Common Law

This paper has given a clear understanding to the essential elements of a valid and legally binding contract and its role in a business context which include: explain the different types of business agreement, apply the rules of offer and acceptance in the case, access the importance of the rules of intention, explain the importance of the contracting parties.

Besides also explore the significance of specific terms in a business contract which refers to analyse specific contract terms, apply and analyse the law on standard form contracts as well as discuss the effect of exemption clauses in attempting to exclude contractual liability.

Content List page

1. Content list………………………………………………………………………………5

2. Explain the different types of business agreement and the importance of the key elements required for the formation of a valid contract. (1 a)…………………………...7

3. You are required to analyse the scenario from the perspective of the law of contract. Apply the rules of offer and acceptance in a given scenario, also considering any impact of new technology. (1 b)…………………………………………………………….……8

4. Assess the importance of the rules of intention and consideration of the parties to the agreement. (1 c)…………………………………………………………………………10

5. Explain the importance of the contracting parties having the appropriate legal capacity to enter into a binding agreement. (1 d)……………………………………………………11

6. Analyse specific contract terms with reference to their importance and impact if these terms are broken. (2 a)………………………………………………………………..…13

7. Apply and analyse the law on standard form contracts. (2 b)…………………………..14

8. Discuss the effect of exemption clauses in attempting to exclude contractual liability. ( 2 c)……………………………………………………………………………………..15

9. Reference List………………………………………………………………………...…16

Tasks

? Explain the different types of business agreement and the importance of the key elements required for the formation of a valid contract. (1 a)

i. Different types of business agreement:

a) Employment contract-An employment contract is an agreement to the terms and conditions of employment, agreed by both the employer and employee. Terms usually include salary and working hours.

b) Contract of sales-This is a formal contract by which a seller agrees to sell and a buyer agrees to buy, under certain terms and conditions spelled out in writing in the document signed by both parties.[1]

c) Franchise agreement-A franchise agreement is a contract that is between a franchisor and a franchisee. This contract states what is and will be expected from both of the parties, including the support services provided by the franchisor and obligation of the franchisee. [2]

d) Rental agreement- A rental agreement is a contract, usually in writing, between the owner of a property and a renter who desires to have temporary possession of the property. [3] As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term.

e) Sub-contracting-The Sub-contracting Agreement is the legal instrument by which a person called the "entrepreneur", hires another person, referred to as "sub-contractor" to perform part of the work related to its field of expertise, in consideration of the payment of a specified or determinable amount. [4]

ii. The key elements required for the formation of a valid contract:

a) Agreement- The first vital feature of a contract is that the parties have made an agreement. This is based on the rules of offer and acceptance.

b) Consideration- The second vital element is that the agreement, or the obligations assumed by each party, must be supported by consideration from the other parties.

c) Intention