London School of Science & Technology

Aspects of Contract and Negligence - Resit

Qualification

Unit number - title -level

BTEC Level 5 HND Diploma in Business

Unit 5: Aspects of Contract and Negligence for

Business
Level 4

Student name

Assessor name
John Owen

Date issued
1st August 2014
Assignment title

Completion date
5th September 2014 before 12.00
midday
Aspects of Contract and Negligence

In this assessment you will

Task
AC have the opportunity to
no.
present evidence that shows
Explain the importance of the
essential
1.1
elements required for the
Understand the
formation of a valid contract
essential elements
Discuss the impact of different
1
of a valid contract
1.2 types of
in a business
contract
context
Analyse terms in contracts with
1.3 reference to their meaning and
effect
Apply the elements of contract in
Be able to apply
2.1 given
business scenarios
the elements of a
Apply the law on terms in different
2
contract in
2.2
contracts
business
Evaluate the effect of different
situations
2.3
terms in given contracts
Contrast liability in tort with
3.1
contractual liability
Understand
Explain the nature of liability in
principles of
3.2
negligence
3
liability in
Explain
how
a
business
can
be
negligence in
business activities 3.3 vicariously
liable

Learning Learning
Outcome Outcome

LO1

LO2

LO3

Submitted on

BTEC Level 4 HND in Business Unit 5: Aspects of Contract and Negligence Resit Summer 2014

Evidence
(Page no)

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Be able to apply
the principles of
LO4
liability in
negligence in
business
situations
Instructions

Apply the elements of the tort of

4.1 negligence and defences in
different business situations
Apply the elements of vicarious
4.2 liability in given business
situations.

An electronic copy of your assessment must be fully uploaded by the deadline date
and time.
You must submit one single PDF or MS Office Word document. Any relevant images
or screenshots must be included within the same MS Office Word or PDF document.
The last version you upload will be the one that is marked. Your paper will be marked
if you have indicated this as your final submission.
Review the mitigating circumstances policy for information relating to extensions.
The file size must not exceed 20MB.
Answer the criteria in order, clearly indicating the pass criteria number.
Ensure that all work has been proof-read and checked prior to submission.
Ensure that the layout of your documents are in a professional format with font style
Arial, font size 12 for the text, font 14 for sub heading and font 16 for main heading,
line spacing 1.5 and justified.
Use the Harvard referencing system; otherwise it will be considered as plagiarised
work.
Ensure that you back-up your work regularly and apply version control to your
documents.
Ensure that any file you upload is virus-free, not corrupted and not protected by a
password otherwise it will be treated as a non-submission.
You must NOT submit a paper copy or email of this assessment to any member of
staff at LSST.
Your work must be original with the appropriate referencing.

Learner declaration
I certify that the work submitted for this assignment is my own and research sources are
fully acknowledged.
Student signature:

Date:

BTEC Level 4 HND in Business Unit 5: Aspects of Contract and Negligence Resit Summer 2014

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Assignment Brief - Resit

Unit number title
level

Unit 5: Aspects of Contract and Negligence Level 4

Qualification

BTEC Level 5 HND Diploma in Business

Start date

1st August 2014

Deadline/hand-in

5th September 2014

Assessor

John Owen

Assignment title

Aspects of Contract and Negligence

Purpose of this assignment

The unit introduces the law of contract, with a particular emphasis on the formation
and operation of business contracts. Learners are encouraged to explore the content of
these agreements and then develop skills relating to the practical application of
business contracts, including offer, acceptance, intention, consideration and capacity.
Relevant case law examples will be covered. Learners will consider when liability in
contract arises, the nature of the obligations on both sides of the contract, and the
availability of remedies when a contract is not fulfilled in accordance with its terms.
Additionally, the unit will enable learners to understand how the law of tort differs from
the law of contract and examine issues of liability in negligence relating to business
and how to avoid it. This assignment cover all aspects of this unit.
Scenario

Various scenarios are to be found throughout this paper.

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Task 1
This task offers you an opportunity to achieve L.O. 1: 1.1, 1.2 and1.3
Discuss and explain the importance of the four main elements that are
required for the formation of a valid contract in the UK. Include an
explanation of what is meant by an invitation to treat.
Question
1.1

Question
1.2

Guidelines
In order to complete the above task, your answer should:
Identify and explain the four elements of a valid contract; that is offer,
acceptance, consideration and intention.
Ensure that you explain fully each of the four elements.
Explain the concept of an invitation to treat.

Describe the various types of contract listed below and also discuss their
impact:
a. Verbal,
b. Written
c. On-line
d. Inferred.
Also, give an example of each type of contract.
Guidelines
In order to complete the above task, your answer should:
Provide definitions and descriptions including examples of Verbal, Written, Online and Inferred contracts.

Question
1.3

Explain why terms of a contract are categorised into conditions and

warranties and discuss the possible remedies available if a term is
breached. Use case law to illustrate your answer.
Guidelines
In order to complete the above task, your answer should:
Explain the difference between conditions and warranties and how this affects
the outcome of an action for breach of term.

