Table of contents

Introduction
Task 1
Task 2
Task 3
Conclusion
References
Contracts and Agreements
Introduction
The sale contracts do all transactions valid and lawful. Without it there can be a
possibility that the prices, along with other conditions, can't be adhered to one of the parties.
However with execution of such contract, each party is protected. In event of occurrence of
problems if it remains unresolved; they have the power to address in court against the stray party.
The contract consists from the offer and the acceptance - and sometimes the counter offer. The
offer represents the statement specifying that the person or the company is ready to sign the
agreement on some concrete conditions. Acceptance proceeds from the individual who accepts
the offer on the grounds of these positions and conditions. (Goode, 1998)

Task 1
1.1 Supply Agreement
This contract is between Jusco Stores, chain of wholesale stores in London, herein called
buyer and AND M/s A & P Potatoes, Unit 2 Llanelli Workshops Trostre Industrial Estate
Llanelli, Wales; producer of Potatoes and Tomatoes to Jusco Stores, hereinafter known as the
producer.
Jusco Stores and producer agree to abide terms and conditions of this contract, whereas
Jusco Store is referred as buying party and A & P Potatoes as manufacturer.

Article I. related to purchase of potatoes and tomatoes to be supplied to Jusco Stores by the
manufacturer:
Section 1.01; Jusco stores will buy from the manufacturer and the manufacturer will sell to Jusco
Stores Potatoes and Tomatoes (as per quantity and quality specifications agreed) for one year
period that corresponds to certified requirements discussed in article II. The person selling the
products should have the legitimate right to sell them. (Express and Implied term)
Section 1.02; Jusco Stores undertakes to give in writing specifications of products required.
Section 1.03; The Basic price of Potatoes and Tomatoes settled between parties is .per MT,
not subjected to change during the period of contract.
Section 1.04; Manufacturer will deliver Potatoes and Tomatoes to all Jusco Stores at its expenses
including freight insurance.
Section 1.05; Taxes. Payment. Risk of Loss and Packing
(a) Payment by Buyer; The prices, mentioned in Section 1.03 do not include local or state taxes,
VAT, or excise that can be enforced on manufacturer during transaction under this agreement. All
such taxes levied shall be borne by the buyer. If the certificate of resale or similar documents of
exemption is needed to exempt sale from any such taxes, Jusco Stores will provide with such
certificates or the documents before delivery by the producer. Payment to the producer/seller
shall be paid by Jusco Stores within 40 from the date of receipt of invoice of products supplied.
Packing and Risk of leakage and Loss during Transit
1) Packing. The seller is required to pack and deliver each product in 20 kg cardboard packing
which is standard for such product.
2) Risk of Leakage and Loss. The risk of Leakage/loss of products will be liability of seller or
sellers approved carrier during transit of products from seller to Jusco stores and also that in
event of products having been rejected as not corresponding to requirements as per article 1.01,
the risk of leakage/ loss will be transferred to the seller upon delivery of such products. In case
the producer doesn't pay damages, the buyer can claim damages and losses incurred in the court.

Article II. Certification Requirements.

Section 2.01; Seller must obtain and provide to buyer all necessary certificates, i.e. from
Farming and Agricultural department, diary certificate, quality certificate and cost incurred in
such expenses will be borne by producer. The producer is also bound to provide similar
certificates as and when needed.
Article III. Additional agreements between Jusco Stores the seller
Section 3.01: each party possesses the power to terminate the present contract by providing the
notice period of 180 days.
Section 3.02 Jusco Stores can terminate the contract at any time, if the manufacturer can not
supply products in time and as per quality and quantity agreed under this contract and support
necessary certifications according to the present agreement.
Coordinated on this _______ day _______________ 2012
1.3 (A) breach of condition: The UCC, gives a number of possibilities for the contract
parties, which incurs expenses connected with breach. If the producer/manufacturer breaks the
contract the buyer can terminate the agreement and keep the amount that have already paid. The
buyer can search also for substitutes and bring an action against the seller for additional
expenses. If the product is difficult to replace, the contract can provide liquidated damages which
are fixed reasonable damages connected with actual harm caused due to breach. When the buyer
refuses to purchase products as promised according to the contract, typical means that seller is
free to find other buyer for such products and to raise the difference between contractual price
and actually price received. (Bailey, 2006)
(B) legality of exemption clause; the contract party may sometimes include term developed to
exclude or limit his responsibility in event of infringement of contract. Such clause can read that
X Plc doesn't bear responsibility for any material damage however has caused" or "X Plc will
only bear responsibility up to 50 pounds sterling".

