Understand the essential elements of a
valid contract in a business Context
Essential elements: offer and acceptance;
intention to create legal relations; consideration; capacity; privity of
contract;
Types of contract: face to face; written;
distance selling; impact
Types of terms: condition; warranty;
innominate term; express; implied; exclusion clauses and their validity
Be able to apply the elements of a
contract in business situations
Elements: application of relevant principles and
case law to business scenarios
Specific terms: contents of standard form
business contracts; analysis of express terms, implied terms and exclusion
clauses in a given contract
Effect of terms: breach of condition,
warranty and innominate terms; legality of exemption clauses; outline of
remedies; damages
Understand principles of liability in
negligence in business activities
Negligence: differences to contract; duty of
care; breach of duty; damage – causation and remoteness of damage; personal
injuries; damage to property; economic loss; occupier liability
Liability: employer’s liability; vicarious
liability; health and safety issues
Be able to apply principles of
liability in negligence in business situations
Negligence: application of the legal principles
of negligence and relevant statutory and case law to business scenarios
including: personal injuries, damage to property, economic loss, occupier
liability; defences; contributory negligence; remedies
Recommended
text and links
Learners should use the
latest edition if available.
Textbooks
Adams A , (2010), Law
For Business Students, 6th edition, Pearson Education Ltd,
ISBN9781408278802
Elliot C and Quinn F
(2009), Tort Law, Longman, ISBN: 9781405899338
Horsey K and Rackley E
(2009),Tort Law, OUP Oxford, ISBN: 9780199216376
Maclntyre E, (2011),
Essentials of business law, 3rd Edition, Pearson Education Ltd ISBN
9781408278765
McKendrick, E,(2008),Contract
Law: Text, Cases, & Materials: Text, Cases, andMaterials (OUP Oxford,
ISBN: 9780199208012
Peel E and Treitel G H
(2007),Treitel on the Law of Contract, Sweet and MaxwellISBN: 9780421948402
Riches S and Allen V
(2011), Keenan and Riches’ Business Law, 10th Edition, Pearson Education Ltd,
ISBN 9781408278839
Journals
Law Society Gazette (The Law Society)
New Law Journal (LexisNexis Butterworths)
Websites
Access
to freely availableBritish and Irish public legal information
Assessment:
The module
will be assessed meeting all the LO as specified by the awarding body, Pearson Ed
Excel.
Please read
the instructions carefully while addressing the tasks specified.
Contribution:
100% of the module
Outline
Details: report approx 4000 words. Details enclosed in the assignment brief
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Assignment title
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The case of Peter Abraham and others
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Purpose of this assignment
The purpose of this assignment is to test understanding of aspects of the law of contract
and tort and the skill to apply them, particularly in business situations.
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TASK 1 – Scenario
In this task you will be required to
demonstrate knowledge and understanding about essential elements of a valid
contract, discuss different types of contract and be able to analyse the
impact and effect of various terms used in contracts.
Peter Abraham is looking to set up as
a self-employed building contractor. He is aware that he could be sued for
damages for breach of contract but has very little knowledge and unsure about
formation of contracts or the effect of terms used in contracts. As a friend
he has approached you to get further clarity as he knows you are studying
Aspects of Contract.
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LO1 (AC1.1, AC1.2 and AC1.3)
You are required to
1.1 Explain to Peter Abraham how a contract is
formed and the importance of the various elements which has to be
present to form a contract.
1.2 Discuss the impact of forming
contracts (as it may apply to Peter Abraham) by means of
i.
face to face
ii.
written contract
iii.
distance selling (telephone, internet)
1.3 Give an analyses of the following terms in
contracts with reference to their meaning and effect (including
remedies and damages) as it may apply to Peter Abraham.
