1. Assignment On
Aspect of contracts and
Negligence’s for the
business
Submitted By:
Submitted To:
Date:

2. Table Of Content
Executive Summary
Page No.
02
Task-1
1.1 Elements of A Valid Contract
03
1.2 Different types of Contract
04
1.3 Analysis of Terms of Contracts
05
Task-2
2.1 Application of the Elements of Contract
06
2.2 Application of the Law
07
2.3 Evaluation of the Effects of Different Terms
08
Task-3
3.1 Contrasting Liability in Tort with Contractual Liability
10
3.2 Nature of Liability in Negligence
10
3.3 Vicarious Liability in Business
11
Task-4
4.1 Application of the Tort of Negligence and Defences
12
4.2 Application of Vicarious Liability
13
Conclusion
14
Reference
15
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3. Executive Summary:
In light of the case scenario it can be exponentially explained that it is possible for TAM
College to be one of the most desired and successful educational institute in the UK. In
the light of the case, TAM College hired a marketing firm NAM to create an
advertisement program featuring their methodology and facilities under a contract of one
month with the clauses of completing the work within the stipulated time and if unable
the return of the advance with compensation of £1500. But in the future NAM
dishonoured the contract terms and asked for extension for the contract. This behaviour
became unacceptable to the authority of TAM College who in turn filed a legal suite
honouring the terms of the initial contract instead they were also charged with the
accident of an employee for shortage of protective gear during the duty. On the various
factors involved due to having a deep liability TAM College are on route to legal
consequences as there is the law involved.
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4. Task-1
1.1 Elements of a Valid Contract
A valid contract in order to be valid needs eight essential elements for its fulfilment. The
essential elements of a valid contract are discussed below:
1. Offer and Acceptance:
In order to create a valid contract one party must make a lawful offer to another and
the lawful acceptance of the offer is the required contract.
2. Lawful Considerations:
The offers made in a contract are lawfully previewed before the starting of the
decision making process.
3. Free Consent:
Fora valid contract to be rendered both the parties has the right to free consent as
nothing can be imposed on the parties taking part in the contract.
4. Formal Relation:
For the parties taking part in the contract it is necessary to have a formal relationship
because a contract cannot be presented to others in an informal way.
5. Certainty:
The terms and clauses of the contract need to be certain so that the facts can be
analysed by the accepting party.
6. Lawful Objects:
For a contract to be valid there must be a valid object of the contract presented.
7. Possibility of Performance:
The terms and conditions of the contract need to be performable by the accepting
party in order for the contract to be valid.
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5. 8. Enforceable by Law:
The contract needs to be enforceable to the law if not then the contract becomes void.
1.2 Different types of Contract
The different types of contracts are mentioned and discussed below:
Implied Contract:
The contract which is constructed without the free consent of one party then that
contract is an implied contract.
Unconscionable Contract:
In a contract when one party has a higher advantage than the other party then it lacks
free consent from one party so the contract cannot be enforced.
Contract under Seal:
This type of contract is the traditional contract in which the contract is made valid
using various kind seals and stamps making both the parties of the contract equally
responsible for the agreement signed.
Executed Contract:
If in a contract the terms and conditions of it are fulfilled first hand by both the parties
of the contract before the finalization of the contract then it implies that there was no
contract as it being an executed contract.
Express Contract:
In this type of contract the terms and conditions needs to be put to paper or it should
be accepted orally by the administrative body that focuses on the delivery of the
contract.
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6. 1.3 Analysis of Terms of Contracts
There are various factors in a contract that needs to be understood by both the parties. It is
necessary for the partiesto understand difference between various types of contract,
understand the elements and the terms of the contract which highlights the path to
minimizing the investment with look towards maximizing the benefits. In order to do so if
changes are made than it must be suited to the opposite party for the agreement to take
place.
In the race to put themselves in the top of the list of the best educational institutes of UK
TAM College has undertaken various strategies to come into the view. In the strategies
taken into motion the TAM College are involve in various contacts with several firms
who have been hired to look into the marketing purpose and handle the legal issues
concerned with the welfare and laws concerning the college. The main objective of TAM
is to show something different so the terms of their contract are also different and in
accordance if they are accepted shows the validity of their contract.
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7. Task-2
2.1 Application of the Elements of Contract
The most prior condition of a contract is that it should be enforceable by law because the
terms and conditions of the contract need to be followed in order for the contract to be
fulfilled (Gelling 2009). If any one of the parties involved in the contract is unwilling to
obey the contract then the opposite party may take legal actions against them for
dishonoring the terms of the contract.
