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EDEXCEL BTEC
Assignment
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Module: Unit 5: Aspect of Negligence and
Contract in Business
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(1.1) Explain the importance of the essential elements require for
the formation of a valid contract
The offer – is something which one party makes to the other to do a specific
task with the specific terms. (Fried, C. 1981) First the offer is made and only
on acceptance of the offer they come in to make a contract to do it. On
acceptance means that the offer is accepted and they proceed to sign the
contract with the conditions, rules and regulations stated clearly.
In this case Virtual College and Student R-us have made a clear but a invalid
contract over phone with no signed documents. Contract over phone states
that they will work on the assignment offered by the Virtual college until 5 pm
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June 3rd. The Virtual college has made an offer for £2000 for 8 weeks – total
£16000 paid at the end of 8 weeks and the Student R-us. There is no
agreement proof and signed the contract.
On considering the side of Law, here Virtual college has clearly agreed to pay
£16000 only on completion of work for 8 weeks without fail in between. This is
highly paramount important as they have come in an agreement in which both
the sides benefit by this contract.
CAPACITY – Both the parties who have to signed the contract are not minor
and they should have the matured age limit as per law to enter into the
contract. Only persons with less age or dis abled mental abilities can’t enter
into any agreement and those made with them are not valid.
Consent: if any of the parties do not enter in to the agreement without full
satisfied mind then it means that they have not understood the contract and
this can be viewed as invalid. (Here now Student R-us can prove there is no
consent)
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[1.2] Discuss the impact of different types of contract
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Written down contract:
A written down contract is more superior and has higher power than any oral
contract made. It is more legally acceptable format or proof of a business agreement
that clearly states the fact that Virtual college agree to Student R – us for paying a
certain amount on accomplishing a certain task based on the agreement. Whatever
both parties have undertaken is clearly written in this case and they can never deny
them. Hence when the contract is written down both Virtual college and Student – R
us has to abide it if they had signed it and it would have been more strong in side of
the Virtual college as the Student R – us broke down the verbal contract made.
Contracts have different types based on the ways in which they are made and
one such contract here Virtual college has made is the Face to Face or a
Verbal Contract.
They have made the express contract verbally over phone – and this is
weaker for the Student R-us as it will be difficult for them to sue the Virtual
College as they have no proof / written document of the contract. Since this is
not made formally there is no strong proof to prove that this is valid and can
never be proven in the court in case of dispute.
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Implied contract is based on the implied conditions and also on the conduct of
the both parties under consideration. Based on this the impact on the student
R-us is that the agreement has been broken / is not valid and they can come
in terms for a new agreement to pay 6000 + 10000£ for their work they agree
to perform in future. This can be documented and has all the conditions of the
old one with only one new provision to support the student R-us.
References:
1. American Law Institute, Restatement of the Law 2d, Torts, West Publishing,
Eagan, MN, 1965.
2. Braynen, W. 2014. ‘Moral dimensions of moral hazards’. Utilitas, 26:1, 34–50.
3. Davis, Gordon B. Management Information Systems. New York: McGraw-Hill,
New York, 2000.
4. Fried, C. 1981. Contract as Promise: A Theory of Contractual Obligation.
Cambridge, MA: Harvard University Press.
5. Marsnik, S. J., & Thompson, D. B. (2013). Using contract negotiation exercise
to develop higher order thinking and strategic business skills. Journal of Legal
Studies Education, 30(1), 201–248
6. Myers, B. L. Read at Your Own Risk: Publisher Liability for Defective How-To
Books, Arkansas Law Review, 45, (1992), 699.
7. P. Giliker, Vicarious Liability in Tort, 3rd ed., (Oxford 2008), p. 102.