Aspects of Contract and Negligence for Business Essay - 9

Aspects of Contract and Negligence for Business - Essay Example Essential aspects of a valid contract include an agreement that has to be composed of the element of offer and acceptance. For there to be an agreement there must be two parties involved, the party that makes the offer is known as the offeror while the party to whom the offer is made is known as the offeree. The two parties must come to a consensus on the same thing. Intention to create legal relationship on the part of the parties to the agreement is essential in order to create a legally binding relationship.The consent between the parties to enter in an agreement has to be free and genuine and not forced or entered by mistake or misrepresentation. If in any case the consent is not freely entered,the resultant contract is not valid. The parties entering into a contract should be qualified to enter a contract.The qualification to enter into a contract include being of the right age, sound mind and not disqualified by any law of which the party may be subject. Vicarious liability entails circumstances where the principal is held liable due to the misconduct of his agent (Kraakman 670). The agent in this case can either be an employee in the course of employment, a police officer in charge of a police post, or a partner of a firm in the ordinary course of business. Liability in contracts can only happen if a tort is committed. In this case, the one who commits the tort is an employee while the employee was acting under employment when the tort was committed. In case of employment, employers can only be held liable for torts committed by their employees and not independent contractors. The employer In the case of Limpus v London General Omnibus Co (1862) I H&C 526, it was held liable for bus drivers racing, despite prohibition, causing a collision (Brennan 112). The assumption of vicarious liability is that principals have greater capability