TAM's College hired a marketing agency, NAMS, to help improve their reputation. NAMS agreed to provide intensive promotion for one month for £2500. However, NAMS stopped the marketing campaign early due to lack of payment. TAM's College sued NAMS for breach of contract. Additionally, a night guard at TAM's College was injured while on duty for not wearing the proper uniform, as instructed. The guard's family sued and won due to the doctrine of vicarious liability, whereby TAM's College was held legally responsible despite not being directly at fault.

1. AN ASSIGNMENT ON
ASPECT OF CONTRACTS AND NEGLIGENCE’S
FOR THE BUSINESS
SUBMITTED:
NAME:
ID:
SUBMITTED TO:
DATE OF SUBMISSION
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2. EXECUTIVE SUMMARY
Based on the analysis of the scenarios it can deduced that TAM‟s college is paying attention to
become one of the best educational institutes in the Great Britain and they are hiring marketing
agencies to look into their marketing and promotion programs. Established on the eventualities
of the case the authority of TAM‟s college faced difficulties with their legal issues and they were
sued against because of the vicarious liability doctrine and was legally liable to pay the staff
compensation because of his loss.
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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 ............................................................................................................ 5
Task 2 ............................................................................................................................................................ 7
2.1 Application of the Elements of Contract ............................................................................................. 7
2.2 Application of the Law ........................................................................................................................ 8
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 Defences ........................................................................ 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 six elements of valid contract. These elements are important in order to make a valid
contract. The essential elements of a valid contract are given below
i.
Offer and Acceptance: In order to form valid contract an offer has to be made and it is
the first step towards an agreement (Roberts, M. & Zahay, D. 2012). Followed by the
offer the interested party has to accept upon the offer and thus form an agreement.
ii.
Lawful Consideration: An agreement lead to a contract when the person accepting the
offer takes decision based on some lawful consideration (Hare, J. I. Clark. 2003).
iii.
Free Consent: To form a valid contract the two parties must provide their free consent,
otherwise the contract will be considered as a void contract and it will be avoidable
(Horton, C., 2012).
iv.
Formal Relation: Formal relation has to be present in order to make a valid contract
(Myer, J. W. 1978). Any act of informal agreement cannot be considered as a formal
contract.
v.
Writing and Registration: A formal contract has to be in written and registered by the
government authority to make the contract valid (Hare, J. I. Clark. 2003).
vi.
Enforceable by Law: A valid contract is enforceable by law otherwise it will be
considered as the event of breach of contract (Roberts, M. & Zahay, D. 2012).
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5. 1.2 THE IMPACT OF DIFFERENT TYPES OF CONTRACT
There are many types of contracts that are;
Contract under Seal: The customary technique of constructing a legitimate contract is
that the sealing of the instrument that is enforceable (Hare, J. I. Clark. 2003). It is
important to mark the document with numerous closures and therefore the parties are
prone to settle for the outcomes of the affirmation once it is sealed.
Express Contract: This contract is one among the many varieties of contracts. It is either
in a written formation or it can even be within the oral pattern that is acknowledged to the
body that focuses on the permission to periods (Myer, J. W. 1978).
Implied Contact: In order to making a legitimate agreement free consent is important of
the each party. However just in case of Implied Contract it will be thought-about as a
legitimate agreement if one party does not provide free consent (Horton, C., 2012). This
type of agreements takes place once an individual imagines possessing any assets and
selling it.
Unconscionable Contact: It is an agreement in which both parties are concern about the
agreement but one party gets the higher advantages than the other (Roberts, M. & Zahay,
D. 2012). This kind of contracts is unenforceable because there is lack of free permission
from one of the party.
1.3 ANALYSIS OF TERMS IN CONTRACTS
A contract has various objectives that need to be fulfilled. It is important for the parties to
understand the various forms of agreements, terms, elements, and clues that will not solely
assists the parties to accommodates the agreement, however additionally assists to weaken
agreement administration charges (Collins, Hugh. 1999).
The TAM‟s college is attempting to become one amongst the high quality educational institutes
in United Kingdom of Great Britain. So, they are endeavoring to capture the vigilance and hiring
agencies and lawful advisors to assist them to the search of becoming the best. In alignment to
become the best they are going into contracts with some agencies for commercialism and
explaining the legal problems. To pattern a legitimate agreement there ought to be some
5

6. dissimilarity amidst the exchanging of periods, considerations and talks of the parties and TAM‟s
is endeavoring to convey the dissimilarities.
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7. TASK 2
2.1 APPLICATION OF THE ELEMENTS OF CONTRACT
A valid contract is enforceable by guideline. The parties should respect the terms and scenario of
the contract and if one party or the opposite party disagrees from the promise of affirmation then
the party compliance the affirmation will be able to take legal actions (Marsh, P.D.V. 2001).
