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

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

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

4. 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

5. 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

6. 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;

7. 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

8. DURESS AND UNDUE INFLUENCE
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

9. 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

10. 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?

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

12. 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

13. 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)

14. 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)

15. Recap Activity

16. 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