Paper Example on Contractual Relationship

Introduction

The facts of the case are that ACD Development Limited has contracted CBKS to build in Sultan Street. Therefore they have established a contractual relationship based. In the course of the construction process, CBKS allegedly tampered with electrical cable lines that were not originally listed in the survey of the area. Due to this unfortunate occurrence, a few homes and businesses suffered losses to their businesses. Damages may accrue to the contractor or to ACD on account of the activities of December 2018.

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A contractual relationship can be established and proven to exist if there were an offer acceptance and consideration. An in contract law means an explicit declaration of interest to transact with another party. An acceptance also amounts to an unequivocal declaration by the other party to accept the offer (McKendrick 110). Consideration is a detriment on the part of one of the contracting parties on account of the contract matter. Consideration must be monetary. Offer and acceptance can be written or oral unless statutorily required in a specific form. The existence of these basic elements of a contract makes a contract valid and enforceable (McKendrick 134). This is subject to each party understanding the terms and conditions of the contract.

Vicarious liability is when a person is held liable in the torts of another person, even though that person did not commit the tort himself. Vicarious liability occurs in two contexts; respondeat superior; and an independent contractor (Ulfbeck 40). Under the doctrine of respondeat superior, an employer is liable for the actions of the employee, when the employee is acting within the scope of the employment. To establish whether the employee is acting within the scope of employment: the act must be of the nature the employee was employed to do; the employee must have the intention, at least partially, to serve the employer; and the act must have occurred substantially within the time, scope and limits of the employment (Ulfbeck 43).

On the flipside, where an independent contractor is enlisted, the defendant will not be held liable for the actions of the independent contractor (Deakin 30). An independent contractor, in this case, is a person who performs services for another person under an express or implied agreement and who is not answerable to the other over their control, right thereof, or how they do their work (Deakin 28). However, this exception to vicarious liability does not apply to very hazardous activities or duties that cannot be delegated (Deakin 50). A duty that is directed by statute, ordinance, or safety order to ensure certain safeguards, or maintains certain equipment at certain conditions is considered a non-delegable duty.

In the case scenario, there exists a contract for services between the ACD and CBKS. The contractor does not have any form of control in the way the building contractors do their work. Therefore, by the definition of an independent contractor, ACD is not liable vicariously for the activities of CBKS.

Conclusion

In conclusion, ACD Developers cannot be held liable for the damage caused by CBKS to the power cables. As such, neither the laboratory nor the supermarket can claim damages from ACD. This scenario falls within the exception, with CBKS as the independent contractor. Therefore, if the matter went to court, ACD would not be found liable for the actions of CBKS and would not be required to pay damages for losses incurred by the laboratory and the supermarket.

Works Cited

Deakin, Simon. "organisational torts: vicarious liability versus non-delegable duty." The Cambridge Law Journal, vol. 77, no. 01, 2018, pp. 15-18.

McKendrick, Ewan. Contract law: text, cases, and materials. Oxford University Press (UK), 2014.

Ulfbeck, Vibe. "Tort Law, Corporate Groups and Supply Chain Liability for Workers' Injuries - The Concept of Vicarious Liability." SSRN Electronic Journal, 2017.