Unit 5 ACNB Contract formation methods Assignment

Unit 5 ACNB Contract formation methods Assignment

Introduction

Unit 5 ACNB Contract formation methods Assignment

In order for an agreement to be considered a contract, it must be enforceable by law. All contracts are agreements, however not all agreements are agreements, as certain agreements are void because they are not legally enforceable. There are numerous requirements that must be met for an agreement to be considered a contract. A definition of the law in business contracts is the principles and regulations created and approved by the state and federal governments. These corporate bodies are in charge of creating and upholding the legal framework that governs business. This ACNB Contract Formation Methods Assignment was created to provide information regarding contract carelessness in the business world. A business contract, which must be valid and enforceable, is essentially a promise to start through an official commitment under business law. There are various laws that can be applied in a business context, but contract law is the one that is most frequently and extensively used. A commitment by an individual, a partnership firm, or any other business entities that is started for the transactions of their resources can also be referred to as a contract. A written document concerning the contract strengthens its nature and its operations, while an oral contract may be applied in business enterprises. The expectations and pledges made by both parties are stated in a written document about the legal proceedings, which is crucial because it is a legal and legitimate document.

In order to create a valid contract under various business settings, this assignment will look at the rules and components of company law. Information about tort liability and its characteristics will be provided through the study. Additionally, it will describe the purpose and goals of tort law as well as two distinct facets, namely vicarious liability and negligence. This discussion is intended to clarify the key elements needed to form a valid contract as well as the parties’ culpability for business carelessness.

Unit 5 ACNB Contract formation methods Assignment

Task 1

LO 1

1.1

An agreement must be enforceable by law in order to be considered a contract. All agreements can be classified as contracts, but not all agreements can be classified as contracts because certain agreements are void because they are not legally enforceable. There are a lot of requirements that must be met for an agreement to be considered a contract. The principles and regulations created and approved by the state and federal governments can be referred to as business law. A contract cannot be considered legal if any of the required components are absent because this renders the agreement unenforceable in court. Offering and accepting a promise is the primary requirement for beginning and initiating a contract (Cornford). In this scenario, one party makes a legitimate offer to provide or receive something that is legal, and the other person to whom the offer has been made is required to accept it in exchange for a legitimate compensation. This is the initial action that starts a legal contract. In order for the consideration to be valid in the eyes of the governments, it must be legal. People must sign a variety of contracts in order to start a business, and sometimes difficulties develop when these contracts are put into practise. Business damage can result from actions taken by one party without the other party’s knowledge or consent. If any type of breach occurs to a person while conducting business, the losing party may file a lawsuit to recover damages from the winning party. To ensure that the agreement is a genuine contract, the parties must ensure that all relevant components are present. The following list of requirements is a sample of a legally binding contract:

Every contract must have an agreement between the parties in which one party is Consideration: A legitimate consideration must be present for an agreement to be valid. It serves as the foundational component of the agreement. An exchange must take place in order to enforce an agreement.

Intention: The agreement’s subject matter must be legal under commercial law. A shared intention between the parties to reach an agreement must exist.

Unit 5 ACNB Contract formation methods Assignment

Capacity: Parties to an agreement must possess the necessary skills to carry out its terms. Infants and those with mental illnesses are not allowed to meet and enter into an agreement.

Consent of the parties: Each party to the agreement must agree to participate voluntarily. No one may be coerced into entering into an arrangement.

Written agreement: Although an oral agreement may be enforceable, it is advisable to have a written agreement so that future issues with misconduct are avoided.

Task 2

LO 2     

2.1

Case 1

It is crucial for the establishment of any contract that one party make a legitimate offer, and the other party must accept that suggested offer with a legitimate consideration (Casebrief.me, 2016). It is evident from the situation in Case 1 that the case’s scenario reflects the invitation to the treat associated with the offer made under the relevant contract. The case scenario’s vendor or seller can be thought of as an offeror, and Carol can be thought of as an offeree. From the analysis of the case, it is clear that Carol approaches to accept the offer made. Since the advertisement may only be described as a proposition to the public, no valid contract has been formed. Additionally, there is no document format, which is essential for a binding contract. The parties’ mutual consent is yet another element necessary for the situation to qualify as a contract. In the instance scenario described, there was no shared understanding.

From the foregoing, it follows that accepting an offer cannot be forced by law into becoming a contract. Legally speaking,

Unit 5 ACNB Contract formation methods Assignment

Case 2

A legitimate consideration must be present for an agreement to be valid. It is the foundational component of the agreement (Burrows, 2011). There needs to be a trade-off for an agreement to be enforced. Depending on the details of the contracts, different amounts or things are given as consideration. It is clear from an understanding of the term “consideration” and the provided case scenario that no legitimate consideration has been formulated. In the scenario at hand, George, the owner of the IT firm where Preston is most likely to gain the position, has received an offer from Devi, Preston’s father. Devi in this case can be considered a promiser, but George cannot be said to be a promisee because the offer Devi made has now expired because the owner of the IT company had already hired Preston. It is also crucial to note that because George’s offer has expired, he is not legally permitted to pressure Devi into accepting it. Based on the explanation above and knowledge of the Roscorla v. Thomas case (1842), The ability to convert a settlement into a negotiation can be tied to the consideration in line with the construction of the contract, according to the discussion above and the understanding of the case Roscorla vs. Thomas (1842). According to the case’s description, Devi might be considered an offeror in this negotiation and the suggested sum is referred to as an executed consideration (Cornford, 2008). It is also crucial to remember that under a contract, it is crucial that one party suffers a loss while the other benefits.

