Unit 3.28 Contract Law Level 3

15 Credits

Related Qualifications: Unit 3.28 Contract Law Level 3

ATHE Level 3 Diploma in Law (QCF)

You have just finished your course and have been working in a small family run business for 6 months on a temporary basis. You love your work – but you can see that the family has no idea about their legal obligations! They do not appear to understand contract law and you decide to produce some information for them.

You intend to collate your information as a formal report and give it to key members of staff so that it will impress your managers and hopefully lead to a permanent job for you.

Section 1 –The principles of contract law and the key elements of a binding contract

You must start with the basics. In the first part of your report you should:

• Inform them about contract law. Outline the key principles, the requirements of a contract and the moral, social, political and commercial factors that affect contract law. Use cases to exemplify your work.
• describe the different classifications of a contract
• make sure the key people understand the key elements of a binding contract by distinguishing between ‘an offer’ and an ‘invitation to treat’
• explain the issues regarding ‘the postal rule’
• explain ‘consideration’, the rules of consideration and ’the test of enforceability’

Extension activities: Unit 3.28 Contract Law Level 3

To gain a merit grade you must also:

• explain the methods of ‘acceptance’ and when they will be effective. You must provide examples to illustrate your answer.

To gain a distinction grade you must also:

• analyse key theories of contract law
• analyse the issues organisations must take into account when using instantaneous methods of communication in respect of contracts

LO1 AC 1.1, 1.2

LO2 AC 2.1, 2.2, 2.3

Section 2 –Contractual terms and exclusion clauses

There are some staff in the company who need more detailed information on contractual terms and exclusion clauses. So to help them your report must include a section in which you:

• analyse the difference between a condition and a warranty, using cases to exemplify the analysis
• explain how terms are ‘implied’ within contracts
• explain the importance and methods of incorporation
• assess the importance of ‘construction’ for interpretation of the contract.

To gain a merit grade you must also:

• distinguish between a term and a representation LO3 AC 3.1, 3.2, 3.3, 3.4

Section 3 – Further legal issues: Unit 3.28 Contract Law Level 3

To bring this organisation completely up-to-speed, you really want them to understand the legal issues of misrepresentation and mistake, ‘Frustration’, duress and undue influence and damages.

So you add a further section to the report in which you:

• distinguish a ‘term of a contract’ from a misrepresentation
• differentiate between the different types of misrepresentation
• explain the categories of ‘mistake’ (common, mutual and unilateral), and their impacts on contract
• summarise the different ways in which a contract can be frustrated, providing examples of each
• explain the concept of ‘duress’ and ‘undue influence’
• explain the concept of ‘the remoteness and measurement of damages’.

Extension activities:

To gain a merit grade you must also:

• explain what is meant by an actionable misrepresentation
• explain the impact of ‘mistake’ (common, mutual and unilateral) on contract

To gain a distinction grade you must also:

• analyse the remedies for misrepresentation
• analyse the impact ‘duress’ and ‘undue influence’ can have on the contract, using examples to exemplify the analysis
• explain the impact of ‘the remoteness and measurement of damages’, using examples to exemplify the explanation

LO4 AC 4.1, 4.2, 4.3