ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS

Aspects of contract and Negligence for Business



Aspects of contract and Negligence for Business

Task 1

Valid Contract

Contract is known as the promise or the set of promises which are enforced by the law. For a valid contract there should be two or more separate parties must be involved. The parties should have to be certain consensus on specific matters. They should be ready to create legal relations for their promises as they are contractual promises in contract. The promises must be supported by consideration (Dyzenhaus, 1999). The contract doesn't have promises all the time which are bare but it also have some bargain in it. The requirement of two or more parties in a contract is the first essential thing for the contract that is why the arrangement between 2 departments or faculties of the same organization or company is not a contract generally because a person is not being allowed to make a contract with himself. But it may also depends upon the capacity if the different individuals or parties. The companies which have separate legal personalities involved can have contract where they act in as independent legal entities (Beatson, 2002).

Terms of contract

Various statements are made by one party in order to encourage the other party to enter into a contract, before actually entering into a contract. But a dispute can arise later that out of these, which of the statements should be considered to be a part of it and which the pre contract terms were. The problem is that the parties are bound to follow those things which are made as terms but not the statements that were made before. For example, the longer is the gap between the offer and consideration then terms the more chances of statement problems (Brownsword, 2009).

Terms may be conditions or warranties

Contracts usually have terms and conditions on which the contracts are based upon. The terms which are considered less important are known as warranties and those which are considered important are called Conditions. Condition is those terms which are of so much importance that without them, any party would not enter into the contract. When warranty is concerned, then some monetary damage would be demanded and the contract would remain binding on both parties. The court looks at the term to check which of the following statements is condition or warranty because of the seriousness of the matter. But if the terms are identifies personally as condition or warranty by both parties it would not be regarded as authenticate and only court can judge the statements (Beatson, 2002).

Offer

Offer in contract law is a written or verbal offer of one person (the offeror), addressed to one or more specific persons (acceptor), which is sufficiently definite and indicates the intention of the person who made the proposal to be concluded contract with the recipient, who accepts the offer. Offeror must contain the essential terms of the contract. If accepted (accepted in), as the acceptor must inform the ...