This document discusses aspects of contracts and negligence for business. It analyzes the essential elements of a valid contract, different types of contracts and their impacts, and terms included in contracts. It then applies these contract principles to the scenario of TAM's College contracting with NAMS marketing firm. It also contrasts liability in tort versus contract, discusses the nature of liability in negligence and vicarious liability in business. Finally, it applies the principles of negligence tort, defenses against negligence, and vicarious liability to the scenario of a non-teaching staff member of TAM's College getting injured.

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 scenarios TAM’s college was looking forward to the future potentialities of the
institution and hired legal advisors to solve the future risks that might arise. TAM’s college also
went in to a contract with NAMS marketing firm to promote and reach out to the mass people of
United Kingdom. On their quest of becoming one of the best educational institutes TAM’s
college had to face many challenges and penalties. One of the non-teaching staff of TAM’s
college had got into an accident and the management of the college was liable to compensate the
staff. But the college authority denied the claim and faced lawsuit against them.
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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 .................................................................................................................... 8
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 .................................................................................................. 11
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
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4. TASK 1
1.1 ESSENTIAL ELEMENTS OF A VALID CONTRACT
The elements that are part and parcel of the contract need to perform with dedication by the
parties participating in the contract. These elements have significant value to the contract. There
are six elements of valid contract. And they are:
1. Offer and
Acceptance
2. Lawful Consideration
3. Free Consent
4. Writing and Registration
5. Certainty
6. Enforceable by Law
Figure: Essential Elements of Valid Contract

Offer and Acceptance: In a legitimate contract an offer has to be made and it is the
prime step inside the main heading of an affirmation (Collins, Hugh. 1999). Chased by
the interested party the other party has to accept the offer to make the agreement valid.

Certainty: Certainty has to be present in the formation of a valid contract because if the
elements of the contract are certain then the parties participating in the contract are able
to realize the issues described in the contract (Hare, J. I. Clark. 2003).
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5. 
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 (Black, H. C.
1979).

Lawful Consideration: When the person accepting the offer takes conclusion on the
basis of some lawful consideration (Bucher, C.A. 1983).

Writing and Registration: A formal contract has to be in written and registered by the
government authority to make the contract valid (Marsh, P.D.V. 2001).

Enforceable by Law: A valid contract is enforceable by law otherwise it will be
considered as the event of breach of contract (Collins, Hugh. 1999).
1.2 THE IMPACT OF DI FFERENT TYPES OF CONTRACT
There are many types of contracts that are;

Executed Contact: Executed contracts means that both parties have executed the terms
and situation of the affirmations before they go in to a agreement and there is nothing to
be worked out by any of the party (Black, H. C. 1979).

Unconscionable Contact: It is a kind of affirmation in which both parties are anxious
about the agreement but one party gets the higher advantages than the other (Bucher,
C.A. 1983). This kind of affirmations is unenforceable because there is need of free
permission from every party.

Contract under Seal: It is important to assess the article with diverse closures and the
both parties are liable to accept the outcomes of the affirmation after it is closed. To make
a legitimate agreement the lawful items are have to be closed so that they are enforceable
by law (Marsh, P.D.V. 2001).

Express Contract: It is one of the many types of agreements in which the formation is
either in the formation of a written article or it can even be in the oral pattern which is
accepted to the ruling body that focuses on the permission to periods (Collins, Hugh.
1999).

