Aspect of ContrAct HND

BRITISH BUSINESS COLLEGE

Cité Keur Gorgui, Sacré Coeur Pyrotechnie 73- BP: 21784, DAKAR

Email: info@britishbusines

Tel: 33 869 25 00 Fax: 33 825 55 35

Presented by: BUS0010C

PRESENTED BY: BUS0010C

Date (May 2015)

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UNIT 6: ASPECT OF CONTRACT

UNIT CODE: Y/601/0563

HND2

ASSIGNMENT 2/2

INTRODUCTION

3.2) Explain the nature of liability in negligence.

3.3) Explain how a business can be vicariously liable.

4.1) Apply the elements of the tort of negligence and defenses in different business situations.

CONCLUSION

REFERENCES

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INTRODUCTION

For the first assignment we talk about contract law and we notice that contact law is very

important in the business it allows to secure your business. Now, for this second assignment, tort law will

be the subject of discussion. A ‘tort’ is a legal wrong, for which the law will provides a remedy. It can be

defined as a civil action which IS taken by one citizen against another and tried in court. A person who

sustains injury or suffers pecuniary damage as a result of the wrongful act of another person is known as

the plaintiff and the person who is responsible for inflicting the injury and incurs liability for the damage

is known as the defendant(find law uk). We must understand that tort law constitutes the law that comes

into play when the contractual obligations between parties are not meet. Tort is very important and the

defendant and the claimant should understand it well. This is the cause of most of the negligence claims

that arise in the court of law. For our development we are going to talk about the nature of liability

negligence, how a business can be vicariously liable and also apply the elements of the tort of

negligence different business situation.

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DISCUSSION

TASK 1

3.2) explain the nature of liability in negligence.

Law can be defined as a rule which are created by a particular state or state government & the

state, as an authority, they are responsible for enforcing the law made within its jurisdiction via

using various kind of sanction. - The aim of liability in tort is to pay party that suffers damage

because of another person’s act. Contract and tort law are common law for a long time, even

though contract and tort are two different aspects in common law, they have a certain amount in

common: They are both civil law, The claimant will sue the defendant in order to ask for

compensation, not for punishment, The claimant will bring an action against the defendant and

must prove that the claimants loss is not too remote a consequence of the defendant’s breach.

Whenever both parties are in contract, parties should agree to accept the resulting obligations and

acknowledge the fact that the contract is legally binding, however if any party that breaches the

contract is automatically liable for any damages or losses caused by their breach. Negligence

cases are based on a non-contractual relationship between the parties. The parties may be known

to each other, as with a surgeon and a patient, or they may be strangers, as with two drivers

involved in a road traffic accident Breach of contract means that one or more party does not

respect their part on the contract. To be liable for something, under the law, means to be

responsible in some way for an outcome that results in a violation of the law criminal liability or

in an injury to others civil liability. Liability requires intent -- that is, you're not responsible for

something you didn't mean to do.

These following elements are the main purpose of a lawsuit on negligence:

a. Duty of Care : It is a legal concept which shows the circumstances in which one party will

be liable to another in the case of negligence. It is one of the main ways people access to the

compensation. It allows people or business to be careful when they deal with others it will

allow respecting the agreement. In other words, the duty of care requires you to look before

you leap.

requirement that a person act toward others and the public with watchfulness, attention, cauti

on andprudence that a reasonable person in the circumstances would.

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We notice that in most tort cases or situations, the duty of care, it is the duty to act as a

reasonable person, to respect everything. Tort law will allow seeing if the real person his

action matches up with the reasonable person, if they have coordination. The duty of care is a

standard in the law of negligence. In court cases, they compare the defendant’s actions with

the reasonable person should do in this situation. I f the defendant’s actions don’t live up to

the reasonable person’s actions; the defendant may be found negligent and be liable for any

injuries his negligence caused.

b. Breach of Duty : It can be defined as any violation or omission of a legal or moral duty.

