...BTEC CENTER OF HFUT SCHEME OF WORK |Program |Business in Management and Business in Accounting Services | |Unit No |5 | |Unit Title |Aspects of Contract and Negligence for Business | |Name of Tutor |Zhang Hongsheng | |Name of Internal Verifier | | |Date Submitted | | |Week |Topics To Be Covered |Mode |Remarks | |1 |Offer and Acceptance |Lecture | | | | |Case Study | | | | |Q & A | | |2 |Intention to Create Legal Relations; Consideration |Lecture ...
Words: 310 - Pages: 2
...Breach of Contract & Remedies 1 Breach of contract Nature of breach A breach of contract occurs where a party to a contract fails to perform, precisely and exactly, his obligations under the contract. This can take various forms for example, the failure to supply goods or perform a service as agreed. Breach of contract may be either actual or anticipatory. Actual breach occurs where one party refuses to form his side of the bargain on the due date or performs incompletely. For example: Poussard v Spiers and Bettini v Gye. Anticipatory breach occurs where one party announces, in advance of the due date for performance, that he intends not to perform his side of the bargain. The innocent party may sue for damages immediately the breach is announced. Hochster v De La Tour is an example. Effects of breach A breach of contract, no matter what form it may take, always entitles the innocent party to maintain an action for damages, but the rule established by a long line of authorities is that the right of a party to treat a contract as discharged arises only in three situations. The breaches which give the innocent party the option of terminating the contract are: (a) Renunciation Renunciation occurs where a party refuses to perform his obligations under the contract. It may be either express or implied. Hochster v De La Tour is a case law example of express renunciation. Renunciation is implied where the reasonable inference from the defendant’s conduct is that he no longer intends...
Words: 1755 - Pages: 8
...was not pleased with the work Masterpiece Construction provided and later found out that the work was sub-contracted out to a third party vendor. This in return resulted in Foodmart suing masterpiece for a breach of contract. Who wins? In the case of Foodmart vs. Masterpiece, Foodmart wins. Although, Masterpiece argued commercial impracticability, the first element of the commercial impracticability states “Something unexpected must have occurred"(Cohen Seglias Pallace Greenhall & Fermac PC, N.D.) for a company to plead impracticability. The third element states and the unexpected occurrence must have rendered performance commercially impracticable” (Cohen Seglias Pallace Greenhall & Fermac PC, N.D.). By Masterpiece Construction accepting and scheduling each new contract it voids the term unexpected. They were aware of everything that came along with each contract they accepted before accepting the responsibility. Therefore Masterpiece Construction should be held accountable to their actions which in return results in Foodmart Inc. being granted their injunction. Scenario Two: Jeremy Atwater Purchases a Car During the summer Jeremy Atwater earned enough money to place a down payment of $200 on a car from Smooth Sales Used Cars. He signed a contract which sealed the deal and drove his car home. Although, Jeremy was excited to purchase his new care he unfortunately was not able to keep up with the payments and decided to try and return his car to Smooth Sales Used...
Words: 602 - Pages: 3
...Two outstanding issues that could ensue are those of breach and frustration of a contract. A breach is an infraction of either the law or an obligation created through a contract (Bullon, 2003). A breach of contract arises when there is a violation of a contractual obligation through failure by a party to perform their own promise, or by repudiating the agreement, or even an interference with another party’s performance of their obligations (Garner, 2004). Breach of contract arises because Big Bank would be claiming that Systems Inc failed to honour their obligations within the agreed timelines. Frustration of a contract arises when the circumstances in which the contract is to be performed change very drastically out of certain unanticipated factors (Hodgin, 2006). When a contract is frustrated, the party seeking to rely on the frustration gets their duties discharged so that the contract becomes terminated (Jackson, 2006). The contract only becomes frustrated where it is demonstrated that its performance is impossible, as opposed to being onerous in nature as was so asserted in Paradine v Jane (1647) Aleyn 26; Sty 47. Frustration arises as a defense for Systems Inc because the company would be seeking to purge off the blameworthiness for Big Bank’s decision to rescind the contract. To prove this, it is highly probable that Systems Inc would point out the fact that the inability to change the data fields arose from the impossibility to contact Glenda Givealot who was...
