Aspects of Contracts and Negligence in Business
Aspects of contracts and negligence in business
Task 1 and 2
Unit 5
Lecturer: Mrs. Eunice Wahito
Done by: Kaunain Assaria
Table of contents
Validity of contacts………………………………………………………………………….3-4
Types of contacts………………………………………………………………………….....5-7
Elements of a contract……………………………………………………………………....7-10
Consideration……………………………………………………………………………….10-11
Warranties and conditions…………………………………………………………………12-14
Law of tort……………………………………………………………………………………..15
Fault principle………………………………………………………………………………16-17
Vicarious liability……………………………………………………………………………17-19
Negligence…………………………………………………………………………………...19-21
Recommendation………………………………………………………………………………22
For a contract to be valid it must have the following characteristics: 1. Offer and acceptance
A contract is formed when an offer by one party is accepted by the other party.
An offer must be distinguished from mere willingness to deal or negotiate. For example, X offers to make and sell to Y calendars featuring Australian paintings. Before any agreement is reached on size, quality, style or price, Y decides not to continue. At this stage, there is no legally binding contract between X and Y because there is no definite offer for Y to accept until the essential terms of the bargain have been decided.
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.
An offer is a definite promise to be bound, provided the terms of the offer are accepted. This means that there must be acceptance of precisely what has been offered. For example, a used car dealer offers to sell B a Holden panel van for $1,000, without a roadworthy certificate. If B decides to buy the Holden panel van, but insists on a roadworthy certificate being provided, then B is not accepting the used car dealer's offer. Rather, B is making a counter offer. It is then up to the used car dealer to accept or reject the counter offer.
A person can withdraw the offer that has been proposed
Task 1 and 2
Unit 5
Lecturer: Mrs. Eunice Wahito
Done by: Kaunain Assaria
Table of contents
Validity of contacts………………………………………………………………………….3-4
Types of contacts………………………………………………………………………….....5-7
Elements of a contract……………………………………………………………………....7-10
Consideration……………………………………………………………………………….10-11
Warranties and conditions…………………………………………………………………12-14
Law of tort……………………………………………………………………………………..15
Fault principle………………………………………………………………………………16-17
Vicarious liability……………………………………………………………………………17-19
Negligence…………………………………………………………………………………...19-21
Recommendation………………………………………………………………………………22
For a contract to be valid it must have the following characteristics: 1. Offer and acceptance
A contract is formed when an offer by one party is accepted by the other party.
An offer must be distinguished from mere willingness to deal or negotiate. For example, X offers to make and sell to Y calendars featuring Australian paintings. Before any agreement is reached on size, quality, style or price, Y decides not to continue. At this stage, there is no legally binding contract between X and Y because there is no definite offer for Y to accept until the essential terms of the bargain have been decided.
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.
An offer is a definite promise to be bound, provided the terms of the offer are accepted. This means that there must be acceptance of precisely what has been offered. For example, a used car dealer offers to sell B a Holden panel van for $1,000, without a roadworthy certificate. If B decides to buy the Holden panel van, but insists on a roadworthy certificate being provided, then B is not accepting the used car dealer's offer. Rather, B is making a counter offer. It is then up to the used car dealer to accept or reject the counter offer.
A person can withdraw the offer that has been proposed