Unit 5 ACNB Contracts and Liabilities Assignment

Unit 5 ACNB Contracts and Liabilities Assignment


Unit 5 ACNB Contracts and Liabilities Assignment

ACN 5 Unit Liabilities and Contracts The preparation of the assignment involves carefully considering the many contracts and the obligations associated with each contract. Peter Abraham will be given information on a variety of contract-related topics with the aid of this report. Information about contract breaches will be provided, including the circumstances under which a contract may be said to have been violated. The information management relating to contract law and tort law will also be included in the report. In this report, remedies will be examined and applied to address the case studies that have been provided.

Task 1

1.1: Explain to Peter Abraham how a contract is formed and the importance of the various elements which has to be present to form a contract.

Offer: When a side indicates its desire to enter into a contract for a set of conditions, that willingness is referred to as a contract. Offer is a phrase that must be used from the offeror if a contract is intended. The offeror may make either a counter offer or an invitation to offer, among other types of offers. An offer must be made in a way that makes it possible for it to describe and discuss the terms of the contract in clear terms. A counter offer is a negotiated offer (Adams, 2008). In a counter offer, the locations of the offeror and offeree are switched. Each counter offer invalidates the offer that came before it.

Acceptance: If the offeree accepts the terms that are stated in the offer, then is regarded as acceptance. The offer can be concluded in a number of ways, including acceptance, rejection, withdrawal, counteroffer, and death. The offeree’s acceptance should be expressed in a concise and straightforward manner. The requirement of accepting the contract is waived off by the agreement. A party must accept a contract by behaviour in order for it to be accepted by them. A contract cannot be accepted by a party just by transmitting it to them. Case Carlill v. Carbolic Smoke Ball Con was discussed (Andrews, 2011). Consideration: The contract that the parties enter into following negotiations is referred to as consideration. Between the parties to a contract, there are a number of promises that are made in consideration. Parties involved in the consideration gain certain advantages and lose certain advantages. The parties must take into account a number of factors, such as the need to move away from the promisee and the need to eliminate any previous thoughts. A promisee must be involved in any prior consideration or the contractual obligation (Richards, 2006). In this situation, the partial payment will not be considered genuine for the whole consideration sum. Intention: The intention to communicate the offer reveals the purpose of the contract. Intention demonstrates the validity of the offered contract in the circumstances. Through the legality and enforceability of the contract, the intention of the deal is distinguished between two components, namely social contract and commercial contract. Social contracts are not legally binding unless specifically stated in the contract, although commercial contracts are (Collins, 2008). Capacity: The ability of a party to engage into a contract is referred to as that party’s capacity to do so. A person’s financial situation, mental capacity, and age are some of the tests that can be used to determine a person’s capacity. The parties to the contract must be of majority age, in good financial standing, and have sound mental health. The parties should be completely sober, not under the influence of alcohol, and not receiving any medication when they sign the contract.

Task 2

2.1: Apply the elements of contract in the given business scenarios below.

Case 1: In this instance, Carol was interested in purchasing a couch that the seller had advertised for sale. A newspaper carried an advertisement. As a result, the advertisement in the newspaper will be seen as an invitation to the offer but not as the actual offer. When a product is advertised in a newspaper, it indicates that the seller is open to receiving bids from customers who want to acquire the advertised item. Invitations to offers are merely indications that the goods are for sale, which will assist in inviting the offer that is available in accordance with the conditions outlined in the advertisement regarding the cost of that specific good. The seller would be willing to negotiate the prices provided (Giliker, 2010). Market-based offerees have the option of accepting the offer or negotiating the terms according to the invitation. Therefore, Carol’s email will be considered an offer that she made. For the offer to be accepted and a contract to be entered, the seller must submit their acceptance. According to the Carlill v. Carbolic Smoke Ball Co. case, the parties have not entered into a contract.

2.2: Apply the law on terms in the following contracts

Case 3: This case contains details on a couple that reserved a table at a restaurant. At the moment of entry, patrons’ coats were searched, and the restaurant gave them a slip on which was written that it would be responsible for any valuables found in the coat. After some time, the man went to check his coat and realised that he had forgotten his purse inside. He checked the coat and found that it had been stolen from it and was not there. Man seeks the claim from the restaurant after arguing with it (Finch, 2007). As stated in the slip, the exclusion clause limits any such claims, so the man has no authority to make them. Exclusion clause will be regarded as valid in this situation, and restaurant may use clause mentioned on slip. Man accepted the conditions when he signed the sheet that the restaurant offered. Accepting the slip indicates that the man was aware of the restaurant’s exclusionary policy. Any claim made by the man will not be taken into consideration since the restaurant does not have a fundamental obligation to safeguard the assets of guests and because the potential incident was not within its control. Case 4: In this instance, the tenant who had made the repairs to keep the warehouse in an useable state is discussed. Renter had completed the necessary repairs, therefore the landlord and tenant came to an agreement that he would not raise the rent for the property for the ensuing five years. After a year had passed since the incident, the landlord passed away, and the property’s successor raised the rent. When the tenant objected, the successor ended the tenancy. As a result of this circumstance, the tenant lodged a claim for the repairs it had previously performed, which the new landlord refused to pay. Because property value has increased as a result of repairs, the rent has gone up (Bell, 2013). According to the lease, it was the landlord’s responsibility to make the repairs or pay the renter for any previous repairs they had made. Tenant was obligated to supply the necessary space for the repairs to be made. In this case, it can be argued that the renter should make a claim for the money used for the repairs because that is what a typical contract would imply. Since the landlord would profit from the repair for the duration of its life, the claim would be deemed genuine. Held under Hutton and Warren in this case.