The basic elements of the contract with NAM are given below:
Offer
Acceptance
Free Consent
Formal Relation
Enforceable by Law
The marketing firm NAM approached TAM College with the offer to design an intensive
marketing strategy for one month to make their reputation high and be showcased as one
of the leading educational institutes of UK. If a contract is initiated then there takes place
a formal business relationship between the two parties.
For a contract to be valid the terms and conditions of the contract should be accepted by
the two parties present in the contract. According to the terms and conditions of the
contract TAM College accepted the NAM’s offer and paid the advance of £2500 thus
sealing the contract valid with free consent and documentation.
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8. A valid contract is enforceable by law. When NAM breached the initial terms of the
contract with TAM College and failed to provide marketing strategy to them they took
legal action against them.
2.2 Application of the Law
The parties involved in the contract encourages the terms and conditions of the contract
and giving courage to make the contract valid. The two parties may have various opinions
on the terms of the contract during the pre-declaration of the contract which does not
render the contract invalid but with a formal relationship it can be discussed and come to
a mutual conclusion about it. Parties need not fulfill any other terms other than that of
those mentioned in the contract.
The requirements for a valid contract:
Collateral Contract:
I collateral contract the terms and condition of the contract is the foundation stone of the
contract. The main concept here is to induce the business proposal offered for both the
parties. The contract is compiled and overseen by judges who take the security of the
contract to make it valid.
Contract Conditions and Warranties:
The major term of the contract is the circumstances and the minor term is the warranty
and they are interrelated so in the absence of anyone the contract is considered void. If in
a contract falsification takes place causing a breach of the contract it is considered a
serious offence in the eyes of the law thus providing the parties with motivation and
mutual respect towards the fulfillment of the terms. If a contract is indeed breached then
the court will start legal proceedings taking circumstance and situation into consideration
to give the rule in favor of the upholders of the contract.
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9. Exclusion of responsibility of the terms:
The “prohibiting paragraph” sometimes restricts the accountability of one party which
can be included by any party during the drawing of the contract. This is also known as the
release clause. Taking into account the case that due to NAM’s inability to uphold the
contract the reputation of TAM College has suffered and the prohibition clause might just
have been included in the contract.
2.3 Evaluation of the Effects of Different Terms
In a contract most of the terms and conditions are formalities which are formed and
written and the seal is used to make the contract valid. There are many laws that are
passed to uphold contracts and a wide range of formalities surrounds it.
The Patrol Evidence Rule
This role considers oral evidences which can be provided against the opposition to
prove the falsification of the presented written document. The contract always abides
by the law of confirmation and is applicable to both contract and credentials.
Establishing Implied Terms
There are certain implications of the contract where the scenario is considered and the
implied terms are presented formally face to face.
Various Types of Conditions
Various types of conditions surround a contract by which it can be affected and has a
certain power over the contract. If a contract is breached then under any circumstance
then person must remunerate for it.
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10. The Up-To-The-Minute Observation
The violation of any terms and condition under any circumstance renders the agreement
void in a way suspending all the activities related to the agreement.
An implied contract was agreed upon by Between NAM and TAM College after TAM
decided to award the contract to NAM and paid the £6000 a part of the payment for the
one month intense marketing campaign period.
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11. Task-3
3.1 Contrasting Liability in Tort with Contractual Liability
Tort and contact liability
The law of Tort and contract is a sectional part of the “Law of Consideration” where law
of Tort is applicable to everyone associated on the other hand law of contract considers
willing volunteers. The damages in a contract are pre-determined but damages in Tort are
compensatory.
3.2 Nature of Liability in Negligence
 Breach of contract:
In the Tort contract of negligence the breach of contract is considered undue
behavior by the person or party violating the terms and condition of the contract
formed. For this reason laws are imposed so as to seeing the due behavior is given
and no risks are posed to others along the way. The contract between NAM and
TAM was breached when NAM halted the advertisement of TAM for a week.
 Duty:
In the light of philosophy and religion, duty can be defined as the humane
behavior of one person to another in a society upholding social norms and culture.
This is the basic right that we hope and give to each other in the society so that
there can be peace and prosperity.
 Cause in Fact:
If the problem we are dealing with is known then it is easier for us to understand it
and come forward with the planning to shield us from it. A person should take
decision based on fact and after analyzing the situation.
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12.  Similar Cause:
In the day to day life we are faced with different sort obstacles but there are some
similarities between all of them so it is easy for us to come up with a solution.
3.3Vicarious Liability in Business
The English Tort law states that it is the liability of an employer if the employee under
him is responsible for any breach in the code of conduct while working for the
organization and if inattentiveness is shown by anyone towards that act then they can be
legally taken under jurisdiction. If a wrong is done it is our duty to correct it and see
through to it (Reeve 2009).
