Aspects of contract and negligence for business

TASK 1 – Literature Review


Your should review relevant articles, books and other published materials and answer the subsequent criteria using Harvard Referencing System:

1 Describe the importance of the offer and acceptance for the formation of a valid contract

2 Show the impact of express contract and implied contract

3 Examine the meaning and effect of express terms in contracts

TASK 2 – Essay

Write a small essay covering the task 2 (P4-P6) using examples or scenarios given below wherever possible.

Scenario 1- “Le Grandiose Hotel”:

Jonathan is the owner of “Le Grandiose Hotel” in Chelmsford. He is keen to sell his piano for £600. He placed an advert in the local newspaper, with a provison that he would not sell his piano to any third party before the 18th June. Ethan, aged 22, saw the advert and contacted Jonathan, asking him if he could pay £450 for the piano, and Jonathan said that he would think about it. On 19th of June, Albert a car driver saw the advert and asked Jonathan if he could pay £550 for the piano. The seller accepted the deal and Albert purchased the piano. Meanwhile Ethan sent a letter to Jonathan on 20th June, expressing his willingness to buy the piano for £600, which was received by. Jonathan on the 21st June.

Scenario 2:- PC Motors

Jonathan bought a new car from PC Motors Ltd. It has been the third car that Jonathan bought from PC Motors Ltd on behalf of his company. Jonathan was so busy that he did not have time to sign the standard terms of the contract pertaining to the new car. He gave a call to the director of PC Motors Ltd, informing him that he would sign the contract next month. Jonathan has been using the new car for his personal use.

Within two weeks after the purchase of the car, the engine broke down. He had to buy a new engine for £2,500. Jonathan wants to claim the £2,500 from PC Motors Ltd. Whilst checking the standard terms and conditions, that he never signed, he noticed a clause which states that in the event of a breach of contract, PC Motors Ltd’ s liability is limited to £700 only.

4 Apply the elements of contract in provided business scenarios

5 Apply the law on terms in different contracts

6 Determine the effect of different terms in provided contracts

TASK 3 – Report to Your Client

Write a short report to your client covering the task 3. Your report should have the subsequent structure:

• Title page (with your name, date, clients details, title)
• Introduction
• Your findings and analysis
• Your conclusion and recommendation if any.

Scenario 3 -“Beau Rivage:

Jonathan decided to take over a new hotel “Beau Rivage”. He hires the services of Paul, a currently qualified accountant, to organize a report to determine the prospects of investing in “Beau Rivage”. Paul was very excited to draft the report as it was an opportunity for him to prepare his accountancy skills. The report was promising, suggestive of a very good business investment.

Jonathan did not have enough finance to buy the hotel. He gave a copy of the report to his friend James, asking him to invest in the business. Having read the report, James invested in the business. Paul was aware that Jonathan and other investors will be relying on the report to buy the business. The business turned out to be disastrous and both James and Jonathan sustained substantial loss in “Beau Rivage”. Paul failed to check the financial accounts properly; as a result, he was not aware about the poor financial health of the business.

Scenario 4:

Martin checked out of Le Grandiose Hotel on the 3rd June. Jonathan found out on the similar day that the mini fridge was stolen in the room that was occupied by Martin. Martin came back to stay at the hotel after two weeks. Jonathan made it clear that he was not allowed to stay within the premises of his hotel. Martin tripped over a box and felt down at the entry of the hotel. He informed Jonathan that he will take action against him.

Scenario 5:

Barry works for Le Grandiose Hotel as a minibus driver. On his way to work, he made a short detour to fall his son at school. He suddenly felt asleep at the wheel, as a result, he bumped into Kevin’s car. Kevin was not wearing any seat belt, his head knocked against the windscreen. He suffered from psychiatric and physical injuries and his car was damaged.

7 Contrast liability in tort with contractual liability

8 Describe the nature of liability in negligence

9 Describe how a business can be vicariously liable

10 Apply the elements of the tort of negligence and defences in one of the above business scenarios/or any other scenarios

11 Apply the elements of vicarious liability in one of the above business scenarios/or any other scenarios

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