Breach of duty in negligence liability exists where the defendant fails to meet the standard of

care that the law required. When they notice that the defendant owed the claimant a duty of

care, the claimant must also demonstrate that the defendant was in breach of duty.  This just

essentially means that the defendant has fallen below the standard of behavior expected in

someone undertaking the activity concerned. Breach of duty just means that the defendant

did not carry out the duty to act as a reasonable person.

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Damages: Damages is the result of the breach of duty that was committed by the defendant in

question, it is a Compensation for causing loss or injury through negligence or a deliberate act,

or a court's estimate or award of a sum as a fine for breach of a contract or of a statutory

duty(Business dictionary). The purpose of damages is to restore an injured party to the position

the party was in before being harmed. We notice that there are several types of damages:

Special Damages: wages, medical bills General Damages: pain or suffering Punitive Damages: it given to punish the defendant

c. Personal Injuries : Personal injury is defined as an injury to the body, the mind or the

emotions as opposed to injury to property. Personal injuries are type of damage that is caused

by intentional or unintentional negligence. It can be: emotional distress, broken members,

pain& suffering etc…

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d. Remoteness of Damage : It relates to the requirement that the damages done must be one of

a foreseeable type. In a negligence case, when the plaintiff has proven that there was a duty

of care and that the defendant breached that duty, he has the obligation to prove that the

damages were not too remote. Remoteness of damage must also be applied to claims under

the Occupiers Liability Acts and also to nuisance claims. Ina a claim of damages the first

issue is remoteness of damage.

e. Damage to Property : Property damage is distinguished from personal injuries.

Injury to real or personal property through another's negligence, willful destruction, or

 By some act of nature. Damage to property describes any injury to real or personal property

through another’s negligence, willful destruction or any act of nature. It is the

amount of recovery for property damagethat may be established by evidence of 

replacement value, cost of repairs,

loss of use until repaired or replaced, or, in the case of heirlooms or very personal items 

f. Economic Loss : Economic loss is a term of art which refers to financial loss and damage

that a person suffer, it can be seen only on a balance sheet rather than as physical injury to

the person or destruction of property. This is financial damage caused by the negligent act of

another party which is not accompanied by any physical damage to a person or property. The

Common categories of pure economic loss are expenditure, loss of profit, or loss of some

other form of financial gain.

g. Occupier’s Liability: This generally refers to the duty owed by land owners to those who

come onto their land. It means that the duty imposed on land owners can extend beyond

simple land ownership and in some instances, the landowners may transfer the duty to others.

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h. Employer’s Liability : Most employers are required by the law to insure against liability for

injury or disease to their employees arising out of their employment. The owner of the

business or the employer has the responsibilities to give their employee a good working

environment, a safe of work. Employers must make sure that all the conditions are required

for them to work in a safe place. If an employer or a business don’t respect these standards,

while a negligent act is committed then, the employer would be liable for all of the damages.

The insurance will help you pay compensation if an employee is injured or becomes ill

because of the work they do for you.

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3.3) Explain how a business can be vicariously liable.

Vicarious liability it is a situation where one party the organization or a person is held

responsible for the unlawful acts of a third party. But the third party also carries his or her own

share of the liability. This type of liability can occur in situations where one party was supposed

to be responsible for a third party, and was negligent in carrying out that responsibility and

exercising that control.

