1. AN ASSIGNMENT ON
ASPECT OF CONTRACTS AND NEGLIGENCE’S FOR THE
BUSINESS
Submitted By:
Submitted To:
Date:
1

2. Executive Summary
In order to become one of the best TAM’s college has acquiesced to encourage their
characteristics and amenities to gain awareness and chartered NAMS to promote
TAM’s college. Throughout the month long contract the firm broken the agreement
management of the TAM’s college has undertaken Legal actions against NAMS on the
basis of their oral evidence. The TAM’s college has moreover been prosecuted because
of the misfortune of one of their staffs for not bearing the right attire and proper apparel
during duty. The TAM’s college must suffer the legal penalties as an outcome of the
vicarious liability beliefs within the business.
2

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 ............................................................................................ 7
2.3 Evaluation of the Effect of Different Terms ............................................................ 9
Task 3 ........................................................................................................................... 10
3.1 Contrasting Liability in Tort with Contractual Liability ........................................... 10
3.2 The Nature of Liability in Negligence ................................................................... 10
3.3 Vicarious Liability in business .............................................................................. 10
Task 4 ........................................................................................................................... 12
4.1 Application of the Tort of Negligence and Defences ............................................ 12
4.2 Application of Vicarious Liability........................................................................... 13
Conclusion .................................................................................................................... 15
References .................................................................................................................... 16
3

4. Task 1
1.1 Essential Elements of a Valid Contract
There are five elements of valid contract and these elements are important in order to
make a valid contract. The essential elements of a valid contract are given below
1. Lawful Consideration: When the person accepting the offer takes conclusion on
the basis of some lawful consideration (Kennedy, R. D. & McMullen, S. Y. 1968).
2. Free Consent: In an agreement the parties involved in the agreement must
provide free consent otherwise the agreement will be considered as a void
agreement (Myer, J. W. 1978).
3. Writing and Registration: A formal contract has to be in written and registered
by the government authority to make the contract valid (Roberts, M. & Zahay, D.
2012).
4. Offer and Acceptance: In a legitimate contract an offer should be created to get
in to a contract and it is the prime step within the most heading of an affirmation
(Myer, J. W. 1978). Pursued by the interested party the opposite party should
settle for the supply to form the agreement valid.
5. Enforceable by Law: A valid contract is enforceable by law otherwise it will be
considered as the event of breach of contract (Kennedy, R. D. & McMullen, S. Y.
1968).
4

5. 1.2 The Impact of Different types of Contract
There are many types of contracts that are;

Contract under Seal: In order to make a legitimate agreement the lawful
considerations got to be sealed so they are enforceable by law (Kennedy, R. D.
& McMullen, S. Y. 1968). It is necessary to assess the article with various
closures and also the each party is vulnerable to settle for the outcomes of the
affirmation when it's closed.

Express Contract: It is a type of agreements during which the formation is either
within the formation in writing article or it can even be within the oral pattern
which is accepted to the ruling body that focuses on the permission to periods
(Roberts, M. & Zahay, D. 2012).

Implied Contact: In a legitimate affirmation free consent is important (Myer, J. W.
1978). Though in the case of implied agreement it is considered to be a legitimate
agreement if one party does not provide free consent. This type of agreements
happens just the once associated when an individual pretends to possess any
assets and sell it.
5

