Assignment on ACBN

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Aspects of Contract and Negligence for Business (ACBN)

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Executive Summary:
Law of contract and law of tort are substantially different from each other. Fortunately, in
Business context both laws of contract and law of torts are significant to know. The agreement
which is applicable and enforceable by law is defined as the contract. Law of tort is designed to
deal with the problems of negotiations when it is necessary. In this report, both laws of contract
and law of tort are discussed in the practical business case. Having a deep understanding of this
case and answer to these questions will pave the way to solve any practical business problem that
is related to this site.

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Table of Contents
Executive Summary:....................................................................................................................... 2
Introduction:.................................................................................................................................... 4
TASK -1.......................................................................................................................................... 5
1.1 Explaining to Peter Abraham how a contract is formed and the importance of the
various elements which has to be present to form a contract...................................................... 5
1.2 Discussing the impact of forming contracts in various ways for Peter Abrahams .......... 7
1.3 Analyzing given contractual terms with reference to their meaning and effect............... 9
2 Task 2: Case studies............................................................................................................... 11
2.1 Applying the elements of contract in given business scenarios .......................................... 11
2.2 Applying the law to terms on the following contracts ................................................... 12
2.3 Evaluation of the effect of different terms in the given contracts .................................. 13
3 Task 3: Vocational Scenario.................................................................................................. 14
3.1 Explaining the similarities and differences of liability in tort with contractual liability
using an example....................................................................................................................... 14
3.2 Explaining using suitable example how liability for negligence can arise and the
conditions needed to be met for a claimant to successfully prove negligence.......................... 15
3.3 Explaining what vicarious liability means and how a business can become vicariously
liable using examples ................................................................................................................ 16
4 TASK 4 - Case studies........................................................................................................... 17
4.1 Applying the elements of the tort of negligence and defences in the given business
scenarios below; ........................................................................................................................ 17
4.2 Applying the elements of vicarious liability in given business situations below (Cases 8
and 9);........................................................................................................................................ 18
Conclusion: ................................................................................................................................... 19
References..................................................................................................................................... 20

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Introduction:
Every society is made up of thousands of exchange relationship which is based upon the
agreement. People give promise and keep a promise; in essence, society is organized on the basis
of agreement. An agreement has the characteristics of having more than one party who are
eligible to make an agreement and valid consideration, lawful object and competence of the
parties. If this agreement is enforceable by law then it is considered as a contract. Therefore, the
law of contract makes every single business transactions possible in our society. Without the law
of contract, people will have the opportunity to break the promise and the other party cannot
have the remedy of the loss. Fortunately, we are not stuck in this loss.

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TASK -1
1.1 Explaining to Peter Abraham how a contract is formed and the importance of
the various elements whichhas to be present to form a contract
Every contract must have some elements which are fundamental for any business contract to be
valid. Without having any of these elements may make a contract void ab initio that is invalid
from the beginning.
Figure 1: Elements ofvalid contract
Sources: (Chen-Wishart, 2010).
Offer and Acceptance:
One party of the contract must offer something to engage in the contract, then the another party
has to accept the offer before the quit of the offer if they want to engage in a legal and lawfully
enforceable relationship (Chen-Wishart, 2010). Here Peter Abraham is the offeror and he offers
Element
of
Contract
Consent
Consideration
Competence of
Counterparties
Offer and
Acceptance
Intention to
create legal
relations
Lawful Object

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the building his infrastructure. On the other hand, the self-employed contractor is the offeree who
can accept the offer.
Consideration:
In every business contract, there must be some consideration from both parties of the contract.
Peter Abraham consideration is the service it gets from the self-employed contractor and on the
contrary, the consideration of the self-employed contract is the money amount he will get from
Peter (Riches and Allen, 2011).
Competence of Counterparties:
Both parties of the contract must be eligible to make agreement and contract. Parties of any
contract will not be considered as competent if they are not of age by the definition of law or if
they are mentally ill at the time when signing the contract. In this case, Both Peter Abraham and
the self-employed contractor are competent (Maclntyre, 2011).
Lawful Object:
The subject or object of the contract must be valid according to the national law. For instances, if
the object of the contract is Wine is Saudi Arabia, then the contract is invalid. In this case, The
object of the contract is valid that constructing the building (Beale and Tallon, 2012).
Intention to create legal relations:
Both parties of the contract, Peter Abraham and the self employed contractor must have the good
intention to create a legal relationship.