It can be a problem if one of the parties, for example, one is the large company, and another
is the usual client like Jusco Stores: the parties have unequal positions at negotiations so strength
could use more weakness. The usual consumer is unable to negotiate with the large company.
The law uses the best efforts to level a game here. If one of the parties tries to rely on exemption
clause, they should prove that other party has specially agreed on it at that time of agreement.
A. (C) outline of remedies; Three primary types of contract remedies
Depending on the contract and circumstances of infringement, there are some cores a choice of
remedies. There are two basic categories of remedies for contract infringement: a damage and
performance. Damages are connected with seeking monetary indemnification for contract
infringement. Performance includes forcing other party, to do that they initially promised in the
agreement contract. (Barker, 2006)
Task 2
2.1. Contrast the liability in tort with contractual liability. You need to explain: (A) what is
Tort Liability? (B) What is Contractual Liability? (C) What does it mean to Contrast liability in
tort?
(A) What is Tort Liability?
Tort liability is one of kinds of insurance coverage which gives remedies for persons sued
for damages, when they kill or injure someone else through their own negligence. Though each
state requires auto liability coverage, in some states tort system is followed which allows if
anyone is hurt, legal actions can be initiated.
(B) What is Contractual Liability?
Contractual liability is defined as liability which doesn't arise as an act of negligence, but,
under the assumption of the contract. Contractual liability arises, when two or more parties
promise certain things with each other. A person can hire someone to repair house in exchange
for the stipulated sum of money. If either of the parties defaults in the agreement, it will call a
breach of contract and remedy for infringement are available to "suffered" party.

(C) What does it mean to Contrast liability in tort?

There exists a big freedom in contractual law, where, in tortuous liability it is more than
the imposed character. The claimant will receive compensation for damages and expected
incomes in event of the contrast liability and while in tortuous liability, the claimant can only
demand indemnification. Exists more privacy in contractual liability, as the parties participating
in the agreement are those who can really sue about damage compensation as in a case of ATKIN
V SOUNDERS(1942) and in tortuous liabilities, anyone being he third party which has had
received losses or a damage, can demand indemnification from the respondent. (Conaghan,
1993)
2.2. Explain the nature of liability in negligence. In fact, you should discuss: (A) what
does Liability mean from legal perspective? (B) What is the meaning of Negligence? (C)
What is Liability in negligence? You can support your argument by citing relevant case laws.
Liability: It is any legal responsibility, a duty or obligation. A condition under which
someone is obliged under the law and justice to do that can be enforced by legal action. This
liability can arise from contracts, either in consequence of torts committed or implied or express
contracts.
Liability, in the most general sense, means that causes a person a disadvantage. But,
concerning, to law, legal liability is a situation when the individual is held liable (for example, in
conditions of tort concerning property or reputation) and, hence, liable for indemnification for
any damage suffered. It is clear to us from definition of legal liability when we charge someone
who bears liability for any damage caused to the person (for example, traumas and personal
injury).
There are many ways to show liability. You can be made answerable for a negligence,
recklessness, ignorance, nuisance, or failures of duties to care and / either to rescue, or inability
to carry out your ability to control activity of other infringer (vicarious liability). (Barker, 1993)

Negligence: Negligence definition is infringement of duty to care, obliged under the law
by the respondent to the claimant, hence causing the claimant damage. To create the successful
claim in a negligence three tests should be satisfied.
1) Respondent owes to the claimant a duty of care. Revealed by the tests of:

Affinity
Forseeability
With fair and reasonable to impose the duty

2) Was there a infringement to that duty. Revealed at tests:

Whether the defendant exposed to respondent for unreasonable risk;

In what public utility and expediency of actions of the respondent was;
Whether the respondent has broken the standard of the reasonable man.

3) Loss as consequence of infringement;

(C) What is Liability in negligence?
The negligence liability usually is born by the party which owes a duty of care. If
infringement of this duty that has led to financial losses, traumas or otherwise then negligent
party is obliged to pay indemnification to the innocent party. For example, drivers are obliged to
show care to road users, in the same way, the medical professionals are obliged a duty of care for
patients. If a driver or the doctor is negligent, such as fast speed driving in a case with drivers,
they have caused breach in their duty of care and liable to pay compensation if they have caused
injury or damage.
There are some additional factors which should be taken into consideration, before
negligence liability can be proved. First, harm should foreseeable - that the reasonable person
would see a potential damage from circumstances. Secondly, there should be a legal affinity
which is close interrelation between two parties.
In the suit of James Andrew Robinson v P E Jones (Contractors) Ltd (2011) EWCA Civ
9, recently Supreme Court of Idaho prolonged protection for contractors against negligence suits
when the project appears defective. In Craig Johnson Construction v. Floyd Town Architects c

