Aspect of Contract and Negligence



The contract law and liability in negligence law is very essential in business organizational casualties. The context below will discuss different terms of contract and its effect in business scenarios. Application of different elements of counteract, evaluation of elements of contract, application of law on terms of contract, definition of different types of contract and analysis of express term and implied term  will be discussed in the context. Liability in tort, nature of liability in negligence and vicariously liability and its effect in the eye of law also are discussed in the subsequent pages. 










Contracts referred to an official agreement in the form of oral or agreement. According to Tritely (2012) contract is “A promise or set of promises which the law will enforce”. There are some elements in a valid contract and their importances are described in below:
Agreement: an agreement is formed when one party accepts the offer made by the other one and involves a meeting of the minds. In other sense, in an agreement there must have an offer and against it an acceptance. When an offer is made the counterpart will know what is offered than he will make a consent or agreement. Without proposal and acceptance or agreement on an issue no contract can be formed as it is the foundation of a valid contract.
Consideration: It also a very urgent element in a contract to be valid. There must have a consideration between promise and promissory and it would be mean that the other person would give something in return. There should be a consideration so that it would be legally valid. As for example, client Perry made a contract with Essential IT support with an agreement of paying 75 pound as consideration.
Intention to create legal relation: it is essential to have the element in a contract to be valid. Though the Contract Act 1950 is silent in this regard, the parties in a contract must have intended their agreement to have legal consequences. The contract could be subject to a lawsuit if there is no intention to create a legal relation in a contract and it makes the contact enforceable.
Capacity: it refers to the legal capacity of the parties to enter into a contract. Insane and fewer than 18 year old people are not eligible to make a contact. If there occur a contract between incapable parties there will be no legal action if the contract is tort so it is utmost for a valid contract. Without capacity the contract will be void.
Consent: it is very important and essential for a valid contract to have a free consent of both parties. They must agree on something is the same time at same sense. This is the real consent from the inner part of contractor and it gives positive impression to performance of the liabilities created form the contract.
Legality: the purpose of the agreement must not be illegal or contrary to a public policy to be a contract valid. According to the legal law any contract that is deleterious to the society or for the country is not acceptable. So; legal form of contract, among legal parties for legal product or services are necessary for the valediction of a contract (Tritely, 2012).
There are different forms of contact based on action of contract and based on number of parties. Types of contract and their impact are discussed below:
Contract by deed: contract by deed refers to the contract that is completed with a formal legal document signed, witnessed and delivered to effect conveyance or transfer of property or to create a legal obligation. It is the most safe contract types as it provides the opportunities to sue or take any legal action to the seller o buyer if any counterpart deny or malinger to fill the consideration (Atiyah, 2000).
Simple contract: the contract which is not in deed is known as simple contract. This type of contract is made in any different way of deed contract such as in writing, orally or may be implied from conduct. It is not reliable and dependable like contract by deed but this contract is law enforceable.
Bilateral contact: it is the contract in which a promise by one party is exchanged for promise by the other. It is the basic form of contract and most of the contract fall into this category. Is this buyer promises to pay for good and seller promises to deliver the goods. In this contract both promise exchangers become enforceable.

Unilateral contract: in this contract one party to do something in return for an act of the other party. This is called a breached or broken contract. As for example, Jen promises a reward to Den if he fined his lost wallet, here only Jen is bound to do anything. But if Bella seen the offer and found the wallet and returns than Bella will be entitled to the reward (Hofstra, 2012).
A contract consists of various terms and that is express term and implied term. The meaning and effect of both terms are likely below:
Express term
Meaning Express term: it is an open agreement between an offered and receiver. The express term of a contract can be performed in a written paper or via an electric writing way or telling or verbalization. Which terms of contract is followed strictly by both parties that contract terms are called express terms. Express term in a contract makes it legal or void. In this the rules that should be performed by both parties are fixed by them before signing the contract (Clarck , 2012).
Effects of Express Term: the effect of express term of a valid contract is essential and deep. By virtue of express term in a contract no party can escape from the obligation, or can’t do anything illegal. It is also not possible to avail the positive result of the contract toward one’s own side by any unfair means. In a single word the effect of express term in a contact is that it makes a contract valid and longer lasting.
Implied term
Meaning of Implied term: sometimes the terms of a contact are not mentioned by either any of the parties and not included in the contract cause of not making the contract by commercial sense without that term. Rather here terms are implied by courts or statutes. Implied terms are the word or provisions that a court assumes were intended to be included in a contract. Condition, warranty and nominate terms are included in implied term.


Effects of Implied terms: this contract is lawful but not preferable. In applied terms there can be a condition, a warranty and in nominate terms. If a condition is breached the suffered party has the right to sue the wrongdoer for the damage. If a warranty has been breached the suffered party can sue but cannot terminate the contract to return to their pre contractual position (Hare, 2012).
Hofstra (2012) refers that the elements of contact must be performed for the valediction of a contract. There are some rules and regulations in this regard. The applications of the elements of contract in given scenarios are in subsequent phases.
Offer and acceptance: in scenario of, here setting an auction sale is an offer to sell Plaintiff’s goods on the other hand the defendant who has made the highest bid a receiver. But in this scenario no acceptance were occurred as defendant withdrew his bid before falling auctioneer’s hammer.
Consideration: in scenario we can see that on 6 June Wrench offered his estate to Hyde for £1000 and Hyde offered £950 and later £1000 to pay for against the offer as consideration. It is known that consideration means offering anything in return of offerings.
Consent: it is very important and essential for a valid contract to have a free consent of both parties. They must agree on something is the same time at same sense. In the scenario of Essential IT support applied for job as headmaster and managers apparently decided to appoint him but later they appointed another one. Here, since one of managers confirmed Powell of recruiting him without authority the Element ”consent” in not here. So according to law Powell can’t sue against managers.
Legality: it means the contract must be between legal parties for legal goods o services. In the scenario of Essential IT support authorized managers didn’t give conformity to Powell. But another manager confirmed him without authorized notice so there legality is absent so no contract occurred here (Atiyah, 2000).


