Tasks

To complete this assignment you are required to undertake the following four tasks. Credit will be given for the use of relevant case law.

Task 1 – Learning Outcomes 1 & 2

Understand the essential elements of a valid and legally binding contract in a business context. Be able to apply the elements of a contract in business situations.

1a. Explain the requirements for the formation of a valid contract. Apply the rules on offer and acceptance and advise Al and Bash Cars plc of their rights and liabilities to each other.

1b. How does the law approach the issues of consideration, intention to create legal relations and the capacity to contract. Use the above scenario to give examples to illustrate your answer.

Task 2 – Learning Outcome 2 Be able to apply the elements of a contract in business situations

2a. This is an example of an exclusion clause. Outline the key problems associated with exclusion clauses and explain how an exclusion clause becomes incorporated into a contract.

2b. How do the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulations 1999 ensure that exclusion clauses are fair and reasonable?

2c. Will Move It Ltd be able to rely on this exclusion clause?

Task 3 – Learning Outcome 3 Understand principles of liability in negligence in business activities

3a. For a successful claim in negligence, a claimant must prove

A duty of care exists

The duty of care was breached

The damage is both direct and foreseeable

Explain and illustrate what is required in establishing each of these requirements.

3b. What is meant by the term vicarious liability? Explain the rules that the courts will apply in deciding if the blame for a negligent act can be shifted from the employee to the employer.

3c. In what ways is the legal relationship between the parties in tort different to the relationship in contract law?

Task 4 – Learning Outcome 4

Apply the rules on both negligence and vicarious liability to consider whether Sheila and Karen would be able to claim for the injury and damage they have suffered and against whom.