In the given case scenario it is shown that a night guard was injured and the family of the
night guard has taken legal actions against the TAM College which has become a
vicarious liability to them. The management and the supervisors were warned that the
non-teaching staff should wear protective gear to avoid injuries.
The management of TAM College refused to pay compensation to the guard because he
disobeyed the regulations set by the institute but on vicarious liability they are bound to
pay the compensation.
Figure: Vicarious Liability
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13. Task-4
4.1Application of the Tort of Negligence and Defenses
Tort negligence law
This law is the composed from intentional tort law and basic purpose of negligence law,
which has a purpose to protect the employees of TAM. The non teaching staff had been
advised to wear protective gear for their own safety.
Duty of care
An individual has the right to know the risks against them so that they are not harmed in
any way this is the duty of care. TAM had already been warned about the risks involved
and the threats against their employees (Knight 2006).
Source of Negligence
The lack of will to take proper initiatives can be defined as negligence. The
damage caused was totally unaccounted and unintentional but it does not count as
a breach of legal duty.
Potential Sources of Negligence
o Lack of protective gear: The negligence of an individual to use protective gear
for safety.
o Selection of activities: The activities that are incapable of completion or the
individuals lack knowledge about it is called poor selection of activities
o Hazardous Condition:The conditions that are unforeseen and unavoidable are
hazardous condition
o Use of faulty equipment: The use of faulty equipment is a source of negligence
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14. Defense against Negligence
o Emergency: Any humane act that is decided on the spot is an act of emergency.
o Act of God: There are some incidents that are unavoidable but only measures can
be taken against them to avoid casualty.
o Assumption of risk:A person is bound to take risk when they are engaged in any
sort of activity involving risk.
4.2Application of Vicarious Liability
The use of protective gear by the non-teaching staff of the college had been told of the
mandatory use of protective gear. But this order was ignored by the senior supervisors
when they sent a night guard on duty going against the policy of the company (Henry
2012).
It was the duty of the supervisors to ensure the safety of the non-teaching staff and to
maintain the order provided to them but due to their negligence a guard met with an
accident due to absence of protective gear.
According to the vicarious liability doctrine it can be said that the act of any employee is
the responsibility of the employer and they can be detained for the mistake committed by
the employee. So TAM College has to face prosecution for the act of their supervisors
under the vicarious act of liability.
The compensation of the night guard for the accident was denied by TAM because he did
not follow the instructions but according to the vicarious liability doctrine they are legally
responsible for the acts committed by their staff.
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15. Conclusion:
From the scenarios presented in the case we can see that TAM College was ambitious and
they want to be one of the best educational institutions of UK for this they became
involved in various contracts (Moriar 2006). They covered the legal and marketing side to
boost their performance. Theywent into a contract with the marketing agency NAM to
advertise their facilities because the best offer was provided by them. The terms of the
contract were to give marketing consultancy for one month at the cost of £6000. But due
to some financial reasons NAM had to halt the campaign of TAM but due to violation of
the contract TAM took legal action against NAM. During the same time a night guard
under the jurisdiction of TAM was injured in an accident and TAM refused to pay the
compensation to the guard due to violation of protocol set by the organization. But the
family of the guard filed a law suit and under the English doctrine of Vicarious Liability
TAM is responsible for the accident and must take responsibility for the action.
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16. References:
Gelling, L, & Cray, D 2009, 'Career Paths for Managers in the Arts', Australian Journal
Of Career Development, 21, 3, pp. 23-32, ERIC, EBSCOhost, viewed 20 March 2013.
Henry, G, Shepherd, C, Lambert, B, Ridnour, R, &Weilbaker, D 2012, 'The training of
sales managers: current practices', Journal Of Business & Industrial Marketing, 27, 8, pp.
659-672, Business Source Complete, EBSCOhost, viewed 20 March 2013.
Knight, C 2006, Building Resilience In Learning Managers [Electronic Resource] /
Cecily Knight, n.p.: FrenchsForest, NSW : Pearson Education Australia, 2007.,
CQUniversity Library Catalogue, EBSCOhost, viewed 20 March 2013.
Moriar, D, & Smith, R 2006, Preparation Of A Learning Manager In The BLM Program
[Electronic Resource] / David Lynch And Richard Smith, n.p.: FrenchsForest, N.S.W. :
Pearson Education Australia, c2006., CQUniversity Library Catalogue, EBSCOhost,
viewed 20 March 2013.
Reeve, P, & Reeve, J 2009, 'Training Corporate Managers to Adopt a More AutonomySupportive Motivating Style toward Employees: An Intervention Study', International
Journal Of Training And Development, 13, 3, pp. 165-184, ERIC, EBSCOhost, viewed
20 March 2013.
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