TAM's college is trying to become one of the best educational institutes in the UK. They have hired marketing firms and legal advisors to help achieve this. One marketing firm, NAMS, failed to provide the promised month of promotion, breaching their contract. Additionally, a staff member at TAM's college was injured on duty without proper uniform, and the family sued. TAM's college denied responsibility but may be liable under vicarious liability doctrine. The document discusses contract and tort law relating to these scenarios, including elements of a valid contract, types of contracts, negligence liability, and defenses against negligence claims.

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

2. EXECUTIVE SUMMARY
TAM’s college is trying to become one of the best educational institute in UK based on
the scenarios. They have appointed marketing firms to promote their facilities. TAM’s
college has also hired an agency to receive legal solutions for future risk regarding the
institute. The management of TAM’s college was in difficulties to manage all the issues
and faced legal actions from one of their staff’s family. The staff was ignorant and went
to duty without proper uniform and induced injury and the management of TAM’s
college denied the claim and fell in the “Vicarious Liability” doctrine.
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
2.2 Application of the Law
7
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 12
Task 4 13
4.1 Application of the Tort of Negligence and Defences 13
4.2 Application of Vicarious Liability
Conclusion
15
References
14
16
3

4. TASK 1
1.1 ESSENTIAL ELEMENTS OF A VALID CONTRACT
To form a valid contract there are some essential elements that need to be enlisted in
the agreement and they are:
1. Offer and
Acceptance
8. Enforceable
by Law
2. Lawful
Consideration
7. Possibility of
Performance
3. Free Consent
4. Writing and
Registration
6. Certainty
5. Formal
Relation
Figure: Essential Elements of Valid Contract
 Offer and Acceptance: In order to pattern legitimate agreement an offer has to
be made and it is the initiation of an affirmation (Kennedy, R. D. & McMullen, S.
Y. 1968). Followed by the offer the involved party has to accept upon the offer
and therefore pattern an agreement.
 Lawful Consideration: A mutual agreement lead to an affirmation where the
person accepting the offer takes conclusion based on some lawful consideration
(Chen L., Law S. and Lee S. 2003).
4

5.  Free Consent: To form a legitimate agreement the two parties should give their
free consent, or else the contract will be advised as a null and void agreement
(Leibee, B. C. (1976).
 Writing and Registration: An official contract has to be in written form and
registered by the government administration to make the agreement legitimate
(Kennedy, R. D. & McMullen, S. Y. 1968).
 Formal Relation: Official relation has to be considered in order to make a valid
agreement (Horton, C., 2012). Any act of casual affirmation cannot be
considered as a formal contract, such as; an individual gave promise to another
person that he would give him a car but he did not mention when. So, it will not
be enumerate as an agreement because there was no formal relation present.
 Certainty: Each and every component of an agreement has to be certain so that
each party is able to recognize the matters considering the contract (Chen L.,
Law S. and Lee S. 2003).
 Possibility of Performance: A valid agreement should have the likelihood of
presentation because if the agreement cannot perform the matters then it will not
be advised as a contract (Kennedy, R. D. & McMullen, S. Y. 1968).
 Enforceable by Law: A valid agreement is enforceable by regulation; else it will
be advised as the event of break of contract (Kennedy, R. D. & McMullen, S. Y.
1968).
1.2 THE IMPACT OF DIFFERENT TYPES OF CONTRACT
There are many types of contracts that are;

Implied Contact: To pattern a legitimate agreement free consent is
significant of the both parties. But in case of implied agreement it will be
advised as a legitimate agreement if one party does not give permission
(Chen L., Law S. and Lee S. 2003). This type of contracts occurs when an
individual behave like he/she owns any assets and sell those assets. For
example; if a servant deals his or her proprietor’s stuffs as if s/he is the
5

6. proprietor of the assets without the free permission of the proprietor then it will
be advised as an implied contract.

Express Contract: Express contract is one of the numerous kinds of
contracts where it is either in the formation of a written document or it can
even be in the oral pattern which is accepted to the authority that focuses on
the permission to terms (Kennedy, R. D. & McMullen, S. Y. 1968).

