Resubmission

Assignment
Programme:
(Management)
Unit Title:
Business
Unit Level:

Higher National Diploma in Business

Aspects of Contract & Negligence for
4

Unit Number: 5
Credit Value: 15

Assignment Starts: Immediately

Date for Completion: Friday 7th November 2014
5pm

Aims:
The aim of this assignment is to allow you to practise what you have
learned in class about the law of contract and tort by applying them
in simulated business situations

Summary of learning outcomes:

To achieve this Unit, you must demonstrate your ability to:
1 Understand the essential elements of a valid contract in a
business
context
(LO1)
2 Be able to apply the elements of a contract in business
situations
(LO2)
3 Understand principles of liability in negligence in business
activities (LO3)
4 Be able to apply the principles of liability in negligence in
business
situations
(LO4)

Indicative Content:
By the time you have completed this assignment, you should have
explored and thought about in depth:
1 Essential elements: offer and acceptance / intention to
create legal relations / consideration / capacity / privity of
contract. Types of contract: face to face / written / distance
selling / impact. Types of terms: e.g. condition / warranty /
innominate term / express / implied / exclusion clauses and
their validity.

The City College HND Aspects of Contract & Negligence for Business (Resubmission) Feb 2014

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2 Elements: application of relevant principles and case law to
business scenarios / Specific terms: contents of standard
form business contracts / analysis of express terms, implied
terms and exclusion clauses in a given contract. Effect of
terms: breach of condition, warranty and innominate terms /
legality of exemption clauses / outline of remedies / damages.
3 Negligence: differences to contract / duty of care / breach of
duty / damage causation and remoteness of damage /
personal injuries / damage to property / economic loss /
occupier liability. Liability: employers liability / vicarious
liability / health and safety issues.
4 Negligence: application of the legal principles of negligence
and relevant statutory and case law to business scenarios
including: personal injuries damage to property, economic
loss, occupier liability / defences / contributory negligence /
remedies.

Outline of assignment:
The focus for the four tasks set out below is a series of businessrelated scenarios designed to give you the chance to apply what you
have learned in class in a practical manner. You should note that
if you do not produce responses to the tasks in the specified
formats then it will not be possible for you to achieve a Pass
grade. Additionally, it is ESSENTIAL that everything you
write is specific to the situations you are given general
answers will not attract a Pass grade.

Task 1 Understand the essential elements of a

valid
contract
in
a
business
context
(LO1)
You are to imagine that you have recently joined a community law
centre in South East London as a duty solicitor and that you very
rapidly find yourself with some fascinating and complicated
problems brought to you by people who live locally.
Your first client is Roberto Correlli an Italian who, with three other
members of his family, has purchased a caf near the law centre
which they plan to refurbish and open as the areas first Italian
restaurant. Roberto speaks reasonable English but he does not
understand English law and this concerns him because he wants to

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have everything on a sound business footing right from the
beginning. For this reason, he has come to you for advice. He
needs explanatory advice about contracts with suppliers e.g. meat
and vegetable suppliers and -. and about the options available for
making the relationship between the family members into a proper
formal one.
Your advice, which you give in the form of a business letter, covers
three areas:
a) The first section of your letter covers the different types of
business agreement taking care to cover the two situations
set out above (suppliers and family members). You also
explain the essential elements required for the formation of a
valid contract.
(LO1.1)
b) Next, you give brief explanations of the types of contract that
would apply to a business like an Italian restaurant giving
reasons why each would apply and what the impact of each is
likely to be in a situation involving suppliers of meat and
vegetables and additionally, for the hire and laundering of
table linen.
(LO1.2)
c) You finish your letter by describing the difference between
implied terms and express terms making sure to explain
the validity of each and by considering conditions and
warranties and their effect, both positive and negative. You
should also give an example of an implied term and an
express term as each of them might apply to the purchase of
kitchen
equipment.
(LO1.3)

Task 2 Be able to apply the elements of a contract

in
business
situations
(LO2)
The second case you review also concerns the law of contract and
again, your client is Roberto Corelli.
a) The contract he has negotiated with his food suppliers
includes
the
following
three
terms:
(LO2.1)
i.
All food materials must be fresh at time of delivery
ii.
All deliveries must be made before 8am Monday to
Friday
iii.
All goods to be securely packaged

