1. An assignment on
Aspect of contracts and Negligence’s for the
business
Submitted:
Name:
ID:
Submitted To:
Date of Submission
1

2. Executive Summary
The management of TAM‟s college desires to turn this college into one the most best
educational institutes in United Kingdom. Only for this reason they are appointing legal
help to solve any future legal issues and risks. TAM‟s college has also made a formal
relation with one of the marketing firms named NAMS to promote TAM‟s college.
Besides the TAM‟s college has faced the trial against them because one of their
employee did not pay attention to the instructions that are made by the management of
TAM‟s college. The authority of TAM‟s college is obliged to pay the compensation to the
injured employee because of the vicarious liability doctrine.
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3. Table of Contents
Executive Summary ........................................................................................................ 2
Task 1 .......................................................................................................................... 4
1.1 ESSENTIAL ELEMENTS OF A VALID CONTRACT ............................................................ 4
1.2 THE IMPACT OF DIFFERENT TYPES OF CONTRACT ....................................................... 5
1.3 ANALYSIS OF TERMS IN CONTRACTS .......................................................................... 6
Task 2 ............................................................................................................................. 7
2.1 APPLICATION OF THE ELEMENTS OF CONTRACT .......................................................... 7
2.2 APPLICATION OF THE LAW ......................................................................................... 9
2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS ................................................ 9
Task 3 ........................................................................................................................... 11
3.1 CONTRASTING LIABILITY IN TORT WITH CONTRACTUAL LIABILITY ................................ 11
3.2 THE NATURE OF LIABILITY IN NEGLIGENCE ............................................................... 11
3.3 VICARIOUS LIABILITY IN BUSINESS ............................................................................ 11
Task 4 ........................................................................................................................... 13
4.1 APPLICATION OF THE TORT OF NEGLIGENCE AND DEFENSES...................................... 13
4.2 APPLICATION OF VICARIOUS LIABILITY ...................................................................... 14
Conclusion .................................................................................................................... 15
References .................................................................................................................... 16
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4. Task 1
1.1 ESSENTIAL ELEMENTS OF A VALID CONTRACT
There are few essential elements of contract that are significant in order to make a valid
contract. There are six essential elements of a valid contract. The essential elements of
a valid contract are given below.
Lawful Consideration: A related affirmation lead to an agreement where the
individual accepting the offer takes deduction established on some authorized
consideration (Hare, J. I. Clark. 2003).
Offer and Acceptance: In association to design a legal affirmation an offer has
to be prepared and it is the opening direction to an affirmation (Roberts, M. &
Zahay, D. 2012). Followed by the offer the parties involved in the agreement have
to agree upon the offer and as a result form an affirmation.
Free Consent: In order to go in to a valid agreement the two parties required
providing their free permission, or the contract will be guided as a useless and
void affirmation (Black, H. C. 1979).
Writing and Registration: An authorized deal has to be in a written outline and
listed by the government supervision to make the affirmation legitimate (Black, H.
C. 1979).
Enforceable by Law: A proper affirmation is enforceable by instruction or it will
be counseled as the trendy of break of agreement (Black, H. C. 1979).
Formal Relation: alignment to make a legitimate affirmation Official relation has
to be considered. Any act of unplanned affirmation will not be measured as an
official agreement (Wood, D. and Smith, P. 1989).
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5. 1.2 THE IMPACT OF DIFFERENT TYPES OF CONTRACT
There are many types of contracts that are;
Implied Contact: This kind of contracts arises when a distinct behaves like
he/she owns any property and sell those assets. To mold a legitimate
confirmation free consent is important of the both parties (Black, H. C. 1979). But
in case of implied contract it will be suggested as a legitimate agreement if one
party does not give consent. For demonstration; if a servant sells his or her
proprietor‟s stuffs as if s/he is the proprietor of the assets without the free
consent of the proprietor then it will be advised as an implied agreement.
Executed Contact: It is a type of contract where both parties fulfill the terms and
conditions of the contracts earlier they go in to a contract and there is nothing to
be controlled by each party (Wood, D. and Smith, P. 1989).If it is an executed
contract, then the performance of the parties shows that there is no contract.
