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Aspect of Contract and Negligence for Business
(1139) Md. Misbah Uddin
Task- 1 & 2
1a. Formation a valid contract:
An agreement between two or more parties which creates legally binding and duties between the parties.
There must be agreement on the terms of the contract.
A valid contract has the following constituent elements:
A valid offer and acceptance
Capacity of parties to contract
Writing and Registration if so required by law
All of are required for a valid contract.
Rules on Offer:
A proposal by the offer from a person to another person for wishes to conclude with a contract.
Requirements of valid offer:
Offer must be complete, clear and unambiguous.
Offer must contain all material terms on which the offer wishes to contract.
Incomplete, unclear and ambiguous offer are not a valid offer.
Offer must be made with the intention of creating legally binding obligation.
Offer must still be in existence at the time of its acceptance.
Rules of acceptance:
Acceptance is received of offer. Acceptance only valid if made by the offer. The acceptance must be clear, unambiguous and unconditional.
A conditional acceptance is a rejection coupled with a counter offer.
The terms of the acceptance must correspond with the terms of the offer. The acceptance must have been communicated to the offered.
Instances where acceptance is valid even though not yet known by the offer.
Advise Eddie and Frank:
Eddie and Frank would like to offer by Doris vase sign on offer £500. They are want to it and think it is good price for them, so they are acceptance by different time.
First time Eddie happens to notice the vase as he walks past the shop and think would like it,
Eddie has an important meeting so he late to contract with Doris and he agreeing buy the vase for the stated price £500 and this letter is posted at 11:30am.
The same day, Frank would like this offer of Doris and Frank want to pay £450 and posted a letter as a same day at 12:30pm.
The case of Eddie and Frank they are not claim against Doris, because Eddie is agreeing with Doris first and he posted a letter at 11:30am and Frank posted agreeing letter one hour later.
So I think and advise them they are not allowed for claim against of Doris for the vase buy.
1b. An agreement supported by consideration is not enough to create a legally binding contract, the parties must also have an intention to create legal relations. The presence of consideration is often indicative of the intention to create legal relation.
For example those made between husbands and wives and parents and children, there is no intention to create legal relations and no intention that the agreement should be subject to litigation. Familial relationships do not preclude the formation of binding contract.
When we began this subject we discovered that the general rule is that a social agreement is not usually legally binding.
In the absence of contractual, an agreement, even if supported by consideration, cannot be enforced. Whether the parties to an agreement intended to create legally binding relations between them is a determined by an objective assessment of the relevant facts.
The legal ability for the capacity to enter a valid contract is known by the parties. Person entering into a contract will have full, limited
no capacity to contract.
The ability of a person to enter into a contract that is legally binding upon himself or herself only under certain circumstances .
1a. Lots of people they are want the best deal on whatever kind of anything, they not think what is the rules or Terms and conditions at the moment, price and fast, in that order. And because of the hurried pace of society today not many people read the fine print on forms of contracts, although they should. Knowledge when it comes to contract effect is very useful. The more you know, and the more you understand about policy, the more likely you will be to choose contract that not only gives you the coverage you need, but that will save you money in the process.
Contract is something purchased in the hope of never having to product use it. But when a time comes that it is needed, that a claim needs to be filed for whatever reason, then is not the time to discover that the policy you purchased and have been paying to keep, for however long, isn't adequate to cover you need. If a peril is worth insuring against, then it is worth taking the time to make sure it is properly covered. Please use our site as a stepping stone to finding contract to cover you specific need. There is no easy one size fits all when it comes to getting the proper coverage.
What a lot of people don't know about, or don't think to check into are the exclusion clauses of insurance policies. This area of the policy or contract might be the most important part of the policy to read. We all know the reasons we purchase insurance, beyond the simple answer that in most cases it's required. But what is contained in the exclusions of the policy may well mean that for all particular purpose the insurance, even though you purchased it in good faith and kept up the payments, might be worthless to you. Are you aware under what circumstances certain exclusions in your policy might apply to you? Is there a possibility that the insurance company might have legal grounds to deny your claim, due to what is in the exclusion clause?
Is there an exclusion rider attached to the policy that you received after you purchased it? Have you read it? Do you know what it contains as far as exclusions go? Many times companies after getting your information will, because of certain items in your insurance history, add specific exclusions to an individual’s policy to limit their liability in what they might determine is a questionable claim history. These exclusions could make your policy next to worthless in regard to the reasons the insurances was purchased in the first place.
Not knowing about these tiny little clauses can have a big impact if and when it comes time to file a claim. It is wise to read your policy from front to back. And if the company sends you any addendums for a policy that is already in force, keep them with the original policy, be sure to read them thoroughly. If you are not sure you understand what the terminology is saying, then it would be wise to find someone who does. Believe it or not, an insurance company's first and foremost goal is not to pay claims out.