The assignment for unit 5 on diverse legal contracts is designed to provide students a thorough understanding of the various legal and regulatory frameworks that apply to different kinds of contracts. This report will give information on numerous breaches of contract. Information on various liabilities will be supplied with the aid of this report in order to give the general public an appropriate course of action.
P1.1 Explain the importance of the essential elements required for the formation of a valid contract.
An agreement aids in tying the parties together legally and ensures that they are recognised and enforceable under company law. Social agreements are those made between family members and friends, whereas commercial agreements are those made between businesspeople. There are a few typical contract components, including:
Offer and Acceptance: The declaration of the offeror’s explicit willingness for the interested party’s acceptance, which becomes offerree after it is effectively transmitted (Meyer, 2010). It is not required that the invitation to offer and the declaration of intent fulfil the criteria for an offer. Simply being silent indicates that no offer has been made, hence communication is required for an acceptance. Customers are the offeror and the seller is the offeree in a sale of goods transaction.
Intent: Intent makes it possible to distinguish between a social contract and a business contract.
According to evaluation, a social contract is one in which the agreement’s purpose must be made clear; however, this is not the case with commercial contracts. Under the terms of the sale of products agreement, there is an intention to buy the items and sell them for the specified period of time (Collins, 2008).
Consideration: The cost incurred by the party involved in the contract in order to fulfil the terms of the agreement and the promise made by the party requesting payment. The contract’s enforceability is determined by the consideration.
Consideration may be given in the form of cash, goods, deeds, or forbearance that may be completed or deferred. It is essential that the consideration be laid forth in legal terms. Such an exchange of goods and prices occurs in accordance with the Sale of Goods Act.
Privity: The establishing of a connection in a legal context that takes the form of a contract, allowing the rights and obligations of the parties to the contract to be clearly defined. Such tasks assist the vendor in providing quality and a reasonable price in the marketing strategy.
Contracts, assignments, and relationships between parties are typical of the items included under the Road Traffic Act of 1924. (Giliker, 2010).
Capacity: Capacity refers to the ability of the parties engaging in the contract. People who are incapable of entering into a contract are considered minors under the Family Law Reform Act of 1969, along with those who have mental illnesses and are either declared mad or not insane by the Mental Health Act of 1983. The Minor Contract Act of 1987 also governs transactions signed by individuals under the age of 18.
P1.2 Discuss the impact of different types of contract.
Various Contracts having different impacts are:
Face to Face: Contracts entered into in person by the parties only via talk are known as face to face contracts. These agreements are not provided in writing. These agreements are limited to the conditions that are spoken between the parties and the termination of the offer made when the discussion stops. If the offeror does not articulate themselves in the manner intended, the offer may stand.
Written: The agreement reached between the parties and given in writing. These kinds of contracts may be read and interpreted. Written contracts might be used as evidence in court under certain circumstances (Koziol, et. al., 2008).
Distance Selling: There are some contracts in which physical presence is not required but the information is provided in writing; these types of contracts are referred to as distance selling. Distance-selling contracts must be offered and accepted within 15 days. Contracts that fall under distance selling are subject to cancellation within 30 days.
It is implied in It is true that some contracts can be formed by the performing of an act. These contracts are referred to as implied in fact contracts since neither a written nor verbal agreement is required for their formation. For example: in case of emergency patient gets agreed to get treated by the doctor.
P2.1 Apply the elements of contracts in a given business scenarios 1, 2 and 3.
Enterprise Scenario 1
Facts: According to the scenario, Mrs. Kaur is a vintage pen collector who flew from London to Manchester in order to attend the Montblanc pen auction. A limited edition pen was scheduled to be offered during the auction. An advertising in the newspaper served as a means of spreading word about the activity. Due to the auction’s cancellation, which was scheduled for later, Mrs. Kaur was dissatisfied and moved to look at the pen in a nearby store. Mrs. Kaur discovered the identical pen at the store (Linden, et. al., 2007). She haggled with the shop owner to get the pen, and the final price that was agreed upon was 950 Euros.
Mrs. Kaur requested from the store some time to reflect and instructed the shopkeeper not to sell the pen till that time. When Mrs. Kaur returned to the store after lunch, she discovered that the pen had been sold for €1000.
Interpretation: The following analyses are performed:
Mrs. Kaur responded to the advertising, which is seen as an invitation. After she made the choice to come to Manchester in order to buy the pen, Mrs. Kaur was referred to as the offeror.
Mrs. Kaur made Harry an open offer as she was not the only one in Manchester who might have used the pen (Koziol, et. al., 2008).