Express Contract: Express contract refers to the type of contracts where it is
either in the formation of a writing document or it can even be in the oral pattern
which is acknowledged to the authority that focuses on the consent to terms
(Hare, J. I. Clark. 2003).
Contract under Seal: The customary procedure of making an agreement legit is
the concluding of the lawful item that is enforceable (DiMatteo, L. A. 1998). It is
important to assess the documents with seals and the parties are legally
responsible to accept the outcomes of the affirmation after it is sealed.
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6. 1.3 ANALYSIS OF TERMS IN CONTRACTS
There are many determinations of a contract. It is vital for the parties to gather the
separate kinds of agreements, stages, and residents which not only supports the parties
to trail with the testimonials but also supports to decrease statement costs (Hare, J. I.
Clark. 2003).
The TAM‟s college desires to become the best scholastic institutes of UK. So, they are
making every single effort to gain the attention and allocating assistances and lawful
consultants to aid them accomplishing their aims. In the procedure of becoming the best
scholastic institute in UK, they are going into contracts with some organizations for their
advertising and promotion reasons and clarifying the lawful matters. To design an
appropriate agreement there must be some variation among the exchanging of terms
between the parties and TAM‟s college is making every effort to bring the variations.
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7. Task 2
2.1 APPLICATION OF THE ELEMENTS OF CONTRACT
The parties involved in a contract must respect the periods and conditions of the
contract and if one party or the other party contradicts from the pledge of affirmation
then the party respecting the affirmation can proceed to court and take lawful actions
(Marsh, P.D.V. 2001). Because a legitimate affirmation is enforceable by regulation.
The basic elements of the contract with NAMS are:
Acceptan
ce
Enforcea
ble by
law
Offer
Free
consent
Formal
relation
Figure: Basic Elements of Valid Contract
NAMS gave suggestions for focused marketing for one month to take TAM‟s status
upper and help them to fit into one of the best educational institutes in the UK. In a
certified legal contract proposal is the beginning of a contract with an additional party
and forms a business relationship.
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8. In order to create an effective contract the terms and conditions of the contract has to
be established by the parties taking part in the contract, else it will be measured as a
void contract. TAM‟s college has accepted the NAMS advertising application for one
month and paid the initial fee of £2500 and come into a lawful contract. Both of the
parties in the contract entered into the contract with free bargain and a written
guarantee turned the contract in a formal relation.
Valid contract is enforceable by law. The supervision of TAM‟s college has the ability
and evidence that NAMS has cracked the contract agreement and the initial term.
NAMS were unable to provide promotional support to TAM‟s college so that the TAM‟s
college has engaged with legitimate actions against NAMS.
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9. 2.2 APPLICATION OF THE L AW
The parties loyal in agreement give self-guarantee and increase the episodes and
conditions of an agreement (Marsh, P.D.V. 2001). Approach of the parties may affect
from the assertion which was supposed to be in use as just a pre-affirmation of the
legitimate agreement and accordingly not part of the affirmation (DiMatteo, L. A. 1998).
As soon as two or more parties make an agreement then there are several vital
components that must be advised in order to create a legitimate agreement. Parties to a
convention pursue only its terms, not by any slight affirmations that perhaps not be
accomplished.
To form a valid contract certain requirements are needed. Such as;
Collateral Contracts
•Where the affirmation have
been conceived and
proposed as to make
certain to induce the main
affirmation. It is a kind of
contract in which the terms
and conditions are
commonly in a writing
pattern as the foundation of
the affirmation. Juries have
been coordinated to find a
security convention
someplace to make the
agreement valid and
beneficial for the parties
acquiesced upon the
agreement (DiMatteo, L. A.
1998).
Contract Includes
Conditions and
Warranties
•The affirmation itself
motivates both the parties.
The more imperative
situation are describing
"Circumstances", the lesser
significant situation are
called "Warranties”. These
components are so
significant that without any
one or supplementary
situation, the parties would
not advance into the
agreement (DiMatteo, L. A.
1998).
