Aspects of Contract and Negligence Essay Example | Topics and Well Written Essays - 2250 words

Aspects of Contract and Negligence - Essay Example Standard form contract is very common in today’s world; it is mainly common with large companies. It occurs when companies draft terms and conditions of their agreements with their customers. The customers are not given an option to negotiate; if they cannot comply with the terms set, then their only option is to not enter into the contractual agreement. Unilateral agreement occurs when promises are made by one party, this type of contract can be best described by an advertisement requesting any person with any information of where about of a fugitive to turn him in for a reward. Bilateral agreements, on the other hand, occur when both parties have binding terms. This is normally in commercial contracts between companies. Bilateral contractual agreement is the best in the case of Katie and the builders. This is because it allows Katie to be able to set terms as well as the builders so that the work can be to her satisfaction. If one of the parties fails to meet the terms set, then the aggrieved party has a right to take a legal action. b) Standard Form Contracts The design of standard form contract is such that, in the event of breach of an agreement, it excludes liability or limited (Stone & Stone, 2002). A clause can be used to exempt a party from liabilities if it is part of the terms of the contract. If a party signs a document without reading it, he or she becomes bound by the terms set out in the document. If the document that sets out the terms is not signed by one of the parties, it can lead to lack of action against the party that breaches the contract. The main advantage of this kind of contract is that there is no need to draft it and the terms are very certain to the parties. The risks involved in this kind of an agreement are spread over to both parties making sure that none of them is on the losing side if their expectations are not fulfilled as a result of unexpected circumstances. The only disadvantage is that parties may have a hard time interpreting terms, and can even misinterpret them that can lead to a dispute resulting to breach of contract. c) Example of a Standard Form Contract An example of a clause in standard form agreement can read, â€Å"Jane will not be liable for any damages caused by negligence caused by Sam’s company†; this means that Jane will not take responsibility for damages that may occur because of Sam’s company negligence. d) Impact of Rules of Contract to Online Agreements The era of the internet has brought drastic change on how business contracts are carried out (Poullet, 2007). However, the rules of contracts remain the same and companies doing business online have to abide to the relevant regulations (Cavazos, & Morin, 1994, 39). These regulations were passed so that consumers who shop online can be protected as well as business people who order supplies online. The UK passed Consumer Protection (Distance Selling) Regulations in 2000 to ensure that consumers who pur chase goods and services are protected. These regulations do not apply to all kind of contractual agreement involving online transactions since they do not cover contractual agreements between businesses. They were passed as a result of a directive of EU of 1997 that provided protection for consumers involved in distance contracts (Great Britain, n.d). The regulations ensure that consumers have the right to request information concerning goods or services they are to be supplied with, and how much they cost before they can

Finance and Accounting Dissertation Essay Example | Topics and Well Written Essays - 1500 words

Finance and Accounting Dissertation - Essay Example Activity Based Costing (ABC) is a managerial accounting system which determines the cost of activities without distortion and provides management with relevant and timely information. It does not represent just a new set of overhead allocation rules or techniques to value inventory. ABC represents a way to look at operating costs and provides methods to dissect the underlying activities, which cause costs to exist† (Dunn 1891). The problem here, which is to be solved, is â€Å"Does the activity based costing play a vital part in financial performance†. For this purpose we have to know about the relevance of activity based costing. Here an example is given to know the difference about the activity based costing and conventional costing. E.g. Assume that Product A and Product B are manufactured by the same company. Product A is a low volume item and new one, it requires particular activities such as additional testing, special engineering, and some machine setups because i t is ordered in less quantities. Product B is a big volume product produced constantly and needs little concentration and does not require the particular actions. â€Å"If this business makes use of conventional costing, they assign or assign every expense to goods on the basis of the amount of machine hours. This will effect in small expenses rate due to Product A, since it do not contain numerous machine hours. Though, it performs order loads of testing, engineering and setup actions. The Product B will be owed a huge quantity of expenses owing to every device hours, except it insist small expenses action and no special attention† (Emerging Issues in Cost and Management Accounting n.d). The result will create a serious miscalculation of both products’ real price of manufacturing expenses. This costing will raise above this situation by transferring expenses on above the one action that is., the machine hours will not only be the activity, all other activities are tak en into consideration while costing the product. Background of the Study: Activity based costing will recognize the cost of additional testing, machine setups, special engineering and other activities that cause the costs. These activities consumed the resources of the company. So in activity based costing, they will calculate the cost of resources used in these activities and the product cost will be fixed accordingly. The cost of activity is assigned only to the product which demands the activities, which means the cost of special engineering, additional testing will not assign to the product B. Aims and Objectives: Here, the objective of the study is to understand â€Å"does the activity base costing play a vital part in financial performance†. Obviously, there are reasons to say that activity based costing plays a vital part in financial performance of organizations. But before stating it, we need to critically analyze the financial performances reports and compare the fi nancial performance of activity based costing and conventional costing methods. From the above examples itself, we can understand how the activity based costing is an advantage for the organization. The real cause of costs is recognized and it is added to the product cost. This method eliminates the chances of miscalculations and hence gives additional profit to the organization. But activity based costing also have some problems like; some costs are complex to allocate during this