An assignment on

Aspect of contracts and Negligence’s for the business

Submitted:

Name:

ID:

Submitted To:

Date of Submission

1

Executive Summary

The management of TAM’s college desires to turn this college into one the most best

educational institutes in United Kingdom. Only for this reason they are appointing legal

help to solve any future legal issues and risks. TAM’s college has also made a formal

relation with one of the marketing firms named NAMS to promote TAM’s college.

Besides the TAM’s college has faced the trial against them because one of their

employee did not pay attention to the instructions that are made by the management of

TAM’s college. The authority of TAM’s college is obliged to pay the compensation to the

injured employee because of the vicarious liability doctrine.

2

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.........................................................................................9

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 DEFENSES....................................13

4.2 APPLICATION OF VICARIOUS LIABILITY.....................................................................14

Conclusion.....................................................................................................................15

References.....................................................................................................................16

3

Task 1

1.1 ESSENTIAL ELEMENTS OF A VALID CONTRACT

There are few essential elements of contract that are significant in order to make a valid

contract. There are six essential elements of a valid contract. The essential elements of

a valid contract are given below.

Lawful Consideration: A related affirmation lead to an agreement where the

individual accepting the offer takes deduction established on some authorized

consideration (Hare, J. I. Clark. 2003).

Offer and Acceptance: In association to design a legal affirmation an offer has

to be prepared and it is the opening direction to an affirmation (Roberts, M. &

Zahay, D. 2012). Followed by the offer the parties involved in the agreement have

to agree upon the offer and as a result form an affirmation.

Free Consent: In order to go in to a valid agreement the two parties required

providing their free permission, or the contract will be guided as a useless and

void affirmation (Black, H. C. 1979).

Writing and Registration: An authorized deal has to be in a written outline and

listed by the government supervision to make the affirmation legitimate (Black, H.

C. 1979).

Enforceable by Law: A proper affirmation is enforceable by instruction or it will

be counseled as the trendy of break of agreement (Black, H. C. 1979).

Formal Relation: alignment to make a legitimate affirmation Official relation has

to be considered. Any act of unplanned affirmation will not be measured as an

official agreement (Wood, D. and Smith, P. 1989).

4

1.2 THE IMPACT OF DIFFERENT TYPES OF CONTRACT

There are many types of contracts that are;

Implied Contact: This kind of contracts arises when a distinct behaves like

he/she owns any property and sell those assets. To mold a legitimate

confirmation free consent is important of the both parties (Black, H. C. 1979). But

in case of implied contract it will be suggested as a legitimate agreement if one

party does not give consent. For demonstration; if a servant sells his or her

proprietor’s stuffs as if s/he is the proprietor of the assets without the free

consent of the proprietor then it will be advised as an implied agreement.

Executed Contact: It is a type of contract where both parties fulfill the terms and

conditions of the contracts earlier they go in to a contract and there is nothing to

be controlled by each party (Wood, D. and Smith, P. 1989).If it is an executed

contract, then the performance of the parties shows that there is no contract.

Express Contract: Express contract refers to the type of contracts where it is

either in the formation of a writing document or it can even be in the oral pattern

which is acknowledged to the authority that focuses on the consent to terms

(Hare, J. I. Clark. 2003).

Contract under Seal: The customary procedure of making an agreement legit is

the concluding of the lawful item that is enforceable (DiMatteo, L. A. 1998). It is

important to assess the documents with seals and the parties are legally

responsible to accept the outcomes of the affirmation after it is sealed.

5

1.3 ANALYSIS OF TERMS IN CONTRACTS

There are many determinations of a contract. It is vital for the parties to gather the

separate kinds of agreements, stages, and residents which not only supports the parties

to trail with the testimonials but also supports to decrease statement costs (Hare, J. I.

Clark. 2003).

The TAM’s college desires to become the best scholastic institutes of UK. So, they are

making every single effort to gain the attention and allocating assistances and lawful

consultants to aid them accomplishing their aims. In the procedure of becoming the best

scholastic institute in UK, they are going into contracts with some organizations for their

advertising and promotion reasons and clarifying the lawful matters. To design an

appropriate agreement there must be some variation among the exchanging of terms

between the parties and TAM’s college is making every effort to bring the variations.

6

Task 2

2.1 APPLICATION OF THE ELEMENTS OF CONTRACT

The parties involved in a contract must respect the periods and conditions of the

contract and if one party or the other party contradicts from the pledge of affirmation

then the party respecting the affirmation can proceed to court and take lawful actions

(Marsh, P.D.V. 2001). Because a legitimate affirmation is enforceable by regulation.

