An Assignment On ASPECTS OF CONTRACT AND NEGLIGENCE

1. An Assignment On
ASPECTS OF CONTRACT AND NEGLIGENCE
SUBMITTED TO SUBMITTED BY

2. Contents
Introduction:......................................................................................................................................4
1.1 Explainhowa contract isformedandthe importance of the variouselementswhichhastobe
present to form a contract: .................................................................................................................4
1.2 main types of contracts andits impact: ..........................................................................................5
1.3 Analyze terms in contractswith reference to their meaning and effect ............................................6
2.1 Apply the elements of contract:.....................................................................................................6
2.2 Apply the law on terms in the contracts: ........................................................................................7
2.3 Evaluate the effect of different termsin the contracts.....................................................................8
3.1 Explainthe similaritiesanddifferences(contrast) of liabilityintortwithcontractual liabilityusingan
example:............................................................................................................................................9
3.2 Explainusingsuitableexamplehowliabilityfornegligence canarise andthe conditionsneededtobe
met for a claimant to successfully prove negligence:.............................................................................9
3.3 Explainwhatvicariousliabilitymeansandhow abusinesscanbecome vicariouslyliable giving
example:..........................................................................................................................................10
4.1 Apply the elements of the tort of negligence and defenses:...........................................................11
4.2 Apply the elements of vicarious liability in given business situations below ....................................12
Conclusion:......................................................................................................................................13
References.......................................................................................................................................14

3. Executive summary
Everybusinessshouldcomplywiththe termand regulations of the contractand negligence toavoidthe
riskof legallysued.The securedcontractlike registeredcontractcanhelpthe businesstoavoidfuture
confliction. Whenanyone unwillinglywithoutcontractual relationshipharmsotheritiscalledthe tort
liabilities.Onthe otherhandif anyone harmsthe personwhohas contractual relationwithhimitwill be
regardedas contractual liabilities.The companyhastotake liabilitiesof the damage done byhissub-
ordinateswhenthe sub-ordinate isworkingunderhisguidance.

4. Introduction:
The contract referstothe agreementoccursat leastbetweentwopartiesfortheirpersonal interest.A
validcontract isthe contract whichis made underthe law of thatstate followingall the regulations.
Whena party expresseshisorherinteresttodo or not to do somethingtogetthe assentof the
opposite party,itiscalledthe agreement.Whenthe agreementishappenedwithmutual consideration
withfree consentforlegal objectitiscalledthe contract.the law according to contract differswiththe
constitutionof the state.A contract can be written,spokenorregistered.Onlythe writtenand
registeredcontractcan be enforcedbylaw butthe spokencontract isalsoconsideredasthe legal
contract. To make any typesof businessorpersonal transactioneveryoneneedstogothroughthe
contract oftenformallyorinformally.
1.1 Explainhow a contract is formedand the importance of the various
elements which has to be present to form a contract:
Notall the contracts are validcontract. A validcontract shouldhave the followingfeatureslike-
 Offerand acceptance: offeristhe statement of to door to abstainfromdoingsomething toget
the otherpartiesassent.The offercanbe an expressedorimpliedhavinganabilitytocreate a
legal relationtoacertainmatter or thing.Aninvitationof offerisnotactuallyanoffer. Onthe
otherhand an acceptance isthe unconditional assentgivenbythe otherpartyof the contract.
The acceptance shouldbe communicatedintime andshouldbe acceptedjustinabsolute formit
was offered.Withoutoffernoacceptance will be possible aswell aswithoutofferand
acceptance no contract will be happened.Whenthe termsof the offerare changeditis called
the counteroffer.
 Legal consideration:the secondmost importanttermof contract is the legal consideration.The
considerationreferstothe promise todoor to abstainfrom doingsomethingthatislegally
entitled.Inshorttosay the interestof the pariesfromcontractis the legal consideration.
Withoutconsiderationof the bothpartiesof the contractthere cannot be heldanyagreement.
A contact withoutconsiderationisacontract. Besidesthe pastconsiderationnota
consideration.
 Free consent: itis thirdbutone of the most importanttermsof contract. Whenthe partiesof
the contract agree upon the considerationwithsame sense itiscalledfree consent.The consent
isregardedto be free whenitisnot causedby coercion,undue influence,fraud,
misrepresentationormistake.If the contractisnot of fre consentthe contract will be voidab
initio.
 Capacity of parties: the capacityof the partiesinvolvedinthe contractisalso a considerable
termof contract. The partiesshouldbe of soundmind,nota minoror is not disqualifiedbythe
lawof the state. The minorreferstothe presonwhois underthe age level toinvolve in
contract. The soundmindreferstothe personwhoisnot mentallydisturbed.The personwhois
prohibitedbythe state lawt involve inanycontractcannotbe a party of contract.