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Make an analysis of the situation that would exist if any of
these terms
was broken once in a high alert situation / repeatedly
b) Give advice on any express or implied terms that may be
involved in the contracts that will apply to Mr Corellis
contracts with his suppliers. In doing this, you should keep in
mind the three terms set out above and also the contract for
the hire of table linen
(LO2.2)
Roberto Corelli is also wondering whether it is necessary to
negotiate separately
with everybody wishing to have a meal in his restaurant and you
advise him accordingly
c) Explain to him how the use of standard contracts will apply
to this new venture, especially with reference to their use in
relation to the customers in his restaurant. For Mr Corellis
benefit you evaluate the effect of the use of standard
contracts.
(LO2.3)
d) Advise him on the use of exclusion clauses as these will
affect his restaurant and explain how exclusion of liability
works in general in relation to restaurant customers. Again,
you evaluate the effect of these clauses in the type of contract
he is likely to make.
(LO2.3)

Task 3
negligence
(LO3)

Understand principles of liability in

in
business
situations

Your third client is Joseph Harding who works in a local garage

McAllen Motors. Joseph has been in this job for 16 years and is now
the senior mechanic. The proprietor of McAllen Motors rents the
premises from a property company the Acme Property Company
and has done so for well over 20 years.
When Joseph came to see you he was limping badly and using a
stick to help him walk. He explained that this was the result of an
injury he suffered at work. This was not actually linked to any
normal work activity it happened when, without any warning, a
section of one of the beams in the roof of the garage came away

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and landed on Joseph who was at that time leaning over the bonnet
of a car. He was pinned to the bonnet and had to wait until
colleagues realised what had happened and managed to free him.
The bonnet of the car was totally ruined. What Joseph now wants to
know is whether he will be able to make a claim for damages and, if
so, whether the claim would be against McAllen Motors or the Acme
Property Company. You set out your opinion and advice in a letter
covering the four points set out belo
a) The first set of notes explains the difference between
contractual liability and tortious liability giving real life
examples of each to support your points but making sure to
present these in a way that a non-legal person will be able to
understand.
(LO3.1)
b) The second set of notes covers the nature of liability in
negligence, including basic aspects of occupiers
liability. You also note how Common Law relates to each of
these
issues
and
you
give
illustrative
examples.
(LO3.2)
c) Your final set of notes covers the vicarious liability of a
company for damage caused during its legal activities
e.g. a window cleaning business.. In addition, you attach to
your notes a draft of an A4 size notice to be displayed to cover
the requirements of Health & Safety.
(LO3.3)

Task 4 Be able to apply principles of liability in

negligence
in
business
situations
(LO4)
Your final case this week concerns a local woman Mary Johnson.
Mary came to see you recently to find out if it would be possible to
make a claim with regard to an intangible injury she suffered
recently. She was apparently waiting on a bus stop when an
accident between two cars took place around 12 metres away.
The noise was so horrific and unexpected that she suffered s severe
case of shock and, as a result, was completely unable to go
anywhere near traffic for a considerable period. In fact, she was off
work for six weeks and lost 2000 in wages. She wants to know if
she can claim back the money she has lost.

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You set out your advice in a series of notes that you intend when
Mary comes to see you again tomorrow.
a) You set out, for Marys benefit, exactly how the tort of
negligence is likely to apply in her situation giving the pluses
and minuses as they are likely to affect her. You also explain
any likely defences as they would apply to this situation.
(LO4.1)
b) Finally, and again for Ma rys benefit, you apply the various
elements of vicarious liability as they would fit her current
situation and her desire to make a claim for compensation.
(LO4.2)

Some useful Guidelines:

1 It is essential that you make practical use of methods,
concepts and theory you have covered in class. Work that
does not do this will not attract a Pass grade.
2 This assignment should be between 3500 and 4000 words in
total and use the Harvard System for all references. You may
be penalised if your work exceeds the set limit.
3 During the period of the assignment, your course tutor will act
as your consultant. S/he will be happy to discuss with you,
your approach to the assignment and your chosen
organisational examples so you should feel able to try out
your thoughts and ideas. It is sensible to seek advice
instead of taking the risk of handing in an assignment
that will be referred.
4 As you work through the four tasks, all your answers must
focus on specific legal settings described and the specific legal
instruments described assignments that do not do this or are
just general essays will not achieve a Pass grade.
5 You are reminded that the City College assessment process
does not allow for late work. If you do not meet the deadline,
you may be allowed to submit your work on the date specified
for handing in resubmission (see your Student Handbook and
the college notice boards)however you should note that
you will no longer be allowed to submit the original
assignment you will be given a completely new one,
so you will have to start from the beginning again.

