Aspects of Contract and Negligence for Business - Assignment Example

Aspects of Contract and Negligence for Business The Essential Elements of a Valid Contract, and their Importance A contract is an accord that is legally enforceable. The validity of a contract is dependent on the presence a number of essential elements. A contract must have intent to make a lawful connection (Briggs, 1975; p. 13). An agreement cannot be taken as a valid contract if there lacks intent to create legal relation. Agreements between husband and wife, father and daughter and mother and son do not constitute a legal relationship. Besides the purpose of the contract must be legal. The contract must not be prohibited by law for example creation of bombs or renting a house for prostitution. There must be an offer and acceptance in order to create a valid agreement. One party must make an offer and another party must accept the offer. This implies that there must be two or more people involved in the contract. The offer must also be communicated properly to the other party same applies to the acceptance where unconditional acceptance must be communicated to the offerer. There must be capacity to contract for the parties entering into a contract. The parties must be above legal age and with sound mind. There must be also legal consideration of the acceptance and due legal formalities must be adhered to (Ashcroft and Ashcroft, 2011; p. 57). This implies that the contract must be in written form and there must be something in return for the consideration. The Impact of Different Types of Contracts There are various types of contracts and their effects. Some of the contracts include seal contracts which are enforceable lawful documents if they are stamped with a seal. The seal shows the parties had the intent to create legal agreement. Express contracts the parties involved declare the terms in writing or orally during the time of formation of the contract (Galaty, Allaway and Kyle, 2001; p. 191). On the other hand implied contracts might be implied in fact or implied in law. An implied contract has a duty emanating from a common agreement and intention to promise which have not been put in words. An implied contract relies on the item in place thus there must be some act or action by a party for them to be bound by law. Executed contract is a contract where nothing is left for either party to act on. An executor contract is one which one party will in future be obligated to perform as agreed. Bilateral contract occurs when one party creates constitutes enough consideration for a promise created by another party. Unilateral contract comprise of a promise created by one party only where the performance comprise of an acceptance of an offer and then it becomes executable (Dransfield, 2004; p. 752). The Meaning and Effect of Different Types of Terms in a Contract Acceptance is an unconditional consent to an offer. Acceptance creates a contract where it is binding on both parties once one party accepts the offer. An agent is someone selected to act as a representative of another known as the principal. Arbitration is a term that refers to an independent third party appointed to help in resolving disputes without necessarily going to court. This person must be agreed by both parties. Breach of contract on the other hand refers infringement by one party to an agreement to perform their part of the contract. A breach of contract will lead to the entire contract being void and can result into damages being declared against the party who refuted his part of the deal. Collective agreement is a term that is used for contracts amidst employers and employees and normally involves the trade unions. Moreover, consideration is a term that is used for contracts where each side must provide some consideration in exchange for another. Task Two Corn computers must understand that acceptance by post is binding immediately the letter is posted. Upon posting an acceptance by an offeree might have the desire to change their mind and make efforts to cancel the acceptance way before the letter gets to the offerer? In reality Thus B has no legal reason to cancel the order made to A. in strict terms the acceptance letter is enforceable the time it is sent through the post and thus the contract is concluded at this point in time. B cannot then revoke the contract based on the reason that he has found a better deal in from a different client. In Henthorn v. Fraser (1892) 2 Ch 27 the plaintiff got a note from the defendant with an offer to buy a particular asset in a period of 14 days. The plaintiff acted on the offer with an acceptance that was sent by post the following day. The defendant revoked the offer prior to receiving an acceptance but in real sense the acceptance had already been sent by post. The court of appeal ruled that the plaintiff had a right to specific action. When arguing the case, Lord Herschel reasoned that where the condition are in such a manner it was within the period of contemplation of the parties involved, that in connection to normal utilization of mankind, the post must be applied as a way of communicating the offer’s acceptance. That it must be accepted as soon as it is posted (Goldman, & Sigismond, 2011; p. 151). In addition, in Adams v Lindsell (1818) line of decision in connection with a mail post was authentic at the time it was sent. the significance of this ratio of a decision is that acceptance by post can only be legal at the time the post was sent if it is rational for the person giving them offer to anticipate an acceptance sent by post (Helewitz, 2010; . 