Task 3

3.1: Explain the similarities and differences of liability in tort with contractual liability using an example.

The laws that are stringent in character are the tort and contract laws. With the assumption of the obligations for the consideration, these liabilities arise. Liabilities that may arise under either aspect of the legislation must be paid upon violation of crucial components. Due to differences in the elements that are broken in each liability, there are differences between the two liabilities. Liability could be established in both circumstances by demonstrating that the affected party violated the law. Here are a few of the differences:

3.2: Explain using suitable example how liability for negligence can arise and the conditions needed to be met for ac claimant to successfully prove negligence.

Liability is the introduction of an obligation to pay for damage that occurred as a result of a circumstance. Liability for negligence occurs when someone commits an act of negligence in which the duty of care is disregarded. Such tasks must be carried out in order to safeguard the public from any vulnerabilities. In order for responsibility to arise, the person’s current duty of care must be violated, and this violation must cause the person some sort of harm, whether it be financial loss, physical harm, or psychological harm (Morgan, 2011). According to the discussion of the Donoghue v. Stevenson case, there may be a direct or indirect duty towards the party that is impacted. The claimant would only be entitled to damages if his rights had been violated directly or indirectly, it was discussed. According to the circumstances, manufacturers were given directives to make sure that all safety and security precautions were implemented and that those involved in the process would not be harmed (TAN, 2008). In the case of Caparo Industries Plc. v. Dickman UKHL 2, a three-part test is given that may be used to categorise the negligence tort: Proximity and forseeability: If a wrongdoing and its effects are discovered in regions that are within walking distance, this is referred to as proximity.

Causation: It is essential that the cause and its effect have a direct causal relationship.

Damage’s proximity to the area where it occurred should be sufficient to affect the damage that was afterwards caused.

Unit 5 ACNB Contracts and Liabilities Assignment

Task 4

4.1: Apply the elements of the tort of negligence and defenses in the given business scenarios below:

Case 7: It was mentioned in the case that the doctor had given over-the-counter medications to the patient who had been admitted because of chest pain and a breathing issue. The patient was discovered dead from pneumonia brought on by the mould. In this instance, a tort of negligence was established because the treating physician from Goodmayes Hospital failed to physically examine the patient as required by law (Meyer, 2010). As these are the factors that could induce a heart attack, a doctor must assess the chest and breathing issues. Therefore, it might be argued that the doctor in this instance was negligent in his professional responsibilities. In this instance, the But-for test was used, which is a case that falls under the category of medical malpractice. The test revealed that the doctor had engaged in professional negligence, but he was not solely responsible for the patient’s injuries. It is because there was no clear connection between the damage’s source and effect. In this instance, pneumonia rather than a heart attack was discovered to be the patient’s cause of death. In this instance, the doctor did not write a prescription for pneumonia medication. As a result, there would be no liability, and the hospital’s only liability would be for the doctor’s failure to personally check the patient. A case was heard in Froom v. Butcher (Finch, 2007). Conclusion

It was determined through the verification of numerous factors and the understanding gained through the use of the instances that failure to fulfil would constitute a breach of contract. Breach compensation may be paid, and it must come from the party responsible. The difference between tort law and contract law and the need to pay damages in accordance with the type of breach that occurred may be understood. It can also be said that vicarious liability is the legal theory that holds employers accountable for all actions that pertain to the safety and security of the workplace, regardless of whose negligence caused the harm.



Carlill v Carbolic Smoke Ball Co.

Mills v Wyman

L’Estrange v Graucob

Hutton v Warren

Poussards v Spiers

Bisset v Wilkinson


Andrews, N. (2011). Contract law. Cambridge: Cambridge University Press.

Meyer, L. (2010). Non-performance and remedies under international contract law principles and Indian contract law. Frankfurt am Main: P. Lang.

Collins, H. (2008). Standard contract terms in Europe. Alphen Aan Den Rijn: Kluwer Law International.


TAN, S. (2008). Vicarious Liability. Internal Medicine News, 41(24), pp.36-37.

Morgan, P. (2011). Distorting Vicarious Liability. Mod. L. Rev., 74(6), pp.932-946.

Bell, J. (2013). THE BASIS OF VICARIOUS LIABILITY. C.L.J., 72(01), pp.17-20.

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