BANKING ACADEMY, HANOI

BTEC HND IN BUSINESS (FINANCE)

ASSIGNMENT COVER SHEET
NAME OF STUDENT REGISTRATION NO. UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE

Unit 5: Common Law 1 Business Contract 1 of 2 Ms. Doti Chee 19th April 2011

I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment.

________________________________ Signature

_________________________ Date

---------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE (Course Administrator) Assignment Received By: Date:

Unit Outcomes
Outcome Evidence for the criteria Feedback Assessors decision Internal Verification

Explain the different types of business agreement and the importance of the key elements required for the formation of a valid contract

Understand the essential elements of a valid and legally binding contract and its role in a business context (1)

Apply the rules of offer and acceptance in a given scenario, also considering any impact of new technology

Assess the importance of the rules of intention and consideration of the parties to the agreement Explain the importance of the contracting parties having the appropriate legal capacity to enter into a binding agreement Analyse specific contract terms with reference to their importance and impact if these terms are broken

Explore the significance of specific terms in a business contract (2)

Apply and analyse the law on standard form contracts

Discuss the effect of exemption clauses in attempting to exclude contractual liability

Merit grades awarded Distinction grades awarded

M1 D1

M2 D2

M3 D3

Outcome

Evidence for the criteria

Feedback

Assessors decision

Internal Verification

Comments by Assessor - Common Skills

A B C D E F G

Assignment
( ) Well-structured; Reference is done properly / should be done (if any) Overall, youve

Areas for improvement:

ASSESSOR SIGNATURE NAME: ..........................................................................................

DATE

(Oral feedback was also provided) STUDENT SIGNATURE NAME : .............................................................................

FOR INTERNAL USE ONLY VERIFIED YES NO DATE : ...........................................................................

DATE

VERIFIED BY : ........................................................................... NAME : ...........................................................................

COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X)

A. MANAGING & DEVELOPING SELF
1. Managing own roles & responsibilities 2. Manage own time in achieving objectives 3. Undertakes personal and career development 4. Transfer skills gained to new/changing situations & contexts

D. MANAGING TASKS & SOLVING PROBLEMS

12. Use information sources 13. Deal with a combination of routine & non-routine tasks 14. Identify & solve routine & non-routine problems

B. WORKING WITH & RELATING TO OTHERS

5. Treat others beliefs and opinions with respect 6. Relate & interact effectively with individuals & groups 7. Work effectively as a team member

E. APPLYING NUMERACY
15. Applying numerical skills and techniques

F. APPLYING TECHNOLOGY
16. Use a range of technological equipment and systems

C. COMMUNICATING
8. Receive and respond to a variety of information 9. Present information in a variety of visual forms 10. Communicate in writing 11. Participate in oral & no-verbal communication

G. APPLYING DESIGN AND CREATIVITY

17. Applying a range of skills and techniques to develop a variety of ideas in the creation of new / modified products, services or situations 18. Use a range of thought processes

SCENARIO You are employed as a legal executive in a firm of solicitors. A client (Mr. Winslow) has come and seeking advice on several claims and legal issues, which have recently arisen. You are required to write a legal report for the following claims: 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) Claim 1 M5, a Singapore listed company selling handphones and accessories in Hanoi, had established its own website to offer for sale various products over the Internet. One of the products offered was Apple iphone 4, 16gb international model, which normally retailed at $1,180. However, due to an error committed by an employee of M5, the price of the handphone was altered to $588 on the website. Winslow was the owner of a shop that sold handphones, including a few sets of the said Apple iphones. He came to know of the handphones extraordinarily low price offered by M5 and placed orders through the Internet for 1,000 sets of the handphone. The transaction online took place in the following manner: every time an order was placed by a buyer after filling up the requisite form, which included the furnishing of a valid credit card account, it would be followed by an automated reply from M5 that the transaction was successful. Charlene, a university student, had always wanted to buy herself a handphone. She saw M5s website and thought that the price of $588 was very reasonable. She also placed an order for one set of the handphone through the same manner as described above. M5 subsequently discovered the error and refused to honour the orders. 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) Hints: Explain whether the mode of the online transaction described in the case constitutes a valid contract between the parties; State whether M5 can successfully defend its case against: (i) Winslow; (ii) Charlene; Suggest a way by which M5 can structure the mode of its online transaction to prevent a similar incident from happening again in the future. Claim 2 Mr. Winslow bought a freehold house under his name with considerable sum on mortgage with a bank. Unfortunately in early 2007, Mr. Winslow formed an attachment for another woman. He said to Mrs. Winslow that he would make her a monthly payment of 200 and she would have to make the 500 outstanding to the bank. Before leaving, he wrote these words on a piece of paper.

In consideration of the fact that you will pay all charges in connection with the house at 34 Low Road, Sunderland, until such time as the mortgage repayment has been completed, when the mortgage has been completed I will agree to transfer the property in to your sole ownership. Signed. Winslow 1st Nov 2008 Mrs. Winslow did, in fact, over the ensuing months pay off the balance of the mortgage. When the mortgage had been paid off, Mr. Winslow refused to transfer the house into her sole ownership. To keep up her monthly payment to the bank, Mrs. Winslow rented out a room to Coco. Coco has agreed to a rent of 150 per calendar month. After moving into the room, she installed new air con and changed the wardrobe at a cost of 2000. Mrs. Winslow was so pleased with the work that had been carried out that she promised to reduce her rent by 50 per month. Mrs. Winslow is now refusing to reduce the rent; in fact it is seeking to increase it to 200 per month. Advise Coco.