Figure: Requirements of Valid Contract
2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS
There are numerous terms included in the affirmations and several of them are for
guidelines and principles (Okeke, C.N. 1988). These are formation of assertion and it is
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10. essential to be in a printed pattern and the close is compulsory. There are various kinds
of guideline and it needs different kinds of procedures.
a) The Patrol Evidences Rule
Oral evidence might not be supplemented or shown to be a false in writing piece.
It is a function that embraces oral evidences (Marsh, P.D.V. 2001). The contract
habitually endeavors to the law of confirmation and concerns not only to accord
but also to all types of identification.
b) Establishing Implied Terms
There are some positions in which agreements need to organize the inferred
periods formally and it is completed from one one-by-one (Leibee, B. C. 1976).
c) Various Types of Conditions
The groundwork for committing a breach of circumstance at universal guideline is
refutation and indemnity (Okeke, C.N. 1988). Different kinds of position may
sway the affirmation and functional judiciousness of word is good for centered
grouping of contractual signal.
The Up-To-The-Minute Observation
In the allocated situation, TAM‟s college has decided to grant the promoting agreement
to NAMS on the foundation of their oral signs of solid marketing and progression for one
month for £6000 and established a conditional agreement among TAM‟s college and
NAMS.
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11. Task 3
3.1 CONTRASTING LIABILITY IN TORT WITH CONTRACTUAL LIABILITY
Tort and contact liability:
Agreement compensations are established on scarcities that are foreseen, while tort
compensations are compensatory. The directive of tort and of assertion is characterized
as part of the "Law of Obligations", but the regulation of tort anxieties to each distinct
that it is related to, while in the recommendation of arrangement or in faiths obligation is
"Voluntarily Assumed" (DiMatteo, L. A. 1998).
3.2 THE NATURE OF LIABILITY IN NEGLIGENCE
1. DUTY: The glue of communal obligation is the negotiation that binds humans to
one another in worshipers where likings are recommended unsuitably if they
breach a pre-existing desire and restore hastily (DiMatteo, L. A. 1998). The
liability is a compulsion of one individual to another individual, it is apprehended
pattern the public desires and views.
2. Breach of Contract: It is the behaviour of the individuals to advance as a wild
one-by-one or party and not acting out the contracts terms and situation. This
element denotes the pre-existence of a standard of correct behaviour to escape
imposing undue hazards of impairment to persons (Leibee, B. C. 1976). Breach
of assertion is the most significant thing in the contract tort of negligence. NAMS
has break through the assertion when they have terminated the progression and
promoting of TAM‟s college for one week.
3.3 VICARIOUS LIABILITY IN BUSINESS
Vicarious responsibility means that any person can be apprehended lawfully or to blame
for the demanding obsession activities of a different individual nevertheless of the fact
that somebody swamps no inaccuracy in persistence of the careless or tortuous acts
(Leibee, B. C. 1976). It is a principle of English tort policy that imposes firm
accountability on managers for the misconducts of their workers. Typically, a business
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12. will be detained accountable for any tort promised while a worker is directing their
obligations (DiMatteo, L. A. 1998).
In the allotted situation the management of TAM‟s college released in the policy of
vicarious obligation because the guard‟s family has engaged genuine legal activities
beside the organization. Though the management and the administrators were warned
about the hard luck and were moreover planned to wear appropriate clothing for the
non-teaching personnel to keep away from damages.
The employee who was injured did not pay attention to the organization‟s principles so,
the admin denied to give any compensation for injuries to the sufferer but The TAM‟s
college are bound to pay the benefit because of the principle of vicarious burden.
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13. Task 4
4.1 APPLICATION OF THE TORT OF NEGLIGENCE AND DEFENSES
There are some basics of the tort negligence and defences in various business
situations, they are given below
Tort Negligence Law: It is a system of law within which it is started and functioned
within the realm of intentional tort law and also the elementary motive of negligence
regulation, is to regulate and defend the workers from injuries that might happen in their
line of work (Emenike, E.U.I. 1989). TAM‟s college‟s non-teaching staff s were guided to
use defensive attire for his or her protection and security
Duty of Care: A person might owe a duty of care to confirm that they are doing not
irrational harm to them (Wood, D. and Smith, P. 1989). If such obligation is broken, a
legitimate liability is compelled. The staffs of TAM‟s college was warned regarding the
impairment and losses that the staff would possibly face.
