A contract is a legal binding between two companies, businesses or parties that unites them in an agreement which is protected by law. A contract between the parties can be created verbally, in writing, by conduct or by all these means. And this contract becomes a valid contract if it has all the essential elements described as follows: It is important to mention that contract is enforceable only if all these elements are present in the contract.
ESSENTIALS ELEMENTS OF A BUSINESS CONTRACT AND THEIR IMPORTANCE:
IMPACT OF DIFFERENT TYPES OF CONTRACT:
Terms are the promises the parties make to one another as part of the contract. The terms therefore determine the rights and obligations of each party to the agreement.
Dear Carl, Hope that this letter finds you in good spirit. I am writing to you in response to your letter wherein you have inquired about the legal issues involved in online purchase of a set of DVDs on Team-building training. I have studied your matter and want to inform that Under the Consumer Contracts Regulations your right to cancel an order starts the moment you place your order and doesn’t end until 14 days from the day you receive your goods.Once the contract is cancelled, any credit agreements entered into at the time of the contract are cancelled as well. A number of laws give consumers a legal right to cancel contracts in specific transactions within a short time after the consumer signs the contract, and without giving the seller or other party a reason or having to show “legal cause.” In order to cancel, the buyer must sign and date the cancellation notice, which must state that the buyer is canceling the contract. The buyer should send the notice to the seller by certified mail, return receipt requested, at the address that the seller has given in the sale documents. The buyer should keep a copy of the notice for his or her own records, and to be able to prove that the notice was given and what was said. Since you e-mailed Classic Training to cancel the order in less than an hour, then your order may be cancelled by virtue of law. Direct Training invited you with their advertisement showing the price A£75 for the DVD set. Law considers the price tag as an invitation for you to make an offer to purchase the item at that price. The offer was clear, definite and explicit and there was nothing to negotiate, then your acceptance completed the contract on the terms specified by Direct Training at the time you placed the order.
However, if the price advertised on the website turns out to be incorrect, then they do not have a legal commitment to complete the sale: By law an advertised price is not a contract of sale, so the seller can refuse to complete the transaction if the price has changed, in likelihood that advertised price was not deliberately misleading. If there is an obvious error in a price displayed, the supplier will not be bound by that price if the supplier corrects the error and informs the consumer of the correct price before the sale is concluded. The supplier is not obliged to sell the goods to the consumer at the patently incorrect price. Since Direct Training corrected the error and informed you via e-mail, they are not bound by law to sale the DVD set on the erroneous price. So, its better not to expect any favor as it is unlikely that any action will result in compensation; especially as technically the product was not sold. After having discussed the legal issues in detail, it would be more practical and advisable if you let the order completed with Classical training instead of direct training. It would at least save A£10 to the company. Hope that the letter has addressed the right legal concerns. Sincerely,
Barker and Clive Solicitors Clegdon January 25, 2015 Dear Lan Page, I am writing you with reference a letter from an apprentice’s mother. Asad’s mother wrote about the details of the apprenticeship they entered with Mr.Abdul Bashir. The apprenticeship signed between Mr. Abdul Bashir and asad legally binds them into contract for a period of three years. As per law, the training contract legally binds Asad and Abdul Bashir for the term of the apprenticeship (3 years). The standardized contract terms define the obligations of apprentice. Moreover, if Mr. Abdul Bashir is offering apprenticeships for quite some time now, it must have also been signed/approved by a regulatory body, by approving the given terms and conditions. As long as everything within the contract is agreed upon and signed and dated by both parties, it is legally binding. 2). When two companies enter into an agreement to do business together, the agreement is sealed and documented to form a standard contract.
The prominent advantage is that minimum risks are involved and reduce legal costs. The standard contracts also provide greater certainty regarding the contract terms, providing clear legal specification and protection to both the parties. It saves time and costs by leaving little room for negotiations. The main disadvantage of the standardized contract is the Boilerplate. It is what has been deliberately missed out of the contract. So, winning a dispute would not bring any advantage if the person issuing the contract has deleted the part that says the loser in litigation will pay the winner’s attorney fees. Another problem with boilerplate is the section that says disputes will be resolved by arbitration instead of a lawsuit. Price fixing is another disadvantage of standardization of contract: prices are made part of the standardization. Language problem is a major disadvantage. Use of some words may change a simple proposal to an obligation. Just as specified in Clause (a) of the standardized contract Asad signed in apprenticeship. The standardized contract inherently favours the issuing party. Like it favous Mr. Abdul Bashir being the employer and issuer of apprenticeship terms. Would be waiting for your take on the same. Regards. ………..
Barker and Clive Solicitors Clegdon January 25, 2015 Hotsafe Ltd. Vicarious liability occurs in case of breach of any term or part of the contract by an employee acting on behalf of the company; thus the owner of the company will be held liable. Same rule applies in the case of various contracts and business dealings. As per definition of Winfield, Liability arises from the breach of the duty, as fixed by law. Thus indirect responsibility lies on Hotsafe Ltd as a result of inability to carry out the service by one of the employee of the company; the breach of the duty calls for compensation of unliquidated damages. Legal liability in this case arises as a result of breach of contract that you have entered into with Garside. The damages occurred to Garside are the result of negligence. And negligence has significant affect in business contracts. As per business contract signed between your company and Garside, your company was obligated to carry out the service as per schedule. As per law, if a party to a contract suffers loss for the negligent act of the other, the plaintiff is entitled to seek relief for the negligence. The presumed negligence in this case is satisfying the four conditions for the award of damages.
You will have a defense against this negligence only if the negligence act also has some contribution on part of Garside, depending upon his share in this negligence. But this can only be investigated on court’s order. Another defense would be to show that you have taken all reasonable steps to ensure the prevention of such acts or omissions therefore providing a statutory defense. If you are having in place an up to date policy, a code of conduct, responsibility division and fixing, implemented trainings, and clearly communicated policies to all the employees of Hotsafe Ltd. In this case , any incident resulting due to negligence of an employee should be followed by a strict action against the employee. This may save the company against any serious damage claim. I hope that this would give the necessary legal perspective on the issue and you get out of it with the appropriate measures. Regards. ……………….
Introduction to Contract Law. (2017, Jun 26).
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