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1.2 Discussing the impact of forming contracts in various ways for Peter
Abrahams
Peter Abraham can from its contract with the self-employed contractor in three distinct forms.
However, each form has its benefits and costs on the performance of the contract. In the
following section, we have discussed the forms of contract formation
Figure 2: Contract forming ways
Source: (Willmott, Christensen and Butler, 2005).
Face to face:
Peter Abraham can deal with the self-employed contractor face to face, which is they can
promise each other about the consideration of theirs of the contract (Anson, 2009). If they want,
they can have some human witness in place that can assist when a dispute arises. Although this is
very easy and cheap way of making a contract, unfortunately, this poses some problems when a
dispute arises.
Written contract:
Contract
forming ways
• distance selling
• written contract
• face to face

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Peter can also follow this approach of written contract where the contract between him and the
self-employed contractor will be written down in a document and then it will be signed by the
both parties within the presence of some witnesses. This written document can work as the proof
when resolving the dispute (Maclntyre, 2011).
Distance selling:
The Internet grows dramatically. Distance selling becomes a good option of forming contract.
With the help of any prominent Website or over the telephone, Peter Abraham can contact the
self-employed contractor and then can offer him about the offer. Later, the employed contractors
have the opportunity to either accept or reject the offer (Beale and Tallon, 2012).

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1.3 Analyzing given contractual terms withreference to their meaning and effect
Figure 3: Contract terms
Source: (Turner, 2009).
Condition:
Conditions are explicitly mentioned aspects of the contract which are obligatory to fulfill. If this
is conditions are not fulfilled then a great amount of loss happens to one party of the contractor.
In that case, the injured has the right to void the contract from his side or he can continue and
demand the loss from the other party (Maclntyre, 2011). For example, the Peter States that
Elevator must be present in the structure, but the contractor did not give any elevator.
Warranty: warranty are also important and explicit terms of the contract, but breaching
these aspects does not create so many problems to any party rather it causes a substantial amount
of loss which does not require the termination of contract rather the injured can claim the loss
money. For instances, Peter said Sky Blue color must be painted, but the contractor did it with
Pink Colour (Riches and Allen, 2011).
Exemption clauses:
Contract
terms
condition
warranty
innominate
terms
exemption
clauses

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Exemption clauses identify what will be the limit of the punishment to one party if it breaches
any explicit or implied terms of the contract. This was initiated by the case of Photo
Productions v Securicor (1980) case.
Innominate terms:
Innominate terms are those terms of any contract that are not determined as either
warranty or condition rather they are determined as so when the loss takes place. The
court will decide whether it is a warranty or a condition on the basis of the loss happened
to the party (Maclntyre, 2011). If the loss is great then it will be considered as a condition
otherwise as a warranty.

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2 Task 2:Case studies
2.1 Applying the elements of contract in givenbusiness scenarios
Case-1:
in this case, there is no contract between Carol and Gumtree. Since there is a dearth of an
important element of contract that is offer. Here Gumtree published the ad as an invitation to
offer and an offer. So when Carol emailed back saying that he wanted to purchase this apartment,
it can be considered as only Offer, not as acceptances. Therefore, now, the duty of acceptance
lies on Gumtree. He can either accept the offer or Reject this. If Gumtree accepts then it would
be a contract otherwise not (Riches and Allen, 2011).
Case 2:
For this situation, Gorge can't implement against Preston, on the grounds that the protest of the
agreement is not present here (Elliott and Quinn, 2007). Preston offers Gorge the IT firm
£150,000 on the off chance that they enlist his child. Be that as it may, for this situation, his child
is as of now on the offer. Along these lines, for this situation, Devi is the agreement question, but
he is as of now contracted before the offer. In this way, the offer of the Preston is invalid and in
this manner there is a possibility for the Gorge inc to acknowledge it and uphold it

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2.2 Applying the law to terms on the following contracts
Case 3:
In light of the issue of Unfairness of the prohibition provision, Restaurant can't assert the
appropriateness of the rejection statement (Bradgate and Savage, 2009). At the point when the
receipt was being given over, it had not been educated to the client, besides, it was on the rear of
the receipt. Along these lines, the shamefulness of the rejection statement is available for this
situation. So the Man has the privilege to assert the cash once again from the eatery and the
Restaurant is likewise subject to pay back to the Couple.
Case 4:
As per the instance of Liverpool City Council v Irwin [1977], which expresses that if the
proprietor to repair the regular parts of the building and on the off chance that it is not done and
on the off chance that it is done from the inhabitant part. At that point, the occupant can
guarantee the pay if the tenure contract ended (Dobson, Stokes and Dobson, 2008).
In any case, for this situation, Aaron has a suggested term with Zephra that she won't expand the
lease for a long time on account of fo the change is finished by the inhabitant Aaron. Tragically,
after the demise of Zephra, Yeti acquired the property and she chose to build the lease of the
property by damaging the suggested term of the inhabitant contract. At the point when Aaron
rejected the augmentation of the lease then Yeti ended the agreement, so now, Aaron has the
power to guarantee for the remuneration of the spending from his part (Gilles, 2014).

