The document discusses a case involving contracts between TAM's College and NAMS marketing firm. NAMS was hired for one month to promote TAM's but broke the contract after one week. TAM's sued based on a contract term requiring NAMS to refund fees and pay £1500 if they failed to deliver. TAM's was also sued under vicarious liability because a staff member was injured for not wearing proper attire as required. The document analyzes elements of a valid contract, different contract types, terms, and defenses. It contrasts tort and contractual liability, discusses negligence elements and defenses, and how vicarious liability applies to businesses.

1. An Assignment on
ASPECT OF CONTRACTS AND
NEGLIGENCE’S FOR THE BUSINESS
Submitted:
Name:
ID:
Submitted To:
Date of Submission:

2. TABLE OF CONTENT
EXECUTIVE SUMMARY
2
TASK 1
3
1.1 ESSENTIAL ELEMENTS OF A VALID CONTRACT
1.2 THE IMPACT OF DIFFERENT TYPES OF CONTRACT
1.3 ANALYSIS OF TERMS IN CONTRACTS
3
4
5
TASK 2
6
2.1 APPLICATION OF THE ELEMENTS OF CONTRACT
2.2 APPLICATION OF THE LAW
2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS
6
7
9
TASK 3
10
3.1 CONTRASTING LIABILITY IN TORT WITH CONTRACTUAL LIABILITY
3.2 THE NATURE OF LIABILITY IN NEGLIGENCE
3.3 VICARIOUS LIABILITY IN BUSINESS
10
10
10
TASK 4
11
4.1 APPLICATION OF THE TORT OF NEGLIGENCE AND DEFENCES
4.2 APPLICATION OF VICARIOUS LIABILITY
11
13
CONCLUSION
13
REFERENCES
14
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3. Executive Summary
TAM’s college wants to become one the most effective academic institutes within the United
Kingdom. To materialize this fact they made a contract with the NAMSmarketing firm. Their job
was to promote the options and facilities provided by the institutions. NAMS marketing firm got
the contract for one month. But throughout the month long agreement the marketing firm NAMS
broken the contract and requested TAM’s management to let them continue their marketing
program.However the administration of TAM’s college took legal actions based mostly on the
primary terms of the NAMS that asserted; if the NAMS cannot deliver approval they will refund
advance and moreover pay compensation of £1500.On the other hand, the college has moreover
faced the prosecution against them owing to the misfortune of 1 of their staffs for not sporting
the proper attire and shielding gear on duty. Thus the vicarious liability concept is actualized as
theTAM’s college needs to bear the legal penalties.
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4. Task 1
1.1 ESSENTIAL ELEMENTS OF A VALID CONTRACT
For making a valid contract, the following eight elements are very important.
i. Offer and Acceptance
ii. Free Consent
iii. Lawful
Consideration
iv. Formal
Relation
v. Writing and Registration
vi. Enforceable by Law
vii. Certainty
viii. Possibility of Performance
Figure: Essential Elements of Valid Contract
i.
Offer and Acceptance:An offer has to be made for the arrangement of a legitimate
agreement. It can be signified as the initiation of affirmation (Black, H. C.
1979).Subsequently, the involved party has to accept upon the offer and therefore an
agreement pattern is prepared.
ii.
Free Consent:Free consent should be given by the two parties in order to form a
legitimate agreement otherwise the contract will be advised as a null and void agreement
(Black, H. C. 1979).
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5. iii.
Lawful Consideration:A mutual agreement lead to an affirmation where the person
accepting the offer takes conclusion which is based on some lawful consideration (Black,
H. C. 1979).
iv.
Formal Relation:Formal official relation is considered to be a prerequisite in order to
make a valid agreement (Black, H. C. 1979). Personal or casual affirmation cannot be
considered as a formal contract, such as; an individual gave promise to another person
that he would give him some money but he did not mention when. So, it will not be
considered as an agreement because there was a lack of formal relation.
v.
Writing and Registration:To make the agreement legitimate, an official contract has to
be prepared in written form and registered by the government administration (Black, H.
C. 1979).
vi.
Enforceable by Law: A valid agreement is enforceable by regulation; else it will be
advised as the event of break of contract (Black, H. C. 1979).
vii.
Certainty:It is very important that each and every component of an agreement is certain
so that each party is able to recognize the matters considering the contract (Black, H. C.
1979).
viii.
Possibility of Performance:A valid agreement should have the possibility of presentation
because if the agreement is incapable of performing the matters, then it will not be
advised as a contract (Black, H. C. 1979).
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(Black, H. C. 1979). This type of contracts occurs
when an individual behave like he/she owns any assets and sellthose assets. For example;
if a servant deals his or her proprietor’s stuffs as if s/he is the proprietor of the assets
without the free permission of the proprietor then it will be advised as an implied
contract.
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6. 
Contract under Seal:The customary method of making an agreement legitimate is the
closing of the lawful article that is enforceable(Black, H. C. 1979). 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(Black, H. C. 1979). The performance of the parties signifies
that there is no agreement, and then it is a performed 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 (Black, H. C. 1979).