According to Hugh (2013) the contract are normally governed and enforced by different laws of contract such as Sales of Goods Act 1979, Supply of goods and Services Act 1982. The applications of laws on terms of contract are likely below:
On a condition: in the scenario of Essential IT support, singer worker were failed to appear on time for why the defendant refused to continue the contract. In this scenario a breach of condition will entitle defendant to repudiate the contract and claim the damages. Obligation to perform from the first night was a condition.
On warranty: in scenario of Essential IT support worker were failed to come in due time on the purpose of rehearsals for his illness as a result Gye the defendant refused to accept his services. In this situation defendant cannot repudiate the contract as warranty is a less important term.
Intermediate terms: in this terms it is impossible to classify neatly either it is warranty or condition. An intermediate position can be addressed only in light of consequences of breach. In this if the damage is severe the injured party can repudiate the contract. On the other hand if it not severe the injured parties’ remedies will be restricted to damages.
Clark (2003) refers that a contract has many terms with different effects on a contract. A valid contact cannot be without its terms and formalities. Evaluation of the effects on different terms of contract is in below:
Condition: it is a vital term of making a contract. A breach of condition makes the injured party able to repudiate the contract. In the scenario of Paussard v Spies, singer Poussard were failed to appear on time for why condition was breached so Spies can repudiate the contract.
Warranty: the effect of breaking warranty is less effective than condition breaking. The injured party has the right to make up his loss but he hasn’t the right to repudiate the contract.
Intermediate terms: in this term it is difficult to understand either is it warranty or condition. Here the breached effects will be on the basis of mutual bargaining. In this if the damage is severe the injured party can repudiate the contract. On the other hand if it not severe the injured parties’ remedies will be restricted to damages.
Exclusion clauses: in this term the wrong doer is excluded from the responsibility of punishment or sometime not for the excluded condition breaching. In the scenario of Essential IT supports, the car will be suitable for touring was a condition. As the clause did not exclude liability for breach of a condition the plaintiff was not bound by it.
Expressed term: this contract is lawful but not preferable. In applied terms there can be a condition, a warranty and in nominate terms. If a condition is breached the suffered party has the right to sue the wrongdoer for the damage.
Implied terms: in most contracts the primary obligation of the parties are not expressed terms. In this time according to various circumstances imputes the condition what to do with the breach of contract. In this time by custom or statute condition would be applied (Hugh, 2013). 
According to Marsh (2011) the term tort refers to the damage, harm or injury to the other counterpart or company with which he wears engaged in a contract. And tortuous liability arises from the breach of a duty fixed by laws. In tort liability the breached are responsible to compensate the damage of injured party. On the other hand contract is an agreement between two or more persons, parties or clients outlining their duties to one another. In contractual liability the compensation terms are quoted or narrated hare.
Sometimes the contract liability law and tort law are categorizes into the law of obligation. There are some similarities between tort and contract. Such as contract and tort create civil law obligation and breach of both provide the opportunity to an action for damages. On the other side there are some differences too such as contractual obligations are voluntarily undertaken but in regard of law of tort there is no free choice law imposes the obligation. In tort liability the tort is obliged to compensate the damage as it were before but in contractual liability damages are counted as the agreement shows (Brazier, 1993).



Clarendon, (2010) refers that liability means the obligation and responsibility to make up the damages or compensation for damages or violation of contract law. In business more or two parties involve in a contract to do something, if any of two or them breach the pint of contract he will be obliged to compensate the damage for his negligence. The liability in negligence refers that what will be the liability and how to fill the damage if one damages another’s things for negligence.
Duty of care: the duty of care responsibility held’s by company to provide protection for the employees. It makes a relation between two parties involved in contract. Duty of care is a condition in contract and its breach makes the tort responsible to compensate the damages.
Breach of duty: it is the second element in negligence. A breach of duty of care refers to the falling below the standard of behavior that was expected. In the breach of duty of care the defendant’s activities are tested against the standard of care expected of responsible person.
Damages for negligence: it is the third stage of negligence. It is counted how much lost causes to the plaintiff for the negligence of a defendant. If there is a quote in contract about the compensation limitation or type that type will be liable for the defendant (Elliot, 2003).
In contract system vicarious contract may occurred in different time or situation. In vicarious liability another person become liable because of having relationship with the person who did the act negligently. The name of this negligence is imputed negligence. Vicarious liability occurred among the legal relationship of Parent and child, husband and wife, owner of a vehicle and driver and employee and employer. In a vicarious contract there are various things such as bartered exchange, subscription fee or advertizing revenue of copyright. One person may be reliable if he is not aware enough of the knowledge of inferring acts occurring in the business. The employer will be charged with legal responsibility for the negligence for employee as he is the agent of the employer. As for example, in a business restaurant if the worker causes damage negligently to the customer in his duty time the employee of the worker will be responsible for the damage because of agency (Elliot, 2003).


At the very end we can say that there are many contract system some have great importance than the others. The factors of different terms of contract and their effect according to law is necessary to know for the businessmen and company. In business the company or proprietors have to conduct many contracts with customers and clients with some condition. So what will be the effect if a condition or warrant is breach by the company are necessary to know. The context will help them all providing a clear concept and regulation of law in business industries.
















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