Professional Documents
Culture Documents
Y/601/0563
Unit 5: Aspects of Contract and Negligence for
Business
Student ID
Assessor name
Dorothy
S09-004
John M. Andre
Date issued
Hand in deadline
Submitted on
10 September 2016
20 October 2016
20 October 2016
Assignment title
Contracts
In this assessment you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.
Learnin
g
Outcom
e
LO1
LO2
Be able to
apply the
elements of a
contract in
business
situations
1.1
1.2
Tas
k
no.
Evidence
(Page no)
1
2
1.3
2.1
2.2
2.3
Student declaration
I certify that the work submitted for this assignment is my own. I have clearly referenced any sources
used in the work. I understand that false declaration is a form of misconduct.
Student signature:
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Indicative
characteristic/s
An effective approach to
study and research has been
applied.
Contextualisation
To achieve M1, you will have participated
actively (showing you have done the
recommended reading) during in-class
discussions.
(Task 5)
M2 Select / design
and apply appropriate
methods / techniques
M3 Present and
communicate
appropriate findings
D1 Use critical
reflection to evaluate
own work and justify
valid conclusions
D2 Take responsibility
for managing and
organising activities
D3 Demonstrate
convergent / lateral /
creative thinking
(Task 5)
To achieve D1, you will have evaluated
your judgements against existing UK or
Commonwealth case law.
(Task 5)
To achieve D2, you will have included
evidence of relevant, wide reading of
academic sources within your report.
(Task 5)
To achieve D3, you will have used
innovative and creative thought with
regards to arguments and counterarguments.
(Task 5)
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Assessor name
John M. Andre
Date issued
10 Sept 2016
Hand in deadline
20 October 2016
Assignment title
Contracts
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Valid
Voidable
Void
expressed orally
implied in law
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Evidence
checklist
Task 1
Task 2
Task 3
Task 4
Task 5
PRESENTATION
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Evidence
presented
Check carefully the submission date and the instructions given with the
assignment. Late assignments will not be accepted.
Ensure that you give yourself enough time to complete the assignment by
the due date.
Do not leave things such as printing to the last minute excuses of this
nature will not be accepted for failure to hand-in the work on time.
You must take responsibility for managing your own time effectively.
If you are unable to hand in your assignment on time and have valid
reasons such as illness, you may apply (in writing) for an extension.
Take great care that if you use other peoples work or ideas in your
assignment, you properly reference them in your text and any
bibliography.
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Achievement Summary
Qualification
Assessor
name
Unit Number
and title
Student name
Criteria
Reference
John M. Andre
Achieved
?
(tick)
LO 1
1.1
1.2
1.3
LO 2
2.1
2.2
2.3
Achieved
?
(tick)
Grade descriptor
D3: Demonstrate
convergent/lateral
/creative thinking
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Achieved
?
(tick)
Assignment Feedback
Formative Feedback: Assessor to Student
Action Plan
Summative feedback
Assessor Signature
Date
Student Signature
Date
VERIFIED
DATE
YES
NO
: .................................................................
VERIFIED BY : .................................................................
NAME
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: .................................................................
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Acceptance
Acceptance of an offer means unconditional agreement to all the term of that offer (Elliot
and Quinn, 2009). It is know that an acceptance can be seen as the confirmation of the
offeror towards the offeree.
For the test used by the courts to:
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Capacity
Capacity refers to the fact that the law regards some groups as being unable to enter into
binding contractual arrangements, because they might not be in a position to fully
understand the agreement they have entered into (BPP Learning Media, 2010). There are
some kinds of party whose capacity is limited such as: minors, people suffering from a
mental ill and corporation.
The court can test capacity to decide:
The people who participation a contract do not have civil act capacity
- Minor (under 18)
- Minors have full capacity only for necessities.
- Mental ill.
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A contract which affected by such "vitiating factors" may be void, voidable and
unenforceable (BPP Learning Media, 2010). Some of the parties link completely, while
others are not. The terms of the contract determine whether a contract can be fully
executed. Here are some different types of contracts:
1.1.5
Valid contract
A valid contract is an agreement which legally binds the parties to it. A valid contract
must have to three essential elements to make a contract: offer, acceptance and
consideration.
In the Car case, if the contract of buy a car between Tony and Car Max is valid contract.
Tony cannot return the car, he must to pay back payments he missed and must to
continue making payment for this car.
1.1.6
Void contract
A void contract is not a contract at all. The parties are not bound by it and if they transfer
property under it they can sometimes recover their goods even from third party (BPP
Learning Media, 2010). Generally, the invalidity will be considered only, if it is referred
by making an objection against the other party or bringing a legal action in court.
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Voidable contract
A voidable contract is a contract which one party may avoid, that is terminating, at his
opinion (BPP Learning Media, 2010). Voidable contracts also include those entered into
by a person who lacks capacity or by a person who entered into the contract under duress
or undue influence. A minor can be bound by the contract is a contract to provide the
basic necessities. Necessities are interpreted as including not just the supply of necessary
goods and services, but also contract of service for the minors benefit (Elliot and Queen,
2009).
The Car case in here is voidable contract because Suzy has makes a contract to buy the
car with Tony when Tony was only 17 years old although he will be 18 in one week. But
he is still just under 18 and he is a minor. Tony was not even paid any instalment
payments before and the car was not his necessities because no car he can ride a bike as
he wishes. And one more thing to prove it was not his necessities because the car is not a
good suitable to the condition in his life and it is not his actual requirements at the time
he buy it, he did not even have the capacity to pay for the car. This case is voidable
contract so Tony completely can return the car for Car Max and he do not need to
continue making payments.
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Evidence
Offer 1: Tony offer to make a payment
Offer 2: Suzy offer a payment will be 970 per month for
payment
Acceptance 2: Tony said OK, Ill take it. when Suzy
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much money right now to pay. Tony must pay per moths
for Car Max to get Porsche 911 right now and Car Max
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Tony has the demand to buy a car and Car Max is where
(Task 5) Apply the law on terms in different contracts and evaluate the effect of
different terms in given contracts.
The implied terms are present in The Car case is implied in law. The Car case is a
contract of sale of goods so statute will also include the terms: the protection given by
the Sale of Goods Act 1979 to a consumer who buys goods from trader.
A set of terms concerning the goods is implied into all contracts covered by the Act:
Title, sale buy description, satisfactory quality, fitness for purpose and correspondence
with sample.
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Warranty
Warranty is a less important term. It does not go to the root of the contract, but is
subsidiary to the main purpose of the agreement (BPP Learning Media, 2010).
In the Car case include a warranty of merchantability. When Tony asks Is it in good
shape mechanically?. Suzy has confirmed that the engine of the car as new meaning
that is a clear warranty.
So if after Tony drove the car to home and it does not work, Tony realizes any problems
from his car without cause or not true to describe through words of Suzy. Tony has the
right to bring the car to Car Max could give rise to a claim for breach of warranty
entitling the buyer to damages. Under the contract, seller's sole liability and buyer's sole
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Conclusion
After all the report, I have obtained valuable knowledge have a deep understanding
about how the law works and how five of those elements combine with other terms to
create many cases. It is important to know what you are dealing with and before
executing a contract, pay close attention to the terms and the elements of the contract to
avoid the disadvantages, especially the implementation of the contract with a minor.
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Reference
2010. BPP Learning Media (Business Law)
Contract Law. Catherine Elliot and Frances Quinn, 2009
The Sale of Goods Act. 1979
British Crane Hire Corp Ltdv Ipswich Plant Hire Ltd (1975)
Liverpool City Council v Irwin (1977)
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