Variants of Contract Type and Potential Liability

Part A

Answer 1:

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Impact of Different Types of contract

There are assorted sorts of contracts that can be formed and each has their ain specific impacts. The same is submitted below:

  1. Oral contracts– when a contract is formulated verbally, that is offer and credences along with other necessities of the contract are decided verbally, so the contracts are said to be unwritten. The chief job that is associated with these sorts of contracts is that it is really hard to turn out its being [ Lawservices, 2012 ] . In United Kingdom’s the impact of an unwritten contract is similar like a written contract and is valid, the lone job is to turn out such contracts. [ Management today, 2007 ]
  2. Written contracts– these are the contracts which are formulated by the parties in a formal written understanding. These sorts of contracts are valid in United Kingdom’s. Further, it is really easy to turn out the footings of the written contracts if differences arise. [ Management today, 2007 ]
  3. Face to face contracts– the contracts which are made face to face are besides called inter praesentes contracts. These types of the contracts are perfectly valid and the jurisprudence presumes that individual is meaning to come in into contract with such individual who is sitting face-to-face with such individual. [ E-lawresource, 2013 ]
  4. Distant merchandising contracts– Distant merchandising contracts are the contracts under which the merchandises are sold non in individual but through mail order, electronic mails, facsimile or telephone. The list is non thorough but inclusive in nature. In United Kingdom’s, it is the Consumer Protection ( Distance Selling ) Regulations 2000 that trades with distant merchandising contracts. The contracts which are formulated based on the above mentioned ordinances hold full cogency in United Kingdom’s. [ Distant Selling ]
  5. Electronic contracts– with the application of EU Directive of Electronic Commerce 2000and Electronic Communication Act 2000 it is possible to explicate electronic contracts or online contracts in United Kingdom. However it provide electronic signature with enforcement of jurisprudence. This is required to do an electronic contract valid. [ Write C, 2008 ]

Answer 2:Necessities elements of the contract

The mini instances A-D are analysed after understanding the rule that governs them.

Every contract requires few necessities in order to do it valid. The same are analysed as under:

  1. Offer– when one individual connotes his purpose to do/not make any act with the premier motivation to have the acquiescence of another individual than offer is made and is held inCarlill v Carbolic Smoke Ball Co.However, an offer does non last everlastingly and if the individual to whom the offer is made alternatively of giving assent includes fluctuation in the offer and re-communicates to the offerer than it consequences in counter-offer and this counter-offer invalidates the original offer and is held inHyde V Wrench. InByrne & A ; Co v Leon Van Tienhovenit was held that an offer can be revoked merely if the same is non accepted. Further an offer is non necessary to be given to a specific individual instead the same can be given to the universe at big and any individual who fulfils the conditions mentioned in the offer is deem to do an credence. In such type of instances there is no demand to overtly do an acceptable and is held inCarlill v Carbolic Smoke Ball Co. [ Contract ]
  2. Credence– when the offeree accepts the offer than it consequences in credence and is held inBrogden V Metropolitan Rail Co. When credence is made through station so, Acceptance is complete every bit shortly as the missive of credence if posted. In other manners of communicating the credence is complete merely when it comes to the cognition of the offerer and is held inAdams V Lindsell. [ Contract ]
  3. Consideration– consideration is when anything is given in exchange of a promise and is held inDunlop v. Selfridge[ Weitzenbock E, 2012 ] . Consideration can be past, present or future. When a individual promises to pay for an act which is already done in past so it is called past consideration and is valid and is held inPao On V LauYiu Long. [ Tufal A ]
  4. Purpose– a contract is valid merely if the party’s purpose to stay by the understanding and is held inJones v Padavatton.[ Intention ]

Therefore, these are the elements in the absence of which no contract can be established.

The above rules are applied upon the mini instances.

  • Mini Case A– in this instance uncle of Fiona makes an offer to Fiona to purchase medical equipment for 15000 and asked her to pass on her credence but no clip was given under which the credence needs to be communicated. Fiona needs some clip and she communicates her desire to the secretary of her uncle for which no answer was received. On 28ThursdaySeptember she sends her missive of credence along with check. But on 30ThursdaySeptember her uncle told her that the equipment’s were sold out.

It is submitted that elements of offer and credence are prevalent in this instance. A valid offer was made by the uncle and the same was punctually accepted by Fiona on 28 by station of the missive. It is submitted that when a missive of credence is posted than the contract stands concluded at the station of the missive. The phone for cancellation by uncle on 30Thursdayhas no value as the contract was already established. Therefore Fiona can claim the equipment’s from her uncle.