5.  Intentiontocreate a legal relationship:the relationshipwhichcanbe enforcedbylaw iscalle the
legal regal relationship.While involvingintocontractall the partiesshouldhave the intentionto
create a legal relationship.
 Legality:the considerationof the contractshouldbe legal accordingto the law of the state.A
legal productincountrycan be consideredillegalinanothercountry.
These are the maintermsof the contract that are essential foracontract to be valid.
1.2 maintypes of contracts and its impact:
There are varioustypesof contract thatcan be held.The partiescanchoose any formatof the contract
that can fittheirinterest.There are mainlyfourtypesof contracts,suchas-
 Verbal contract: the verbal contract isthe contract where the partiesjustmeetandpromise
each otheraboutthe termsof contract. Here the partiesmustbe presentat the same time and
same place.The contract has no paperworkbasedontrustonly.If there happensanyproblemin
future the partieshave nothingshow asevidence..thistype of contractmustbe heldinutmost
goodtrustworthyrelationship.Becauseof the lackof evidence andpaperworkthe courtcannot
helpat the time of confliction.
 Writtenand registeredcontract: the contract where the partiesexpressestheirtermsof
contract in writtenformat.Itisthe most securedandtrustworthyformatof contract. It
becomesmore securedandenforceable bylaw.If there isanyconflictinthe longrun the parties
can take the helpof the court to solve them.Buttheyhave togo throughvariousformalitiesto
secure the contract like totake the consultationof the advocate asthe eye witnessalsoandalso
neededtobe regulatedunderthe registeroffice.
 Distance selling:the mostpopularformof contract nowadaysisthe distance selling.The
modernformof distance sellingisthe online contract.Here the partiesjustcommunicate their
contract to each otherwithoutbeingpresentatthe same place oftenat the same time.The
contract can be conductedthroughfax,email,telephone,videoconferencingorletter.There is
a verychance to be provedfraud.The considerationmaynotmatchthe expectationof the
acceptor because there isnochance to testor verifythe productuntil ithasbeenreachedto
himor her.Though there isriskit popularbecause the partiesdon’tneedtoinvestadditional
time to meeteachotheror to conductthrough the advocate.Ithas evidence alsoasthe parties
can record the whole processof contract.Thus itis enforceablebylaw.
 Deed:it isa legal documentthatconfirmsthe right,interestorpropertythatisattestedunder
the jurisdiction.Itisquite likethe writtencontractbutitis more securedandexpensive asitis
sealedbythe registrar.Deedusuallyhappenedforlarge andmore riskycontract.
Generallythe businesspersonswhoare relatingtoeachotheruse the verbal formof contract to avoid
the formality.Whentheyoperate withnew parties,theyuse the writtenformat.The distance sellingis
nowverypopularbecause of online andhome deliverybusiness.The deedisusedtobuypropertyor to
deal ina large amountandwhere the rate of riskis veryhigh.

