Ahmad Tabraze: Contract and Business Law Level 3 Assignment

This assignment, completed by Ahmad Tabraze, delves into the core principles of contract and business law at Level 3. It begins by identifying the legal criteria for a valid contract, emphasizing the essential elements of offer and acceptance, and distinguishing between different types of contracts, including verbal and written agreements. The assignment then explores the law surrounding contract formation in a given scenario, specifically addressing a situation involving a returned bike and a disputed reward, highlighting the importance of clear contract terms. Furthermore, it examines the concept of misrepresentation, differentiating between fraudulent, negligent, and innocent misrepresentation, and discusses potential remedies. The assignment also defines the meaning of terms in a standard form contract, including both expressed and implied terms, conditions, and warranties. Finally, it explains the effect of terms in contract law, classifying terms as either implied or express, and emphasizing the significance of conditions versus warranties in determining the enforceability of contractual obligations. The document provides a comprehensive overview of key contract law principles.

Aspects of contract and Business law
Level 3
Ahmad Tabraze

Task 1
P1. Identify the legal criteria for offer and acceptance in a valid contract?
A written or expressed agreement between two or more parties for providing a product or
service is known as valid contract.it must consist. A legal contract includes offer, consideration,
intention, capacity and acceptance. For an enforceable contract the starting point is offer and
its acceptance. There are different types of contracts some are verbal, and some are written.
Verbal contracts are done between friends and well-known persons by discussing the terms
verbally. On the other hand, written are usually used for business purpose and consist detailed
written terms and conditions of the contract. The benefits of using standard form written
contract are that its cheap, avoid negotiation, had no chance of dispute and provable in court.
A legal contract must have four of its essential elements. Firstly, a contract must have clear and
obvious offer to do something. A contract must have starting and expiry date that a contract is
not validated after that date also a contract must be specific in its terms and conditions. Lastly
in a contract it is required that a contract must have a legally binding agreement between both
of the parties, that this agreement can be altered, or enforced by law. It’s illegal to make a
contract with minor, both of the parties must have at least 18 year of age.
Offer
An offer is a proposal that is intended to be followed, an offer is considered as the starting point
of contract. The offer is a promise that this shall be enforced by law on the acceptance of offer
by recover. When offer is made both of the parties must be aware of the offer, either verbally
or written. The offer must be valid and clear and doesn’t have any ambiguity in it.
Acceptance
A valid contract should have a suggestion that ought to be
accepted, though after we verify acceptance there are many factors that to
be thought-about. The helper should be notified on the acceptance
of provide. The acceptance should be within the kind
of specifications give within time, though if no kind is mentioned then written
or oral acceptance can do. If the tactic of acceptance satisfies
the provide and helper isn't prejudiced, then it doesn’t matter
that it's accepted within the needed kind or not. The acceptance should be
unconditional, absolute and unqualified. a
good acceptance should be properly self-addressed, sealed evolved
is denote within the letterbox. During this case if letter gets delayed
or ne'er reach the destination then the provide acceptance continues to
be thought-about valid on the availability of faculty member of postage.

Consideration
Consideration is given by both contracting parties that persuade them towards reaching an
agreement in exchange of mutual performance. Each party must give up something of value to
it, thing doesn’t need to be expensive it must be thing of value to the party. Consideration is an
important element in contract because it may consist of promises of doing something or refrain
on an undesired act. Consideration can be in two forms; executed consideration and executory
consideration. Executed consideration is an act in exchange of promise, such as reward case
where a person promises of payment on the completion of work. On the other hand, in
executory consideration both party’s exchanges promise on doing things in future. A contract
will not be valid if it has an illegal consideration.
P2. Explain the law in relation to the formation of a contract in a given situation.
In this assignment, I will be explaining contract formation law within the given situation. The
contract I will be using is between Micheal who is returning the bike and asking for reward and
June who refuses to pay the reward amount. It is legally required to have clear terms of
contract because its essential for any of the contract. The benefit of having clear terms is that
both of the parties have full knowledge of the contract and its conditions. To have the clear
terms the wording should be specific and have no misunderstanding language. This will help in
the reduction of breach of contract and issues that could happen by misunderstanding in
contract by ether party.
In the given situation the Micheal shouldn’t return the bike to June without being rewarded as
she clearly breaches the contract. The Micheal must sue her on that breach as the
advertisement doesn’t states any of withdrawing date of the offer.