  • Mini Case B –Mrs Smith had made an offer to the universe at big and any individual who does the required act deems to do an credence. Thus David is eligible for the wages but he can non claim the disbursals as they were non promised by Mrs Smith.
  • Mini Case C – The act of Mrs Harris is an act of past consideration and therefore she is apt to pay Ted for the promises made by her.
  • Mini Case D – In this instance the parties does non mean to stay by any legal relationship therefore, there can non be any legal deduction but Roaster can be held apt under civil wrongs for perpetrating Byzantine wrongs.

Answer 3:Footings in a contract

There are several footings that are portion of the contract. The footings can be usually categorized under viz. four caputs. These are:

  1. Exclusion clauses– Exclusion clauses are the clauses which are portion of a contract and which limits/restricts the liability of one of the party which is based on any future event. If such event happens that such party can keep his portion of the liability. However, the clause is merely effectual if sensible attempts are made the party trusting on it that the other party has read the clause and is acquitted with the same. The same was held in Watford Electronics Ltd V Sanderson CFL Ltd. [ Goldstone A, 2009 ]
  2. Condition– a status is such an of import term in any contract that goes to its roots. A breach of a status will let the aggrieved party to call off the contract and claim amendss and is held in Poussard V Spiers. [ E-lawresource ]
  3. Guarantee– these are besides the footings of a contract but they are non so indispensable that a breach of such a term will let the aggrieved party to call off the contract. The lone redress that can avail by the aggrieved party is that it can action the defaulting party for amendss and the same was held in Bettini V Gye. [ E-lawresource ]
  4. Innominate Footings– these are the footings which are non specifically termed as a status or guarantee, instead, these footings are judged in the visible radiation when the breach is incurred. If the breach of the term consequences in striping the whole benefit the it is considered as a status otherwise non and the same was held in Hong Kong Fir Shipping V Kawasaki Kisen Kaisha. [ E-lawresource ]

Now the above jurisprudence is applied to mini instances E and F

  • Mini Case E– the promise of route fund revenue enhancement, wireless, stereo, and tank full of gasoline is warranty as it does non goes to the root of the clause the breach of which shatter the really being of the contract. If the promise made by the salesman that the auto is 1994 theoretical account, had run 30,000 stat mis and is of first proprietor are false so the contract can be repudiated as these are the conditions and goes to the roots of the contract.

There are few implied footings, such as, that the attention will be in working status, it is fit for driving, there is no liability that is attached to the auto etc.

  • Mini Case F– Jim can action the council for the harm for his autos as though the exclusion clause is mentioned but the same is non displayed in a mode that is moderately viewed by the visitants. Thus such exclusion clause has no validly. Further, Jim can non action the company for hurts as he is abide by the exclusion clause mentioned on the ticket of the par provided sensible attempts are made that the receiver of the ticket can read the exclusion clause mentioned.

Part 2

Answer 1:Difference between contractual liability and Byzantine liability

Both contractual and Byzantine liability is really of import in the field of jurisprudence.

  1. When a contractual wrong is committed than the redress that can be availed by the parties is pre-decided and incorporated in the contract. However, in instances of civil wrong, if a Byzantine act is committed that the aggrieved party is apt to claim compensation from the suspect which is non pre-decided ; [ SlideShare ]
  2. In instances of contractual liability there is a old relationship that existed between the complainant and the suspect. Rather, on the other manus in instances of civil wrongs, the complainant and the suspect at times are non even known to each another and are aliens but still the suspect is apt to pay the complainant for the Byzantine act committed by him against the complainant ; [ SlideShare ]
  3. The lone harm that can be claimed in instances of civil wrongs is compensation. But in contracts the party can claim amendss along with the compensation and has power to call off the contract. [ Branson D, 2009 ]
  4. The liability that is aroused in instances of contract is based on the footing of exchange of promises. However, in instances of civil wrongs, there is a general responsibility which is imposed by jurisprudence and because of liability is originated. [ Branson D, 2009 ]
  5. The herb of grace of private is established in jurisprudence of contract where as there is no such regulation in instances of civil wrongs ; [ Branson D, 2009 ]
  6. In contracts, the liability that is arisen is rigorous based as the same is usually expressed within the contract. However, in instances of civil wrongs, the liability is fault based which is non expressed ; [ Branson D, 2009 ]

Therefore, these are the basic differences that can be established amid the contractual liability and Byzantine liability.

Answer 2

In order to cover with Case 1 and 2 it is of import to understand the jurisprudence of carelessness.

The construct of carelessness is non an epoch old and was established in the taking instance ofDonogue V Stevenson. It was established that are four necessities which must be proved which gives the complainant a right to action the suspect for compensation and amendss. These are: [ E-lawresource ]

  1. There is an infliction of responsibility of attention upon the suspect ;
  2. The responsibility of attention was non complied with, that is, breached ;
  3. The breach of responsibility has resulted in amendss ;
  4. The amendss that are sustained by the complainant is non distant but proximate.