The basic elements of the contract with NAMS are:

NAMS gave suggestions for focused marketing for one month to take TAM’s status

upper and help them to fit into one of the best educational institutes in the UK. In a

certified legal contract proposal is the beginning of a contract with an additional party

and forms a business relationship.

7

Offer

Acceptance

Free consentFormal relation

Enforceable by law

Figure: Basic Elements of Valid Contract

In order to create an effective contract the terms and conditions of the contract has to

be established by the parties taking part in the contract, else it will be measured as a

void contract. TAM’s college has accepted the NAMS advertising application for one

month and paid the initial fee of £2500 and come into a lawful contract. Both of the

parties in the contract entered into the contract with free bargain and a written

guarantee turned the contract in a formal relation.

Valid contract is enforceable by law. The supervision of TAM’s college has the ability

and evidence that NAMS has cracked the contract agreement and the initial term.

NAMS were unable to provide promotional support to TAM’s college so that the TAM’s

college has engaged with legitimate actions against NAMS.

8

2.2 APPLICATION OF THE LAW

The parties loyal in agreement give self-guarantee and increase the episodes and

conditions of an agreement (Marsh, P.D.V. 2001). Approach of the parties may affect

from the assertion which was supposed to be in use as just a pre-affirmation of the

legitimate agreement and accordingly not part of the affirmation (DiMatteo, L. A. 1998).

As soon as two or more parties make an agreement then there are several vital

components that must be advised in order to create a legitimate agreement. Parties to a

convention pursue only its terms, not by any slight affirmations that perhaps not be

accomplished.

To form a valid contract certain requirements are needed. Such as;

2.3 EVALUATION OF THE EFFECT OF DIFFERENT TERMS

There are numerous terms included in the affirmations and several of them are for

guidelines and principles (Okeke, C.N. 1988). These are formation of assertion and it is

9

Collateral ContractsWhere the affirmation have been conceived and proposed as to make certain to induce the main affirmation. It is a kind of contract in which the terms and conditions are commonly in a writing pattern as the foundation of the affirmation. Juries have been coordinated to find a security convention someplace to make the agreement valid and beneficial for the parties acquiesced upon the agreement (DiMatteo, L. A. 1998).

Contract Includes Conditions and WarrantiesThe affirmation itself motivates both the parties. The more imperative situation are describing "Circumstances", the lesser significant situation are called "Warranties”. These components are so significant that without any one or supplementary situation, the parties would not advance into the agreement (DiMatteo, L. A. 1998).

Figure: Requirements of Valid Contract

essential to be in a printed pattern and the close is compulsory. There are various kinds

of guideline and it needs different kinds of procedures.

a) The Patrol Evidences Rule

Oral evidence might not be supplemented or shown to be a false in writing piece.

It is a function that embraces oral evidences (Marsh, P.D.V. 2001). The contract

habitually endeavors to the law of confirmation and concerns not only to accord

but also to all types of identification.

b) Establishing Implied Terms

There are some positions in which agreements need to organize the inferred

periods formally and it is completed from one one-by-one (Leibee, B. C. 1976).

c) Various Types of Conditions

The groundwork for committing a breach of circumstance at universal guideline is

refutation and indemnity (Okeke, C.N. 1988). Different kinds of position may

sway the affirmation and functional judiciousness of word is good for centered

grouping of contractual signal.

The Up-To-The-Minute Observation

In the allocated situation, TAM’s college has decided to grant the promoting agreement

to NAMS on the foundation of their oral signs of solid marketing and progression for one

month for £6000 and established a conditional agreement among TAM’s college and

NAMS. 

10

Task 3

3.1 CONTRASTING LIABILITY IN TORT WITH CONTRACTUAL LIABILITY

Tort and contact liability:

Agreement compensations are established on scarcities that are foreseen, while tort

compensations are compensatory. The directive of tort and of assertion is characterized

as part of the "Law of Obligations", but the regulation of tort anxieties to each distinct

that it is related to, while in the recommendation of arrangement or in faiths obligation is

"Voluntarily Assumed" (DiMatteo, L. A. 1998).

3.2 THE NATURE OF LIABILITY IN NEGLIGENCE

1. DUTY: The glue of communal obligation is the negotiation that binds humans to

one another in worshipers where likings are recommended unsuitably if they

breach a pre-existing desire and restore hastily (DiMatteo, L. A. 1998). The

liability is a compulsion of one individual to another individual, it is apprehended

pattern the public desires and views.

2. Breach of Contract: It is the behaviour of the individuals to advance as a wild

one-by-one or party and not acting out the contracts terms and situation. This

element denotes the pre-existence of a standard of correct behaviour to escape

imposing undue hazards of impairment to persons (Leibee, B. C. 1976). Breach

of assertion is the most significant thing in the contract tort of negligence. NAMS

has break through the assertion when they have terminated the progression and

promoting of TAM’s college for one week.