6. 1.3 Analyze terms in contracts withreference to their meaning and effect
There are two typesof terms usedin contract such as-
Expressedterms:
 Condition:conditionare the expressedtermsof the contract that must be obeyednonetheless
the contract will be void.The partywho isaffectedmayterminate the contract.The rightful
party can turn the conditionintowarrantytermsif he or she wantsand continue the contract
withpropercompensation.He canalsowaive hisrightif there isa little jerkasthe resultof the
violence of condition.
 Warranty: warranty meansthe subsidiarytermstothe mainpurposesof the contract; the
violationof themresultsinremedies;theymaybe expressedorimpliedterms.The suffered
party can ask fordamage but cannot terminate the contract.The violationwarrantyoften
providesachance to declare the contract voidable.If there isanyevidence of violationthe
responsible partycannotdenycompensating.If the partyonce for the violationof atermof
warrantyand againviolates thattermhe needsnotto compensate again.
 Innominate terms: innominate termsare the conditionsandwarrantiesthatare not expressed
inthe contract.The termsneednotto be expressedinthe writtenformat.Thesetermsare
applicable whenconditionastotitle that meansthe sale isnottitled,the productwill be same
as it isdescribed,itwill be same asthe sample,afterthe contracthas beenmade the buyerwill
getquite possession,the productisfree fromproblems,fitnessof warranty.If these termare
avoidedthe affectedpartycansue againstthe otherparty and eventerminate the contract.
 Exemptionclauses:The partiescanavoidthe risk byinformingthe opposite partyaboutitand
can deny takingthe responsibility.Itcanbe done in three ways,suchas-Byan expressed
contract, byusage, By the mutual negotiation.The exemptionclauseswill helpthe businessto
avoidthe impliedliabilitiesandalsotokeepthe satisfactionof customer
Impliedterms: the termsneednotto write of expresstothe acceptoror the promisoriscalledthe
impliedterms.There are three typesof impliedterm, suchas-
 Impliedby law: the termsthat have alreadybeenenforcedbythe law of the state such as tax
rate onthe products.
 Matter of fact: the factsthose are dependentonourconscience andneednotto enforce tothe
promisoror the acceptor.
 Impliedby custom: eachregionmay have differentcustomtocreate contract, the exceptional
termbecause of the variationof custom neednotexpress.
2.1 Apply the elements of contract:
SCENERY 1
Jamesownsa shopwhichhe decidestosell sohe advertisesthe shopina specialisttrade journal for
£160,000. A potential buyer,Martinwrote toJamesofferinghim£120,000 forthe shop.Jamesreplied

