Introduction: It is very important to understanding of legal aspect in business for any organization. For this reason, administrating and preparing contact make a major part in business. The important aspects of business law like contract law, liability of negligence, vicarious liability, terms and applications of law on real business scenery is of great importance. As a legal advisor, I tried to provide my client with proper solutions to problems stated.
LO 1Understand the essential elements of valid contract in a business context:
AC1.1 Explain the importance of the essential elements required for the formation of a valid contract with cases clearly cited to support the elements:
In this below, describe the essential elements of a contract of the following task:
Offer: First of all there has to be offer from one party to form a contract. An offer will come with the specific conditions and configurations. Without an offer from one party, the agreement cannot proceed further. For example, X advertises his car to be sold. It is an offer from X (Monahan and Carr-Gregg, 2007).
Acceptance: The offer has to be accepted by the other party. The other party understands all the conditions associated with the offer and either accepts or rejects it. With an acceptance, an agreement goes to the subsequent stages. For example, in the previous example, if Y consists to buy the car, Y makes an acceptance.
Consideration: Consideration may be defined as an exchange between the parties. Both the parties in the contract must get something of value in return from each other. Consideration has to be availed by both the parties.
Capacity of Parties: This is the vital task to work the parties with an agreement that must be legal and able to entering into an agreement. Ex:A minor cannot enter into a contract.
Free Consent: An agreement must be based on the free consent of the all parties in order to enforce the law. When the agreement is indeed by coercion the genuine consent must be absence and it influence by the other parties. Ex:‘P’ threatens to shoot ‘Q’ if he does not let out his house to ‘P’, and ‘Q’ agrees to do so. The agreement has been brought about the coercion (Monahan and Carr-Gregg, 2007).
AC 1.2 Discuss the impact of different types of contract:
There are different kinds of contract. This contract can be a great impact on business. Here are the contracts:
Written Contract and Verbal Contract: Written contract is a document that may be printed or written format. In this contract, both parties are signatures in it to make an agreement.
Verbal contract is not same as written contract. It is not use the print or written version of the purpose of agreement.
Bilateral and Unilateral Contract: Bilateral contract is a contract that makes an agreement between two parties. In this contract, both parties are responsible and aware of their duty and performance.
On the other hand, unilateral contract is a contract that makes an agreement only one party. In this contract, the offeror party must be liable for the responsibility.
Face to Face and Distance selling Contract: In face to face contract, both the seller and Buyer must be present in the selling point and hand to hand payment the goods.
Distance selling contract can be complete two ways. First, the seller can parcel the gods to the customer address then the customer paid this bill. Second, the buyer can send money to the seller then the seller sends the goods to the buyers address.
AC 1.3 Analyze terms in contract with reference to their meaning and effects:
There are different terms in contract. Here are the meaning and effects of these terms:
Express Terms: It is the term that makes a relationship between two parties and the contract happened by the written or verbal system. Both parties are agreeing with the contract. The effect of this term can agree that both of the parties are fulfill the condition of this agreement.
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Express terms are known as the term of relation with the parties where they mentioned and agreed the contracts by written or verbal.
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The effect of express term can argue that all the companies are confirm the terms.
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Implied Terms
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Implied terms are not mentioned and agreed the contracts of the parties and not understanding the commercial sense.
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These types of terms evolve with no written contract and its deal with the court.
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Condition
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Condition is deal with the implement of the parties by their conditions, rights; law and duties with include the contract.
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The contract will be finished by the violation of the conditions and the current situation of the party (Howells, 2007).
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Warranty
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It is insure that the commitment to be right by the one party and another party except it.
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By any causes the injured party can make the condition of warranty and break it.
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AC 2.1Apply the elements of contract in given business scenario.
Offer and acceptance: To be a valid contract there must be an offer and an acceptance. But in the scenario there was no offer from Todor to sell the book to Ivan although Ivan was ready to pay for the book. Due to the lack of an Offer, it cannot be a contract.
Intensions to create legal relations: The scenario lacks the motive to create a legal relation between them; as the Seller intends not to sell a book as he already sold it to someone else.
Free consent: to be a valid contract, there must be free consent from both parties, but in our case Todor did not comply with Ivan to enter into a contract for buying and selling.
AC2.2 Apply the law on terms in different contracts by explaining the following terms.
In this below apply the law on terms in different contracts by explain the following terms. According to Stephenson (2011) the sale of Goods Act 1977 can be applied In this case between Ivan and Todor’s Bookshop. The sale of Goods Act 1977 can be applied in this way:
Depending on the circumstances Ivan can want a claim under the Sale goods Act that he has some possible ways of resolving the issue. It is very wrong activities from the bookshop owner that he cannot remove the book after selling this from other person.
A condition: A condition is a major term of the contract which goes to the root of the contract. If a condition is breached the innocent party is entitled to repudiate (end) the contract and claim damages (Stephenson, 2011).
A Warranty: Warranties are minor terms of a contract which are not central to the existence of the contract. If a warranty is breached the innocent party may claim damages but cannot end the contract.
An In nominate term: Rather than classifying the terms themselves as conditions or warranties, the in nominate term approach looks to the effect of the breach and questions whether the innocent party to the breach was deprived of substantially the whole benefit of the contract. Only where the innocent party was substantially deprived of the whole benefit, will they be able to treat the contract as at an end.