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2.3 Evaluation of the effect of different terms inthe given contracts
Case 5:
In the agreement of protection strategy, Good confidence between the guarantor and the
policyholder is essential. So in this specific case, Insurer plainly asked the policyholder before
the agreement Have you or any individual who will drive been included in any engine
mischances or made a claim (blame or non-blame including burglaries) amid the most recent five
years.
This was imperative data for the guarantor, in light of the fact that, on the premise of this data,
they would choose whether to issue the arrangement or not and if the strategy is to be issued,
then what ought to be the premium (Gilles, 2014). In any case, the policyholder hid the data
imagining that it is his own data. Thus, he abuses the lead of false representation. In this manner,
the organization can dismiss the policyholder.
Case 6:
This is an issue of pure deception. In any case, the organization will take their choice on the
premise of the data gave by the policyholder. In this manner, the organization has the privilege to
dismiss the claim. It is on account of, for this situation, the law of protection user picture video"
or most extreme great confidence is disregarded as a result of false representation (Anson, 2009).
Both parties of the contract must be eligible to make agreement and contract. Parties of any
contract will not be considered as competent if they are not of age by the definition of law or if
they are mentally ill at the time when signing the contract .Be that as it may, a short time later,
the insurance agency became more acquainted with about the change and two protection claims
made by one of the drivers of the auto. The protection contract was canceled by the insurance
agency for rupturing the "most extreme great confidence" through fake deception and it was
advocated by past case. Despite what might be expected, the cash which will be paid to the
independently employed building temporary worker will be his thought

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3 Task 3:VocationalScenario
3.1 Explaining the similarities and differences of liability in tort with contractual
liabilityusing an example
Contract law is implied when people decide to come to an agreement on some point while tort
law is applied when dispute or problem within two or more parties happens without having any
pre contract. Therefore, tort law is about the injury happens because of any wrongdoing from one
party to any other party. The injured party becomes the Plaintiff, on the other hand, the
wrongdoer will be tortfeasor or defendant.
Tort Liability Contractual Liability
The nature of duty is somewhat rigid in the
case of liability in tort.
The option for compensation is cancellation
of the contract and compensation for damage
for the aggrieved party (Anson, 2009).
No prior relationship is required in the case of
liability in tort
Prior relationship is a must in the case of
contractual liability
The option for compensation is liquidated
damage for the aggrieved party
This occurs when any terms of the contract
are breached by any party of the contract
It occurs when the legal right of other
individual is breached
The nature of duty is somewhat flexible in the
case of contractual liability
The instance of liability in tort is a battery,
assault, and public nuisance (Maclntyre,
2011).
The instance of contractual liability is a
breach of sale of property contract, failure to
pay in the agreed time etc

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3.2 Explaining using suitable example how liability for negligence can arise and
the conditions needed to be met for a claimant to successfullyprove negligence
Commitment in thoughtlessness can rise when damages or wounds were conveyed on to a man
as a consequence of the inconsiderate exhibition of another person. The commitment in the lack
of regard suggests the break of the commitment of care towards the hurt person. The lack of
regard commitment is a kind of tort hazard which was developed by the Donoghue v Stevenson
[1932] case law. For this circumstance, it is shown that the producers or suppliers can be
heedlessly committed for their careless movement which can damage or mischief the customers
of the things or organizations without having any lawfully restricting relationship with the
customers or customers. The applicant sued the distributer of the ginger blend as a consequence
of offering ales with separating snail which achieved outrageous stomach misery and
gastroenteritis to the customer. On the off chance that the protest of the agreement itself is, illicit
in the nation then the agreement will void abdominal muscle initio. The holder of the mix was
hazy and Donoghue couldn't see the snail some time as of late (Beale and Tallon, 2012).
Stevenson did not have any yearning to meet the case as Donoghue was not a get-together of the
understanding but instead the court constrained danger of lack of regard to Stevenson for their
break of commitment of care towards the "Neighbors". So as to shape an agreement four central
things to remember, as a matter of first importance, the offerer must represent an offer and the
offer must be acknowledged by the other party before it is repudiated.