Contract under Seal: The customary method of making an agreement
legitimate is the closing of the lawful article that is enforceable (Horton, C.,
2012). It is important to mark the documents with seals and the both parties
are liable to accept the outcomes of the affirmation after it is sealed.

Executed Contact: It is a type of agreement where both parties execute the
terms and conditions of the contracts before they go in to an agreement and
there is not anything to be worked out by each party (Leibee, B. C. 1976). The
performance of the parties signifies that there is no agreement, and then it is
a performed contract.

Unconscionable Contact: It is an agreement in which both parties are
alarmed about the agreement but one party gets the higher advantages than
the other (Kennedy, R. D. & McMullen, S. Y. 1968). This type of agreement is
unenforceable because there is lack of free permission from one of the party.
1.3 ANALYSIS OF TERMS IN CONTRACTS
There are numerous objectives of agreements. It is significant for the parties to
understand the distinct types of agreements, terms, and components which not only
helps the parties to comply with the agreement but furthermore assists to diminish
agreement administration charges (Chen L., Law S. and Lee S. 2003). Major alterations
are essential to align the emplacement affirmation.
The TAM’s college is endeavoring to become one of the best educational institutes of
United Kingdom. So, they are trying to capture the attention and hiring agencies and
lawful advisors to help them with the mission. In order to become the best educational
institute in United Kingdom, they are going into agreements with some bureaus for their
6

7. marketing reasons and solving the legal matters. To pattern a legitimate agreement
there should be some dissimilarity amidst the exchanging of terms, concerns and
bargaining of the parties and TAM’s college is endeavoring to bring the differences.
TASK 2
2.1 APPLICATION OF THE ELEMENTS OF CONTRACT
The parties must respect the terms and conditions of the agreement and if one party or
the other party disagrees from the promise of affirmation then the party respecting the
affirmation can go to court and take lawful actions (Kennedy, R. D. & McMullen, S. Y.
1968). A valid agreement is enforceable by law.
The basic elements of the contract with NAMS are:
Offer
Valid contract
is enforceable
by law
Formal relation
Acceptance
Free consent
Figure: Basic Elements of Valid Contract
7

8. NAMS provided boasts for intensive promotion for one month to make TAM’s reputation
sky-scraping and assist them to become one of the best educational institutes in UK. In
an official valid agreement, offer is the initiation of an agreement with another party and
forms a business relationship.
In alignment to make a legitimate contract the terms and conditions of the contract has
to be accepted by the parties taking part in an agreement, else it will be considered as a
void agreement. TAM’s college has acknowledged the NAMS marketing offer for one
month and paid the initial fee of £2500. Both the parties in the agreement went into the
agreement with free consent and the agreement was in a written form to make the
contract a formal contract.
Legitimate agreement is enforceable by regulation. The administration of TAM’s college
has the authority and confirmation that NAMS has breached the affirmation and the
primary term. NAMS were unable to supply marketing assistance to TAM’s college so
that, the TAM’s college has taken lawful activities against NAMS.
2.2 APPLICATION OF THE LAW
As soon as two or more parties make an agreement then there are some vital
components that need to be advised in order to make a legitimate contract (Leibee, B.
C. 1976). The parties engaged in contract give self-assurance and boost the terms and
conditions of a contract. Attitude of the parties may differ from the affirmation which was
presumed to be in use as just a pre-declaration of the valid contract and consequently
not part of the agreement (Chen L., Law S. and Lee S. 2003). Parties to an indenture
follow only its terms, not by any insignificant declarations that may not be accomplished.
To form a valid contract certain requirements are needed. Such as;
8