7. Martin by returnof post and sayingthathe wouldonlyaccepta minimumof £140,000. Aftertwoweeks,
since Jamessentthe lettertoMartin and there wasno replyfromMartin so Jameswrote againto
Martin sayingthat he wouldaccept£120,000.
In scenery1, itis seenthatJamesmade an advertisementtosell hisshop.Asitisan invitationitcannot
be regardedas offer.Howeverapotential buyerresponseonhisadvertisementbutinfewerprices,it
can be considered asthe counterofferbecause the buyerhaschangedthe conditionof the offer.James
repliedhimwithabitmore price;itis alsoa counterofferlike before.Howeverthere wasnoresponse
by the buyerthusJameswrote againacceptingthe offerof the potential buyer.itcanbe consideredas
acceptance whenthe acceptance will be communicatedtothe buyer.Thuswe can assume that the
silence of the potentialbuyerIsignof acceptance.Here the maintermis the counteroffer.Counter
offermeanswhenthe interestedpartychangesthe termsof contractand bargainwiththe promisor
party.
Scenario 2
Jameswrote specificallytoBenofferingforsale of a motorbike for£5,000. Benreceivedthe letteron
the followingdayandwrote back to Jamesagreeingtobuy the motorbike forthe askingprice andhe
posteda lettertoJameslaterthat day.Afterhe had postedthe letter,butbefore itwasdelivered,Ben
has changedhismindandsenta fax to Jamesaskinghimtoignore the letterwhenitarrived.
Scenery2, here Jamesmade anofferto Benthroughletter;inreplyBenhasalsoacceptedthe offer
throughletter.WhenJameshasdeliveredthe product,Benrevokedthe contractandaskedto avoidthe
letterthroughfax before the productreachedhisplace.Here the revocationwill notbe appliedbecause
the mode of communicatingthe offer,acceptance andrevocationshouldbe asperthe selectedof mode
inthe contract.They were usingthe letterasthe mode of communicationbutthe revocationhasbeen
sentthroughfax whichis notthe selectedmode of communication.Accordingtothe postal rule of
contract the revocationwill be validonlywhenthe sellerwill waivethe righttosue.
2.2 Apply the law on terms in the contracts:
Scenario 3 (a)
An OperasingerSusanenteredintoacontact toperform as an operasingerfor3 months for the Royal
OperaHouse.She became ill five daysbeforethe openingnightandwasnot able to performforthe first
fournights.The Royal OperaHouse replacedSusan. SubsequentlySusansuedthe Royal OperaHouse
CompanyforBreach of contract.
Scenery3.a, Susanwas contractedto performinan operafor three month,butbecause of hisillness
she couldnot performfirstfournightsandthe author replacedherwithanothersinger.Here she has
breachedthe conditionof the contractthat was to attendthe party.In thiscase the companyhas to
manage the situationreplacingherwithanotherartist.Because breachingthe contractthe companycan
terminate the contractwithheras she missedthe mostimportantshow andshe cannot sue the
companyfor anycompensation.

8. Scenario 3 (b)
SubsequentlySusan,agreedbycontractto performas an operasingerforanother company,she again
became ill andmissed6days of rehearsals.The employersackedher andreplacedherwithanother
singer. AgainSusansuedthe companyforBreach of contract.
Scenery3.b, nowSusanhas gone througha new contract to singfor an operabut againshe became ill
thusshe could notattendthe rehearsal forfive day.Thusthe authorityreplacedher. Here she has
breachedthe warrantof the contract as she has missedthe rehearsal only.Inthiscase if the company
can sack her as she didi notgo to the root of the contract.
2.3 Evaluate the effect of different terms in the contracts
Scenario 4 (a)
The partiesenteredanagreementwherebyScammell were tosupplyavanfor £286 on Hire Purchase
(HP) termsover2 yearsand Oustonwasto trade inhisoldvan for £100. There was thensome
disagreementandScammel refusedtosupplythe van.
Scenery4.a, there wasno certaintytothe expressedtermsof the agreement.Here,inthe contract
there wasnothinginrelationtothe HP termswhetheritwouldbe weeklyormonthlyinstallment.
Because of the uncertaintyof the termsthe contract isnot enforceable. The purchase termsare too
vague to impose;thusthere wasnoagreement.
Scenario 4 (b)
The claimantwas a farmerwhohad a tenancyonthe defendant'sfields.The claimanthadplantedcorn
and Barleyonthe fieldsandworkedthe fieldstoensure the cropswouldgrow.Before the fieldwasdue
to be harvestedthe tenancywasterminated.The claimantthensubmittedabill tothe defendantforthe
workand cost of seedspentonthe fieldaswascustomaryinfarmingtenancies.The defendantrefused
to pay statingthere wasnothinginthe tenancyagreementstatingthatsuchcompensationwaspayable.
A farmerwhois workingona fieldontenure;before the harvestiscollectedthe contractof tenure has
expired.Thusthe farmerasksthe price of laborand raw materials.Butthe ownerrefusedtopayas it
was notdeclaredinthe contract. But there are some impliedtermsthatneednottobe statedinthe
contract, thiscompensationisalsoanimpliedtedtermbylaw andcustom.Because of impliedbylaw
and customthe ownerhas to payfor the bill. The court can implyaterm intothe tenancyprovidingfor
compensationof the workandexpensesof growingharvest.Itisa commonpractice of farming
tenanciesthusthistermneedsnottobe expressed.
The expressed andimpliedtermscanbe suedbythe court if theyare violated.Inthe above we have
seenthatbecause of the violationof expressedandimpliedterms.