Implied Contact: To build a legitimate affirmation free consent is significant (Marsh,
P.D.V. 2001). Although just in case of implied agreement it is to be suggested as a
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6. legitimate agreement if one party does not offer free consent. This kind of agreements
occurs only when a person pretends to have any assets and sell it.
1.3 ANALYSIS OF TERMS IN CONTRACTS
Major alterations are essential to align the emplacement affirmation.
It is important for the parties to realize the different types of affirmations, terms, components,
and signals which not only assists the parties to comply with the agreement but also assists to
dwindle agreement administration allegations (Bucher, C.A. 1983). There are numerous
objectives of agreements.
TAM’s are going into agreements with some bureaus for their trading reasons and solving the
lawful affairs in order to become the best educational institution in UK. So, they are endeavoring
to apprehend the awareness and letting agencies and lawful advisors to help them to the quest.
The TAM’s college is endeavoring to become one of the best educational institutions in UK. To
make a legitimate affirmation there should be some dissimilarity amidst the swapping of time
span, considerations and bargaining of the parties and TAM’s is endeavoring to express the
dissimilarities.
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7. TASK 2
2.1 APPLICATION OF THE ELEMENTS OF CONTRACT
The parties must respect the terms and position of the agreement and if one party or the other
party differs from the promise of affirmation then the party honoring the affirmation can go to
court and take lawful activities (Marsh, P.D.V. 2001). A legitimate agreement is enforceable by
regulation.
The basic elements of the contract with NAMS are:
Offer
Acceptance
Free consent
Formal
relation
Enforceable
by law
Figure: Basic Elements of Valid Contract
NAMS provided the offer of intensive advertisement for one month to make TAM’s rank high
and aid them in becoming one of the best informative associations in the UK. In a prescribed
legitimate contract offer is the initiation of an agreement with another party that builds a formal
relationship.
Both the parties in the agreement entered into the agreement with free consent and in a writing
documentation turned the agreement in a prescribed relation. TAM’s college has accepted the
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8. NAMS trading offer for one month and paid the primary fee of £2500 and entered in to a
legitimate contract. Because in alignment to make a valid contract the periods and conditions of
the contract have to be acknowledged by the parties taking part in an agreement, otherwise it will
be considered as a void agreement
Legitimate agreement is enforceable by regulation. NAMS were incapable to supply swapping
aid to TAM’s college so that the TAM’s college has taken lawful undertakings against NAMS.
The management of TAM’s college has the confirmation that NAMS has breached the
agreement affirmation and the primary term.
2.2 APPLICATION OF THE LAW
Crucial components that are important in order to make a legitimate affirmation need to be
advised (Marsh, P.D.V. 2001). Approach of the parties may conflict from the affirmation terms
which were presumed to be in use as just a pre-declaration of the legitimate affirmation and
consequently not part of the affirmation (DiMatteo, L. A. 1998). The parties involved in an
agreement give self-assurance and increase the terms and conditions of an agreement. Parties to
an indenture pursue only its time span, not by any minor declarations that may not be completed.
To form a valid contract certain requirements are needed. Such as;

Collateral Contracts
It is one kind of contract in which the terms and situation are commonly in writing as the
cornerstone of the agreement. Where the declaration have been created and intended as to
make certain to induce the main contract (DiMatteo, L. A. 1998). Judges have been
coordinated to find out a security principle someplace to make the agreement legitimate
and beneficial for the parties acquiesced upon the contract.