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3.3 Explaining what vicarious liability means and how a business can become
vicariouslyliable using examples
In the time when one social event is held legally at hazard for the movement of various get-
togethers or avoidances of substitute get-togethers, it is known as the get-together is vicariously
at hazard. In this way, if the misfortune is noteworthy then it would be a condition, or
conversely, if the misfortune is irrelevant then it would be announced as a guarantee. An
Airplane association can be vicariously at hazard for the showing of it pilots (Beale and Tallon,
2012). The subject or object of the contract must be valid according to the national law. For
instances, if the object of the contract is Wine is Saudi Arabia, then the contract is invalid There
are a couple conditions under which a firm can be held vicariously at hazard. Firstly, if the
securing methodology of the firm is broken to the point that it starts lacking people and it causes
hurt, then the firm will be held vicariously at hazard. Moreover, if there is no effort by the
business for keeping the mischief from happening and there is veritable damage that happened,
then the fir m will be vicariously subject for that. An agreement is typically framed under three
arrangement, eye to eye, composed, and coordinate offering. Thirdly, if there is disillusionment
from the part of the relationship to ensure a working spot with prosperity, then said affiliation
will be held vicariously at hazard for that.

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4 TASK 4 - Case studies
4.1 Applying the elements of the tort of negligence and defences in the given
business scenarios below;
Case 7
The specialist's office would be viewed as tried and true if the conditions of remissness claim are
fulfilled. It would need to pay for the death of Mr. Brown to his widower because of the
vicarious commitment for the reckless direct of the pro who was an agent of the recuperating
office. Firstly, the specialist's office had a commitment of care towards Mr. Brown as he was a
patient of the mending office (Maclntyre, 2011). Moreover, the pro on commitment did not
check the patient and indiscriminately supported a couple of meds and this is a break of the
commitment of care. In the blink of an eye, if the destruction of Mr. Brown realized because of
the indiscreet exhibition of the pro, the recuperating focus would be committed for the passing.
So if Mr. Brown was by then a pneumonia understanding and the lack of regard of the authorities
exacerbated his condition to death, the recuperating office needs to compensate the widower for
her setback. In this way, if the misfortune is critical then it would be a condition, oppositely, if
the misfortune is immaterial then it would be pronounced as a guarantee. The subject or object of
the contract must be valid according to the national law. For instances, if the object of the
contract is Wine is Saudi Arabia, then the contract is invalid

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4.2 Applying the elements of vicarious liability in given business situations below
(Cases 8 and 9);
Case 8
For this circumstance, a stream who works for an official escort association was sent to get a
client at the plane terminal. In the time when he was holding up, he drank alcohol and did
similarly. On the landing travel, he held a disaster which persevered through the client really. It
was found that the driver over drank the alcohol (Riches and Allen, 2011). The client is right
now suing the association for the compensation. The fundamental thing that must be done is to
make sense of if the association can be held committed for the lack of regard of the driver. For
this circumstance, the association can be held vicariously at hazard for the driver used by it as it
fails to display an obtaining approach that will thwart the unbalanced delegates from going into
the association. Both parties of the contract must be eligible to make agreement and contract.
Parties of any contract will not be considered as competent if they are not of age by the definition
of law or if they are mentally ill at the time when signing the contract
Case 9
Here, the hurt individual can sue the market for the harm in light of the way that the damage that
the delegate had happened in the midst of the working hours in the work put and keeping up the
security of the specialists is the commitment of the business (Chen-Wishart, 2010). The accident
was brought on by one of the agents of the supermarket yet the market denied taking the
commitment in light of the fact that another association was assigned to keep up the prosperity of
the delegates working for them. In any case, this hazard can't be denied as it is one of the
organizations' liabilities and the supermarket will be vicariously subject for the inefficient parts
of its delegated expert to compensate the loss of the hurt specialist. In every business contract,
there must be some consideration from both parties of the contract.

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Conclusion:
To reiterate the entire task, we can state that if any noteworthy contract component is missing
then the agreement confront the danger of being ended. An understanding is characterized as a
shared relinquish between at least two gatherings. The assertion can either be upheld by laws or
may not be authorized by laws. One party of the contract must offer something to engage in the
contract, and then the another party has to accept the offer before the quit of the offer if they
want to engage in a legal and lawfully enforceable relationship. The main enforceable assertion
is considered as an agreement. An agreement has generally characterized an understanding
between two gatherings; offeror and offeree, which is enforceable by law. What's more that, in
each agreement, there must be a thought from every gathering? Be that as it may, in this task
what are the key components of any substantial contract will be examined. Without having any
of these elements may make a contract void ab initio that is invalid from the beginning

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