2.2

Case 3  

Unit 5 ACNB Contract formation methods Assignment

The couple and the restaurant owner are the two involving parties in the case, it may be determined after examining the brief case scenario. It is significant to notice from the description that there did not seem to be any discussion or given message between the porter and the couple regarding the potential liability of eating in the restaurant for the materials. The porter doesn’t interact with the couple at all; they just receive a paper outlining the materials’ liability in the restaurant. The best illustration of this case is the case of Thompson versus Shoe Lane Parking, which falls within the exclusion clause section of English contract law. This section’s major goal is to create impediments to the penetrating partner’s responsibility (1970). The restaurant owner cannot solely rely on the exemption of exclusion clause to defend his position because there is no evidence of dialogue between the two parties involved (Andrews, 2011). It is not sufficient to only submit or deliver a liability concern in order to obtain the exclusion clause. Implied terms are used to prepare the contract’s avoidance rule formulation (Young, 2010). It is clear from the case scenario that Aaron and Sephra are the two parties actively involved in the case. It is determined that the agreement they made was valid and based on mutual consent, but it was dissolved as a result of one party’s untimely demise. The possessed borrowings have seen several notable alterations thanks to Aaron. He may seek reimbursement for the costs he incurred due to the borrowings because the agreement was hastily completed. The best example from this case would be the dispute between the Liverpool City Council and Irwin (1977).

Task 3

LO3

3.1

Unit 5 ACNB Contract formation methods Assignment

Tort is thought to exist when someone disapproves of the legal system’s authority and negatively impacts another person’s civil rights. According to English contract laws and regulations, the term “tort” has been defined as a person’s legitimate responsibility (Routledge-Cavendish., 2008). When one party violates any condition specified in the contract, that person is liable under the basics of tort law. After that, if there is a violation, that party is held liable under the terms of the contract, which are essentially based on the victim party’s consent. Offended is penalised by the authorised conditions of the contract, and the person who lives can receive compensation, all within the legal consideration of the parties involved. Every liability that is outlined in the principles of tort law is essentially based on the liability for failing to fulfil the obligations imposed by rules and laws. For instance, if Mr. X and Mr. Y agree to a contract in which Mr. X would pay Mr. Y $2,500 for a refrigerator, and Mr. Y fails to deliver the item within the specified time, Mr. Y will be held vicariously accountable. While Mr. X automatically becomes a potential option for Mr. Y if he fails to make the complete payment within the specified time. Mr. X is responsible for controlling the carrier truck since he will be held liable for a tort if his employees are unable to perform their duties.

3.2

Business negligence is defined as a situation where a required individual is not permitted to perform a duty that he is supposed to. It happens when someone is unable to carry out their duties properly for whatever justifiable reason.

Unit 5 ACNB Contract formation methods Assignment

According to tort law, negligence is defined as any action taken by a person who engages in careless behaviour while carrying out his duties. In the case of carelessness in tort, there are primarily four factors that must be taken into consideration.

First: The offended party must be accountable to someone else.

Second: The aggrieved should fall short in a few attempts to uphold their integrity.

Third: The applicant must endure certain types of harm.

Fourthly: A reasonable person must consider the offender’s mental breakdown.

According to tort law, negligence is defined as any action taken by a person who engages in careless behaviour while carrying out his duties. In the case of carelessness in tort, there are primarily four factors that must be taken into consideration.

First: The offended party must be accountable to someone else.

Second: The aggrieved should fall short in a few attempts to uphold their integrity.

Third: The applicant must endure certain types of harm.

Fourthly: A reasonable person must consider the offender’s mental breakdown.

Unit 5 ACNB Contract formation methods Assignment

Vicarious liability is essentially the responsibility of a person for the torts committed by another person, and the person who acts as the principle’s agent is known as the agent. Businesses are in the position where one person may be held accountable for the neglect of an activity carried out by another. Under reality, a third party is liable for the guilty person in vicarious liability (Routledge-Cavendish., 2008). For instance, if a company’s product supplier calculates while driving and hits someone as a result, both the driver and the owner of the firm are responsible for covering the victim’s medical expenses and other losses.

Task 4

LO 4

4.1

Case 7

It is crucial to understand the fundamentals of negligence law and how it manifests in this particular case, as well as what happens when someone fails to uphold his duty of care and security (Jewell, 2002). Mr. Brown was hurt in this instance, demonstrating that he will experience the effects of his therapies in the days to come. The harmful consequences of his residents cause the damaged person’s death. When certain circumstances of the case are taken into account, his wife may blame the hospital administration for Mr. Brown’s passing. Mrs. Brown can hold the hospital administration accountable for the liabilities by assuming that Mr. Brown passed away at the time of his admission to the hospital. Furthermore, Mrs. Brown may seek compensation for the losses she has endured if the nurse or the doctor at the time of duty exhibits any negligence toward the patient that results in harm to the subject matter.

Unit 5 ACNB Contract formation methods Assignment

According to Mr. Brown’s case, it is demonstrated that he passed away as a result of the poisonous effects on his residents. The opposing viewpoint demonstrates that there is no reflection in which it can be demonstrated that the doctor was responsible at the relevant period.

References

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/cgi-bin/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].

Cooke, J. (2009). Law of tort. Harlow, England: Pearson Longman.

Unit 5 ACNB Contract formation methods Assignment

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].