6. 1.3 Analysis of Terms in Contracts
Major alterations are essential to align the emplacement agreement.
There are various objectives of agreements. It is vital for the parties to understand the
various kinds of affirmations, terms, components, and signals that not solely assists the
parties to accommodates the agreement however conjointly assists to reduce
agreement administration allegations (Bucher, C.A. 1983).
In alignment to become the most effective educational institution in Great Britain they
are going into agreements with some firm and agencies for their commercial reasons
and finding the lawful threats that will cause trouble in the future. So, they are
endeavoring to apprehend the concentration and leasing agencies and lawful advisors
to assist them to the search. The TAM’s college is endeavoring to become one of the
most effective educational institutes in Great Britain. In order to form a legitimate
affirmation there ought to be some dissimilarity. TAM’s is endeavoring to precise the
dissimilarities.
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7. Task 2
2.1 Application of the Elements of Contract
A legitimate agreement is enforceable by regulation. The parties should respect the
terms and position of the agreement and if one party or the opposite party contradicts
from the promise of affirmation then the party obeying the affirmation can move to court
and take lawful activities (Marsh, P.D.V. 2001).
The basic elements of the contract with NAMS are:
1. Offer
2. Acceptance
3. Free Consent
4. Formal Relation
5. Enforceable by Law
NAMS is offering TAM’s college of intensive marketing program for one month to form
TAM’s rank high and aid them in changing into one of the biggest and best educational
associations within the UK. During a prescribed legitimate offer is that the initiation of a
contract with another party sorts a business relationship.
TAM’s college has acknowledged the NAMS promotional offer for one month and paid
the primary fee of £2500 and entered in to a legitimate agreement. Both the parties in
the affirmation went into the contract with free consent and in a writing documentation
turned the agreement in a formal relation. Because to make a legitimate contract the
periods and conditions of the contract have to be accepted by the parties taking part in
an agreement, otherwise it will be advised as a null agreement
LEGITIMATE
AID TO
AGREEMENT IS ENFORCEABLE BY REGULATION.
TAM’S COLLEGE
SO THE
NAMS WERE UNABLE TO PROVIDE
TAM’S COLLEGE HAS TAKEN LAWFUL UNDERTAKINGS AGAINST
NAMS. THE MANAGEMENT OF TAM’S COLLEGE HAS THE PROOF THAT NAMS HAS BROKEN THE
AGREEMENT AFFIRMATION AND THEIR INITIAL CONDITION.
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8. 2.2 Application of the Law
Important parts that are vital to the contract need to be prompt in alignment to create a
legitimate affirmation (Marsh, P.D.V. 2001).Perspective of the parties might contradict
from the affirmation that was likely to be in use as simply a pre-declaration of the
legitimate affirmation and consequently not a part of the affirmation (DiMatteo, L. A.
1998). The parties concerned offer sureness and increase the periods and scenario of
an agreement. Parties to an indenture pursue solely its time span, not by any minor
declarations that will not be completed.
To form a valid contract certain requirements are needed. Such as;

Collateral Contracts
It is one reasonably accept that the terms and scenario are ordinarily in writing
because the cornerstone of the agreement. Wherever the declaration are created
and meant on to ensure and induce the most contracts (DiMatteo, L. A. 1998).
Adjudicators are coordinated to search out a security conference somewhere to
create the agreement legitimate and help the parties acquiesced upon the
contract.

