Aspects of Contract and Negligence for Business Essay - 1

Aspects of Contract and Negligence for Business - Essay Example All contracts must involve (a) at least two parties, (b) parties who have the legal capacity, (c) a manifestation of all the parties in the contract, (d) finally, a consideration that supports legal and enforceable promise. Having the legal capacity means that the individuals are adults and have mental competence. The law is relatively settled if the competent adults are bound by the terms of the contract. Considering the case of Wohoo and Provident Solutions (PS), it involves corporate organizations. A company has the capacity to enter into contractual relations , but such type of relations are only binding on the companies if those acting on behalf of the company do so with express or implied authority of the company, something which was fulfilled by both Wahoo, PS and Clive Software Limited. The essential elements of a contract include: offer and acceptance, free consent, contractual capacity, intentions to create legal relations, illegal and void agreements, and lastly considerat ions. Considering the case of Wohoo Wholesale and Provident Solutions, when PS sub-contracted Clive software on the recommendation of Wohoo to provide software systems, they did so because previously they provided software of very high standard. But since the software installed by Clive brought numerous problems to the organization, Wohoo refused to pay PS for 40 computers in the process with holding 58 computers and five servers as it claims for compensation of the losses incurred by the faulty software installed. This clearly shows that all the essential elements of a contract are not in place. In this context, there is no consideration as there is no price paid for the promise of the other party. Since consideration does not exist, the court is likely to question its adequacy. The court is to intervene because one of the parties, Wohoo has exhibited duress or unconscionable conduct. Typically, courts will not weigh the adequacy of the consideration as long as the consideration is established to be sufficient, with sufficiency being defined as the meeting test of the law; adequacy is the subjective fairness or equivalence. The contract between Wahoo and PS is questionable although the problems emanated from Clive Software (Chen-Wishart, 2007: 212). The manifestation of assent by all the parties that are in agreement signifies acceptance in some way. Therefore, both Wahoo and PS were aware of the status of Clive’s products by accepting it as a sub-contractor. Since the objective standard was met, it means that there is proof that the assent was met. By Wahoo with holding 58 computers and 5 severs narrows down to the elements of an assent. This is because the parties need to come to some meeting of the minds about the terms of the contract. Since the three parties entered into a contract and one or two elements failed to be fulfilled the contract is considered to be null and void. This is because of the unconscionable conduct and misleading conduct of b oth Wahoo and Clive Software affects the enforceability of the contract. To the effect that the contract is considered as void, the parties should be put back to their original positions (Walston-Dunham, 2008: 420-423). Task 1: Question 2 Every business should be aware of standard form of contracts. These are agreements that make use of standardized, the non-negotiated provisions that are usually in the preprinted forms. They are also known as