Aspects of Contract and Negligence for Business - Assignment Example

Aspects of Contract and Negligence for Business Name University Course Date Task one COMPLETENESS For the creation of the enforceable contracts, any involved party has to reach on any agreement on most of the chief aspects of that contract. Any agreement has to be, simply, complete. There should be nothing which is left behind without being agreed upon with the intent of being agreed at a later date. Completeness is a component of inevitability of terms: until when any agreement is complete, the courts are not able to have any statement with certainty which agreements has been created by the parties. Whenever there is no agreement on all of the vital components of the bargain, there exists contract. There should be some agreement on issues like the price, either through the setting the price or establishing a mechanism of fixing the price. What is vital in a contract would be a dependent on the type of the contract (McKendrick, 2008). OFFER AND ACCEPTANCE A contract is termed to be valid if the partisans have voluntarily had an assumption on the liabilities regarding each other. This procedure of agreement commences by the offer. For the formation of the contract to be commenced, offer has to be accepted unconditionally. The law has provisions on any requirement essential regarding the communication of the offer and acceptance (McKendrick, 2008). A statement of intention In this context, one of the parties states that he has an intention of doing something. This is different from an offer since he doesn’t state that he would do something (McKendrick, 2008). A supply of information In this context, one of the parties issues information to the other party. This party gives the information so as to bring about the enlightenment of the other party. This statement is not meant to be acted upon. Communication of the offer To be successful any of the offers has to be communicated: there could be no acceptance of this offer whenever there is no knowledge of that offer. The motive for this prerequisite is that whenever we say that any of the contracts is an agreement bargain, there could be no agreement if there is no knowledge. There could be no “minds’ meeting” in case one of the minds isn’t aware of the other. Alternatively, any acceptance can’t ‘mirror’ any offer in case an acceptance is achieved by ignoring the offer (McKendrick, 2008). Impacts of different types of contracts According to Rachel et al. (2012), the trends of servitizing manufacturing industries, has made most of these firms move past pure manufacturing and offering services and solutions which are conveyed by use of, or in conjunction with their, frequently, complicated engineering machinery. In many instances, such organizations are now offering complicated engineering services. The longer-term aspect of any of these contracts and the new types of offering issued expose the providers to an increased degree of risk and uncertainty resulting from the customer’s demand. The current business models built around any complicated engineering asset and the related change in risk and client–provider relationship has amounted to the boundaries of responsibilities and responsibility between the providers and users to move additionally towards the domains which might customarily have been deliberated that of the users. Terms in contracts, According to Crown (2004) with reference to their meaning Acceptance – is whereby the two parties agree unconditionally to an offer. This results to the creation of the contract. Prior to the acceptance, any of the offers could have a withdrawal, but then again once accepted that contract would bind on both parties. Any condition has the impact of the counter offers that have to be accepted by the other side. Arbitration –this is the use of an independent third party in the settling of any dispute instead of taking the matter to court. The third party, who acts as an arbitrator, has to be agreed by both parties. Any contract usually includes an arbitration clause nominating the arbitrators in advance. Breaching of contract – this is the act of failing by one side to the contract in upholding their part of the agreement. The breaching of the contract would make the entire contract to be void and could result to damages to be awarded against the side which breached the contract. Collective agreement – this refers to the terms used for contracts made between an employee and an employer, often involves trade unions. They usually comprise of various organizations. Though this could be treated as a contract, it is governed by the employment laws, not contract laws. Due diligence – is the formalized procedure of examining the background of an organization, both prior to buying it, or as a different party in a main contract. It is applied in ensuring that there exists no concealed information that can have effects on the deal. Franchising – this is a commercial agreement that allows one of the businesses to deal in some products or services which are controlled by another. For instance, most of the vehicle manufacturing companies issue franchises to vend their vehicle to local a garage, who then operates using the brand of the manufacturer. Jurisdiction – the jurisdiction clauses set out the countries or states whose laws would be governing the contracts and whereby some legal actions have to take place. Without forgetting that England and Scotland are having various legal codes, and that might be requiring further specification. Ratification – is the issuing of authority to any of the acts that had previously been done. A company’s general meeting resolutions could ratify any act formerly done by any director; or the principals could opt to ratify the acts of the agents that were beyond the stated power of the agents. Task two a. The British government on 2nd April, 2013 entered into a contract with some entrepreneurs on helping the government to improve the needs of small sized-and medium-sized businesses. According to Crown (2013), The business secretary Vince had to pay a visit to the business premises of Lawrence and Rekha so as to establish if they are indeed suitable for the task. After the Vince had paid them a visit, he then told them on what his visit meant. After he had gotten the conviction that these two entrepreneurs were suitable for the task, he made told them that the government was willing to enter into a contract with them. This was the statement of intention. The entrepreneurs accepted the offer and were willing to have the task. They did sign the contract with the government. The two parties ensured that the contract was complete so that in case a misunderstanding arose, the court could make a ruling on the way-forward regarding the contract. b. In the contract between the entrepreneurs and the British government, in case one of the two parties failed in fulfilling the agreement, the party will be deemed to have