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Aspects of Contract & Negligence

Aspects of Contract & Negligence


Date for Submission: 13th February 2014

(The submission portal will close at 13:59 GMT)

Assessor: Kara Johnson

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Assignment Brief

As part of the formal assessment for the HNC/D programme you are required to submit an assignment for each module. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments.

After completing the module you should be able to:

1. Understand the essential elements of a valid contract in a business context

2. Be able to apply the elements of a contract in business situations

3. Understand principles of liability in negligence in business activities

4. Be able to apply the principles of liability in negligence in business situations.

Assignment Task

Task 1 – Learning Outcomes 1 & 2

Understand the essential elements of a valid and legally binding contract in a business context

Be able to apply the elements of a contract in business situations

TV4U distributed leaflets to a large number of houses giving information on their current special offers. The leaflet showed that purchasers of the latest Sonsung Digital 46” TV would be entitled to a free Clear DAB radio (widely acknowledged as one of the best on the market!).

Bob rang TV4U and ordered the Sonsung Digital TV, payment to be made on delivery. The driver handed him the radio and told him that the offer had been popular and that TV4U had now run out of the Clear DAB radios but this one was just as good. He also handed him a booklet which told him about the TV set up and „his rights‟.

1a. Explain the requirements for the formation of a valid contract. Apply the rules on offer and acceptance and advise Bob of his rights in contract law. (1.1, 1.2, 2.1, 2.2)

1b. How does the law approach the issues of consideration, intention to create legal relations and the capacity to contract. Use the above scenario to give examples to illustrate your answer. (1.1, 1.2, 2.1)

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Task 2 – Learning Outcome 2

Be able to apply the elements of a contract in business situations

Had Bob read though the leaflet given to him by the delivery driver, he would have discovered a statement on the last page which stated that „This TV must be installed by a qualified Sonsung engineer. In the event of failure of this product following installation by unauthorised personnel, the liability of TV4U will be limited to the cost of replacement.

Bob‟s friend Carl installed the TV and now neither the TV, satellite nor DVD player will work.

2a. This is an example of an exclusion clause. Outline the key problems associated with exclusion clauses and explain how an exclusion clause becomes incorporated into a contract. (1.2, 1.3)

2b. How do the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulations 1999 ensure that exclusion clauses are fair and reasonable? (1.2)

2c. Will Sonsung be able to rely on this exclusion clause? (1.2, 2.2 2.3)

Task 3 – Learning Outcome 3

Understand principles of liability in negligence in business activities

3a. For a successful claim in negligence, a claimant must prove

 A duty of care exists

 The duty of care was breached

 The damage is both direct and foreseeable

Explain and illustrate what is required in establishing each of these requirements and outline the general defences to a claim in negligence. (3.2)

3b. What is meant by the term vicarious liability? Explain the rules that the courts will apply in deciding if the blame for a negligent act can be shifted from the employee to the employer. (3.3)

3c. In what ways is the legal relationship between the parties in tort different to the relationship in contract law? (3.1)

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Task 4 – Learning Outcome 4

Be able to apply the principles of liability in negligence in business situations

Perry has just started work as an apprentice for Brooster’s Builders. He asks Bert for a hard hat and also complains to him that Jakob and Tom keep playing jokes on him by removing safety clips on platforms where he is working. Bert tells Perry to grow up and stop moaning. One day a workmate loosens the safety clip on Perry‟s scaffolding and Perry falls off breaking both legs and suffering a blow to the head.

Apply the rules on both negligence and vicarious liability to consider whether Perry would be able to claim for the injury and damage he has suffered and against whom. (4.1, 4.2, 3.2, 3.3)