- condition
- warranty
- innominate terms
- exemption clauses (including legality)
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Please note the key underline
words are significant and must be addressed in your answers
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TASK 2 - Case studies
In
this task you will be required to able to apply the elements of a contract in
business situations
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LO2 (AC2.1, AC2.2 and AC2.3)
2.1 Apply the elements of contract in the given
business scenarios below;
Case 1 - Agreement
Carol’s student apartment was unfurnished. She perused Gumtree, an
online classified ad and saw this advertisement: “Moving. For sale: a very
nice brown leather couch, almost new, £600.” There was an accompanying photo
and contact information. Carol e-mailed the contact, saying she wanted to buy
the couch. Does Carol have a contract with the seller? Explain using cases and /or statutes to support your answer
Case 2 - Consideration
Preston’s son, Devi, was seeking a cyber-security position with
George, Smith & Fogarty, Inc., a large IT firm. Devi was independent and
wished no interference by his well-known father. The firm, after several
weeks’ deliberation, decided to hire Devi. They made him an offer on April
12, 2015, and Devi accepted. Preston, unaware that his son had been hired and
concerned that he might not be, mailed a letter to George on April 13 in
which he promised to give the IT firm £150,000 contract if the firm would
hire his son. The letter was received by George, and the firm wishes to
enforce it against Preston. Can George enforce the promise? Why? Explain using cases and /or statutes to
support your answer
2.2 Apply the law on terms in the following
contracts
Case 3 – Exclusion clause
A couple booked a table at a popular London
restaurant. At the entrance to the restaurant the man handed over his over
coat which contained his wallet with £500 inside. The porter gave the man a
receipt which has on the back an exclusion clause that states “all valuables
must be removed from the jacket pockets as the restaurant will not be held
responsible for items missing or stolen”. As the man was about to make
payment for the meal he realises his wallet was left in the over coat and
went to collect it. He then realised the money has been taken from the wallet
which he sought to recover from the restaurant. The restaurant is refusing to refund the man
stating that there was a clear notice on the back of the receipt which
excludes them from any liability. Can the restaurant rely on the exclusion
clause contained on the receipt? Explain
using cases and /or statutes to support your answer
Case 4 – Implied term
Aaron rented a warehouse from Zehphra which had
not been occupied for a long period and had fallen into disrepair. Aaron made
significant improvement to the warehouse. Zehphra promised Aaron that he will
not increase the rent for the next 5 years. After a year Zehphra died by then
the value of the property have increased in value partly due to the repairs
carried out by Aaron. Yeti inherited
the property and immediately increased the rent. Aaron refused to accept the
increase claiming that Zehphra promised the rent will not increase for a 5
year period. Yeti terminated the tenancy and Aaron has now submitted a bill
claiming compensation for his expenses. Yeti is refusing to pay stating there
was nothing in the tenancy agreement stating that such compensation was
payable. Is Aaron entitled to a compensation? Explain using cases and /or statutes to support your answer
2.3 Evaluate the effect of different terms in the
given contracts
Case 5
The policyholder applied for motor
insurance. The proposal form asked: "Have
you or anyone who will drive been involved in any motor accidents or made a
claim (fault or non-fault including thefts) during the last five years-"
His answer was "No."
When the policyholder's car was stolen, the insurer learnt
that he had made a theft claim under his previous motor policy within the
five year period. The insurer voided the policy from its start date and
rejected the policyholder's claim. The policyholder argued that he did not
have to disclose his previous theft claim because the insurer concerned had
decided not to meet it. Is the
insurance right to void the policy?
Case 6
The policyholder applied for motor insurance, answering
"no" to the following two questions on the proposal form:
"Has the car been
altered/modified from the maker's specification (including the addition of
optional fit accessories such as spoilers, skirts, alloy wheels etc.-)"
"Have YOU or ANY PERSON who will drive ... during the past five years
been involved in any accident or loss (irrespective of blame and of whether a
claim resulted)-"
When the insurer investigated a new claim, it came to
light that the car had been fitted with oversized alloy wheels, spoilers, and
chrome wheel arches, and that the policyholder's husband, a named driver on
the policy, had made two significant claims in the previous five years. The
insurer refused to meet the claim and cancelled the policy from its start
date.
The policyholder stated that she had bought the car with
the all the modifications already fitted, and she assumed they were all part
of the car's original specification. She further explained that she did not
realise her husband had made one of the two earlier claims, and that his
other claim had been rejected because he had only third party cover at the
time. Is the insurance right to void
the policy from the start date?
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TASK 3 – Vocational scenario
In
this task you will be required to demonstrate
knowledge and understanding of the principles of negligence in business
activities.
You have been recently promoted in
your employment as Health and Safety Officer and has been invited to give a
talk on ‘safety in the workplace and the consequences’.
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LO3 (AC3.1, AC3.2 and AC3.3)
You are required to:
3.1 Explain the similarities and differences
(contrast) of liability in tort with contractual liability using an example.
