Aspects of contract & business law - lesson 1

• BTEC
• MBO
• Studiejaar 3

https:

Aspects of contract and business law

Aspects of contract and business law

^{Unit 21}

Today's program

• Detailed planning
• Grading criteria
• Learning outcomes
• Instruction (interactive)
  
• Work on case study
• Check learning outcomes and evaluate lesson
  

https:

Grading criteria

• Pass:   P1 up to and including P7
• Merit:   pass + M1 up to and including M3
• Distinction:  merit + D1 and D2
  

Identify: If you identify something, you are able to recognize it or distinguish it from
others. You also name it, or say what its purpose is.

Explain: If you explain something, you give details about it or describe it so that it can
be understood.

Describe: If you describe something, you say what something is like.
Analyse: If you analyse something, you consider it carefully or use statistical methods in
order to fully understand it. You examine it using scientific methods in order to find out what it consists of.

Evaluate: If you evaluate something, you consider it in order to make a judgement about it, for example about how good or bad it is.

Learning outcomes:

1. Students understand the legal requirements for a valid contract.

2. Students understand the meaning and effect of terms in a standard form contract.

What do you know about
contract law already?

Contract

An agreement or set of promises, enforcable  by law , made between two or more parties to do or refrain from doing something.

In business:

•  intention is for it to be

legally binding

•  intention to add value

Example of types of contracts

Advantages of written
contracts

Disadvantages
verbal contracts

Types of contracts

Answer the following questions individually;

1. What contracts MUST be written? 

2. What are 3 advantages of a written contract?

              

 =>  Finished? Compare your answers to a neighbour. 

Adjust and/or complete your answers when needed.

What is a standard form contract?
What are 3 advantages of using a standard form contract?

What are the disadvantages of using a standard form contract (sfc)?

1. the sfc can look one-sided.
2. a business could become too lazy and not bother negotiating contracts.
3. When they are unreasonable or unfair for a private individual.
4. the other party needs to read it in order to know what they are accepting.

Offeror

The person making the offer

Offeree

The person receiving an offer

Counteroffer: 

an offer that invalidates the original offer

Communication of offers

An offer must be:

- communicated to the other party (usuallly writen, but verbal is also valid)

- certain and not too vague (otherwise it will be invalid)

- Exception "reward cases"

Activity

- Read p. 80-83

- Form groups of two

- Do:

* case study  Stevensons Jacques & Co v Mc Lean (1880)

* case study Household Fire & Carriage Accident Insurance Co v Grant (1879)

Upload your word document in Moodle

Battle of the forms:
When two business parties use their own form contracts, which one is valid? Explain

Consideration =

The Value attached to the promises on a contract. Without consideration there is no valid contract.

Types of consideration

- What types of consideration exist?

Explain the differences in your own words.

- Give an example for each type.

- Finished? Compare your answers with a neighbour's.

Where needed, improve your answer.

Consideration

Executed contract

Executory contract

A contract that is formed by all parties

Example Sam buys a TV set from Thea for 400 euro's.

Sam pays the amount and Thea delivers the TV.

A contract where both the parties still have to perform their respective contractual obligations.

Example: Adam contracts to sell and deliver a TV to Bob for 400 euro's to be paid in 3 weeks. Adam delivers the TV. The contract is executed as to Adam. Executory as  to Bob, as Bob has not yet paid the agreed price.  

Third party in a contract

- Privity of contract: relationship between third party and main parties to a contract. A legal concept denying third parties the right to sue on a contract

- Contract Act. 1999

A law

A law

A statutary exception to privity of contract

Capacity as applied to business situations

Capacity: legal power to enter into a contract

- Minors: people < 18. Limited circumstances 

(necesary goods and employment)

- Incapacitated persons: diagnosed mental health condition

Activity

- Read pages 84 – 87

- Form groups of two​ 

 - Do: ​ 

Case study McArdle (1951)​ 

Case study Nishing Shipping Co. Ltd v Cleaves & Co. Ltd (2004)​

Please upload your answers onto Moodle - Case studies

Types of organisations that can enter a contract

- Registered companies​  

- Unincorporated associations​  

- Partnerships​  

- Local authorities​ 

 

​

Activity

- Read pages 88 - 89​  

- Work individually​  

- Describe the contractual position for each type of organisation

Objectives of the lessons achieved?

- What did you learn this week? 

- What did you find easy?

- What did you find difficult?

Upload in Moodle - notes week 1 - your class.

Wrap up

Study 1.1 and 1.2 (pages 80 to 92)

Thank you for your attention and see you next time.