What is a Contract and Elements of a Contract?
A contract is a legally binding document that binds two or more parties.
Elements of a contract for it to be legally binding-
-Offer; this is proposition by a person who is often called the offerer to another person often called the offeree. The offer normally involves conditions that give guidelines of the terms of agreements. It remains active until the offer closes, meaning that it has a deadline. Any counter offer made results to the canceling of the initial offer.
-Acceptance; both the offerer and the offeree must have an agreement that is clear and definite.
-Counter-offer; this element cancels the first offer and creates a new offer.
-Competent; both parties are supposed to be over eighteen years of age. This means that they are supposed to be of sound mind when transacting this business.
-Consent; this element aims to provide a form of signifying the agreement. This may involve signing the agreement.
Rules to Offer and Acceptance
-An offer is the agreement which is made to be bound based on specific terms. To ensure that an offer is valid, it should made either to a class of persons or even to the whole world. Be ware of vague offers. The offerer may ask the offeree if he/she accepts the offer based on the tabled conditions. The offer should form a strong basis for the contract.
-Acceptance is where the offeree accepts the terms of the offer
-Acceptance should be either by a word of mouth or by action
-The acceptance should be clearly written with the terms of agreement clearly stated
-The offeree must act as an evidence of acceptance
-Silence acceptance where the offeree does not act is not allowed
-Incase unrequested goods are send to a person, silence and not returning them is not an indication of acceptance.
-Acceptance can also be subject to contract.
-This is where the offeree agrees to the terms of the offer but suggests that a formal contract be negotiated
Requirements for an Intention to Create Legal Relations
-The parties should involve legal personnel
-The parties getting in the legal relation must have common interests which are agreeable to each of them.
-The terms of the legal relation must be clear and acceptable to all.
-The basis of the legal relation should be form a strong foundation
-Agreements should be written down for future reference.
-Each party must act as a show of acceptance to the legal relation.
Law of Tort in Business Activities
Advice Ahmed and Gasman Repairs as to their Liabilities to Jim and Mary
The law of tort is the law used to give individuals their different rights. It is a law that can be used on individuals and on companies. It aims at protecting individuals and enhancing people’s responsibility to others. Once a tort is committed, the law acts by repaying the damages. Its main principles are based on right, related duty to respect them, and compensation in case damage occurs. Tort is a civil wrong which is solved in a civil wrong and punishment can be a fine or imprisonment.
The law of tort is used to give people their rights and it is the law which can be used in the scenario of Ahmed, Mary, Jim and Gasman Repairs. It is the law which deals with issues of wrong and damage and trespasses of other people’s property and premises without permission. In this situation, Jim and Mary are using Ahmed’s washing machine for their own purposes without his permission. Although there is no loss or damage in this case, Ahmed should be compensated since his machine is being utilized and they are also his power. This means that Ahmed has to extra power bills which he did not utilize. Jim and Mary also hold a key to Ahmed’s house which is against the tort law. In this case we assume that, they hold the key without Ahmed’s knowledge. The two are required by the law to return the key since it is not their personal right. Ahmed can sue the two for using his washing machine and holding his key.
In the other situation, Mary goes to Ahmed’s house hen he is in the hospital and makes a call using his phone. Despite the fact that Mary breaks her leg when she slipped on the broken concrete, Ahmed was not responsible to it. This shows that Ahmed is not responsible to the law, and Mary should take care of her own medical bills. However, Ahmed should sue Mary for trespassing in his house while he was at the hospital. Mary should also pay for using Ahmed’s phone.
In the third case, Jim is preparing Ahmed’s dinner in his kitchen. The water heater explodes and Jim is hurt. Based on the fact the water heater belonged to Ahmed and that Jim was cooking dinner for Ahmed, it is required by the law that Ahmed should take care of Jim’s medical bill and make any other compensations. When we look at the cause of Jim’s injury, it is due to exploration of a water heater. The water heater had been recently serviced by Gasman repairs. A question arises on whether or not Gasman repairs had done its work perfectly. It is believed that if that water heater had been serviced properly, it could have not exploded so soon. Therefore, Gasman repairs have a case to answer. They will be answerable to Ahmed. They will be required to compensate him for the injury which the water heater had caused and also compensate him because the water heater exploded after a very short time after being serviced.
In all these situations, the complainants can take the case to the court or decide to solve the problem themselves. This is depended on whether or not they agree among themselves. If they do not agree, they can report their problems to the civil court. Especially for Ahmed, he should report problems caused by Jim, Mary and Gasman Repairs to a civil court. This is the only way they learn to respect his rights. For Jim, he can report his problem to the civil court, although it was not Ahmed fault that the water heater exploded.