Sources of Negligence: Negligence may be defined as malfunction to require correct
caution of protection. It is the unintentional break of a legitimate obligation inflicting
harm that reasonably forecast the breach would haven not even appeared (John W.
2009).
Potential sources of
negligence
• Poor selection of
activities
• Use of faulty
equipment
• Inadequate
protection
Defence against
Negligence
• An act of God
• Assumption of risk
• Sudden emergency
Figure: Sources of Negligence
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14. Potential sources of negligence are:
Inadequate protection: Inadequate protection denotes to careless actions on
portion of the individual who is unwilling to wear protective gears (John W. 2009).
Use of faulty equipment: Another potential source of negligence is the use of
faulty equipment which can cause harm (N. Et Al. Kumar, 2001).
Poor selection of activities: The activities that are beyond the capabilities of
individuals or insufficient knowledge of activities are poor selection of activities
(John W. 2009).
Defence against Negligence:
Sudden emergency: Any act of instant action to help the individual in danger.
Such as, attempt to rescue a person drowning in the water is an act of sudden
emergency (Emenike, E.U.I. 1989).
Assumption of risk: It is assumed that a person takes portion of the risks when
engaging in activity (John W. 2009).
4.2 APPLICATION OF VICARIOUS LIABILITY
The TAM‟s college has ordered the non-teaching staffs to carry out proper clothing that
is made for the staffs duties in order to avoid forthcoming accidents. Though the
superintendents have not listened to the warning and also sent off a guard on duty while
not wearing the appropriate uniform. It is against the business policy.
Although, tortuous blame means someone can be detained lawfully liable for the
reckless actions of a definite individual. During this state of affairs the supervisors were
heedless to the rules which lead one of the staffs to induce injury. However, TAM‟s
college management are discovered blameful due to vicarious liability doctrine.
The authority of the TAM‟s college has denied the compensation to the workers
because the guard was not following the rules of the institution. However underneath
the vicarious liability principle the employer has been lawfully detained for the actions of
the employee because of the vicarious liability doctrine.
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15. Conclusion
In the given scenarios it can be deduced that TAM‟s college has selected and hired
advisors who can help the institute with legal solutions that might arise in the future.
They even have appointed marketing agencies to promote their feature and name to
capture the student‟s attention. They follow the dream of becoming Britain‟s one of the
best educational institutes. NAMS offered the brightest and comprehensive promotion
program. Then again TAM‟s college was responsible to pay compensation for an
incident with one of their employees. As an outcome TAM‟s had to face lawsuits and
was liable to pay the compensation because of the vicarious Liability.
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16. References
Black, H. C. (1979). Black Law Dictionary, St. Paul West Publishing Company vol. 57,
no. 2, pp. 217-268.
DiMatteo, L. A. 1998. Contract Theory: The Evolution of Contractual Intent. East
Lansing: Michigan State Univ. Press.
Emenike, E.U.I. (1989). Safety Measures associated with Physical and Health
Education Journals. Vol. 3, No. 1, vol. 48, no. 1, pp. 54-82.
Hare, J. I. Clark. 2003. The Law of Contracts. Clark, N.J.: Law book Exchange.
Hare, J. I. Clark. 2003. The Law of Contracts. Clark, N.J.: Law book Exchange.
John W. (2009) „Business contract and negligence in practice‟ Journal, Vol. 7, No. 3, pp.
5-18.
Leibee, B. C. (1976). Tort Liability for Injuries to employees. Organisation and
Administration. Philadelphia W.B. Saunders Company Journal of Tort Law, vol.
18, no. 1, p. 1.
Marsh, P.D.V. 2001. Contract Negotiation Handbook: Burlington, Vt: Gower
N. Et Al. Kumar, 2001. “Negligence in business” 4th edition, Anmol Publications Mumbai.
Okeke, C.N. (1988). Some Legal aspects of Organizations. A paper presented at a two
day conference organized by the National Sports Commission, Enugu, vol. 13,
no. 5, pp. 707-719.
Wood, D. and Smith, P. (1989) practice of business law in contractual intent: First
Report on the 1987 Survey, Research Paper No. 63, London: Department of
Business law.
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