P3. Describe the law with respect to misrepresentation in a given situation
The contract can be invalidated by the number of factors. At the time of contract there are
series of negotiations that are done by the both parties. These negotiations are series of
representations that are farming the contract itself. If that negotiations are misrepresentations,
then the contract between parties is in doubt. The actin of giving a false or misleading account
of the nature of something is known as misrepresentation. In contractual law it is taken as
dishonest statement by any of parties. This has effect on accepting party.
Fraudulent misrepresentation
One is automatically liable for fraud if that person intestinally makes a false statement. When
one party provides false knowledge to mislead other party then it is known as fraudulent
misrepresentation. If offeror makes very misleading and unclear statement with little
knowledge about it then it is also taken as fraud. In this case the other party can reject the offer
and take him to be prosecuted in the criminal courts. A remedy for damaged is allowed on the
action of fraudulent misrepresentation.
Negligent misrepresentation
If one party made the written statement without validating that the statement is true of not is
known as negligent misrepresentation. To solve this type of misrepresentation is might be to
put both parties in that position that as if that thing is never happened. For example, a mobile
store is offering the delivery in 5 working days and gave it in written, but the delivery is
happened after 5 days then this thing doesn’t bother at all and looked as it never happened.
Innocent misrepresentation
This is happened when an unintentionally false statement is given by any of the party and other
party believes that the statement is true. The false statement has no grounds to be valid. It is a
simple misunderstanding which can be canceled easily. For example, if a sales man reads
unintentionally a term or condition wrong and that would provide wrong information.
In court, it is established that what type of misrepresentation is happened and then according
to that they deal with its remedies. The remedies vary type to type, one of the is damages, in
this the financial compensation is paid by the misrepresentation party to the victim. The other
type is rescission and in it the court completely unvalidated the contract and scraped it.
P4. Describe the meaning of terms in a standard form contract
A standard contract is defined to be an agreement made between two corresponding parties
with regards to a business transaction. There terms of the contract often contain details
regarding the custom made offers as well as the accepted agreement that is assisted with the
fulfilment of the businesses needs. When the contract is made with members of the public it is
essential that the terms from both parties be set out in the contract clearly and coherently.

Furthermore, the rights of party are something that tells that what each party is entitled to. If
there is any dispute on quality of work or compensation that is involved, then the contract may
specify the third party that can settle that dispute. Sometimes it could discuss in party rights
that they must sue in case of contract breach.
In a contract there are various types of terms, and these terms are part of the agreed contract.
The terms of contract are those statements that bound the parties to perform under the
agreement. The negotiation statements of parties that are not part off the contract are known
as the representations. There are two type of terms in contracts; expressed terms and implied
terms.
The terms which are made in writing or in words by parties are known as expressed terms. The
parties that are stating these terms are intended to create the fundamental part of the
agreement. The express terms can either be in the form of conditions or warranties. In an
agreement conditions are the fundamental part and sometimes form the roots of contract. If
any of party breaches the conditions, then other party is entitled to repudiate and can claim the
damages for that breach. If we look at warranties, then its less important than conditions and
did not form the root of the contract. If either party breaches the warranties, then the other
party has right to claim the damages but contract itself can’t be rejected.
There are some common key terms in the contract with warranties and conditions. These may
include; price variation clause that allows both parties to vary the contract price. Another
common key term could be the compensation of certain damages on any of mishap. There is
also an exclusion clause which limits the responsibilities of parties under contract breach.
Implied terms are not included but they are introduced into the contract by common law,
custom and statute. Through statute these terms are introduced and implied to protect the
parties. Every contract must have to include these implied terms.
Customary terms are those that are not specified by the parties, agreements could be subject
to them. The customary terms could be historical which may be found out by the any one in
relatable historical terms that ever exist if there is any then it is noted. These are the custom
implied terms.
Furthermore, in court the terms implied with common low happen. To validate the obvious
intentions of the parties the courts implie a term in contract. This point was unclear, that could
mean that in some certain circumstances such a term is implied in the court in business fairness
interest to make sense of contract and change language into formal language of business to
make understandable to the parties.
P5. Explain the effect of terms in a contract law.
Any clause forming part of a contract can be described as a contract term. Each term gives rise
to a contractual obligation and a violation which can result in litigation. Not all terms are