Assess the importance of the rules of intention and consideration of the parties to the agreement (1 c)

Claim 3 Benny is 17 years old (son of Mr. Winslow) and entered the William Hill Betting PLC and placed a bet on the 6.30 pm race at Newbury Race Course. While he was waiting for the race to finish, he read in the paper that Angel Biotechnology Holdings was doing well so he contacted a stockbroker and purchased 10,000 shares in that company. Later, and before the race had finished, he agreed to sell a faked gold chain to Thomas. The horse won the race, the stock which he purchased increased in value and he made a good profit on the gold chain. He asked each party for his money and none of them were prepared to pay him. Advise Benny and Winslow. Explain the importance of the contracting parties having the appropriate legal capacity to enter into a binding agreement (1 d)

Claim 4 Winslow, an owner of few restaurants usually contracts Cindy to decorate his restaurants. He contracted Cindy to complete the decked area outside the front of one of his restaurants. Upon satisfactory completion, Winslow was to pay Cindy 1000. The agreement contained the following provisions: 1. It is agreed between the parties that in return for executing this agreement, Winslow will not use the service of another contractor for all his restaurants for year 2009. 2. It is agreed that no undertaking as to quality of the materials used for the deck and good workmanship is given by Cindy and no compensation shall be payable in respect of the quality and workmanship.
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Winslow was however unhappy with Cindys workmanship and decided to terminate the contract early. He then contracted with Jonathan to fix and finish the decking. Analyse specific contract terms with reference to their importance and impact if these terms are broken (2 a)

Apply and analyse the law on standard form contracts

(2 b)

Claim 5 Winslow usually takes his car to be serviced by Oldport Garage and is aware that they always get him to sign a form which states that they are not to be held responsible for any damage caused to the vehicle consequent upon the service. However, a new garage, Newport Service, has just started business and, as it is much cheaper than Oldport Garage, Winslow decides to have his car serviced there. As he drives the car into the Newport Service, he notices a sign which proclaims in large letters: THESE PREMISES ARE DANGEROUS. Clients enter these premises at their own risk and Newport Service accepts no responsibility for any damage or injury sustained. After Winslows car had been serviced he was driving home when it broke down. The failure and subsequent major damage was later diagnosed as being caused by the fact that the Newport Service mechanic had failed to replace the timing belt in the engine as required in the service. On returning to Newport Service, the manager drew Winslows attention to the terms of dealing stated on a large notice prominently displayed in the foyer of the reception area, stating: Newport Service can accept no responsibility for any damage caused as a consequence of repairs carried out on these premises. The manager also drew Winslows attention to the fact that the same condition was contained on the back of the receipt that Winslow had signed without reading. On leaving the managers office, Winslow was severely injured by one of the Newport Service employees negligently reversing a car into him. Discuss the effect of exemption clauses in attempting to exclude contractual liability (2 c)

GRADING Pass is achieved by meeting all the requirements defined in the assessment criteria.

Merit

Identify and apply strategies to find appropriate solutions

(M1)

Characteristics / Possible Evidence Identify different elements of valid and binding contract; apply the rules and assess the importance of the rules legally binding contract in the given situation. Select and apply appropriate techniques (M2)

Characteristics / Possible Evidence Select and apply appropriate legal rules using of various case examples related to offer and acceptance, consideration, capacity, specific contact terms for the given claims. Present and communicate appropriate findings (M3)

Characteristics / Possible Evidence An appropriate structure and approach has been used to prepare legal report and advises for the client. Present data using a range of case examples to support your explanation. Distinction Use critical reflection to evaluate own work and justify valid conclusions (D1) Characteristics / Possible Evidence creation has been used to generate and justify valid comments on related to essential elements of a valid contract and specific terms in a business contract. Take responsibility for managing and organizing activities (D2)

Characteristics / Possible Evidence independence demonstrated and substantial investigation have been planned and organized related to specific contract terms and also exemption clauses. Common Skills Grading To achieve a PASS, students answers should display receive and respond to a variety of information, legible and neat written of work, different sources of information used widely and use technological equipment to aid problem solving. To achieve a MERIT, students answers should display clear and appropriate respond to variety of information, legible, clear and neat written of work, clear variety of information sources used and confident in using equipment and gained knowledge from use of equipment. To achieve a DISTINCTION, students answers should display clear understanding, further research undertaken; work is well structured with evidence of planning, wide range of information sources used and willingness to use a variety of equipment to find best solution.

PRESENTATION
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1. The assignment should have a cover page that includes the assignment title, assignment number, course title, module title, Lecturer/tutor name and students name. Attach all the pages of assignment brief/cover sheet with your report and leave them blank for official use. 2. Ensure that authenticity declaration has been signed. 3. This is an individual assignment. 4. Content sheet with a list of all headings and page numbers. 5. A fully typed up professionally presented report document. Use 12 point Arial or Times New Roman script. 6. Your assignment should be word-processed and should not exceed from 2,500 to 3,000 words in length. 7. Use the Harvard referencing system. 8. Exhibits/appendices are outside this limit. 9. The assignment should be not contain a bibliography but should contain a list of any references used in the assignment. NOTES TO STUDENTS FOR SUMMISSION Check carefully the submission date and the instructions given with the assignment. Late assignments will not be accepted. Ensure that you give yourself enough time to complete the assignment by the due date. Do not leave things such as printing to the last minute excuses of this nature will not be accepted for failure to hand-in the work on time. You must take responsibility for managing your own time effectively. If you are unable to hand in your assignment on time and have valid reasons such as illness, you may apply (in writing) for an extension. Failure to achieve a PASS grade will results in a REFERRAL grade being given. Take great care that if you use other peoples work or ideas in your assignment, you properly reference them in your text and any bibliography. NOTE: If you are caught plagiarizing, you could have your grade reduced to zero, or at worst, you could be excluded from the course.