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Aspects of Contract & Negligence for Business

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Aspects of Contract & Negligence for Business

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Unit 5: Aspects of Contract & Negligence for Business|
By Abdul Mir: FCS#307035|
Mark & Jodie Jones|

Contents
Task 1: Formation of a Contract3
Offer & Acceptance3
Acceptance3
Modes of acceptance & E-Contracts4
Consideration4
Intention to Create Legal Relation5
Capacity to contract5
Blue Chip v Evershed5
Task 2: Exclusion & Limitation Clauses6
Contractual Terms7
Conditions7
Warranties7
Innominate Terms7
Advantages&Disadvantages of Using a Standard Form7
Advantages7
Disadvantages8
Task 3: Differences Between Contractual & Tortious Law8
Tortious liability9
Contractual Liability9
Expectation Interest9
Reliance Interest10
Occupiers Liability10
Vicarious Liability11
General Liability12
Strict Liability12

Task 1: Formation of a Contract
Formation of a contract requires the following essentials for a contract to become a legal and a valid contract: * Offer
* Acceptance
* Consideration
* Intention to create legal relation
* Capacity to contract
Offer & Acceptance
For a contract to even take place at first there has to be an offer which then has to be accepted by the party it has been offered to.An offer is made when one party makes it clear, by words or actions that he is prepared to be bound as soon as the offer is accepted by the person to whom it is made to. Offer can bilateral or unilateral, for example, if I was to tell a friend of mine that I’m going to sell my iPod to him for £50, this will be a bilateral, if an offer was placed in a newspaper (Carlill V Smokeball Co.). An offer is quite different from an invitation to treat, though it is not always easy to distinguish the two. In the case of Fisher v Bell D put a knife to sell on a window with the price tag hanging. It was a statutory offence under the Restriction of Offensive Weapons Act 1959. The Divisional Court took a literal interpretation of the statute and said he...