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 (Black, H. C. 1979).
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 componentswhich not only helps the parties to comply
with the agreement but furthermore assists to diminish agreement administration charges
(Bucher, C.A. 1983). 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 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.
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7. 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 (Cite man, 2011). A valid agreement is enforceable by law.
The basic elements of the contract with NAMS are:
Offer
Acceptance
Free consent
Formal relation
Valid contract is
enforceable by law
To assist TAM’s to be one of the best educational institutes in UK; NAMS provided them boasts
for intensive promotion for one month. Offer is the initiation of an agreement with another
partyin an official valid agreement.
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. NAMS
marketing offer for one month has been acknowledged by TAM’s college and they paid the
initial fee of £2500. Both the parties in the agreement went into the agreement with free consent
andthe agreement was in a written form to make the contract a formal contract.
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8. 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.Thus it can be said, legitimate agreement is enforceable by regulation.
2.2 APPLICATION OF THE LAW
No sooner hadtwo or more parties made anagreement then there are some vital components that
were needed to be advised in order to make a legitimate contract (Cite man, 2011). 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 predeclaration of the valid contract and consequently not part of the agreement (DiMatteo, L. A.
1998). Parties to an agreement follow only its terms, not by any insignificant declarations that
may not be accomplished.
Requirementsneeded to form a valid contract are:
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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. The court examines at each case
on its own deserves. In making a
conclusion as to if a term is a condition
or a warranty; the court will address all
the
surrounding
circumstances,
encompassing the seriousness of the
consequences if the contract is held to be
non-binding and the aims of the parties
at the time they made the contract
(DiMatteo, L. A. 1998).
Figure: Requirements of a Valid Contract
Exclusion of responsibility of the terms:
“Prohibiting Paragraph”can be defined as the agreement can be made where other associations
are likely to have a term in the contractthat 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). 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.
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10. 2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS
There are many terms and conditions encompassed in the agreements and some of them are for
rules and regulations (Okeke, C.N. 1988). These terms and conditions are the 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.
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
Various Types of
It is a function that
Conditions
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 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 agreement as rejected, overindulgence in the agreement and the parties are endow to compel
to the activities and presentation (Cite man, 2011).
In the granted position, TAM’s college has established an implied contract with NAMSand
agreed to supply the marketing agreement to NAMS on the basisof their oral evidence of strong
marketing and promotion for one month for £6000.
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11. Task 3
3.1 CONTRASTING LIABILITY IN TORT WITH CONTRACTUAL LIABILITY
Tort and contact liability:
"Law of Obligations" includes the regulation of tort and of agreement, but the law of tort
concerns to every individual that it is relevant to, while in the regulation of contract or in trusts
obligation is "Voluntarily Assumed" (DiMatteo, L. A. 1998). While the tort damages are
compensatory, contract damages are established on losses that are expected.
3.2 THE NATURE OF LIABILITY IN NEGLIGENCE
i.
Duty:The duty is an obligation of one individual to another individual, it is conceived
form the communal desires and beliefs(DiMatteo, L. A. 1998). 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.
ii.
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).
iii.
Breach of Contract:In the contract tort of negligence,breach of agreement is considered
the most significant thing. It is the demeanour of the people to proceed as areckless
individual or party and not performing the agreement terms and conditions(DiMatteo, L.
A. 1998). This element implies the pre-existence 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.
3.3 VICARIOUS LIABILITY IN BUSINESS
Generally, a company will be responsible for any tort pledged while a worker is conducting their
obligations.It is a doctrine of English tort regulation that imposes firm liability on employers for
the wrongdoings of their employees (Leibee, B. C. 1976). Vicarious responsibility refers to the
fact 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(DiMatteo, L. A. 1998).
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12. In the granted scenario the administration of TAM’s college fell in the doctrine of vicarious
liability because lawful actions have been taken by the guard’s family against the institution.
Though to avoid woundsthe administration and the supervisors were alerted about the
misfortunes and were furthermore suggested to wear proper clothing for the non-teaching staffs.
The administration refused to give any reimbursement to the staff thatwasinjuredas he did not
listen to the organization’s policies,but because of the doctrine of vicarious liability the TAM’s
college are compelled to pay the compensation.
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 and deficiency. 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:the basic purpose of negligence regulation is to command and protect the
workers from wounds related to their line. It is a pattern of regulation in which it is founded and
operated in the realm of intentional tort regulation. TAM’s college’s non-teaching employees
were suggested to use shielding apparel for their security (Leibee, B. C. 1976).
A legal liability is imposed if such duty is breached that an individual may owe to ensure that
they do not suffer from any unreasonable harm. TAM’s college employees were warned about
the harm and losses that the employees might face.
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13. Potential sources of negligence
• Inadequate protection
• Poor selection of activities
• Hazardous conditions
• Use of faulty equipment
Defence against Negligence
• An act of God
• Sudden emergency
• Assumption of risk
Potential sources of negligence are:

Inadequate protection:It is negligent behaviour on part of the person who is unwilling to
wear protective gears (Emenike, E.U.I. 1989).

Poor selection of activities:The undertakings that are beyond the capabilities of
individuals or inadequate information of undertakings are poor assortment of activities
(Emenike, E.U.I. 1989).

Hazardous conditions: Hazardous conditions are unpredicted and unavoidable (Emenike,
E.U.I. 1989).

Use of faulty equipment:Negligence is using faulty equipment can also cause harm
(Emenike, E.U.I. 1989).
Defence against Negligence:

An act of God:Human beings cannot control these kind of situations. This assumption is
only applicable when adequate safety measures are taken to avoid injuries (Emenike,
E.U.I. 1989).

Sudden emergency: It refers to any act of abrupt action to help the person in danger.
Such as, attempt to rescue a drowning person in the water is an act of sudden emergency
(Emenike, E.U.I. 1989).

Assumption of risk: It is assumed that a person takes measure of the risks when engaging
in activity (Emenike, E.U.I. 1989).
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14. 4.2 APPLICATION OF VICARIOUS LIABILITY
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-teaching staffs. But
in this scenario the supervisors did not follow the instructions and lead one of their staffs to duty
without correct apparel (Hofstra, 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 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.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
an employee may be faulty but TAM’s administration will be lawfully to blame for the staff’s
wrong doing.
Conclusion
TAM’s college has nominated lawful advisors in order to deal with the lawful matters that are
promisesto threat for them. They furthermore have an ambition of being the best institute in the
UK and for this reason they were hiring bureaus to encourage their college and endeavouring to
capture the attention of the students who likes value education with the largest facilities. NAMS
marketing conferring firm gave the brightest offer that they can use comprehensive marketing
tool and promote the college title for one month only for £6000. NAMS had to stall the trading
program due to financial matters and TAM’s college were not happy about it and they have taken
legal activities against NAMS trading firm based on the primary periods of NAMS. On the third
scenario TAM’s college was liable to pay a reimbursement for an incident with one of their staff
that they have denied because of the staffs negligent proceed against the policies of the college.
As an outcome TAM’s had to face legalactions and dropped in to an English doctrine.
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15. References
Black, H. C. (1979). Black Law Dictionary, St. Paul West Publishing Company vol. 57, no. 2,
pp. 217-268.
Bucher, C.A. (1983). Administration of Legal Responsibilities. The C.V. Mosby Company, St.
Louis., vol. 32, no. 8, pp. 849-875.
Cite
man,
2011.
“The
Evolution
of
Contractual
impact”
(Online)
available
at
:<http://www.citeman.com/4121-essential-elements-of-a-valid-contract.html(Accessed on
December 13, 2013)
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.
Hofstra, 2012. “Business law and commercial law and practical use of these” (Online)
availableat
:<http://law.hofstra.edu/pdf/Academics/Journals/LawReview/lrv_issues_v35n04_i01.pdf
>(Accessed on November 29, 2013)
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.
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.
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