Unit 5 :- Aspects of Contract and Negligence for business Be able to apply the elements of a contract in business situations John Messenger
Table of content :-
* Apply the elements of contract in given business scenario . * Application of relevant principles and case law to business scenario. * Apply the law on terms in different contracts .
* Contents of standard form business contracts .
* Analysis of express terms .
* Implied terms .
* Exclusion clauses in a given contract .
* Evaluate the effects of different terms in given contracts . * Breach of condition .
* Warranty and innominate terms .
* Legality of exemption clauses .
* Outline of Remedies damage .
Our whole economy is based on the freedom of individuals to contract and a system of laws that enforces contracts freely entered into. But a lot of people may not be aware of what are the essential elements required to make an enforceable contract . Recently I was asked if a contract not in writing is binding . We are so accustomed to seeing contracts in writing that many people assume that a contract must be in writing (and lengthy) before it is enforceable . To form a contract , there are no particular words that must be used by the parties . However , there must be an offer by one side and an acceptance of the offer by the person to whom the offer was made . Without both an offer and an acceptance , there can be no consensus ad idem or a meeting of the minds which is essential to form a contract. No conditions can be attached to the acceptance and the terms of the offer cannot be changed. If conditions are attached or terms are changed, the parties are merely negotiating and may ultimately reach agreement on the terms of the contract. For example, if your response is that you will pay me $5.00 to cut the lawn but I must cut again next month for the same price, there is no contract. You have made a counter offer which I am free to accept or reject. Likewise, the acceptance cannot be conditional on some other events. In the same way the Lady Gaga has cancelled her concert at the O2 . Harry a local entrepreneur has got 500 T-shirts and he has asked Mike Baldwin a local shirt maker , if it is possible than is he able to print Lady Gaga on the front of the T-shirt . Mike agrees to do it but when Harry went there for collection he saw that the word print on all the T-shirt was Lad Gaga and even the ink of the print damage the material of the T-shirt which is not good . When Harry makes complain about it, Mike told him to refer the contract which is placed on the front door that limiting liability for damaged items to 20% of the value .According to this generally a clause will incorporated if the party has given reasonable notice . These was clearly illustrated in Thompson v LMS Railway . Here the claimant was injured whilst stepping off a train . The railway company displayed prominent notices on the platforms excluding liability personal injury and damage to property due to negligence . The tickets also stated they were subject to terms and conditions displayed on the platform . The claimant was illiterate and could not read the signs. She argued that the exclusion clause was not incorporated into the contract as the railway company had not brought the clause to her attention at the time the contract was made. The clause was incorporated . There is only a requirement to take reasonable steps to bring the clause to the attention of a reasonable person. There was no...