Contract Includes Conditions and Warranties
These parts are so important that in absence of any one or supplementary of the
parties would not go into the indenture. The more imperative terms are
describing "Circumstances", the smaller amount significant terms are called
"Warranties”. The indenture itself provides motivation to the both parties. The
court looks at each case on its own merits. As a result, to construct a
circumstance falsely, or to breach a condition, is viewed so dangerously and
considered as a mistreated agreement (DiMatteo, L. A. 1998). In making a
decision as to whether a term is a condition or a warranty, the court will consider
all
the
surrounding
circumstances,
including
the
seriousness
of
the
consequences if the contract is held to be non-binding and the intentions of the
parties at the time they made the contract.
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9. 2.3 Evaluation of the Effect of Different Terms
Several terms are enclosed within the contracts and a few of them are just for
formalities (Okeke, C.N. 1988). These are the formation of agreement and it is essential
to be in an exceedingly written and also the shut is required to line up
The Patrol Evidences Rule
It is a perform that embraces oral evidences. Oral proof might not be adduced to
adjoin to state thet they're not shown to be a false in composing article (Okeke,
C.N. 1988). The agreement routinely endeavours to the law of confirmation
and issues not solely to agreements however additionally all types of credentials.
Establishing Implied Terms
There are some positions during which agreements have to be compelled
to establish the inferred periods formally and it's made of one individual to a
different individual (Okeke, C.N. 1988).
Various Types of Conditions
Varied kinds of position might sway the agreement and technical judiciousness of
the
phrase could
be
a sensibleallowance
of
central grouping
of written
agreement expression (Okeke, C.N. 1988).
The Up-To-The-Minute Observation
The resistance of a circumstance permits the overhead misgiving gathering to
unaccountable applying the indenture as rejected, and therefore the parties are
endowed to compel to the undertakings and performance (Marsh, P.D.V. 2001).
In the allotted position, TAM’s college has go along with the agreement with NAMS
marketing firm based on their oral proof for one month just for £6000 and established an
implied contract between TAM’s college and NAMS.
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10. Task 3
3.1 Contrasting Liability in Tort with Contractual
Liability
Tort and contact liability:
The regulation of tort and of contract is categorized as part of the "Law of Obligations",
but the law of tort applies to everyone that it is applicable to, while in the regulation of
agreement or in trusts obligation is "Voluntarily Assumed" (DiMatteo, L. A. 1998).
Agreement damages are founded on deficiencies that are expected, while tort damages
are compensatory.
3.2 The Nature of Liability in Negligence
1. Breach of Contract: Breach of agreement is most significant factor within the
affirmation misconduct of negligence. It is the manner of the individuals to
proceed as negligent and not accomplishing the agreement periods and scenario
(DiMatteo, L. A. 1998). This element proposes the pre-existence of a benchmark
of correct manner to bypass implementing undue hazards of impairment to
individuals. NAMS has broken the affirmation after they have halted the
marketing of TAM’s for one week.
2. DUTY: The glue of communal obligation is that the beam that binds humans to
one another in teams wherever preferences are suggested unsuitable, if they
refuse a pre-existing impulse and renews carelessly (DiMatteo, L. A. 1998). The
requirement may be a sense of obligation of an individual to a different individual.
3.3 Vicarious Liability in business
In the English doctrine of tort negligence law employer can be accused for the
wrongdoings of the workers. Usually, a supervisor is going to be command chargeable
for any tort done whereas an employee is bearing out their obligations (Leibee, B. C.
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11. 1976). Vicarious responsibility implies that anyone can be detained lawfully to accuse
for the inattentive activities of a definite individual even in spite of the detail that the
accused swamps no error in furtherance of the inattentive or tortuous actions (DiMatteo,
L. A. 1998).
The management of TAM’s college fell within the English doctrine of vicarious liability
owing to the evening guard’s family has taken legal activities against the organization.
Though the supervisors were notified regarding the misfortunes and were also projected
to wear proper attire for the non-teaching staffs to evade injuries.
The non-teaching person who got injured did not pay attention to the organization’s
principle and so that, the management denied to present any compensation to the
casualty however The authority of TAM’s college are compelled to pay the
compensation attributable to the belief of vicarious liability.
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12. Task 4
4.1 Application of the Tort of Negligence and
Defences
There are some elements of the tort negligence and defences in various business
situations, they are given below
Tort negligence law: It is a sort of regulation throughout that it will be sustained and
functioned within the realm of intentional wrongdoing of law and moreover the reason
for negligence regulation, is to organize and defend the employees from wounds
associated to their line (Leibee, B. C. 1976). TAM’s college’s non-teaching employees
were urged to use protective outfit for his or her security.
Duty of Care: Someone might owe a compulsion of care to create bound that they are
not bearing from any awkward injury. If such duty is broken, a lawful liability is enforced.
TAM’s college staffs were warned in reference to the damage and deficiency that the
staff might face (Leibee, B. C. 1976).
Sources of Negligence: Negligence is going to be notable as malfunction to want
correct care of precaution. It is the unintentional break of a lawful obligation starting
impairment fairly predictable while not that the break would have not occurred.
Figure: Sources of Negligence
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13. Potential sources of negligence are:

Poor selection of activities: The activities that are beyond the capabilities of
individuals or inadequate knowledge of activities are poor selection of activities
(John W. 2009).