expressly stated but some terms carry less legal gravity as they are peripheral to a contract's
objectives.
There are two core types of Terms described as below.
 Implied Terms.
 Express Terms.
Implied terms are terms that have not been specified by any party that will be included in the
contract without end, mostly because without that word the contract makes little commercial
sense. There are two major Implied Term forms.
o Terms Implied by Statue.
o Terms Implied by Courts.
Express terms may be defined as the terms specifically mentioned and agreed upon by both
parties at the time the contract was stated and may be either oral or written.
By explaining the contract, one can clearly understand the importance of a term. Therefore, if
an arrangement is ultimately put into written form, then the term is more likely to be a contract
term. The general rule is that once they have signed it, the party is bound by all the terms set
out in a contractual document. This applies whether they have read and understood the words.
Since contracts contain various types of terms, some are oral, some are written, and some are
more significant than others. The more important terms are called conditions, and the fewer
effective terms are considered warranties. Conditions are so important that one party or the
other party, or both parties, would not conclude a contract without conditions. Likewise, to
knowingly render a promise or violate a condition it is taken so seriously that the wrong party is
entitled to regard the contract as invalid or void. If a warranty is provided, the wrong party can
only claim money damages for any loss to which the party has been submitted and the contract
itself remains binding on both parties.
The failure of one party to uphold its part of an arrangement is equal violation of the deal.
Violation shall contradict the entire contract and may result in damages against the party
violating. As each term refers to a common contractual obligation through a breach that could
lead to legal proceedings. Not all terms are specifically stated; however, certain terms have less
legal weight because they are incidental to the contract's objectives.

Task 2
P6. Explain the law with respect to consumer protection in given situations.
The Sales of Goods Act 1979 describes the goods and defines a sales contract as' a contract
whereby the seller sells the property to the buyer for a money sum called price or intends to
convert it into goods' and only those transactions that fall within the contract are protected by
the legislation. All tangible property products such as clothing, food, furnishing is classified as
goods. Nevertheless, land and money are excluded. The Sales Act 1979 contains several
requirements already automatically incorporated in all sales contracts. It includes e.g. wrong
title, description fitness & quality and sample. Generally, the parties to the contract will
negotiate contract details amongst themselves. There are many different terms and conditions
in the Sales of Goods Act 1979 which are voluntarily covered by the contract for the sale of
goods. These are implied words that include fitness, description title and quality information.
In section 12, the right to sell is the title. The seller's right to sell the products is subject to an
implied condition. When you can't pass a good a seller is responsible for the violation of the
contract. An example might be where car dealers sell cars that they own physically, even if car
dealers have the legal capacity to give another individual possession of their vehicle. That
person is then responsible for a contract breach if the contractor or the car has a problem. All
the implied terms are included in this section. The segment also covers all situations where
people sell stolen goods.
There is an implicit term in section 13 that the products must match that description the
product description can cover such issues as size, quantity, ingredients, weight and origin, and
the packaging of the products. If any description is missing or omitted, the buyer shall be
entitled to refuse the goods for breach of the contract. When the general duty of private
salesmen is not to ensure that the goods sold are of correct quality and suitability, fitness and
quality are satisfactory. It retained the cautionary principle, Latin for "let the buyer be cautious"
meaning a buyer buys a product "as is" and should be aware of its defect. Everything that is
implied in the definition should be known to the consumer and it is understood.
Section 14 states that there are two requirements implied when you buy a product in a
company; the products are of a good quality and the goods fit for a specific purpose. If a seller
sells a product in a business, it is important that the products sold are of a good quality except
where defects are clearly identified and informed. Product quality includes the condition and
state of the product. Section 14 does not require absolute quality standards to include all
products, but the goods must be satisfactory and satisfying to a reasonable person for a
purpose, which means that, in normal situations, the goods must not be of a finished quality
without a question, but of a suitable standard. The goods should, however, be fit for a specific
purpose, as the legislation guarantees that the products being sold are durable, safe and long-
lasting after purchase. Within a business, the seller must state or indicate the specific purpose
of the goods sold before purchase, as it is important that the goal is specified to the seller, since

