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Four elements of a valid contract
Vicarious Liability case study
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Group C advice WLCBMS on: a) Has a valid contract? Are the essential elements required to form a valid contract present and these elements importance when forming contract? (1.1) Straight forwardly said! It is a valid contract, but it’s an express (verbal/on phone call) contract in nature. Not all validities are satisfying according to law requirement. Obviously these all elements are must require to be fulfilling for forming a contract. Definitely essential elements are required and important to form a valid contract. Here some essentials of a valid contract: 1 Offer & Acceptance: There must be lawful offer and lawful acceptance from both parties 2 Legal Obligation: Means parties are to be bounded legally after that contract 3 Lawful Consideration: Like some benefits for other party. An agreement is enforce only when both parties get and give something 4 Capacity of Parties: Both parties must be competent to bind each other for a valid contract, like not less than from age of maturity, not unsound mind, must be related parties 5 Free Consent: Both parties must be agreed upon the same thing at the same time. For a valid contract free consent of both parties must be necessary 6 Lawful Object: Object of the contract must be legal, lawful, not based on fraud, misrepresentation 7 Writing and registration: A contract either express or implied may be oral or in writing. It is preferable that contract be in writing because it’s easy to prove in court. It is requirement of law the all particular’s of contract must be in writing, on legal paper (like stamp paper affidavit), signed and stamp from both parties, attested, and registered etc… 8 Certainty of Terms: The conditions of contract must be cleared, complete and certain. If the t... ... middle of paper ... ... punishment for Kev and set a rule and reference for some future time. Although all employees are also known the mistaken is done from Kev side and instead of that Lovely Birds Ltd bear all their medical expenses. And after that take a legal action against them so it’s a good signal to all employees toward company rules and regulations. Conclusion: Here some elements of vicarious liability. Employer obtain responsibility to take voice decisions in selection, training, development, encourage, hiring and firing etc… of that type of employees who are good behavior and not involved in ambiguous activities, Employer is liable employee act against third party. By improve above mentioned activities employee must increase the efficiency of vicarious liability and minimizing the risk involved in vicarious liability by proper training and restriction and maintain check on it.
Whether oral or written, the contract must manifest a mutual intent to be bound expressed in a manner capable of being understood, and include a definite offer, unconditional acceptance and consideration.” (Express Contract 2016) The above definition is a much clearer explanation with key elements outlined; 1. mutual intent, 2, expressed in a manner capable of being understood, 3. definite offer, 4. unconditional acceptance and 5. Consideration.
Vicarious liability is a common law concept that refers to the liability that arises when one party, such as an employer, is legally liable for the acts or omissions of another party, such as an employee. This is because employers have a duty to take reasonable care for the safety of their employees and those of others who come into contact with them and their business.
The four elements of a contract are the agreement, the consideration, contractual capacity, and a legal object. The oral agreement between Sam and the chain store satisfies the agreement element of a contract definition because when the chain store offered to sell Sam 's invention at their stores, Sam accepted by agreeing to ship 1000 units in exchange. The second element of a contract, the “consideration of each party,” is satisfied because Sam and the chain store have something to give the other (1000 units of the invention in exchange for the exclusive sales of the product at their stores). The third element is “contractual capacity,” which may or may not be fulfilled since we do not know Sam 's age or whether
Agreement is a mutual understanding of two parties and willing to accept terms and conditions in order to form a legal contract (Penthony et al.2014). Agreement consists of two components; offer and acceptance. Offer is made by an offeror in an exchange for performance from another party on certain terms while acceptance is the action of accepting to the terms of the offer. An offer must follow the requirement in order to form
As mentioned earlier, there are certain requirements which must be met for a contract to be valid; requirements needed include agreement, consideration, contractual capacity and legality. For an agreement to be valid there must be an offer and acceptance present. In other words, there must be an intent known and understood for the contact to have an agreement. With that being said, there is no
There are six essential elements for a contract to be valid. All contracts must have an Offer, Acceptance, and Mutual Consent. Both parties must consent of their free will. Both party can be coerced or forced to sign the contract, and both parties must agree to the same terms. Implied in these three conditions is intent of the parties to create a binding agreement. If one or both parties are not serious, there 's no contract (Murray, 2016). Consideration, there must be something of value exchanged between the parties. The value can be money or services, but all parties must receive something. All parties must comprehend the seriousness of the situation and
Various elements must be present to prove that a valid contract exists between Sam and the chain store. The four elements to a contract are agreement, consideration,
(b) the other party does make the contract in the course of a business; and
Without having a clear understanding of how it works it could cause a misunderstanding and very well make the contract invalid, causing legal issues later on down the line if there is no consideration from both parties. A business person could suffer a loss due to lack of consideration if a court was to rule whether or not a contract is unenforceable. Either party may not fulfill their side of the agreement or the court may file a breach of contract against the opposing
There are three basic essentials to the creation of contract which will be recognised and enforced by the courts. These are: contractual intention, agreement and consideration.
“For there to be mutual assent, or a meeting of the minds, the parties must agree on the essential terms of the proposed contract” (McKenzie, 2016). This is typically demonstrated by both parties agreeing to a valid offer then writing up a contract and signing it. Should an offer not reach agreement a counter offer is usually submitted until both parties reach an agreement and acceptance of the terms. Mutual assent can exist but not be explicitly expressed. If I were to ask a friend who is a mechanic to change the oil in my car and he does so the contract is implied which would obligate me to pay my friend his usual rate for performing an oil change. While no actual words of agreement, my request and their actions created an implied in fact contract.
According to Abu hanifa, Malek, Ahmad ibn Hanbal, the Zaidis and al Shafe’I they said that “all permitted that either one of parties may delegate the option of condition to a third person (other than two parties).” The reasons is might be the party did not have the knowledge about the subject matter of the contract and in this situation he need to get advice from the expert and to guard him to make a decision either to accept or reject the contract. Al Shafe’I in another statement and Zufar state that “it is not permissible to delegate the option of condition to a stranger.” This is because only two person in the parties has the right in the contract and stranger absolutely not illegal to join the
A contract actually starts when the other party makes an offer (offeror), and then it is accepted by
Vicarious liability is incident only to a relationship of controlled employment, tr... ... middle of paper ... ... n any case the insurance premium that covers the claim is generally cheaper than if the employer was to directly compensate the tort victim. Therefore, the principle of vicarious liability is the best compromise which could have been reached between the needs of tort victims for compensation and the freedom of businesses to operate without excessive burdens. --------------------------------------------------------------------- [1] P418.
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,