9. Collateral Contracts
•It is a type of contract in which
the terms and conditions are
normally in a written form as
the basis of the agreement.
Where the declaration have
been conceived and intended
as to make certain to induce
the main agreement. Jury has
been coordinated to find a
security convention someplace
to make the contract valid and
beneficial for the parties
acquiesced upon the
agreement (DiMatteo, L. A.
1998).
Contract Includes
Conditions and Warranties
•The more imperative conditions are
describing "Circumstances", the
lesser significant conditions are
called "Warranties”. These parts are
so significant that without any one or
supplementary conditions, the parties
would not proceed into the
agreement. As a result, to construct a
circumstance incorrectly, or to break
a condition, is examined so
vigorously and considered as a
mistreated confirmation. The
agreement itself motivates both the
parties (DiMatteo, L. A. 1998).
Figure: Requirements of a Valid Contract
Exclusion of responsibility of the terms:
Agreement can be made where other associations are likely to have a term in the
contract that skip one of the party’s accountability and may proceed wrong in the
presentation of the agreement or limits on that accountability (DiMatteo, L. A. 1998). It is
called a “Prohibiting Paragraph” or an issue clause. Founded on the scenario, a
prohibiting clause from “Responsibility” for ruin done to the TAM’s marketing crusade by
NAMS might be included in the affirmation between NAMS and TAM’s college.
2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS
There are many terms encompassed in the agreements and some of them are for rules
and regulations (Okeke, C.N. 1988). These are formation of agreement and it is
necessary to be in a written form and the seal is needed. There are many kinds of
regulation and it requires diverse types of formalities.
9

10.  Establishing Implied Terms
There are some situations in which agreements need to institute the inferred
terms formally and it is made from one individual to another individual (Okeke,
C.N. 1988).
 The Patrol Evidences Rule
It is a function that encompasses oral evidences. Oral evidence might not be
added or shown to be a false in writing item (Okeke, C.N. 1988). The contract
habitually endeavors to the law of confirmation and applies not only to contracts
but also to all kinds of credentials.
 Various Types of Conditions
Various types of situation may affect the agreement and practical judiciousness
of word is good for central grouping of contractual sign (Okeke, C.N. 1988). The
preparation for committing a breach of circumstance at universal regulation is
refutation and indemnity.
The Up-To-The-Minute Observation
The violation of a circumstance permits the overhead misgiving accumulating to
reckless cost to
the indenture as rejected, extravagance in the indenture and the
parties are endow to compel to the activities and presentation (Horton, C., 2012).
In the granted position, TAM’s college has agreed to supply the marketing agreement to
NAMS on the basis of their oral evidence of strong marketing and promotion for one
month for £6000 and established an implied contract between TAM’s college and
NAMS.
10

11. TASK 3
3.1 CONTRASTING LIABILITY IN TORT WITH CONTRACTUAL
LIABILITY
Tort and contact liability:
The regulation 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 relevant to, while in
the regulation of contract or in trusts obligation is "Voluntarily Assumed" (Chen L., Law
S. and Lee S. 2003). Contract damages are established on losses that are expected,
while tort damages are compensatory.
3.2 THE NATURE OF LIABILITY IN NEGLIGENCE
1. DUTY: The duty is an obligation of one individual to another individual, it is
conceived form the communal desires and beliefs (Myer, J. W. 1978). The glue
of communal obligation is the threaded that binds humans to one another in
assemblies where preferences are advised inappropriately if they contravene a
pre-existing impulse and restore hastily.
2. Cause in Fact: A small number of trouble are more fascinating, with tenacity
more vague then causation. Based on the surrounds and performances an
individual might select to take steps and avoid doing silly dramatics in assured
(DiMatteo, L. A. 1998).
3. Breach of Contract: Breach of agreement is the most significant thing in the
contract tort of negligence. It is the demeanour of the people to proceed as a
reckless individual or party and not performing the agreement terms and
conditions (Chen L., Law S. and Lee S. 2003). This element implies the preexistence of a standard of correct demeanour to avoid imposing undue risks of
damage to people. NAMS has breached the agreement when they have halted
the promotion and marketing of TAM’s college for one week.
11