breached the contract and that would attract some fines being declared by the court on the violator. The two parties can involve a third party i.e. arbitrator in settling their disputes instead of going to court since courts are time consuming. Task three Tort liability This is any Legal obligation of one of the parties to the victims as a result of the civil wrongs or injuries. These actions require some sort of remedies from the court systems. the tort liability occurs as a result of a blending of direct violation of an individual’s rights and any transgression of the public obligations resulting to the damages or the private wrong-doing. Evidences has to be evaluated in the court hearings for the identification of whoever the tortfeasor/liable parties are in the case (Investorwords, 2014). Contractual liability This refers to the obligations assumed by the contracting parties under any term of the contracts. it also refers to any liability which is assumed whenever a contracting party enters into the contract whereby either of the parties in the contract fail to carry out the obligations according to the terms, alternatively referred to as a breach of contract. These are the promises in performing or delivering services that might be enforceable through adjudication (McKendrick, 2008). The nature of liability in negligence Negligence can be termed as any conduct that is falling in under the standards of behavior recognized by laws for the safeguard of other individuals against most of the unreasonable risks of harm. Individuals are said to have acted negligently whenever they have deviated from the conduct perceived of a realistically prudent individual who is acting under related conditions. So as to have an establishment of negligence like a Cause of Action as per the laws of the torts, the claimant has to prove that the suspect did have a responsibility to the claimant, the suspect did breach that obligation by failing to follow to the obligatory standards of conduct, the suspect's negligent conduct becomes the origin of the harm to the claimant, and the claimant was, for sure, subjected to harm or damages. The law puts into consideration an individual’s know-how, experiences, and perception in the determination of if the person had behaved like a rational individual would have done in similar conditions. Behavior has to be judged in the margins of an individual’s real know-how and observation, since the sensible individual often takes that into consideration. Therefore, whenever a driver notices a different an oncoming truck, which has got no lights, the driver has to behave rationally in avoiding the accident, even if the driver wouldn’t have been neglectful in not seeing the other truck (McKendrick, 2008). How a business can be vicariously liable Vicarious liability, alternatively known as the "imputed liability," usually makes an individual to become liable for the behavior of a different individual. Vicarious liability is usually applicable in the employees-employers relationships. Whenever any of the employees becomes negligent on their jobs, the employers are legally accountable for any of the damages or injuries the employees cause. This clause allows the victims to sue their respective employers, who are possibly to have more money than their employees. In the businesses, the employers might be vicariously liable for their worker's behaviors whenever:  The employers expressively hire an unqualified employee and a the employees gets harmed The employees were not fit to be engaged and that their respective supervisors were aware of these employees’ unfitness Failing to give sufficient supervision that amounts to any injury Inadequate or no guidelines or measures are operational and results to injuries Failing to train or direct the workers in their job responsibilities results to injuries Task four a. Applying the elements of the tort of negligence and differences in different business situations The person who owes the obligation has to breach the promises or obligations; some injuries then are likely to happen as a result of those particular violations; and any injury cause had to be rationally foreseeable resulting from the individual's negligent behaviors. One has to Contact the negligence lawyers to get legal advice and help. In succeeding in the negligent actions, the individual who got the injuries has to ascertain the aforementioned features in the negligent tort claims or hearings. The negligent tort might have a summation as a person's failure of rationally exercising any logical or caring action (Elliot & Quinn, 2009). One of the examples include a surgeon who mistakenly takes away the wrong kidney might be sued by the patient for negligence and irresponsibility. Also a landlady who lets one of her tenants to tame some German Shepherds would be liable if these pets end up harming guests to her apartments. The retail stores that don’t take the initiative of keeping the clients safe in their parking yard beside the stores are liable of negligence for any injuries experienced by these clients. The grocery stores that don’t keep wet lettuces off their floors where individuals slip, fall and injure themselves would be liable of negligence for being reckless. Also the homeowners who don’t repair their front steps or cracks in their walkways that result to individuals falling amounting to injuries, would be liable for being reckless. Also, those churches that don’t sack their molesting priests after they even realizing the priest's filthy behaviour, would be liable for the priests’ vices (Elliot & Quinn, 2009). b. Applying the elements of vicarious liability in given business situations The principals are usually liable for their agents’ actions exhibited in the process of the agents’ responsibilities assigned by their principals; and the employers for the actions or inactions of the employees in the ordinary course of their employment or responsibilities (Businessdictionary, 2014) Another usual incidence happens whereby a doctor injures an individual during the course of his employment; the employers might be subjected to the vicarious liability. This basically means that the individual with the injuries might be capable of winning the recompense for the injury from the boss, instead of the worker. Reference list Businessdictionary, 2014, Definition, viewed 29 January 2014 Crown, 2004, General business contracts terms and definitions glossary, viewed 29 January 2014 Crown.2013. Press release You’re hired – entrepreneurs in residence to advise government, viewed 29 January 2014 Elliot, C & Quinn, F 2009, Tort Law, London, Longman Publishers Investorwords, 2013, Investor words, viewed 29 January 2014 McKendrick, E 2008, Contract law: text, cases, and Materials, Oxford University, Oxford University Press Rachel, C; Duncan, M; Andy, N 2012, The Impact of Contract Type on Service Provider Information Requirements, Cambridge University, Cambridge University press. Read More