The basic elements of the contract with NAMS are:
Figure: Basic Elements of Valid Contract
TAM‟s college liked to take their reputation high and help them to become one of the best
educational organizations in the UK. That is why NAMS offered for intensive promotion for one
month to help TAM‟s in their journey. In a prescribed legitimate agreement offer is the initiation
of an affirmation with another party and types an enterprise relationship.
In order to form a genuine affirmation the terms and scenarios of the contract should be
acknowledged by the parties collaborating in an agreement, else it will be thought as a void
agreement. TAM‟s college has acknowledged the NAMS mercantilism offer for one month and
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8. paid the fee of £2500 in advance and went into in to a legitimate contract. Each of the parties
within the agreement entered into the agreement with free permission and in a writing
documentation turned the consent a prescribed relation
TAM‟s college has taken lawful actions against the NAMS marketing agency because they were
incapable of delivering the proper marketing promised that they offered initially. TAM‟s has
proof of the breach of contract and NAMS has broken the contract and their initial statement
2.2 APPLICATION OF THE LAW
Perspective of the parties might contradict from the affirmation that was likely to be in use as
easily a pre-declaration of the legitimate affirmation and consequently not a part of the
affirmation (DiMatteo, L. A. 1998). Significant parts that are crucial to the agreement need to be
punctual in alignment to make a valid contract (Marsh, P.D.V. 2001). Parties to an agreement
pursue solely its terms, not by any minor affirmations that will not be accomplished.
To form a valid contract certain requirements are needed. Such as;
Collateral Contracts
•It is one kind of contract in which the terms and
conditions are normally written as the basis of
the contract. Where the statement have been
created and intended as to make sure to induce
the main contract (DiMatteo, L. A. 1998).
Judges have been organized to find a security
convention someplace to make the contract valid
and beneficial for the parties agreed upon the
contract.
Contract Includes Conditions and Warranties
•The more imperative terms are describing
"Circumstances", the smaller amount significant
terms are called "Warranties”. These parts are so
important that in absence of any one or
supplementary of the parties would not go into
the indenture. 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)
The indenture itself provides motivation to the
both parties. The court looks at each case on its
own merits.
Figure: Requirements of a Valid Contract
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9. Exclusion of responsibility of the terms:
Contract can be made where other organizations are probable to have a term in the agreement
which excludes one of the party‟s accountability that may go wrong in the presentation of the
agreement
or
restrictions
on
that
accountability.
It
is
called
a “PROHIBITING
PARAGRAPH” or a release clause (DiMatteo, L. A. 1998). Based on the scenario, a prohibiting
clause from “RESPONSIBILITY” for spoil done to the TAM‟s marketing campaign by NAMS
might be included in the agreement between NAMS and TAM‟s college.
2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS
These are the formation of affirmation and it is absolutely vital to be in an exceedingly in writing
and also the closed is needed to line up. Some periods are enclosed inside the agreements and a
couple of of them are just for formalities (Okeke, C.N. 1988).
The Patrol Evidences Rule It is a role that includes oral evidences. Oral evidence may not be
adduced to adjoin to say that the opposite to or shown to be a bogus written article (Okeke, C.N. 1988). The
contract always tries to the law of confirmation and applies not only to contracts but also all kinds of
credentials.
Establishing Implied Terms There are some situations in which contracts need to
establish the implied terms formally and it is made from one person to another person (Okeke, C.N. 1988).
Various Types of Conditions Various types of conditions may affect the contract and
technical judiciousness of the word is a good amount of central grouping of contractual expression
(Okeke, C.N. 1988). The preparation for committing a breach of circumstance at universal law is
refutation and indemnity.
Figure: Effect of Different Terms
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10. The Up-To-The-Minute Observation
The parties are enabling to compel to the activities and performance (Marsh, P.D.V. 2001). The
violation of a circumstance allows the above misgiving gathering to reckless spending the
indenture as rejected.
TAM‟s college has agreed to provide the marketing contract to NAMS based on their oral
evidence of intense marketing program for one month only for £6000 and established an inferred
agreement between 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:
The guideline of tort and of agreement is categorized as part of the "Law of Obligations", but the
law of tort concerns to every person that it is applicable to, while in the guideline of affirmation
or in trusts obligation is "Voluntarily presumed" (DiMatteo, L. A. 1998). Agreement damages
are founded on deficiencies that are anticipated, while tort damages are compensatory.
3.2 THE NATURE OF LIABILITY IN NEGLIGENCE
1. DUTY: The duty is an obligation of one person to another person and the glue of
communal obligation is that the beam that binds humans to one another in groups while
preferences are proposed unsuitable, if they deny a pre-existing impulse and improves
heedlessly (DiMatteo, L. A. 1998).