13). It then follows that in case an offer is brought forward by hand to an individual or delivered by telegram or fax, the offerer anticipates an acceptance by comparable means. In our case above it is therefore legally binding for B to perform the contract given the acceptance had been accepted and acted upon by the claimant A. in case B does not enforce the contract A has a right to sue for damages. The counter offer issued by C might not be enforceable in the current contract. Task Three In general a minor has no legal bound or rights to be lawfully binding in any form of business or property contract. Any contract taken is normally null and void. Getting into a contract with a minor is meaningless given the contract cannot be legally binding until when the minor attains 18 years. Instead, someone with an age of majority can volunteer to sign on behalf of the minor. In our case Assad has no capacity to contract but this does not give his boxing coach to enter an agreement without consulting Assad’s mother. The parents and guardians consent must be verified before enforcing the contract. A standard form contract is one in which the decision depends on the strength on both sides. In this form of contract one party must have high negotiation ground and non-negotiable or easy to take it out. There are various instances of standard form contracts such as participation in a professional sport, home security monitoring system and life insurance cover. There are various merits of standard form, in particular to those making the offer. It is not prudent in cases in where hardship would be imposed to seller. It is also not practical that the sponsors of the sporting event to vary out negotiations in the second time. It is rare for the parties to read the provisions in things such as software for computers. The enforceability of the contracts in this manner cannot be determined hence in many scenarios consumers who are given standard form contracts after not advised from reading through the entire contract (Miller and Jentz, 2010; p. 161). The main concern that one party keeps on emphasizing on the set of terms which are not alterable and conditions can be perceived as way of bullying in some situation, a standard contract or any section of it may be put aside. One popular such scenario comprised of a customer who bought a furniture suit on hire purchase payment, the terms and conditions of which was defined by a standard form contract that allege that the furniture suit is a unit item. When the customer fails to pay even with a smaller amount being not paid, the furniture made efforts o re-own the entire furniture. The customer filed a suit and the court decided that he or she would repossess the whole furniture business, when less than charge for the smallest item that remains outstanding , was not conscious and permitted to retake the end table alone (Lank, and Sobeck, 2003; p. 114). Majority f the consumers agreements, even though, are standard form agreements, and of the agreements where the renegotiations are not allowed, they are only permitted by the seller in different unique areas. For instance this kind of contracts for listing and merchandizing real estate has numerous standard clauses yet also has minimal clauses that give more room to call for particular negotiation or input by the parties involved. The Most prevalent consumer agreement in the U.S inclusive of cellular service telephones and credit card contracts is the software for computers and insurance. In case the party is the contract drafter, there is ease of the application over every concept in each activity and promote commerce. The disadvantages include; in case the consistency of the contract taker bars the sales individual from contributing more in terms which are onerous during the last minute with no knowledge of the parties involved. Besides, as long as the drafting of the journeys have some aspects of ethics and adequate lawful knowledge that they call for protection to identify what cannot be included totally on unfair terms (Helewitz, 2010; p. 19). Task Four A contract came into existence in implied terms when the Michelle paid for the parking space even though she did not read the sign of liability clause. This type of contract might be a bilateral contract between the claimant and car park central. The fact that the claimant paid for the space, he or she is entitled to be accorded due care of the property involved. The type of clause in question is exclusion clause where the individual having a wish to depend on the clause must prove that the sign formed part of the contract. Exclusion clause can be integrated in the contract by way of signing, course of dealing or notice. The car park owners have capitalized on this one. In case the claimant puts a sign to a document that has contractual impact having an exclusion clause, it will eventually be part and parcel of the contract and thus bound by the terms. In. L'Estrange v Graucob [1934] 2 KB 394 where the plaintiff placed a sign on a contract to buy cigarette vending machine from the defendant. The agreement has a term that stated, (Gulshan, 2009; p. 7) 'This agreement contains all the terms and conditions under which I agree to purchase the machine specified above, and any express or implied condition, statement, or warranty, statutory or otherwise not stated herein is hereby excluded.”  Upon the delivery of the machine to the claimant it was later established to be damaged and hence the claimant rejected the machine on the claim that it was not good for the purpose it was sold for. The claimant alleged that the contract vividly gave a provision for the exclusion of the implied warranties. It was claimed that she signed the contract purposefully. In this scenario the claimant has made a sign on the document of sales agreement which attests to the fact she had quite more with an intent buying. the plaintiff is then entitled to full damages given that she accepted the offer made to pack her car while assuming that the car park owner would exercise due care to the cars given she had exchanged something to amount to consideration (Schaffer, Agusti and Earle, 2009; p. 4). Bibliography Ashcroft, j. D., & Ashcroft, J. E 2011, Law for business. Mason, Ohio, South-Western Cengage Learning. BRIGGS, S 1975, The home front: war years in Britain, 1939-1945. New York, American Heritage pub. Dransfield, R 2004, Business for foundation degrees and higher awards. Oxford, Heinemann. Galaty, F. W., Allaway, W. J and Kyle, R. C 2001, Modern real estate practice in Ohio. Chicago, IL, Dearborn Real Estate Education. Goldman, A. J and Sigismond, W. D2011, Business law: principles and practices. Mason, OH, South-Western Cengage Learning Helewitz, J. A 2010, Basic contract law for paralegals. Austin [Tex.], Wolters Kluwer Law & Business. Lank, E and Sobeck, J 2003, Essentials of New Jersey real estate. Chicago, Ill, Dearborn. Miller, R. L., & Jentz, G 2010, Fundamentals of business law: excerpted cases. Mason, OH, South- Western Cengage Learning. Schaffer, R., Agusti, F and Earle, B 2009, International business law and its environment. Mason, OH, South-Western Cengage Learning. 124 S. S. Gulshan, K 2009, Business law including company law. [S.l.], New Age International Pvt. 4 Top of Form Read More