Unit 3 Law for Business SESSION 11 SPECIFIC

Unit 3 – Law for Business SESSION 11 – SPECIFIC TERMS IN A BUSINESS CONTRACT Fda Business

RECAP – CONTENTS OF A VALID CONTRACT Agreement Consideration Intention capacity Legality Genuineness of consent form

ILLEGAL CONTRACTS �It involves acts that may break the law �An act that is harmful to the public

REGULAR CONTRACTS LACKING CONSENT �Contract that is valid in all ways may still be regarded as not valid �If no real consent by one or both parties (concensus ad idem) �Consent may be rendered unreal by one of the following; �Mistake �Misrepresentation �Duress and undue influence

MISTAKE �Unavoidable if a real agreement was never formed �Case: Raffles v Wichelhaus (1864) �If a party knows all relevant facts then bad judgement can not be considered a mistake

MISREPRESENTATION �No genuineness of consent to a contract by one of the parties �False statement of facts or past events �Contract becomes voidable rather than void �Courts tend to put injured party back to starting point (prior to contract being made) �There are three main types of misrepresentation;

TYPES OF MISREPRESENTATION �FRAUD – false statement is made knowingly �INNOCENT – false statement is made unknowingly �NEGLIGENT – false statement is made where the maker did not have reasonable grounds for believing the statement to be true

DURESS AND UNDUE INFLUENCE �Duress; �Actual threats or violence to the person or contracting party �Can make the contract void or voidable �Undue influence; �Contracts or gifts obtained without free consent by the influence of one mind over another

ACTIVITY 1 �In pairs try to think of suitable examples for each of the issues we have just discussed �Feedback to the rest of the group

STANDARD FORM BUSINESS CONTRACTS �Businesses set out precise terms �Printed document with a set of standard terms �What advantages do you think organisations have in making standard contracts?

ACTIVITY 2 – CASE STUDY � Study the section of the agreement you have been given, and answer the following questions justifying your answers; 1. What benefits are there to the store in setting out standard terms? 2. How is the store likely to skew these terms in its favour? 3. What is the importance of the Consumer Credit Act in this context?

ACTIVITY 3 – RESEARCH �In order to complete your assignment you need to apply theory to real life examples of standard form contracts, preferably between 2 business’s. �Working in pairs try to find some examples standard form contracts, using the internet, broad sheet newspapers, textbooks and law journals

Recap terms Express Terms Implied Terms Facts and details pertaining directly to the parties and product/service. Root of the contract More general relate to; law especially SOGA 1979 i. e. title, description, purpose, quality fact fit for purpose and reasonableness – case: The Moorcock (1889)

Conditions Warranties Major term i. e. payment, interest, duration, delivery specifics Minor term i. e. shade, extras see case: Poussard v Spiers and Pond (1876)

Recap Activity �http: //www. o 2. co. uk/assets 2/pdf/2120%20 CPM_Tand Cs_Booklet_LR_ONLINE. pdf

SUMMARY �Homework activity: for next session you are to work in groups prepare a seminar (presentation) on the following specialist terms �Force majeure �Price variation �Liquidated damages �Retention of title �You must provide a handout for each person in the group and apply using case law