Aspects of Contract and Negligence - Assignment Example

Aspects Of Contract & Negligence [Type the document sub Sana Noureen [Pick the Essentials of a valid contract A contract is a specific type of agreement which comes up with the condition of creating a legal binding to fulfill the clauses which were decided at the beginning of the contract by the voluntary participants. In a valid contact, there are a number of essentials characteristics which should be present in a contact in order to make it legal as well as making it on the line of a valid contact (Clement, 1903). For the Spiro’s situation, following aspects are needed to be fulfilled in order to enter into a valid contract. Offer and Acceptance Voluntary Participation Legal Purpose Not for wagering or gambling purpose Subject matter must be legal Subject matter must not have lesser lifer than of the period of the contract Legal relationship between the participants In writing form Consideration must be present Must not be declared as void Certain and concrete terms must be present Must not be attached with any condition 1.1. Importance of Essentials of a valid contract The essentials of a valid contract are very important in order to get a contract fulfilled without any hindrance (Shenson, 1990). There must be some hard and fast regulations that indulge the legal bindings while the contracts are executed. If any of the above stated essential features is missing in a contract, the contract will not be accepted by the legal authorities. Such a contract will not be sued in the court against the guilty party (Deno, 1982). The essentials are drawn only to provide a legal back up to the contracts such that no party can harm the interests of the other one. The courts play an arbitrary role in this stance hence it is constrained to execute the entire document of essential features of the contract (Shenson, 1990). 1.2. Types of contract and their impact There are several types of contracts which may generally be observed in common practices. For the very general, following four types of contract are found commonly. Legal Contract: It is a simple contract which is executed to fulfill any legal requirement which is most commonly in practice (Clement, 1903). All the contracts like partnership, buying selling and the remaining minor categories which can draw any contract and ultimately it may lead to legal binding in case of being guilty at any end. Social Contract: Most common example of the social contract is marriage where two individuals are bound under the back of legal authorities. It is basically a stance which remains between two or more individuals. This kind of contracts may be legal or not. Sometimes it confuses with the promises as well. Quasi Contract: it is an ethical jurisprudence under the head of contract. For example, if you find a bag full of currency at some public place then it is your ultimate duty to make it reach to its real owner. However it is also a questionable scenario (Shenson, 1990). Unilateral Contract: This contract is made from one side only. In these contracts, only promisee one sided contracts to other to provide some benefits to the other. Many schools of thought do not consider the second, third and fourth type as a full contract. Rather they take those as partial contracts (Deno, 1982). These contracts are also known as implied contracts which are understood while in concrete legal contracts, all the clauses are set by the parties. For example, in marriage, the clauses are preset as the general social contract among two individuals (Clement, 1903). 1.3. Terms of Contract: With respect to facts and meanings Terms of a valid contract may be several. First of all it is required that all the terms must meet the criteria of legality. The criteria of legality are defined with legal environment of each country. For example, the terms must be realistic (Deno, 1982). Non realistic terms and conditions will make the contract void and unacceptable. Other than that, the terms should not be vague. All the terms and conditions must be very clear, legal and realistic. 2. Real World Situations and elements of contract 2.1. Practical Application of Elements of contract The elements of contract are directly linked with the business scenarios. For example, in Ameritrade organization (a deep discount brokerage firm), the management is planning to enter into a contract with a techno software company to enhance their technological stances in order to increase the customer value (Clement, 1903). They first will offer the software house with their conditions (Deno, 1982). Jay was in trouble because he was not in situation of to be or not to be. It was really like a furious situation for him. He could go to court and claim for the negligence. However that could be a lengthy process and he needed the stock soon. 2.2. Applying the law on terms on different contracts Law on terms is a situation which is executable on some specific terms and conditions. Different contracts have different terms and conditions. It was a mistake of Jay that he had to check out the stock before he left the store. The seller does not have any liability on sold stock as he was a whole seller and they are used to receive large lots of stocks. But as a store seller, Spiro can lose his repute if the customers are not satisfied. However it can only be negotiated rather than a full refund. 