Criteriareference

LO

Toachievethecriteriatheevidencemustshowthatthestudentisableto:

1.1

Identifythe essentialelementsrequiredfortheformation of avalidcontractanddefineeach and whetheracontractwascreated

1.2

Discusstheimpactof differenttypes ofcontract.

1.3

Identifyand illustratethepossible terms ofthecontractsidentifiedwithreferencetotheirmeaningandeffect

2.1

Applythe elementsofcontractin givenbusinessscenariosand show how thecontractif anywasformed

2.2

Applythelaw onterms ofdifferent contracts

2.3

Evaluatetheeffectofdifferentterms in givencontractsandsuggestalternatives totheparties

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Scenario1

Al operatesasmall businessmanufacturingspecialist enginefilters.In January, he placedanadvertisement in acar trade magazine,‘TriniTuners , statingthat hewouldsupplyfilters for $60perfilter, but would considera reduction in theprice for substantial orders.HereceivedaletterfromToyota TrinidadLtd. requestinghis terms ofsupplyfor 1000filters.

Al replied, offeringthe supplyat acost of $50 each. Toyota TrinidadLtd.responded to Al’sletterstatingthat theyaccepted his offer but that theywould payonly$45.00 perfilter. Al wroteback to ToyotaTrinidadLtd statingthat hewouldsupplythe filters but onlyat theoriginal priceof$50. When Al’s letterarrived, thepurchasingdirector ofToyotaTrinidadLtd. did not noticethe alteration ofthe priceand ordered the 1000 filtersfromAl, whichwas supplied.

Scenario 2

In January2013,Addyentered into a contractualagreement with BigBLtd to write astudymanual for an international managementbody. The manualwas to cover the periodfromSeptember2013 till 2015, and it was a term ofthecontractthat thetext be suppliedbyJune2013so that it could beprinted in time for September.

By30 May,Addyhad notyetstarted on the text and, indeed, he hadwritten to Big Bstatingthathe was too busyto writethe text. BigB was extremelyperturbedbythe news, especiallyas ithadacquired the contractto supplyall of themanagementbody’s studymanuals and had alreadyincurredextensive preliminaryexpense in relationto the publication ofthe newmanual.

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AdviseBig B as to whetherhe cantake any action against Addy.

Task 1: Scenario 1

Students arerequired topresent anessay:

· Explainingthe importance of theessentialelements required for theformation ofa validcontract and indicate whetheracontractwas made between the parties onanapplicationoftheseprinciples.(LO 1.1)

· Discussingthe impactof differenttypesofcontract and their possible usein thescenario.(LO 1.2)

· Identifyandanalysethepossible terms in the contracts with reference to their meaningandeffect.(LO 1.3)

Task 2:Scenario 2

ASSIGNMENT 1

Each student will be required to take the role of a legal advisor.

Advise Big B as his legal advisor as to the options that are available to him against Addy and how he may specifically recover the time and energy he has lost on the contract between them.

You will be required to provide Big B with answers to his question, supporting them with relevant principles and case law. (LO 2.1, 2.2 & 2.3)

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