3.3 VICARIOUS LIABILITY IN BUSINESS

Vicarious responsibility means that any person can be apprehended lawfully or to blame

for the demanding obsession activities of a different individual nevertheless of the fact

that somebody swamps no inaccuracy in persistence of the careless or tortuous acts

(Leibee, B. C. 1976). It is a principle of English tort policy that imposes firm

accountability on managers for the misconducts of their workers. Typically, a business

11

will be detained accountable for any tort promised while a worker is directing their

obligations (DiMatteo, L. A. 1998).

In the allotted situation the management of TAM’s college released in the policy of

vicarious obligation because the guard’s family has engaged genuine legal activities

beside the organization. Though the management and the administrators were warned

about the hard luck and were moreover planned to wear appropriate clothing for the

non-teaching personnel to keep away from damages.

The employee who was injured did not pay attention to the organization’s principles so,

the admin denied to give any compensation for injuries to the sufferer but The TAM’s

college are bound to pay the benefit because of the principle of vicarious burden. 

12

Task 4

4.1 APPLICATION OF THE TORT OF NEGLIGENCE AND DEFENSES

There are some basics of the tort negligence and defences in various business

situations, they are given below

Tort Negligence Law: It is a system of law within which it is started and functioned

within the realm of intentional tort law and also the elementary motive of negligence

regulation, is to regulate and defend the workers from injuries that might happen in their

line of work (Emenike, E.U.I. 1989). TAM’s college’s non-teaching staff s were guided to

use defensive attire for his or her protection and security

Duty of Care: A person might owe a duty of care to confirm that they are doing not

irrational harm to them (Wood, D. and Smith, P. 1989). If such obligation is broken, a

legitimate liability is compelled. The staffs of TAM’s college was warned regarding the

impairment and losses that the staff would possibly face.

Sources of Negligence: Negligence may be defined as malfunction to require correct

caution of protection. It is the unintentional break of a legitimate obligation inflicting

harm that reasonably forecast the breach would haven not even appeared (John W.

2009).

13

Potential sources of negligence Poor selection of activitiesUse of faulty equipmentInadequate protection

Defence against NegligenceAn act of GodAssumption of riskSudden emergency

Figure: Sources of Negligence

Potential sources of negligence are:

Inadequate protection: Inadequate protection denotes to careless actions on

portion of the individual who is unwilling to wear protective gears (John W. 2009).

Use of faulty equipment: Another potential source of negligence is the use of

faulty equipment which can cause harm (N. Et Al. Kumar, 2001).

Poor selection of activities: The activities that are beyond the capabilities of

individuals or insufficient knowledge of activities are poor selection of activities

(John W. 2009).

Defence against Negligence:

Sudden emergency: Any act of instant action to help the individual in danger.

Such as, attempt to rescue a person drowning in the water is an act of sudden

emergency (Emenike, E.U.I. 1989).

Assumption of risk: It is assumed that a person takes portion of the risks when

engaging in activity (John W. 2009).

4.2 APPLICATION OF VICARIOUS LIABILITY

The TAM’s college has ordered the non-teaching staffs to carry out proper clothing that

is made for the staffs duties in order to avoid forthcoming accidents. Though the

superintendents have not listened to the warning and also sent off a guard on duty while

not wearing the appropriate uniform. It is against the business policy.

Although, tortuous blame means someone can be detained lawfully liable for the

reckless actions of a definite individual. During this state of affairs the supervisors were

heedless to the rules which lead one of the staffs to induce injury. However, TAM’s

college management are discovered blameful due to vicarious liability doctrine.

The authority of the TAM’s college has denied the compensation to the workers

because the guard was not following the rules of the institution. However underneath

the vicarious liability principle the employer has been lawfully detained for the actions of

the employee because of the vicarious liability doctrine.

14

Conclusion

In the given scenarios it can be deduced that TAM’s college has selected and hired

advisors who can help the institute with legal solutions that might arise in the future.

They even have appointed marketing agencies to promote their feature and name to

capture the student’s attention. They follow the dream of becoming Britain’s one of the

best educational institutes. NAMS offered the brightest and comprehensive promotion

program. Then again TAM’s college was responsible to pay compensation for an

incident with one of their employees. As an outcome TAM’s had to face lawsuits and

was liable to pay the compensation because of the vicarious Liability.

15

References

Black, H. C. (1979). Black Law Dictionary, St. Paul West Publishing Company vol. 57,

no. 2, pp. 217-268.

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.

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

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.

Wood, D. and Smith, P. (1989) practice of business law in contractual intent: First

Report on the 1987 Survey, Research Paper No. 63, London: Department of

Business law.

16