Thus, an employer of an employee who injures someone through negligence while in the 

scope ofemployment doing work for the employer is vicariously liable for damages to the injured 

person. However in our case, the vicarious liability relationship in question is one between the

employer and the employee in the workplace but it can be with parent and child…Today, many

employer’s and businesses are unaware that they can be held liable for a range of actions

committed by their employees in the course of their. If an employee injures someone in the

course of their employment, the employer may be subject to vicarious liability. This simply

means that the injured person may be able to win compensation for the harm from the employer,

rather than the employee.  The employer should avoid vicarious liability by exercising

reasonable care to prevent the unlawful behavior because that’s not normal. Examples of

unlawful behavior could be things such as:

o Harassment

o Discrimination

o Accidents

o Violence

However it can come as a surprise to some employers to find that when some act which

contravenes the law has been committed by one of their employees during the course of their

employment, then the employer can be the one to end up in the dock and having to pay the

consequences. By the way the key question of any case of vicarious liability is just that the

employee was acting in a personal capacity or in the course of their employment, then it will be

difficult to determine but if we base on the law action can still be taken against an employer even

if the employer doesn’t work anymore for the organisation or the employer. So for the employee

to avoid vicarious liability the employee must ensure that they have taken all reasonable steps to

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prevent this kind of acts or omissions from occurring. For example, training employee to the

discrimination make rule that everybody will respect, treat everybody equally. If there is no

discrimination it will reduce the likelihood of an employer being held vicariously liable for any

discriminatory acts committed by its employees.

For example, an employer can be held liable for the unlawful actions of an employee, such as

harassment or discrimination in the workplace. Even though the employer is not the one who

committed the unlawful act, the employer is held liable because he is the one who are taking the

responsible of the employees. The employer may be able to avoid vicarious liability by

exercising reasonable care to prevent the unlawful behavior.

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TASK 2

4.1) Apply the elements of the tort of negligence and defenses in different business

situations.

In common law, a tort is a civil wrong committed by person, which may cause loss or harm to

another, in order for a claimant or plaintiff to win a case of negligence, he or she needs to prove

under the law of TORTS that:

“ the   defendant   had   aduty   to   the   plaintiff,   the   defendant   breached   that   duty   by   failing   to   conform

to   the   required   standard   of   conduct,   the   defendant'snegligent   conduct   was   the   cause   of   the   harm  

to   the   plaintiff,   and   the   plaintiff   was,   in   fact,   harmed   or   damaged.”

However, there are legal elements that must be presented in court, in order for the claimant or

plaintiff to win his or her case.

The legal elements of negligence that the court looks for are:

Duty of Care : It is a legal concept which shows the circumstances in which one party will be

liable to another in the case of negligence. It means that the company should be careful when

they deal with others. In our scenario the plaintiff must show that the defendant owed him or

her duty of car because if the defendant did not owe, the plaintiff a duty of care so a

negligence claim will not exist.

Breach of Duty:  In our scenario the plaintiff must show that the defendant fall to observe the

law his or her duty of care but if there was a duty of care, and then there are standards to

establish. If there was an agreement of that duty, only if there is an agreement of that duty,

can the plaintiff present a case of negligence.

Damages: Damages is the result of the breach of duty that was committed by the defendant

in question, it is also the monetary value placed on the harm done by the defendant to the

plaintiff. Here the plaintiff needs to tell that they suffered actual harm.

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Scenario 2 Assumption of Risk

For his 30th birthday, TONY decided to do speed race of car. So he contacted a company known

as speed race of car which is NVA AUTOMOBILE, in order to perform this activity. The day of

the speed NVA AUTOMOBILE prepare tony with the right material that he need, give him

advice. He sign agreement which mean he assume all the risk, after driving a few kilometers he

hurts a car, he fractured his ankle because he did not follow instructions and the car broke. He

paid $1500 worth of hospital fees and missed three weeks of work and reimburses a new car

also.

Duty of Care: NVA AUTOMOBILE had the duty of care of making sure that their customer

received all of the right equipment and materials. They need to advice the customers about the

dangers and all the risk he run. NVA AUTOMOBILE also had to warn Michael of any dangers

speed race cause every day.

Breach of Duty: There was no breach of duty in this case because NVA AUTOMOBILE had

taken all precautions by giving lesson, advice the customer about all the danger.

Causation: The defendants were negligent because the car broke up and that is a damage

because tony reimburse the car. Tony was too negligent.