2. Breach of Contract: Breach of contract is considered as the behaviour of an individual
who is irresponsible and not considering the terms and conditions of the contract. It is an
important factor inside the affirmation misconduct of negligence (DiMatteo, L. A. 1998).
This component suggests the pre-existence of a benchmark of correct manner to bypass
applying undue hazards of impairment to persons. In the case we can see that NAMS has
broken the agreement terms and their initial terms of performing the program for straight
one month by stopping the program in the middle due to money.
3.3 VICARIOUS LIABILITY IN BUSINESS
Vicarious blame implies that anyone can be detained lawfully to accuse for the inattentive
activities of a decisive one-by-one even in spite of the detail that the suspect swamps no error in
furtherance of the inattentive or tortuous activities (DiMatteo, L. A. 1998).In the English
doctrine of tort negligence law boss can be suspect for the wrongdoings of the workers. Usually,
a supervisor is going to be command chargeable for any tort finished while an worker is bearing
out their obligations (Chen L., Law S. and Lee S. 2003).
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12. The TAM‟s college fell inside the English doctrine of vicarious liability be obliged to the night
guard‟s family has taken lawful activities against the association. Though the supervisors were
notified regarding the misfortunes and were also projected to wear proper attire for the nonteaching staffs to avoid injuries.
The night guard of TAM‟s college who got injured did not pay attention to the organization‟s
principles and so that, the authority rejected the payment of reimbursement to the casualty
although the authority of TAM‟s college are compelled to pay the reimbursement ascribed to the
conviction of vicarious liability.
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13. 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 variety of rule all through that it will be maintained and functioned
inside the area of intentional wrongdoing of law and furthermore the reason for negligence
guideline, is to organize and defend the employees from cuts affiliated to their line (Leibee, B. C.
1976). TAM‟s college‟s non-teaching employees were advised to use proper uniform for his or
her security.
Sources of Negligence: It is the unintentional shatter of a lawful obligation starting impairment
fairly predictable while not that the shatter would have not occurred (John W. 2009). Negligence
is going to be notable as malfunction to desire correct care of precaution.
Potential sources of
negligence
• Poor selection of
activities
• Use of faulty
equipment
• Inadequate
protection
Defence against
Negligence
• Assumption of
risk
• Sudden
emergency
• An act of God
Figure: Sources of Negligence
Potential sources of negligence are:
Inadequate protection: Inadequate protection refers to negligent behaviour on part of
the person who is unwilling to wear protective gears (John W. 2009).
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14. Poor selection of activities: The activities that are beyond the capabilities of individuals
or inadequate knowledge of activities are poor selection of activities (Emenike, E.U.I.
1989).
Use of faulty equipment: Another potential source of negligence is the use of faulty
equipment which can cause harm (John W. 2009).
Defence against Negligence:
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
(Emenike, E.U.I. 1989).
An act of God: The conditions or situations that is uncontrollable by human beings. This
assumption is only applicable when adequate safety measures are taken to avoid injuries
(John W. 2009).
Duty of Care: Someone might owe a compulsion of care to conceive compelled that they are not
bearing from any awkward wound (Leibee, B. C. 1976). If such obligation is broken, a lawful
liability is enforced. TAM‟s college staffs were alerted in quotation to the damage and deficiency
that the employees might face.
4.2 APPLICATION OF VICARIOUS LIABILITY
TAM‟s college management has made compulsory of wearing the proper attire for college‟s nonteaching staffs to avoid accidents. But the supervisors denied the alert associated with the
misfortunes because of not wearing the right apparel.
The management of TAM‟s college was held liable for the staff‟s accident because they fell in
the English doctrine of “Vicarious Liability”. Although, vicarious responsibility means any
person can be detained lawfully to blame for the inattentive activities of the employee.
The TAM‟s college authority has denied the claim because the staffs were not following the
policies and instruction of wearing proper uniform during duty. Though it was the staff‟s fault
that he got injured the TAM‟s college has to pay the compensation due to the English doctrine of
vicarious liability.
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15. CONCLUSION
In alignment to accomplishing the goal they were appointing legal advisors to defend themselves
from the long-term risks. In order to pursue this objective they were going along with the
agencies for legal and advertising help to increase their college reputation. TAM‟s college
required advertisements and NAMS had the concepts that will be utilised for the comprehensive
advertising program. TAM‟s college was susceptible to reimburse an employee as a result of the
employee has caught in an accident all through the work hours. Though the management of the
TAM‟s college had to face lawful undertakings attached to with the incidence with the worker
that fell in the English doctrine of “Vicarious Liability”.
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16. REFERENCES
Collins, Hugh. 1999. Regulating Contracts. New York: Oxford Univ. Press.
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.
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
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.
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. 707719.
Roberts, M. & Zahay, D. 2012, Laws and Regulation in practice in Business, 6th Edition,
Wadsworth Publishing Co, Belmont, USA.
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