AC 2.3 Evaluate the effect of different terms of law and exemption clause in contracts:
Here is the contract between John and the park authority where some exclusion clauses which deprived john of certain rights that he would be upon not performance of certain by the park authority. Following the case, John was several injured in an accident by the chair that collapse under him and he injuring badly and damaging his clothes. But, John cannot get any remedy from this accident. The part authority would not be liable for any accidents that would bring in the negligence of its customers (Kelly and Kelly, 2011).
According to Legislation (2016) the exclusion clause also described as unfair as it important undermines the rights of John under the Unfair Contracts Terms Act 1977 and the Unfair Terms in consumer contract regulation. A business cannot exclude the liability of the personal injury or death that resulted from its negligence. Here the exemption clause in contract becomes useless under the condition of unfair terms and the part authority has to bear the liability of John.
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And it is evident from the scenario that, when Mr. John made complaint and asked for compensation for his injury, the attendant showed him a clear exemption clause as a notice written on the ticket; hence, Mr. John cannot make a claim for compensation to the council (Kelly and Kelly, 2011).
AC 3.1 Contract liability in tort with contractual liability:
By the development of the business world, contract laws also have developed since then. The tort liability and contractual liability are two important issues of business law of contract. Tort liability is the idea of violation of rights of other party and contractual liability arises from the infringement of rights of different phenomena (Giliker, 2010).
In general views, tort liability are the common law for business contract that apply for the civil wrong in business. It is the legal demand of one party for damage their right. For duty tort liability is forced by civil law. On the other hand contractual liability is forced by only on the agreement of both parties because it means legal obligations of one party victim and this injury system remedy
In contractual liability there must be some privacy between parties and it is base of legal relations between parties. On the contrary, the question of liability is very weak in case of tort contract of liability. In tort liability damage is always inflicted against the will of the party ill-treated (Giliker, 2010).
AC 3.2 Explain the nature of liability in Negligence.
In this below, explain the nature of liability in negligence:
Duty: It is decided by a judge question of law where a reasonable person would find that a duty under an individual set of circumstances. When one party cannot control their duty in contract then the defender can apply for this reason of carelessness (Rose, 2012).
Breach of duty: this decision is decided by a jury question of fact where a defendant breaches like as a duty by failing to exercise reasonable care in finish the duty.
Actual and proximate cause: Actual and proximate causes are involves with the scope of a defendant’s responsibility in a negligence case. Here are a defendant in a negligence case is only responsible for those harms.
Damage to person or property: the claimant has to show that the breach of the duty resulted in his damage. In the form of injury, the damage can take place and harm to the resources (Rose, 2012).
AC 3.3Explain how a business can be vicarious liable:
Vicarious liability is a situation in which one party is held party responsible for the unlawful activities of a third party. In this business, it one person will be able for the actions of other parson. It can arise in situations where one party is supposed to be responsible for a third party and is negligent in carrying out that responsibility and exercising that control. Here are, the first man can not include in this incident.
Vicarious liability can be creating a legal relationship between two persons. For example, A and B are the two persons. In this case, if the legal relationship between A and B does anything right or wrong then A can be liable by the vicarious liability (Hodge, 1986).
AC4.1Apply the elements of the tort of negligence and defenses in different business situations:
Here are the liability of negligence is applicable for Mr. David.Because, according to the law;
-Mr. David owes some sort of duty while driving to the general public.
- Mr. David failed to honor that duty as he drove his car at a higher speed than suggested one.
- Mr. David’s cannot achieve to meet his responsibility that the resulted in death of Kevin, although David switched to another lane in order to save Kevin and got injured, it weakly loosens his liability of negligence.
AC 4.2 Apply the elements of vicarious liability in given business situations:
Here are describe as, Mr. Colin didn’t knock Mr. Roger intentionally. Although it is obvious that he (Colin) developed some resentment against the activities and attitudes of Mr. Roger.
As the matter of fact MR. Roger is able to demand of vicarious liability with Regent Hotel for the action of Colin’s as it is clearly mentioned that any sort of harassment, violent behavior or unfair employment practices are worthy of claiming a vicarious liability against a company (Ramagopal, 2008).
And alternatively, Mr. Roger can directly sue Mr. Colin for his action in the court of justice for the injuries done to him.
Knowledge on laws not only provides the firm with legal advices but also it helps firm to be aware of its rights and duties to the public, society and environment in general. Contract law, Tort law and other organizational laws are common on day to day business occasions, and successful firms are always aware of the laws which exist and the amendments made recent past.
References
Giliker, P. (2010). Vicarious liability in tort. Cambridge, UK: Cambridge University Press.
Hodge, J. (1986). Vicarious liability, or, Liability for the acts of others. London: Witherby.
Howells, G. (2007). The yearbook of consumer law. Aldershot, England: Ashgate.
Kelly, D. and Kelly, D. (2011). Business law. Abingdon, Oxon: Routledge.
Legislation.gov.uk. (2016). The Unfair Terms in Consumer Contracts Regulations 1999. [online] Available at: http://www.legislation.gov.uk/uksi/1999/2083/contents/made [Accessed 18 Dec. 2016].
Monahan, G. and Carr-Gregg, S. (2007). Essential contract law. New York, NY: Routledge-Cavendish.
Morgan, J. (2012). Business law. Redding, CA: BVT Publishing.
Ramagopal, C. (2008). Business Legislation. New Delhi: New Age International Pvt. Ltd., Publishers.
Rose, F. (2012). Blackstone's statutes on commercial & consumer law 2012-2013. Oxford: Oxford University Press.
Stephenson, G. (2011). Core statutes on commercial and consumer law. Basingstoke: Palgrave Macmillan.
