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Resolving Conflict in the

Marketplace
This is only intended to guide a lesson! It is too text
heavy for students, so alter it if you intend to use in
lessons.

Key Points
1. Elements of a legally binding contract.
2. Terminating a contract.
3. Remedies for breach of contract.
4. Legislation protecting consumer rights.
5. Non-legislative ways of resolving complaints.
6. Legislative ways of resolving complaints.

Legally Binding Contract


Elements:

Offer
Acceptance
Consideration
Intention to contract
Consent to contract
Capacity to contract
Legality of form
Legality of purpose

1. Offer
Can be done:
Verbally
In writing
By conduct

Terminating an Offer
Can be terminated if it is:
Revoked
Not accepted in time
Rejected

2. Acceptance
Meaning that the other person agrees
to all the terms of the original offer
without any conditions.
Can be communicated verbally, in writing
or by conduct.

3. Consideration
Is what each party offers the other as
evidence of their agreement.
Provides evidence of a contract.

4. Intention to Contract
Meaning that the parties to the
contract must have intended to create a
legally binding contract that could end
up in court if not fulfilled.

Contact Law on Intention to Contract


Contract law makes 2 assumptions:

All business agreements are intended to be


legally binding.
All social and private agreements are not
intended to be legally binding.

5. Consent to Contract
Meaning that each party must give
genuine agreement of their own free
will to the making of the contact.

Consent Will Not Exist


If:
Someone is pressurised against their will
into entering a contract.
Someone enters a contract as a result of
deliberate misrepresentation.
If a genuine mistake can be shown to
have happened.

6. Capacity to Contract
Meaning that the people agreeing to the
contract must have the legal right to do
so.

No Legal Right
If:

Someone is under 18, unless it is considered


a normal purchase.
Someone is intoxicated, insane or of
unsound mind.
A company acting utlra vires (a contract
that is outside its legally stated purpose
stated in its Memorandum of Association)

7. Legality of Form
Meaning that certain contracts must be
drawn up in writing before they can
become legally binding.
Includes hire purchase agreements,
property sales or insurance policies.

8. Legality of Purpose
Meaning that for a contract to be
legally binding it must be for a legal
purpose and not involve committing any
crime.

Terminating a Contract
Contract cant be legally enforced anymore
Can be terminated by:

Performance

Agreement

Frustration
Breach of Contract

Breach of Contract

When a contract is broken.

Remedies for Breach of Contract


Include:
Rescind/Cancel Contract
Sue for financial compensation
Seek specific performance (getting the court
to order the other party to keep their side of
the contract.

Caveat Emptor
A legal term meaning Let the buyer beware.
It is expected that consumers use common
sense when buying goods/services to avoid
conflict.
Conflict can still arise, therefore consumers
must be protected.

Legislation Protecting Consumers


Consumers rights and sellers
responsibilities are set out in 2 pieces
of legislation:
1) The Sale of Goods and Supply of
Services Act 1980.
2) The Consumer Protection Act 2007.

Sale of Goods Act


Sets out:
Legal rights of consumers
Legal responsibilities of retailer
Legal remedies available

Legal Rights of Consumers


Goods must be of merchantable quality
Goods must be fit for purpose intended
Goods sold must be as described
Buyer is entitled to legal ownership and quiet
possession
Competent person must provide the service
Consumers renting/buying hire purchase
have the same rights

Legal Responsibility of Retailer


For any defects in products sold
Must respect rights of consumer
Complaints must be dealt with
Signs limiting retailers responsibility
are illegal
Illegal for retailers to demand payment
for unsolicited goods

Remedies Available
Repair
Replacement
Refund

Consumer Protection Act


Protects consumers from unfair business to
consumer commercial practices.
Bans unfair, misleading or aggressive
practices towards consumers.

Consumer Protection Act


Prohibits false product description
Prohibits false prices
Prohibits false/misleading advertising
Prohibits businesses from engaging in
aggressive practices
Established the National Consumer
Agency

National Consumer Agency


State agency that promotes consumers
awareness of their legal rights.
Ensures that consumer legislation is
obeyed by businesses.

National Consumer Agency


Responsible for:
Enforcing consumer laws
Providing information and advice to the
public
Providing information and advice to
businesses
Advising the government
Publishing a Consumer Protection List

Resolving Consumer Complaints


Non Legislative Methods

Legislative Methods

Talk to the retailer


Seek help from a third
party

National Consumer Agency

Industry Trade Association


Ombudsman for Public Service
Consumer Association of Ireland

Small Claims Court

Claims up to 2000
Hire a solicitor

Small Claims Court


Advantages

Disadvantages

Limited value of claim


Fast
Low Cost

Recommendation is not
legally binding
If youre not happy with
outcome, you will have to
go to a full court hearing

What have we covered in this Topic?


1. Elements of a legally binding contract.
2. Terminating a contract.
3. Remedies for breach of contract.
4. Legislation protecting consumer rights.
5. Non-legislative ways of resolving

complaints.
6. Legislative ways of resolving complaints.

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