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6 The only exception to the rule about late work is if you have
submitted an extenuating circumstances request using the
appropriate form. The system is explained in your Student
Handbook. All decisions about extenuating circumstances are
made by the Director of Assessment. You should note that
lecturers do not have the power, under any
circumstances at all, to extend assignment deadlines.

Performance criteria:
Pass:

1 The assignment will cover the main areas as specified below

but with only limited evidence of critical analysis or evaluation
and possibly some errors or omissions. However, there will be
evidence of an ability to think independently as shown
through the application of appropriate theory
To achieve Learning Outcome 1 you must:
o Explain the importance of the essential elements
required for the formation of a valid contract
o Discuss the impact of different types of contract
o Analyse terms in contracts with reference to their
meaning and effect
To achieve Learning Outcome 2 you must:
o Apply the elements of contract in given business
scenarios
o Apply the law on terms in different contracts
o Evaluate the effect of different terms in given contracts
To
o
o
o

achieve Learning Outcome 3 you must:

Contrast liability in tort with contractual liability
Explain the nature of liability in negligence
Explain how a business can be vicariously liable

To achieve Learning Outcome 4 you must:

o Apply the elements of the tort of negligence and
defences in different business situations
o Apply the elements of vicarious liability in given
business situations

The City College HND Aspects of Contract & Negligence for Business (Resubmission) Feb 2014

2 The presentation of the material must be appropriate and

business-like but may display weaknesses in the way in which
it is communicated

3 All tasks must be completed

4 The assignment must meet the specified deadline and must
not exceed the specified word limit.

Merit:

o As for Pass but with more detailed and analytical responses

which show a clear understanding of the processes involved in

analysing a variety of business environments. This would
involve producing evidence within the completed assignment
to meet the performance criteria set out below.

o You must identify

and apply strategies to find

appropriate solutions and provide evidence to show:
Effective judgements have been made e.g. in exploring
how far liability extends in a given business situation
(M1.1)
Complex problems with more than one variable have been
explored e.g. in examining negligence in a given business
situation (M1.2)
An effective approach to study and research has been used
through the submission of the assignment by the published
deadline with all tasks completed and presented in the
required format. (M1.3)

o You must also select/design and apply appropriate

methods/techniques and provide evidence to show:
Relevant theories and techniques have been applied e.g. a
range of possible solutions in a business situation have
been assessed in relation to case law (M2.1)

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The methods selected have been justified e.g. by an

explanation of why the chosen approach has been used
rather that another
Complex information / data have been synthesised and
processed. Evidence here might be in the form of graphs
or tables
Appropriate learning methods/techniques have been
applied e.g. independent study and research and/or
discussions with tutors / clear and correct use of the
Harvard System

o Your work must also present and communicate

appropriate findings and provide evidence to show:
The appropriate structure and approach has been used
e.g. professional business letter style / memo style (M3.1)
Coherent, logical development of principles/content for the
intended audience e.g. through discussion of types of
contract for a client who knows nothing of the law (M3.2)
A range of methods of presentation has been used and
technical language has been accurately used i.e. letters /
memos / notes plus accurate use of legal language (M3.3)
Communication has taken place in familiar and unfamiliar
contexts (M3.4)
The communication is appropriate for familiar and
unfamiliar audiences i.e. the approach is clear and easily
understood and is appropriate to the client new to
business and its attendant law.(M3.5)

Distinction:

o You will have used critical reflection to evaluate your

own work and justify valid conclusions. Your evidence
will show:
Synthesis has been used to generate and justify valid
conclusions
The validity of results has been judged
Self criticism of approach has taken place
Evaluation has taken place using defined criteria
Realistic improvements have been proposed against
defined characteristics for success

o You will have taken responsibility for managing and

organising activities and your evidence will show:
Demonstration of autonomy/independence

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Substantial activities/projects or investigations have been

planned, managed and organised
Joint/activities of others have been managed

The unforeseen has been accommodated

The importance of interdependence has been recognised
o You will demonstrate convergent, lateral and creative
thinking and your evidence will show:
Ideas generated and decisions taken
Self evaluation has taken place
Convergent and lateral thinking have been applied
Problems have been solved
A capacity for innovation and creative thought has been
used
Receptiveness to new ideas has been demonstrated
Unfamiliar contexts have been applied

+++++++++++++++++++++++++++++++

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The City College HND Aspects of Contract & Negligence for Business (Resubmission) Feb 2014