The responsibility of attention in the jurisprudence of carelessness submits that the suspect must take sensible attention of his neighbors and the jurisprudence was held inCaparo Industries plc Vs Dickman. Lord Atkin in the taking instance ofDonogue V Stevensonhas explained that a complainant is said to be the neighbor of the suspect merely when there is a direct impact of the actions of the suspect upon the complainant. If the actions are such that moderately defendant can non foretell that the complainant can be hampered by his actions than the responsibility of attention does non originate as the complainant is non the neighbor of the suspect. The jurisprudence was besides held in Sutradhar v. Natural Environment Research Council& A ;Mersey DocksandHarbour Board Ltd V Coggins and Griffith. Therefore, the construct of neighbourhood rule is highly of import in order to enforce the responsibility upon the suspect. It is submitted there is no responsibility that is imposed upon the suspect to take attention of all the individuals ; instead, the responsibility is merely drawn-out to those individuals who are

  1. The neighbor of the suspect, that is, there is proximate relationship between the suspect and the complainant ;
  2. that the suspect can reasonably predict that his actions may do can adverse consequence to the complainant ; [ Juris Pedia, 2013 ]

When the responsibility so imposed is non catered by the suspect and amendss are sustained by the complainant so it is termed as the responsibility so imposed upon the suspect is breached, that is, there is breach of responsibility of attention and the construct was highlighted inArmstrong V Cottrell. [ SixthForum, 2008 ]

However, in order to do a suspect apt under carelessness the breach should be of such a nature that such breach would hold resulted in doing amendss to the complainant and which must be moderately contemplated by the suspect and should non be remote in nature. If the amendss are distant than the suspect can non be held apt for any compensation to the complainant and the same was established in The Wagon Mound no 1. [ E-lawresource ] .

But there are few defense mechanisms which are available to the suspect and if the suspect is able to turn out any one of the defense mechanisms and he can extenuate the compensation that he is apt to pay to the complainant on history of loss caused to him for carelessness. These are: [ Defense mechanisms to negligence ]

  1. Volenti non tantrum injuria – when the complainant is himself voluntary involved in the harm so caused and it is because of his action that harm is sustained by him than the suspect can cast off from his liability under carelessness. The same was held inWooldridge V Sumner.
  2. Conducive negligence- under this the complainant has contributed along with the suspect for the loss so caused. In this defense mechanism the suspect can extenuate his compensation to the extend the complainant is involved in the action of carelessness and the same was held in Barclays Bank plc V Fairclough Building Ltd.

Therefore, the above stated rules describes the jurisprudence of carelessness and its nature of liability of carelessness and the defense mechanisms that are available to the suspect in order to extenuate has liability if the responsibility of attention is breached which resulted in doing amendss to the complainant United Nations under the ; aw of carelessness.

Answer 3

The jurisprudence of vicarious liability [ Tufal A ]

When during the class of the employment and employee causes any action of civil wrong than the employer is said to be apt for the actions of the employee and this is termed as vicarious liability. There are few grounds that have been allocated as to why an employer should be apt for the actions of the employee. These are:

  1. The employer has a direct control over the actions of the employee therefore he must confront effects that arise because of such control ;
  2. Since net income that is generated by the actions of the employee are retained by the employer than he must besides confront the losingss that may originate of the actions of the employee.

Therefore, an employer is held apt for the loss caused by an employee during the class of his employment.

There is a difference between an employee and an independent contractor. It is submitted that under the jurisprudence of vicarious liability, the employer is apt for the actions of the employee and non ever for the actions of the independent contractor and the construct was justly established in the prima instances of Ferguson v Dawson & A ; Massey v Crown life insurance.

There are few of import points which held in understanding whether the individual is an employee or an independent contractor of the employer. These are:

  1. The control trial – a individual is said to be an employee if he is under the direct control of the employer and receives all orders from him. On the other had an independent contractor is non under the direct control of the employer and decides his action himself. The construct was established in the taking instance of Collins v Hertfordshire.
  2. The nature of the activities of the individual besides helps in make up one’s minding whether the individual is an employee or an independent contractor and the same is held in Cassidy v Minister of Health ;
  3. In instances of employee, the actions of the employee is an built-in portion of the concern but a contractor actions are non an built-in portion of the concern tough he is working for the concern ;
  4. When the employee is temporarily shifted to another employee than it is really hard to switch the hazard that is associated with it and the same was held in the taking instance of Mersey Docksand Harbour Board Ltd V Coggins and Griffith ( Liverpool ) Ltd.

Further, an employer can merely be held accountable for the actions of the employee if such actions are committed by an employee during his class of employment. , if a loss is sustained by an employee while he is non in the class of employment than the employer can non be held apt for such actions and the employee is himself apt for the same and the rule of vicarious liability will non use and is held in Joel V Morrison.

Therefore, this is the jurisprudence of vicarious liability and under this liability the employer can be held apt for the actions of the employee.



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