Mrs. Kaur must thus be aware that the invitation was originally extended by the firm and that a second was an open offer. In neither case was an agreement reached. It can be argued that Mrs. Kaur cannot assert that the damages actually happened.
Facts: Mia just launched an independent contractor business. Friends of Mia, Hakim, Brother, and Jane offered him the chance to work for them so that Mia could obtain experience. Hakim offered to renovate the bathroom with 2000 euros, while Jane offered 100 euros to fix her office (Giliker, 2010).
P 3.1 Contrast liability in tort with contractual liability.
Any wrongdoing gives rise to responsibility under tort law; nevertheless, contract law applies when conditions are performed or not performed as agreed. There are certain liabilities that are recognised under tor law, including:
1. Liability of Negligence: According to numerous rules, an act becomes a contract.
A duty of care is discussed.
breach of the care obligation
Lack of a risk assessment and a breach of the duty of care
The effects of the breach make it possible to determine why the impacted party incurred harm.
A presentation of employer-employee relations
taking on the assessment’s risk
Employee commits a breach while performing their duties
Difference between tort responsibility and contractual liability:
P3.2 Describe the characteristics of negligence liability.
The following criteria make it necessary to demonstrate negligent liability:
Duty of Care: There are some responsibilities that are based on behaviour that is contrary to society, such as the need to tell users of medicines about the salts so that the patient may receive a safe dosage that will aid in treatment and prevent injury to their health or death (Giliker, 2010).
Breach of Duty of Care: A breach of obligation of care occurs when the duty of care is ignored.
Damages Occurring: In light of the Wagon Mound Case, a number of tests should be applied, including
Harm’s Proximity: The neighbour test should be passed if there is a duty violation and the damage that is produced is predictable. The egg skull test is a procedure that requires the presence of certain circumstances in order to be eligible for reimbursement of damages that have already been sustained (Cooke, 2007). The Occupier’s Liability Act of 1957 mandates that occupiers evaluate and remove hazards based on certain factors.
Damages are linked to the wrongdoing as the cause.
Proximity-Foreseeability: It is required for the wrongdoing and damages to take place close to each other in order for them to be connected for purposes of cause and consequences. The unjust damages might be examined by projecting the damages.
Liability Burden: The responsibility might be categorised as a separate liability depending on how much of a wrongful conduct is present. The party that was negatively impacted would be held accountable if just one party were proven to be at fault for any type of wrongdoing. If both parties are determined to have contributed to the commission of the wrongdoing, then contributory negligence will be to blame for any damages that result.
P 4.1 Apply the elements of the tort of negligence and defences in different business situations using business scenarios 5 and 6.
Enterprise Scenario 5
Facts: The case involves an oil-carrying ship that was approaching the dock where welding was being done at a distance of 200 yards while oil was leaking from it. The spark was seen, and the wharf owner was informed that it may cause the oil to catch fire. However, after giving the information, the welding operation continued, which led to an oil spill that caught fire. Interpretation
ships travelling on the water are responsible for them
Duty is violated
The occurrence was anticipated
The loss was brought on by the destruction of the tangible and intangible assets. Both the UK ship and the Wharf contributed equally to the event that had taken place.
It may be said that the assignment included a variety of contractual matters, including obligations that can arise if a party breaches a contract’s provisions. It was possible to give information about each contract to the organisations and parties involved by comparing the differences between the various types of contracts.
Balfour v Balfour  2 KB 571
Collins, H. (2008). Standard contract terms in Europe. Alphen Aan Den Rijn: Kluwer Law International.
Cooke, P. (2007). Law of tort. Harlow: Longman.
Currie v Misa (1875) LR 10 Ex 153
Dunlop Pneumatic Tyre Co Ltd v Selfridge Co Ltd UKHL 1, AC 847
Giliker, P. (2010). Vicarious liability in tort. Cambridge, UK: Cambridge University Press.
Holden v White  2 All ER 328
Home Office v Dorset Yacht Co Ltd  AC 1004
Koziol, H., Schulze, R. and Antoniolli, L. (2008). Tort law of the European Community. Wien: Springer.
Linden, A., Feldthusen, B. and Brecher, J. (2007). Negligence. Markham, Ont.: LexisNexis.
Meyer, L. (2010). Non-performance and remedies under international contract law principles and Indian contract law. Frankfurt am Main: P. Lang.
Nel, J. (2004). The theoretical basis for contractual liability. Bathurst, N.S.W.: Faculty of Commerce, Charles Sturt University.