INTRODUCTION A contract is a binding legal agreement enforceable in the court of law. However, this is not true for every agreement between two person. A legally binding agreement means there must be a form of compliance between the two parties.However, not every agreement are contracts as not every compliance is legally enforceable.Only when the courts states that the agreement is a contract, is it then legally enforceable. Mr Jones had entered an exemption clause contract. A clause may be included into a contract which target is to not include or confine someone’s liability for breach of contract.
That is a difficult distinction to make in practice, as most losses contemplated by the parties are losses that will arise ‘naturally’ from the breach. When a contractual clause excludes or limits liability for ‘consequential’ loss or damage, as a matter of law, it only excludes loss under the second limb. The scope of such exclusion may therefore be far narrower than commercial negotiators realise. In particular, they may believe that it excludes liability for all loss that is a consequence of a breach including, for example, loss of profit. But the law often regards loss of profit as a direct loss.
Contractual capacity is a slight bit different and means that both parties must be within the legal age limit, sound mind and legally able make the binding contract. As far as we know, they are both in sound mind and able to commit to this agreement. Therefore, this would be legal if all other elements had been met. Finally, the element of a legal object would mean that the contract would not break any moral or legal laws. Since the manager wanted to exclusively sale this product as long as Mr. Stevens has no other contract this would be considered moral and would again be a binding element.
Under the tort liability law, also known as "the law of negligence", a person is considered liable for committing a tort, if they have failed to satisfy the standard of care - a standard determined by the behavior of a reasonably prudent individual. The tortfeasor 's actions are measured against the actions of a reasonably prudent person, and they are found to be below-standard, the individual is guilty of negligence. The tort liability law applies mainly to unintentional torts. In the case of intentional torts and strict liability torts, the defendant is found guilty regardless of negligence. If a wrongful act is done deliberately, the possibility of negligence is ruled out automatically.
Ideally, the contract should set forth as specifically as possible the scope of information covered by the agreement. The disclosing party may be reluctant to describe the information in the contract, for fear that some of the confidential information might be revealed in the contract itself. Confidential information is only revealed to another party for a specific purpose. The agreement should set forth what the purpose is. Many confidentiality agreements do not have a disclosure provision.
A binding contract is an agreement between two or more parties, giving rise to rights and obligations are recognized and enforceable by law. The five essentials of a valid contract are capacity, offer, acceptance, intention to form legal relations and consideration. Capacity is the first element to form a legally binding contract. The three factors are minority, intoxication and insanity. The three factors have to be present in order the person to enter into a contract.
• The contract was broken. • You lost money. • The defendant or offender (person or business you're challenging) was responsible. The remedies for breach of contract are specific performance which is a court order for each person or business to follow through with the initial agreement, award of damages, rescission which is when the contract is canceled, any money returned, and the matter dropped as if it never happened, and restitution achieved when the contract is re-written to better suit the actual intention of the contract-essentially a 'do-over'. The main remedy of breach of contract is the award of damages which will be use when an innocent party faces a contract being breached.
Scope of liability is divided into two parts; foreseeability, which excludes liability for harms that were sufficiently unforeseeable at the time of the tortious act that were not among the risks that made the defendant negligent; and superseding cause, which is an intervening act that relieves the defendant of liability. The contributory negligence is the most common defense to negligence. It’s when the plaintiff fails to exercise reasonable care for their own protection. This defense results in preventing the plaintiff from recovering any type of reward. Comparative negligence allows the damages to be divided between both the plaintiff and the defendant to their degree of
Task 1 Understand essential elements of a valid contract under business context: Contract: “Contract is a legal binding or a written or spoken agreement between two parties, which have a tendency of being legally enforceable.” (Collins, 2003) Valid Contract: A valid contract is a contract comprising the essential elements of a contract under the law and is enforceable by law. A contract which does not contain any essential element of the law is not considered as a valid contract and is said to be void contract having no value. All agreements are not contracts but only those which are enforceable by law. (Sheth, 2011) Elements of a contract: A valid contract must have following essentials to form a valid contract: 1. Offer and Acceptance:
If a party does not perform an action in the way that the contract stipulated, the contractual liability is then incurred. One example is a single party contracted to rent an inflatable swimming pool for an outdoor party. If the item is not received on the correct date and time, the contract is breached and the pool company is held liable for the amount stated in the contract. But if the individual fails to make payment the company for the pool, he is responsible for the losses caused to the company by not paying for the item. Tort now means a breach of some duty independent of contract giving rise to a civil cause of action and for which compensation is recoverable.