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Task 2
This task offers you an opportunity to achieve LO 2: 2.1, 2.2 and 2.3
Palm Tree Ltd is an UK business based in Mid Glamorgan which runs
restaurants, bistros and cafes throughout the British Isles.
The Big Fry Ltd is a producer and supplier of kitchen equipment based in
London.
On 1st January 2010, The Big Fry Ltd sent a flyer to Palm Tree Ltd which
read;
Can offer Specialised Fat Free Fryers for 200 each.
On 1st February 2010 Palm Tree Ltd responded by letter saying
We will buy twenty fryers provided they are delivered within the next
month.
Question
2.1

When the Big Fry Ltd received the letter, it e-mailed Palm Tree Ltd
stating,
We acknowledge receipt of your letter, which is now receiving
attention.
Before the month was up, The Big Fry Ltd prepared and packed twenty
Specialised Fat Free Fryers into its delivery truck for Palm Tree Ltd.
However, prior to the delivery truck leaving the depot, Palm Tree Ltd
phoned The Big Fry Ltd to say that it was no longer interested in
purchasing the Specialised Fat Free Fryers.
Discuss whether a contract exists between Palm Tree Ltd and The Big
Fry.
Guidelines:
In order to complete the above task, your answer should:
Discuss whether the four elements required for the formation of a contract are
present in the situation above, these elements are offer, acceptance,
consideration and intention to create a legal relationship.

Question
2.2

Exclusion or exemption clauses are always valid regardless of when

introduced into a contract. You must discuss this statement using case
law to explain your answer.
Guidelines:
In order to complete the above task, your answer should:
Explain when exclusion clauses are deemed to be valid and not to be

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Question
2.3

valid.
Use case law to support your answer

Explain the difference between implied and express terms of a

contract, and also discuss how the courts include implied terms into
any contract.
Guidelines:

In order to complete the above task, your answer should:

Explain the difference between implied and express terms of a contract
Discuss the different types of implied terms (by statute, by custom and by
court) and explain the rationale for their inclusion in a contract.

Task 3
This task offers you an opportunity to achieve LO3: 3.1, 3.2 and 3.3

Question
3.1

Explain the difference between how an individual incurs liability in

contract law and how an individual incurs liability under the law of
negligence.
Guidelines
In order to complete the above task, your answer should:
Compare liability in negligence with liability in a contract for example is the
liability entered into voluntary or is it imposed.

Question
3.2

Explain the importance of Donoghue v Stevenson 1938 in the

development of the concept of duty of care and the neighbour
principle in the Law of Negligence.
Guidelines
In order to complete the above task, your answer should:
Discuss Donoghue v Stevenson 1938 and how this led to the development of
a duty of care
Explain what is meant by the neighbour principle

Explain what is meant by vicarious liability and give examples of when

an employer would be held responsible for the actions of an employee.
Question
3.3

Guidelines
In order to complete the above task, your answer should:
Give definition and explanation of vicarious liability.
Provide examples to illustrate when a business is deemed to be vicariously
liable.

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Task 4
This task offers you an opportunity to achieve LO 4: 4.1 and 4.2
a. As the result of the negligence of a taxi driver, a taxi cab and has
over turned on an A-Road outside of London. Mr Smith who lived
nearby heard the accident and went to see if he could be of
assistance. Mr Smith spent the next 10 hours helping the
emergency services at the site. The rescue services said that the
help from Mr Smith and others had been invaluable. However as a
result of his involvement Mr Smiths suffered nervous shock.
Would Mr Smith be successful if he sued the taxi company for
nervous shock?
Question
4.1

b. Paul is learning to fly a helicopter. . One day whilst flying, Paul has
an accident and crashes the helicopter into a tree despite his best
efforts to avoid the accident. The passenger in the helicopter is
badly hurt and injured.
Provide your opinion as to whether the usual standard of care is
required from Paul or not?
Guidelines
In order to complete the above task, your answer should:
In a, explain whether Mr Smith in the given circumstances can claim for
nervous shock.
In b, explain whether Paul had a defence as he was only a learner.

Question
4.2

a) Linda Williams owns a car which is used by her bakery business

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and which is also used by her husband, Mr. Williams. Linda

Williams was given to understand that, should her husband, Mr
Williams, be unfit to drive through drink, then he would get a
friend (Alexander) to drive the car. On one occasion, some friends
were being driven in the car; it was negligently driven by
Alexander and the passengers in the car were injured.
Can Linda Williams be held vicariously liable for the action of
Alexander?
b) Alan, a local milkman engaged a 13 year old boy to help him
deliver milk. This was contrary to the express prohibition from his
employers, Norfolk Farms. Alan had told the teenager that he was
not supposed to hire him but they could keep it between
themselves. As a result of Alans negligent driving the boy was
injured.
Can Alan be sued for negligence and can Norfolk Farms be held
vicariously liable in this situation?
Guidelines
In order to complete the above task, your answer should
In a) explain whether Linda Williams can be held responsible for the wrong
committed by Alexander.
In b) explain whether Alan can be sued for negligence and whether Norfolk
Farms can be held vicariously liable or not.

Answer Sheet

Task 1 (LO 1: 1.1, 1.2 and 1.3)

Please type your answer here

Task 2(LO 2: 2.1, 2.2 and 2.3)

Please type your answer here

Task 3 (LO 3: 3.1 3.2 and 3.3)

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Please type your answer here

Task 4 (LO 4: 4.1 and 4.2)

Please type your answer here

IMPORTANT
CHECK THAT YOUR ANSWERS MEET THE CRITERIA
COMPLETE THE ASSIGNMENT CRITERIA AS YOU
GO ALONG

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