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Aspects of Contract and Negligence for Business

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Scenario 2: Negligence and Vicarious Liability Problem Question (P3.1, P3.2, P3.3, P4.1, P4.2 and M3)
Task description:
Imagine that you are an In-House Lawyer (IHL) working for QuickFix. The Managing Director (MD) has asked you for written advice on whether the company has any liability in tort law towards Barbara and Clive. With this in mind please produce a report for the MD, which sets out the law relating to negligence and vicarious liability and how it applies to this scenario. Your report should be no longer than 3,000 words.
1 Differences Between Liability in Tort and Contractual Liability

Contractual liability concentrates on what is in a contract and the obligations between the two or more parties of the contract. Both parties in contractual liability contracts are controlled by it and the terms stated in the contract cannot be broken. The terms of a contract must be fulfilled by both of the parties; otherwise consequences will follow if one party breaks the terms.
Contractual liability contains conducting agreement and liability between businessperson and merchant. Tort law is used in situations where a person has done harm to another person. Liability varies significantly in tort law and contractual law in terms of issues of content. Contractual liability is based on agreement but tort law’s liability is not based on agreement. Also the way court provides compensations and how it deals with these two reflects on the difference between them.

Contractual liability therefore concentrates on the contract and liability issues whereas tort of liability concentrates on what kind of harm or loss has the other party caused to the innocent party. In contractual liability both parties are aware and know well what they have agreed to when signing a contract. Usually only mistake or misunderstanding leads to breaking contractual liability. In tort of

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