Damages: Tony fractured his ankle, paying a thousand dollars worth of hospital fees. buy a new

car for the company and lost 3weeks of work.

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Defenses: Tony assumed the risk of speed car race because he knows that it was not safe, as he

engaged in the activity knowing that it was inherently risky. Due to this, the plaintiff cannot

collect any damages, if an injury results by engaging in the activity.

Remedies: In this case no damages were awarded to the plaintiff.

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CONCLUSION

In conclusion we notice that the importance and the impact of law within a business because we

discussed both the different aspects of tort law and contract law. In this assignment we cover the

nature of liability in negligence and how a business can be vicariously liable. We cover also all

the elements of tort negligence. We can basically say that if you want to do something you

should think twice before you do it and analyses all the aspect. We can notice that there are many

elements that a plaintiff must provide in order to win a negligence claim but in negligence

lawsuit the defendants have many options there, it is very helpful for him.

.

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REFERENCES

1) The negligence of liability wrote by Jason Gillikin who is specializes in health care, finance

and consumer technology available at<http://smallbusiness.chron.com/negligence-liability-

involve-37792.html> [22 APRIL 2015].

2) DUTY OF CARE available at<https://www.gov.uk/managing-your-waste-an-overview/duty-

of-care>[21 APRIL 2015].

3) DUTY OF CARE available at< http://e-lawresources.co.uk/Duty-of-care.php>[21 APRIL

2015].

4) Breach of dut available at http<//e-lawresources.co.uk/Breach-of-duty.php>[21 APRIL

2015].

5) Personal of injuries available at< http://personalinjuryduarte.info/personal-injury-lawyer-2/>[21

APRIL 2015].

6) Personal injuries available at<http://www.lawsociety.org.uk/for-the-public/common-legal-

issues/personal-injury-claim/>[21 APRIL 2015].

7) Vicarious liability: Commercial & Business Law / Employment / Risk Management /

Authority / Breach of Contract available

at< http://www.drukker.co.uk/publications/reference/vicarious-liability/#.VWxvOIuG-So >[ 23

APRIL 2015].

8) Understand the vicarious liability available at< http://www.acas.org.uk/index.aspx?

articleid=3715>[23 APRIL 2015].

9)

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1. Class Notes

2. http://www.acas.org.uk/index.aspx?articleid=3715

3. http://www.findlaw.co.uk/law/government/constitutional_law/500400.html

4. American express information available at <http://money.cnn.com/quote/quote.html?

symb=AXP>[02 January 2015].

5. 2-JP MORGAN INFORMATION available at<http://money.cnn.com/quote/quote.html?

symb=JPM>[02 January 2015].

6. 3-VISA INFORMATION available at<http://money.cnn.com/quote/quote.html?symb=V >

[02 January 2015].

7. 4-GOLDMAN SACHS GROUP available at <http://money.cnn.com/quote/quote.html?

symb=GS>[02 January 2015].

8. 5-Analyzing Revenue and Gross Margin presented by Amber Keefer  Writing professionally since 1997, she has written articles covering business and finance, health, fitness, parenting and senior living issues for both print and online publications available at<http://smallbusiness.chron.com/analyzing-revenue-gross-margin-32403.html >[04 January 2015].

9.

10. 6-Guide to the Design of Questionnaires available at

<http://iss.leeds.ac.uk/downloads/top2.pdf>[05 January 2015].

11.7-The difference between revenue-net income presented by John W. Schoen available at<

http://www.nbcnews.com/id/7477449/ns/business-answer_desk/t/whats-

difference-between-revenue-income/>[06 January 2015].

12. 8-DECISION MAKING TOOLS TECHNIQUES wrote by Gregory Hamel has been a

writer since September 2008 and has also authored three novels available

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at<http://smallbusiness.chron.com/decisionmaking-tools-techniques-strategic-planning-

20890.html>[10 January 2015] .

13.

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