Unit 5:Aspects of Contract and Negligence for Business

Contents:

Task 1 Elements of Valid Business Contracts

1.1What are the essential elements of forming a valid contract? Explain the importance of each element by providing relevant legal principles derived from decided cases.

1.2Describe different types of contract ussualy undergone in business context . Critically analyze the legal impact of distance selling contract.

1.3Analyse the contrasting aspects of different kind of terms generally used in a commercial contract.

Task 2 Application of Contracts in Business Situations

Task 3 Principles of Liability in Business Negligence

Task 4 Application of Principles of Liability in Business Situations

Task 1: Elements of Valid Business Contracts

1.1 What are the essential element of forming a valid contract? Explain the importance of each element by providing relevant legal principles derived from decided cases.

Contract is an official agreement. May be written or in oral. Contracts can be written by using either formal or informal terms, or entirely verbal . It is a promise made between two or more parties that which allow the court to make further judgement. A contract has six important elements that makes it valid. These are :offer, acceptance, consideration, intention to create legal relation, certainty and capacity. If the main elements are not in contract, then you'll have an invalid contract.

1.First element in a valid contract must be the offer. An offer or a promise or an agreement needs to be in contract . In the Contracts Act, 1950, the very first elements in a contract would be offer. It is one of the elements to make sure that the contract is legally valid or acceptable.

2. When the other party is clear with the offer, there would make an acceptance once they are agreed with the rules and regulations being offer in the contract. For example a family wants to rent a flat house, they send the request to agency that replies an offer of a flat which cost £800 pcm,...