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Introduction to Aspects of Contract and Negligence for Business
A contract does not exist simply because there is an agreement between people. The parties to the agreement must intend to enter into a legally binding agreement. And also this is important because that ensure both the parties of an agreement are equally compensated for their work, goods or money. Contract is probably the most familiar legal concept in our society because it is so central of our political, economic, and social life. For the business law contract is very important because in business environment is full of agreement between the business to business or business to individual to keep everyone’s rights secure it is very much necessary. Contract is an official agreement (Azoulay, 2012). It could be written or even be in oral. Contracts can be written by using formal or informal terms, or entirely verbal or spoken. In the following project discuss about the negligence and give the knowledge for the same.
Elements of Contract
Contract is a binding agreement between both the parties on certain terms and condition conditions. To for a valid contract there must be all the elements in the contract these are following-
Offer this is the first element in the contract. an offer is a promise to act or refrain from acting, which is made in exchange for a return promise to do the same. An offer need not be made to a specific person. It may be made to a person, a class of people, or to the whole world.
Case law- Pharmaceutical Society of Great Britain v Boots Cash Chemist (1953)
Acceptance this occur when a party answering the offer agrees to the offer. This is equally important as offer because without the acceptance of the terms and condition both the parties cannot come into contract. Once an offer has been accepted, the parties have an agreement (Fried,2015). That is the basis for a contract, but is not sufficient in itself to create legal obligations.
Case law- Entores v Miles Far East Corp (1955)
Consideration To be valid, every contract must have some consideration on the basis of which they engage in the contract. There must be exchange of something. The subject matter of the contract may vary from contract to contract. In simple meaning Consideration is "something of value" which is given for a promise and is required in order to make the promise enforceable as a contract (Pateman, Mills, 2007).
Case law- Byrne v Van Tienhoven (1880)
Intention to create legal relationship An agreement, even if supported by consideration, is not binding as a contract if it was made without an intention to create legal intentions. So it is important that parties must intend their agreement to be legally binding.
Case law- Balfour v. Balfour 1919
Capacity Each party in the contract must be capable of involving into the contract.Infants and mentally disorder persons are not legally allowed to engage in contract.
Case law-Crown Lands Comrs v Page (1960)
Types of contract
There in the contract law contract classified according to different different categories and as per the impact of the contract.Some of the contract are-
Face to face contract As per the contract law these are the contract in which both the parties must be at same palace and they decide conditions and then they come into contract. In this contract there are very less chance of miscommunication. These contract are known as crystal clear contract (Friedman, 2011).
Impact of face to face contract are in these contract there are less chances of miscommunication so that also cause less chance of breach of