Contract Includes Conditions and Warranties
The more imperative periods are describing "Circumstances", the lesser amount
important periods are called "Warranties”. These components are so important that in
absence of any one or supplementary of the parties would not proceed into the indenture.
As a result, to construct a circumstance incorrectly, or to break a condition, is examined
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9. so unsafely and considered as a mistreated agreement (DiMatteo, L. A. 1998). The
indenture itself supplies motivation to the both parties. The court examines at each case
on its own deserves. In making a conclusion as to whether a period is a condition or a
warranty, the court will address all the surrounding attenuating factors, encompassing the
gravity of the consequences if the agreement is held to be non-binding and the aims of the
parties at the time they made the contract.
2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS
There are many terms included in the affirmations and some of them are only for formalities
(Okeke, C.N. 1988). These are formation of agreement and it is essential to be in a written and
the close is needed to set up it.
The Patrol
Evidences Rule
• It is a function that
embraces oral
evidences. Oral
evidence may not be
adduced to adjoin to
state thet they are not
shown to be a false in
composing article
(Okeke, C.N. 1988).
The agreement
habitually endeavours
to the law of
confirmation and
concerns not only to
agreements but also
all kinds of
credentials.
Establishing
Implied Terms
• There
are
some
positions in which
agreements need to be
established and the
inferred
terms
formally and it is
made
from
one
individual to another
individual
(Okeke,
C.N. 1988).
Various Types
of Conditions
• Varied
types
of
position may sway
the agreement and
technical
judiciousness of the
phrase is a good
allowance of central
grouping
of
contractual
expression
(Okeke,
C.N. 1988). The
groundwork
for
committing a breach
of circumstance at
universal guideline is
refutation
and
indemnity.
Figure: Effects of Different Terms
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10. The Up-To-The-Minute Observation
In the allocated position, TAM’s college has agreed to give NAMS the contract founded on their
oral evidence of powerful marketing and promotional devices for one month only for £6000 and
established an inferred affirmation between TAM’s college and NAMS.
TASK 3
3.1
CONTRASTING
LIABILITY
CONTRACTUAL LIABILITY
IN
TORT
WITH
Tort and contact liability:
The guideline of tort and of contract is categorized as part of the "Law of Obligations", but the
regulation of tort concerns to everyone that it is applicable to, while in the guideline of
affirmation or in trusts obligation is "Voluntarily presumed" (DiMatteo, L. A. 1998). Affirmation
damages are founded on deficiencies that are anticipated, while tort damages are compensatory.
3.2 THE NATURE OF LIABILITY IN NEGLIGENCE
1. DUTY: The glue of communal duty is the threaded that binds humans to one another in
groups where preferences are advised unsuitable if they disobey a pre-existing impulse
and refurbish carelessly (DiMatteo, L. A. 1998). The obligation is a sense of obligation of
one person to another; it is created pattern the communal yearns, beliefs and diverse types
of belief.
2. Breach of Contract: Break of affirmation is most important thing in the affirmation tort
of negligence. It is the behaviour of the people to proceed as an irresponsible perosn or
party and not accomplishing the agreement periods and situation (DiMatteo, L. A. 1998).
This component proposes the pre-existence of a benchmark of correct demeanour to
bypass enforcing undue hazards of impairment to people. NAMS has broken the
affirmation when they have halted the selling of TAM’s for one week.
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11. 3.3 VICARIOUS LIABILITY IN BUSINESS
It is a doctrine of English tort law that imposes firm liability on employers for the wrongdoings
of their employees. Usually, an overseer will be held liable for any tort pledged while a worker is
bearing out their obligations (Chen L., Law S. and Lee S. 2003). Vicarious responsibility means
that a the employer can be detained lawfully to accuse for the inattentive activities of a distinct
worker even regardless of the detail that someone swamps no error in furtherance of the
inattentive or tortuous actions (John W. 2009).
TAM’s college has fell in the doctrine of vicarious liability because of the evening guard’s
family has taken legal activities against the organization. Though the management and the
supervisors were notified about the misfortunes and were also proposed to wear shielding
apparel for the non-teaching staffs to bypass injuries.
The workers who got injured did not maintained the organization’s principle so the management
denied giving any reimbursement to the casualty but the management of TAM’s college are
compelled to pay the reimbursement because of the doctrine 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 kind of regulation throughout which it is sustained and functioned
inside the realm of intentional wrongful conducts of law and furthermore the rudimentary cause
of negligence regulation, is to organize and defend the workers from wounds associated to their
line (Leibee, B. C. 1976). TAM’s college’s non-teaching workers were urged to use protecting
buyer items for his or her security and security.
Duty of Care: An individual could owe a compulsion of care to make certain that they are not
bearing from any awkward injury. If such obligation is broken, a lawful liability is implemented.
TAM’s college staffs were warned in relation to the injury and deficiency that the employees
may face (John W. 2009).
Sources of Negligence: Negligence will be distinguished as malfunction to require 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.
Potential sources of
negligence
• Poor selection of
activities
• Use of faulty equipment
Defence against Negligence
• Assumption of risk
• Sudden emergency
• An act of God
Figure: Sources of Negligence
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13. Potential sources of negligence are:

Use of faulty equipment: Another potential source of negligence is the use of faulty
equipment which can cause harm (John W. 2009).

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).
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
(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
(Emenike, E.U.I. 1989).
4.2 APPLICATION OF VICARIOUS LIABILITY
The TAM’s management has enforced the carrying the proper guideline and apparel for college’s
non-teaching staffs to bypass future misfortunes. Though the skilled supervisors have unmarked
the alert and he has dispatched off a night guard on duty while not the correct attire. It is against
the enterprise policy.
Supervisors has the inherent administration to order over the employees and the supervisors were
asked to sustain the right clothing and correct keeping safe gears of the non-teaching staffs
(Collins, Hugh. 1999). But in this scenario the supervisors did not pursue the instructions and
lead one of their staffs to obligation without correct clothing
In this case the supervisors were inattentive to the instructions and that lead one of the staffs to
get injured. However, vicarious responsibility means that any person can be detained legally to
blame for the inattentive actions of a different person. But the authority of the TAM’s college
will be discovered responsible because of vicarious liability doctrine.
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14. The administration rejected the compensation to the employees because he was not following the
rules of the TAM’s college. But under the vicarious liability doctrine no issue how defective the
staffs are the TAM’s authority will be legally to blame for the staff’s wrong doing.
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15. CONCLUSION
TAM’s college authority have to face legal actions from one of their non-teaching staff because
the administration of TAM’s college have refused the reimbursement for the hurt worker because
the employees was not following the management’s orders and ignored the organizations polices.
In the earlier situation TAM’s college went in an affirmation with the NAMS to market the
possibilities of the college but the firm was incapable of supplying the service and TAM’s
college took lawful actions against them.
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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.
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
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.
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
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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