9. 3.1 Explainthe similarities anddifferences (contrast) ofliability in tort
with contractual liability using an example:
Difference between liabilities in tort and contractual liabilities:
Tort liabilities means the erotic acts that harms the others party, causes damages or loss to his or
her body, wealth or lawful rights. Tort liabilities can impose on person or business. The
condition is, the case will not relate to the contract. The liabilities can be imposed to all the
related people; it arises when the duty in law is violated; it might be compensative or punitive
without the intention of harm; the defendant and accused may not have any acknowledged
relationship. If there is no damage there is no liability. On the other hand, Contractual liabilities
refer to the breach of conditions of the contract that causes any sufferings for the parties of
transaction. Here the offerer and the offeree both can sue each other for the action. The affected
party can sue. The damages will be measured based on the losses expected, the voluntarily
assumed person will be accused who is involved in the contract; it is compensatory; the motif of
damage must be explored.
Similarities:
 Both laws can be applied on persons and companies.
 Both are categorized as a part of “law of obligation”.
 Both are the civil wrong
 The person who causes the tort or breach of contract sues in the court for compensation.
Examples:
1. Mr. F unwillingly broke the boundary wall of Mr. a’s house by hi car as the car was
faulty. Now, Mr. A has sued against him. It is a tort liability.
2. On the other hand, Mr. x dealt with Mr. Y to send him some goods within 21st April but
he couldn't thus Mr. Y has to suffer and he claimed compensation, it is called contractual
liability.
3.2 Explainusing suitable example howliability for negligence can arise
and the conditions needed to be met for a claimant to successfully prove
negligence:
Negligence refers to the act that occurs because of the unawareness of a person but causes
damage, injures or harms others. The affected person can solve this case through informal mutual
conversation or by suing a trial in the civil court but the activity bust be proved and determined
the fault.

10. According to the suggestedcase of Donoghue v Stevenson 1932, Mrs. Donoghue went to a café
with her friend where her friend brought a bottle of ginger beer and ice-cream. The beer was
come in a bottle where the content could not be seen. After pouring the beer second time on the
ice cream the decomposed snail emerged and she became injured; thus he complained against the
manufacturer and was successful in the case.
There are four conditions that are needed to be met for a claimant to successfully prove
negligence. That are-
 Duty: the accused party owed a legal duty to the claimant in this case. That means the
party will violate the common law of that state. And that also cause sufferings for the
claimant.
 Breach of duty: he breached any legal duty by his action. He will violate the common
law of the state.
 Reason: the defendant’s action is responsible for the damage, injury or harm of the
claimant. His activities will directly occur the accident.
 Damages: the claimant would be injured, harmed or his property would be damaged.
Obviously there should be damage, harm or injury. No sufferings no suit. Without any
problem, the compliant cannot sue.
There is a law like “you must not injure your neighbor where neighbor is the person
who is closely and directly affected by my action.” For this reason the manufacturer has
to compensate for the negligence and the restaurant also support this case.
3.3 Explainwhat vicarious liability means and how a business can
become vicariously liable giving example:
Vicarious liability is the liability that causes by the mischief of the subordinate persons. That
means anybody whose subordinate has done damage or occurrence is responsible for his
subordinates’ action. For instance the parents are responsible for the action of their children. The
owner is responsible for the action of his employees.
The employee as much time passes in the firm the employer is liable to his action. If he performs
any act of harassment, bullying, ragging or commitment of harming someone relating or not
relating to the firm. But the most personal issue of the employee will not include here. The
employer cannot deny his liability for the employee until he walks off from the firm. The
business often is responsible for few actions of the third party, such as, dealer, supplier etc. if
their action provides benefit for the firm.
The employer can avoid this liability through anti-discrimination staff training, equal
opportunity policy and another strict rules and regulations. The firm has ensured that it has taken
all the possible action to eliminate the vicarious liability. And it should be informed to the
employee and warn them for their responsibility of their mischiefs