12. 3.3 VICARIOUS LIABILITY IN BUSINESS
It is a doctrine of English tort regulation that imposes firm liability on employers for the
wrongdoings of their employees (Leibee, B. C. 1976). Usually, a company will be held
liable for any tort pledged while a worker is conducting their obligations. Vicarious
responsibility means that anybody can be detained legally or to blame for the lacking
concentration actions of a distinct one-by-one even regardless of the fact that someone
overwhelms no mistake in furtherance of the inattentive or tortuous acts (N. Et Al.
Kumar, 2001).
In the granted scenario the administration of TAM’s college fell in the doctrine of
vicarious liability because the guard’s family has taken lawful actions against the
institution. Though the administration and the supervisors were alerted about the
misfortunes and were furthermore suggested to wear proper clothing for the nonteaching staffs to avoid wounds.
The staff who was injured did not listen to the organization’s policies so, the
administration refused to give any reimbursement to the casualty but The TAM’s college
are compelled to pay the compensation because of the doctrine of vicarious liability.
12

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
Duty of Care: the person might owe an obligation of care to ensure that they do not
suffer from any awkward harm or decrease. If such obligation is broken, a legal liability
is imposed (Leibee, B. C. 1976). TAM’s college workers were alerted about the harm
and deficiency that the employees might face.
Tort Negligence Law: It is a pattern of regulation in which it is founded and operated in
the realm of intentional tort regulation and the basic purpose of negligence regulation, is
to command and protect the workers from wounds related to their line. TAM’s college’s
non-teaching employees were suggested to use shielding apparel for their security
(John W. 2009).
An individual may owe a duty of care to ensure that they do not suffer from any
unreasonable harm. If such duty is breached, a legal liability is imposed. TAM’s college
employees were warned about the harm and losses that the employees might face
(John W. 2009).
POTENTIAL SOURCES OF
NEGLIGENCE
DEFENCE AGAINST NEGLIGENCE
INADEQUATE PROTECTION
AN ACT OF GOD
POOR SELECTION OF ACTIVITIES
SUDDEN EMERGENCY
HAZARDOUS CONDITIONS
ASSUMPTION OF RISK
USE OF FAULTY EQUIPMENT
Table: Sources of Negligence
13

14. 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).

Poor selection of activities: The undertakings that are beyond the capabilities
of individuals or inadequate information of undertakings are poor assortment of
activities (John W. 2009).

Hazardous conditions: Hazardous conditions are unforeseen and unavoidable
(John W. 2009).

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:

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).

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 (John W. 2009).

Assumption of risk: It is assumed that a person takes measure of the risks
when engaging in activity (John W. 2009).
4.2 APPLICATION OF VICARIOUS LIABILITY
The TAM’s college has enforced the wearing for college’s non-teaching staffs in
alignment to stay away from future accidents. Although the senior supervisors have
overlooked the alert and he has dispatched off a night guard on obligation without the
correct apparel. It is against the institute’s principle.
Supervisors have the inherent power to control over the workers and the supervisors
were requested to maintain the right apparel and proper defending gears of the non-
14

15. teaching staffs. But in this scenario the supervisors did not follow the instructions and
lead one of their staffs to duty without correct apparel (Roberts, M. & Zahay, D. 2012).
On the other hand, vicarious blame means that any person can be detained legally to
blame for the inattentive actions of a different person. In this case the supervisors were
inattentive to the directions and that lead one of the staffs to get hurt. But the
administration of the TAM’s college will be found to blame because of vicarious liability
doctrine.
The administration denied the reimbursement to the employee because he was not
following the directions of the TAM’s college. But under the vicarious liability doctrine a
employee may be faulty but TAM’s administration will be lawfully to blame for the staff’s
wrong doing.
CONCLUSION
In one situation TAM’s college went in an agreement with the NAMS marketing firm to
market the possibilities of the college but the firm were incapable of providing the
service and TAM’s college took legal actions against them. In another scenario TAM’s
college authority have to face legal actions from one of their non-teaching staff because
the management of TAM’s college have denied the compensation for the injured
employee because the staff was not following the management’s orders and ignored the
institutes polices.
15

16. REFERENCES
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.
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.
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
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.
16