3.2 Explain using suitable example how
liability for negligence can arise and the conditions needed to be met for a
claimant to successfully prove negligence.
3.3 Explain what vicarious liability means and
how a business such as your organisation can become vicariously liable giving
example.
Please note the key underline
words are significant and must be addressed in your answers
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TASK 4 - Case studies
In
this task you will be required to
apply the principles of liability of negligence to business situations based
on the business scenarios given below
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LO4 (AC4.1 and AC4.2)
You are required to:
4.1 Apply the elements of the tort of negligence
and defences in the given business scenarios below;
Case 7
Mr Brown was feeling unwell and went to Goodmayes Hospital complaining
of chest pains and breathing problem. He was seen by a nurse who telephoned
the doctor on duty. The doctor asked the nurse to prescribe some over the
counter pain killers. Mr Brown died a day later from pneumonia caused from toxic
mould in his house.
Advice the widower
of Mr Brown using cases and /or statutes to support your
answer
a)
When can the hospital be held responsible for
negligence
b)
When can the hospital not be held responsible for
negligence
4.2 Apply the elements of vicarious liability in
given business situations below;
Case 8
A driver working for an executive chauffeur
company was sent to pick up a client at the airport. While waiting for the
flight to arrive the driver decides to have few glasses of alcohol. On his way
from the airport to the client’s hotel he crashed into a lamp post and the
client suffered serious injury. The investigation concluded that the driver
was over the drink driving limit.
The
client is now suing the chauffeur company. Is the chauffeur company liable
for the driver’s negligence?
Explain using cases and /or statutes to support your answer
Case 9
Mr
Jones, of Billericay in Essex, was works as delivery driver for a
supermarket. One morning while loading pallets into his truck he slipped on
the tail gate and the pallet fell over and injured another colleague. The
injury was so severe that the colleague was left with a torn rotator cuff
which required surgery and months of rehabilitation with a physiotherapist.
The colleague is now suing the supermarket for damages. The
supermarket is arguing that, at the time of the accident, responsibility for
health and safety had been delegated to another company.
Explain using cases and /or statutes to support your answer whether
the supermarket is or is not responsible
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11. Glossary
of academic words used in this and other assignments
Account for
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Give
reasons for: explain why something happens.
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Analyse
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Examine
something in very close detail and from a number of angles. Identify the
important points and chief features, and understand their relationships.
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Argue
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Present a
case for and against a proposal or statement and present your own opinion at
the end.
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Compare
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Show how
two or more things are similar.
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Contrast
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Look at two
or more things and draw out differences. State whether the differences are
significant.
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Critically
evaluate
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Weigh
arguments for and against something, assess the strength of evidence on both
sides.
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Define
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Give the
exact meaning of.
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Describe
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Give a
detailed account of the main features or characteristics ...
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Discuss
|
Write about
the most important characteristics of something. Give arguments for and
against, look at it from a variety of perspectives.
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Distinguish
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Identify
the differences between two items.
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Evaluate
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Assess the
worth or usefulness of something. Use evidence to support your opinion.
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Examine
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Look at
something in detail. You may be expected to 'critically evaluate' it as well.
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Explain
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Make it
clear why something happens or why it is the way it is.
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Identify
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Recognise
name and briefly describe something.
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Illustrate
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Use
examples to further explain or justify something. Could be visual or verbal.
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Interpret
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Explain the
meaning or significance of information or data that you are presenting.
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Justify
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Provide
evidence that supports an argument or idea.
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Outline
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Give only
the main points, show only the main structure.
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Prove
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Present
evidence in a logical structure to support an argument for a point of view.
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Relate (Two
meanings)
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1. Show how ideas / theories/ events etc are linked or connected.
2. Tell a story. Explain something in a narrative fashion.
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Review
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Survey and
comment on the key aspects of something or a range of things.
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State
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Give the
main features clearly and simply.
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Summarise
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Draw out
the main points, omitting detail and examples.
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To what
extent…
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How far is
something true, or contributes to a final outcome. Also how far is it not
true? In academic writing the answer is usually somewhere in the middle.
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Trace
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Describe
the development of something; follow the order of different stages in an
event or process.
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Adapted from
Cottrell.S.(2003) The Study Skills Handbook. Basingstoke.
Palgrave.
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