11. 4.1 Apply the elements of the tort ofnegligence and defenses:
Scenario 5
Andybroughthisbike intohisfavorite bike shopforaservice andrepairs.He was enteringaspecial race
the followingweekandwascertainthathe was likelytowinthe considerable prizeforfirstplace.He
presentedthe bike tothe assistantandreceivedadocketwithan identifyingnumberandthe words:
“All goodsacceptedonlysubjecttothe termsand conditionsdisplayed.”
Andychattedto the shopassistantaboutthe upcomingrace and itsimportance tohimand the needfor
hisbike tobe intop condition.He noticedthe wordsonthe docketandaskedabout the termsand was
toldnot to worryabout themas theywere onlyconcernedwiththe recentprice changesfornew bikes.
There wasa large signbehindthe counterandinfrontof Andybutit had a bike hanginginfrontof it and
so wasnot visible atthistime.The signread:
“All care butno responsibilitytakenforgoodsleftforrepairorservice orfor any lossor damage
howsoevercaused.”
The day before the bigrace Andywentinto collecthisbike anditcouldnot be found.Someone hadput
the wrong tag onit and itwas storedinthe basementwiththe unclaimedbikes.
Can Andyclaimfordamagesor not?
Scenario 5, Andy has boughthisbike fromhisfavorite shoptorace and repairedit.He useditfor several
days.He had come againto the shopforrepair.He wasgivena card withspecial numberandwords
where a note wasincludedlike “all goodsae acceptedunderthe termsandconditions”.There wasalso
a signbehindcountersaidthatany decline withthe productforrepairthe companywill nottake the
responsibility.Ashe wasinhurryhe didnotnotice it.One day before one of hismostimportanthe came
to take back hisbike buthe foundithad takento the basementasan unclaimedbike.He couldnotsue
the companyas theyhave postedthe exemptionclause alreadytoavoidthe risk.If the companywants
theycan provide acompensationforthisoccurrence willingly.
Exemptionclause isthe termof an agreementthroughwhichthe partieslimittheirliabilities.Thisis
oftenusedtoavoidthe fair liabilityof the party.Here the companyhasliabilitiesasthe exemption
clause isnot regardedtovalidinthiscase; itwas hisfaultnotto notice the tag but the counterman
shouldinformhimabout it.Exclusionclause isatype of exemptionclausewherethe organization
excusesone parties’liabilitycompletelyforspecifiedoutcomes.Itisincorporatedwhenthe clause is
communicatedtothe claimantbefore the contractismade.
Scenario 6
Johnwishestorenta flat.He views51 Broadwayand appliestobe a tenant.He completesaformgiving
hisaccountant’sdetails.The landlord,David,appliestothe accountantfora reference relatingtoJohn’s
financial situation.The accountant,Adrian,confuses Johnwithanotherclientanddoesnotbotherto