the purchaser shall receive some protection under the law. The 1979 Supply and Services Act
discusses the issues of contracts involving the sale of products for money. There are no further
provisions in the act to get money or not to fund the operation of the proposed services. Both
the Supply and Services Act and the Services Act discuss on a legal basis the terms formerly
implied by common law in contracts for services. The 1979 Supply of Goods and Services Act
addresses the consequences for a person to make payments of goods to another person
through an agreement for employment in contracts.
Section 15 is included in the Goods Sales Act 1979 and is referred to as' selling by sample.' Sales
by section are included in bulk orders contracts. This section includes two components. The first
component mentioned is that the bulk of the product will be in accordance with the
description, quality, and the exact number specified in the order and contract of the samples
provided by the business. The second component explains that all products included in the
bulk order should be free of any errors and defects, those that may affect consumer safety. The
Services Act of 1982 deals with implied terms and conditions applicable to contracts for which
an individual undertakes to bail out the goods by employing someone else, e.g. a car or
machinery. The various implicit terms and conditions are covered in different sections of the
Act.
Section 7 states that there is an implied requirement that the bailor, who is the hired person,
has the right to transfer the goods, e.g. if a person hires a gym through the internet from a gym
hire fire, that is, the equipment is supplied via the fire house and is owned and allowed to hire
and take place. Section 8 provides that when the contract is entered for the hire of goods by
description, an implicated condition is implied that the goods correspond to the description.
Article 9 provides that if goods are hired in a company, the product must be of a quality that is
satisfactory and reasonable for the purpose hired.
Finally, Section 10 deals with implied terms of sample hire contracts, whereby the bulk must
match the given sample. Section 2 of the Law of supply of goods and services 1982 states that
the transferee who provides the goods or services shall have a right to transfer the goods,
which is the individual who provides the goods or services. In addition, section 3 states that if
your machine has broken down and you sent it to the computer repair shop to fix the products
conform to the description given, for example, the invoice would specify the parts fitted and
work to repair it on your laptop because it needs to be done. The invoice would then be stated
in the contract that the actual parts and work were given. Section 4 of the Act stipulates that
the product is suitable and fit for the described purpose when goods are carried over into the
business. Section 5 ultimately applies to the movement of products for a sample and the bulk is
subject to the sample.
P7. Describe the remedies available for breach of contract.
In a contract misrepresentation the valuable legal solution for victim is known as remedies. In a
breach of contract there are five basic remedies which are; damages, restitution, rescission,

reformation and specific performance. The party which have access to these remedies is also
eligible for the compensation.
The injured party can be compensated in in two type of damages. First type is liquidated
damages, which include the agreed amount of money before the contract which is paid in case
of contract breach. Second type is unliquidated damages which is the amount of currency
which is not agreed before the contract and that amount is decided by the court if there is
breach.
Restoration of the injured party at the position they were before the contract formation is
known as restitution. The party may not get compensation for the lost profit if they are seeking
restitution.
Another type of remedy used in breach of contract is known as injunction. In injunction the
contract is kept by the error party by the order of court. It can temporarily, preliminary
or permanently prophets the party from cretin act.
An equitable remedy is specific performance that compels one party to perform practicable
duties specified by the contract. When there are inadequate monetary damages and the error
party is unable to compensate then only that time specific performance is available. This is only
used when there is no satisfactory solution for damages.
Resale remedy happens when a seller hasn’t paid for the goods that he has. Now seller isn’t
buying the goods, so they have right to resell. This can be done only if buyers don’t respond on
seller’s notification of resell or it is mentioned in the contract.

Reference:
https://www.lawteacher.net/free-law-essays/contract-law/offer-and-acceptance-in-contract-
law.php
https://smallbusiness.chron.com/5-requirements-contract-15616.html
https://courses.lumenlearning.com/masterybusinesslaw/chapter/contract-formation/
https://www.fortunelaw.com/back-to-basics-terms-of-a-contract/
https://hjsolicitors.co.uk/article/contracts-express-and-implied-terms/
https://www.which.co.uk/consumer-rights/regulation
http://jec.unm.edu/education/online-training/contract-law-tutorial/remedies-for-breach-of-
contract
https://www.bc-llp.com/what-are-the-remedies-available-for-a-contract-breach/
https://www.businesscompanion.info/en/quick-guides/goods/the-sale-and-supply-of-goods