible for examining the specified case. This precise reflects the major unawareness at the time of duty so the guiltless faced injury can claim lawful compensation form the firm for which the chauffeur employed for. The guiltless person has the lawful capability as well as power in order to claim compensation from the firm because the injury happens at the time of duty played for the firm (Cornford, 2008). Thus, the guiltless or injured person of sympathetic liability is able for claiming lawful compensation from the company for the damages as per the act of Civil Liability Act, 1978.

Case 9

As per the English Contract Law, the lawful implications of sympathetic liability in the condition of offence of ignorance it is essential for concerning that sympathetic liability is not permitted to execute in a specific firm if any workplace safeguard and health issues have been sympathetic to another firm (Cornford, 2008). But through considering the case deeply it is observed that the guiltless person faced an injury within the supermarket but yet he is not permitted to hold supermarket proprietor directly for the damages faced by the injured person as the owner of the supermarket has already allotted the employer safeguard and health to another firm.


Andrews, N. (2011). Contract law. Cambridge: Cambridge University Press.
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].
Barker, K. (2012). The law of torts in Australia. South Melbourne: Oxford University Press.
Burrows, A. (2011). A casebook on contract. Oxford: Hart Pub.
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].
Cornford, T. (2008). Towards a public law of tort.Aldershot, England: Ashgate.
E-lawresources.co.uk. (2016). Donoghue v Stevenson. [online] Available at: http://www.e-lawresources.co.uk/Donoghue-v-Stevenson.php [Accessed 6 Jun. 2016].
E-lawresources.co.uk. (2016). Taylor v Glasgow Corporation. [online] Available at: http://www.e-lawresources.co.uk/cases/Taylor-v-Glasgow-Corporation.php [Accessed 6 Jun. 2016].
Extempore.ie. (2016). Lynch v. Binnacle: Vicarious Liability Confirmed | Ex Tempore. [online] Available at: http://www.extempore.ie/2011/03/16/lynch-v-binnacle-vicarious-liability-confirmed/ [Accessed 6 Jun. 2016].