2.3. Evaluation of effects of different terms in contracts The effects of several contracts in several conditions vary situation to situation. Some conditions lead towards serious liability in case of neglecting partial or discrete terms. The evaluation criteria are ultimately set over the execution of the fundamental contract. For example in the given situation, Jay can file a suit on Samantha because of the loss he had to bear because of breach of contract. It was decided that the staff will const £ 250 but the actual bill knocked him as doubled. 3. Understanding principles of liability in negligence in business activities Principles of liability are defined under the charge act. These may vary with the variation in regions and boundaries. However there are some common terms and jargons present which are taught in every Law guide. 3.1. Contrast liability in tort with contractual liability Liability in tort can be implemented in any case, no matter whether you have entered in to a contract or not. For example, if any party has harmed the interest of the other party by rumoring something undue in an unethical manner, the suffering party has a direct right to file a law suit over the guilty party as a case of breach of respect. On the other side of the spectrum, the contractual liability is somewhat different from the liability in tort. It is only exercised when two parties are in contract. Let’s take the example of Nike who contracted with i2 software firm to launch their customer database. They remained failed in implementing the software in a right way due to several reasons. In such kind of situations, the bearing party can recover the damages from the guilty one (Smith, 1982). 3.2. Explain the nature of liability in negligence Negligence refers to a term that means to neglect or overlook the terms of the contract. It may have many related terms such as breach of duty, breach of terms, standards of care, duty of care and proximate causes. The damages which is needed to be paid or borne by the guilty party while in a contract is the exact nature of liability if any or more than one terms are breached. It is mainly focused because no one had compelled the parties to enter in to the contract so it is the legal responsibility to fulfill the adjacent terms associated with the contract. 3.3. Explain how a business can be vicariously liable A business may be declared as liable in several manners (Pairsi, 1992). A very explicit example may be taken as the instance of shareholders interest. If a business does not take care for its stake holders’ interest and is indulged in illegal activities, it is clearly mentioned as liable. It is because people invest their money in businesses with holding the due trust. In such case the business may be declared as liable in damages of breach of trust (Deno, 1982). Many other reasons may be also be specified such as breach of duties in joint ventures or in self directed teams etc. 4. Be able to apply principles of liability in negligence in business situations Negligence liability comes in to the account in several situations legally such as civil negligence, negligence in tort and breach of duty. The elements of negligence are five: duty, breach, causes in fact, proximate cause and harm (Smith, 1984). 4.1. Applying the elements of the tort & Vicarious of negligence and defenses in different business situations The negligence for health and safety issues is important in all business situations. It is the duty of the business owner to maintain substantial back up and safety plans. For Spiro, it is advised that to maintain a sophisticated system in order to avoid any unpleasant incident (Pairsi, 1992) . For accident situation, it can be given a little favor if and only if the accident was a pure calamity. In my view, there is no any difference of opinion in both of the accident situations. In the last situation, Tim may ask for the damages including dress, performance fee and for his treatment as well. References: CLEMENT G.A., (1903). Fire insurance as a valid contract in event of fire and as affected by construction and waiver, estoppel, and adjustment of claims thereunder including an analysis and comparison of the various standard forms, all reduced to rules, with the relevant status. New York: Baker Voorhis. SHENSON H.L., (1990). The contract and fee-setting guide for consultants and professionals. New York: Willey. DENO, S.L., (1982). Correct word sequences: a valid indicator of proficiency in written expression. Minneapolis: Institute for Research on Learning Disabilities, University of Minnesota. PAIRSI, F., (1992). Liability for negligence and judicial discretion. Berkeley: International and Area Studies, University of California at Berkeley. SMITH, J.C., (1984). Liability in negligence. Toronto: Carswell. Read More