the Supreme Court ruled out that the contractor doesn't bear responsibility in a negligence suit
when building was according to plans given by the owner and / or its architect. (Stanton, 2006)
2.3. Explain how a business like Jusco Stores can be vicariously liable. You are expected to
explain and give relevant examples about vicarious liability.
What is vicarious liability?
It is the liability at you as an employer for actions of the workers or agents in relation to
another as they do the work. If these actions are recognized as illegal under Queensland AntiDiscrimination Act 1991, against the person complained, and you as (employer) can be made
answerable. You need to show steps you have made to prevent such behavior.
Examples:
The worker sexually pursues another repeatedly to do remarks on her breast before employees.
He also has her head on a body of the nude woman as screen saver. (Bridge, 1999)
Task 3
3.1. Apply the elements of the tort of negligence and defences in Juscos contract. In the
Task 1 (question 1.1) you prepared a short contract for Jusco. In this question, you should add a
new section to this contract and write about (A) breach of duty; (B) damage to property; and (C)
contributory negligence
Article 3 of Sales Contract
Section 3.01, (A) breach of duty
In event of seller not maintaining the schedule of deliveries (natural calamities are
exempted), thereby causing a substantial loss to business of Jusco Stores, it will be considered as
breach of duty and negligence on part of seller. The buyer can also claim damages from court or
can cancel the contract immediately.
Section 3.02, (B) damage to property

Any person, causing damage to movable or real estate of Jusco Stores through another's
imprudence, deliberate destruction or by terrorist activity will be sued under The Criminal
Damage Act 1971 of UK.
(C) Section 3.03, Contributory negligence
If any employee Jusco Store is injured because of his/her actions and negligence and
negligence contributed to accident, the injured party cannot claim any losses (money) from his
employer. (Stapleton, 1995)
3.2. Apply the elements of Vicarious Liability in Juscos contract
The liability of infringement, not subject to delegation of duties by any Jusco worker,
should be equated in every respect; Vicarious Liability in event of negligence of the person to
whom corresponding works have been assigned by the person is made answerable for
infringements, not, subject to delegation of duties. (Markesinis, 1989)
Conclusion
A sales contract has great value for trouble-free work and an exchange of the products for
Jusco Stores. It is always preferable to have written contracts for Jusco as it serves the proof in
judicial proceedings. Written and assured contract guarantees quality of a subject. The seller
thus, guarantees that the products correspond to industry standards and specifications. It prevents
swindle and a deceit, on behalf of a subject of the prices and both parties are bounded with the
prices mutually agreed. It assigns special responsibility to both parties of the agreement for
which they are obliged to carry out. Jusco Stores are born by responsibility to reasonably
consider the quality goods before their acceptance and also to notify the seller on any defects of
the goods - hence, to aware buyer what he/she buys, thereby preventing a lack. The written
contract provides transfer of the proprietary right of the products to the Jusco Stores. The seller
under the contract guarantees that the goods are free from any pledge, claims or any another
outstanding encumbrances. The contract guarantees authenticity of two parties participating in an
exchange. It also serves as the proof of the legal transaction and prevent seller to make illegal

margins on any goods sold. In general, the contract guards the interests of both parties who are
participating in contract.
References
Bailey, S (2006). Public authority liability in negligence: the continued search for coherence
26 Legal Studies 155, pp 26-54.
Barker, C (2006). Wielding Occams Razor: pruning strategies for economic loss 26 (2)
Oxford Journal of Legal Studies 289, pp 39-55.
Barker, K (1993). Unreliable assumptions in the modern law of negligence 109 Law Quarterly,
pp78-87
Bridge M (1999). The International Law and Practice (Oxford: Oxford University Press), pp
143-215.
Conaghan, J and Mansell, W (1993). The Wrongs of Tort , Chapter 2. Pluto Press, pp 153 -174
Goode R (1998). Contractual Law (London: Penguin Books, 4th edition).
Howarth, D (2006). Many Duties of CareOr a Duty of Care? Notes from the Underground
(2006) 26(3) , pp. 447470
Law Commission, Administrative Redress: Public Bodies and the Citizen (Consultation Paper
No 187, 2008).
Markesinis, B A (1987). An expanding tort law the price of a rigid contract law 103 Law
Quarterly, pp 103 -129.
Markesinis, B A (1989). Negligence, nuisance and affirmative duties of action 105 Law
Quarterly, pp5 -12 .
Stanton, K (2006). Professional Negligence: Duty of Care Methodology in the Twenty-first
Century 22(3) PN 134
Stapleton, J (1995). Tort Insurance and Ideology 58 MLR 820.