12. checkthe file properly.He repliestoDavidthatJohnis an excellentclientwithhighincomeandcapital
and recommendshimasa goodtenant.In fact,had he lookedatthe correct file,he wouldhave seen
that Johnwas continuouslyinoverdraftandhadbeeninseriousdebtwithvariousbanksonandoff for
several years.Some monthslater,Johndisappearshavingtakenthe flatonandrun up several thousand
poundsworthof rent arrears.
Scenario 6, Johnwantedto renta flatthoughhe wasnot solventtopaythe rent.He appliedtoan
accountant,Adrian.Onthe otherhand,Davidwanteda goodtenantfor hishome andalso appliedto
Adrian.Adrianunwillinglyhadmixedthe solvencyreportof Johnwithanother clientandshowedJohn
as a solventperson.DavidallowedJohntotake the home onrent.Afterfew months itresultedindues
of tenure forseveral months.NowDavidcansue againstAdrian.Here Adrianbreacheshisdutytocheck
the reportproperly.Adrian hasto take the responsibilityandcompensate the damage accordingtothe
rule of negligence.
Adrianhas failedtoperformhisdutyof care toDavid;that resultsinthe damage for Davidas Johndid
not paythe rent.Adriancannotdenyhisliabilityashe couldpredictitassessingthe accountof John.
There are twowaysto avoidthe liabilityof negligence suchas,volentinonfitinjuriaand contributory
negligence.The voluntinonfitinjuriaisacomplete justifiabledefense wheredefendantiscompletely
excluded.Here,defendantiscompletelynegligent.Here isafact that thisnegligencewillnotharmthe
defendant.Butinthe above case Davidhas to sufferforthisnegligence.Thus,thistermwill notbe
applicable toavoidthe responsibilityof negligence.Contributorynegligence ispartial defensewherethe
faultisdistributedtothe plaintiff andthe defendantasbothof themare negligentandunaware of the
riskof negligence.Inthe above case Adrianknew the costof negligenceonthe otherhandDaviddidnot
knowaboutthe negligence even.Thusthistermalsowill notbe applicable.
4.2 Apply the elements of vicarious liability ingiven business situations
below
Scenario 7
John,a local milkman,contraryto expressprohibitionfromhisemployer ABCDairies,engageda14 year
oldboy to helphimdelivermilk.Johnhadtoldthe teenagerthathe wasnot supposedtohire himbut
theycouldkeepitbetweenthemselvesandthathe (the teenager) workeddirectlyforBill.ABCDairies
become aware of thisarrangementbuthad notdone anythingaboutit.As a resultof Bill’scareless
driving,the boywasinjured.
Can Johnbe suedfor negligence,andcanABCDairiesbe heldvicariouslyliableinthissituation?
Scenario 7, John,a milkman,workedunderthe ABCdairymilkprohibitedtohire anyteenagerstohelp
himin hiswork.He secretlyhiredaboy of fourteenyearsoldtoassisthim.The companyhappenedto
knowthe fact but didnot response onthis.Once,the boywasinjuredbecause of John’scarelessdriving.
The ABC dairymilkshouldbe suedasthey knew the fact.However,asper vicariousliabilityrule the

13. employerhastotake the liabilityof the sub-ordinates.The companycanpunishJohnbutfirsttheyhave
to compensate the damage of thatboy and take the responsibilityof thatinjury.
Scenario 8
A vintage vehiclesmuseumowneraskedafriendtodrive a vintage bustoBarnstable in Devonwhere
the museumownerwasgoingto take part ina vintage busrally.The friend drove negligentlyand
damagedMrs Smith’scar. As the friendwasnotemployedatthe Vintage VehiclesMuseumcanthe
ownerof the museumbe heldliable?
Scenario 8, a vintage vehicle museumowneraskedafriendtoa vintage busto a place where a rallyof
vintage buswasheld.Onthe way he damagesthe car of Mrs. Smith.The ownerof vintage bushasto
take the liabilitiesthoughhisfriendisnothisemployeebutthattime he was hissub-ordinate.According
to the lawof vicariousliabilitythe ownerhave tocompensate Mrs.Smithandlaterhe can personally
deal withhisfriend.
Conclusion:
Everybusinesshastocomplywiththe aspectsof contract andnegligence of the state where itis
operatingitsbusiness.Ithasto maintainthe rulesandtermsof contract to avoidthe riskinthe longrun.
The contract shouldenoughsecuredthusthe businesstake the helpof courtforfuture confliction.The
businessandindividualmaybe accusedtothe tor andcontractual liability.More overthe business
ownershave totake the liabilityof the mistake done byte sub-ordinatesandharmthe outsiders.

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