Use of faulty equipment: Another potential source of negligence is the use of
faulty equipment which can cause harm (Emenike, E.U.I. 1989).
Defence against Negligence:

Assumption of risk: It is assumed that a person takes measure of the risks
when engaging in activity (John W. 2009).

Sudden emergency: Any act of immediate action to help the person in danger.
Such as, attempt to rescue a person drowning in the water is an act of sudden
emergency (N. Et Al. Kumar, 2001).
4.2 Application of Vicarious Liability
The management of TAM’s college has implemented the carrying the correct guideline
and attire for college’s non-teaching staffs to bypass future accidents. Although the
masterful supervisors have unmarked the alert associated the misfortunes because of
not wearing the right apparel. It is against the enterprise policy.
A supervisor has the inherent authority to order over the staff and therefore the
supervisors were asked to sustain the correct safe gears of the non-teaching staffs
(Chen L., Law S. and Lee S. 2003). However during this state of affairs the supervisors
did not pursue the directions and lead one among their staffs to obligation while not
wearing the correct attire.
Here the supervisors were inattentive to the directions which lead one of their staffs to
induce injury. However, vicarious responsibility means anyone can be detained lawfully
responsible for the inattentive actions of the worker. However the board of the TAM’s
college is going to be discovered accountable owing to vicarious liability doctrine.
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14. THE TAM’S
AUTHORITY HAS REJECTED THE COMPENSATION TO THE STAFF BECAUSE HE
WAS NOT FOLLOWING THE PRINCIPLES OF THE
TAM’S
COLLEGE .
MANAGEMENT IS THE LEGALLY LIABLE FOR THE ACCIDENT DUE TO THE
YET
BENEATH THE
ENGLISH
DOCTRINE
OF VICARIOUS LIABILITY.
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15. Conclusion
TAM’s college faced the prosecution against them and was liable to pay the
compensation to the non-teaching staff because he got hurt during the working hours.
TAM’s college had to pay the compensation because of Vicarious Liability doctrine in
the English law of tort negligence. In the earlier scenarios TAM’s college was going into
contract with NAMS marketing firm to promote their college facilities to the young
generation to become one of the best educational institute in UK.
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16. References
Bucher, C.A. (1983). Administration of Legal Responsibilities. The C.V. Mosby
Company, St. Louis., vol. 32, no. 8, pp. 849-875.
Chen L., Law S. and Lee S. (2003) ‘business contract- the laws and regulation in
practice’– an empirical study, Business contract, Vol. 24 Issue 3, pp.299-318.
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.
Hampton, J. 1976. “Legal Responsibilities in Business”, Reston: Prentice Hall.
Horton, C., 2012. Legal aspects in Business and Contractual Intent, Journals. Vol. 2, pp.
54-82.
John W. (2009) ‘Business contract and negligence in practice’ Journal, Vol. 7, No. 3, pp.
5-18.
Kennedy, R. D. & McMullen, S. Y. 1968. “Contract Negotiation and Contract Theory”,
Home Wood, Illinois: Richard D. Inrurin.
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.
Myer, J. W. 1978. “Negligence in Contract and practice”, Delhi: Prentice Hall of India,
3rd edition.
N. Et Al. Kumar, 2001. “Negligence in business” 4th edition, Anmol Publications Mumbai.
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17. 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.
Roberts, M. & Zahay, D. 2012, Laws and Regulation in practice in Business, 6th Edition,
Wadsworth Publishing Co, Belmont, USA.
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