Essays on Aspects of Contract and Negligence of Business in Everyday Operations Case Study

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The paper "Aspects of Contract and Negligence of Business in Everyday Operations" is an impressive example of a Business case study. The contract between Woohoo Wholesale (WW) and Provident Solutions (PS) was an invalid one. It did not meet several elements of contract validity. A contract must be between parties competent to be contracting or contracted.   In this respect, a party is considered contract-incompetent if it has no legal capacity to incur voidable contractual duties. Determining the competency to contract is based on the facts of the contract itself (Mohart, 2007). In this case study, WW, on one hand, had a valid need for computers and software (to improve stock management).

But most importantly, it had the financial capacity to pay for the supply of these. On the other hand, PS, by WW’ s evaluation, had the capacity to provide what is required: computers and software; the quality required; the number needed; and in time, among others. However, it lacked the capacity to provide updated software. It, therefore, sub-contracted Clive Software Ltd. Clive lacked the capacity to provide up-to-date software and in time, which led to unwanted delays.

Even after the software was installed, it continued to have problems. Consideration The contract bargain theory asserts the premise that a contract is essentially an agreement between parties where each gets something in return for his or her promise” (Mohart, 2007, p. 2). Therefore, the contract must contain a provision obliging the offeree to promise the offeror something in return for the offer. This is what is known as ‘ consideration’ . Consideration may be in the form of financial payment, delivery of property, and service performance, among others. For instance, PS’ s final quotations outlined the price WW should pay for its services (1.3 million Pounds) and promised to reimburse all WW’ s legitimate expenses if both parties do not agree on a formal contract.

The quotation also emphasized the need for the signing of the formal contract by both parties for the contract to be considered effective.


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