Words: 657 - Pages: 3
...Case study 5 A dealer sold a new car to Raymond Smith. The sales contract contained language expressly disclaiming liability for personal injuries caused as a result of defects in the car and limiting the remedy for breach of warranty to repair or replacement of the defective part. One month after purchasing the auto, Smith was seriously injured when the car veered off the road and into a ditch as a result of a defect in the steering mechanism of the car. If Smith sues the dealer for breach of warranty and the dealer defends by relying on the contract disclaimer, what would be the result and why? In this case study, we are assuming the contract entered into between Raymond Smith, the buyer, and the auto dealer, the seller, is a legal contract. We will assume UCC Article 2 will apply since there was a payment from the buyer to the seller resulting in a sale of a good and under section 2-201(1) of the UCC code, that all contracts must be $500 or more and in writing. Also the UCC statute of limitations is a period of four years but the seller and buyer can agree to reduce timeframe to one year but cannot extend past the four year mark. As the case study states the failure happened one month after the purchase of the vehicle and therefore falls well within the statue of limitations. Let’s be real when a person purchases a new vehicle the performance and condition of the new vehicle must meet industry standards and perform at peak levels. Warranty disclaimers can only be disclaimed...
Words: 634 - Pages: 3
...reasonable person be satisfied? a. Based on mechanical fitness and suitability for a particular thing B) Subjective Test 1. Actual Personal Satisfaction a. Based on aesthetics, taste, comfort ii) Satisfaction of Third Party – a duty is conditioned on some third party being satisfied with performance A) The third party must be acting in good faith 2) Concurrent Conditions – each party’s duty is conditioned on the other party showing up willing to perform 3) Condition Subsequent – a future event, the occurrence of which discharges the duty to perform 4) Express Condition a) The condition is explicitly stated in the contract b) The condition must be fully and completely satisfied 5) Implied Condition a) Implied by the circumstances II) Discharge of Contractual Duties A) By Performance or Tender of Performance 1) Performance – the Defendant had fully performed their duty...
Words: 655 - Pages: 3
...Question #1 (AICPA.080977REG-1C) | | | (NOTE: This is a CPAexcel simulated Exam Question, not AICPA licensed Material) Tax preparer Margie is wondering: Why should CPAs make reasonable efforts to obtain and provide for the client appropriate answers to all questions on a tax return? | A. The question may be important in determining taxable income or loss, so its omission may detract from the quality of the return. | | B. The CPA is obligated to sign the preparer's declaration, which states that the return is true, correct, and complete. | | C. A and B. | | SSTS No. 2 lists both A and B as grounds for attempting to answer all questions on a return. | | D. None of the above. | Question #2 (AICPA.151005REG-BL) | | | A client suing a CPA for negligence must prove each of the following factors except | A. Breach of duty of care. | | B. Proximate cause. | | C. Reliance. | | C is the best answer, for reliance is not an element of the negligence cause of action. | | D. Injury. | Question #3 (AICPA.082031REG-1 C) | | | Which of the following is true? | A. Client Tim told CPA Cho that he wished to take a particular deduction that Cho knows must be documented. Cho should ask Tim whether he has kept, or could obtain, the relevant documents. | | SSTS No. 3 provides that a CPA should make "appropriate inquiries" to determine whether a condition for deductibility or other tax treatment has been met. | | B. CPA Harris asked...
Words: 2767 - Pages: 12
...Radio 88 Cal. App. 4th 33 [105 Cal. Rptr. 2d 525](2001) 2. Case Briefs Khajavi v. Feather River Anesthesia Medical Group Facts Plaintiff Nosrat Khajavi, who is an anesthesiologist, was terminated under an oral contract stating for a specified term. This was caused by a dispute over the plaintiff and a ophthalmologist on how the proceeding should be on the specific surgery that happened that happened in the operating room which lead to an bigger argument. The ophthalmologist’s brother was the head of the anesthesia group. Then Feather River Anesthesia Medical Group terminated Khajai’s employment. The court ruled that Feather River Anesthesia Medical Group has breached its oral employment and awarded him. Issues 1. Standard of Review - Khajavi first appeals from the trial court's ruling that granted Feather River a nonsuit as to his fourth cause of action. As noted earlier, Khajavi's fourth cause of action alleged that defendants wrongly terminated him in violation of section 2056 for advocating medically appropriate health care.[7] 2. Feather River’s Motion for Nonsuit as to the Fourth Cause of Action Rules 1. Standard of Review- "A defendant is entitled to a nonsuit if the trial court determines that, as a matter of law, the evidence presented by plaintiff is insufficient to permit a jury to find in his favor." (Nally v. Grace Community Church (1988) 47 Cal.3d 278, 291, 253 Cal.Rptr. 97, 763 P.2d 948; Code Civ. Proc., § 581c.[6]) 2. Feather River’s...
Words: 1146 - Pages: 5
...DIPLOMA IN MANAGEMENT STUDIES Main Examination BUS015 Business Law Wednesday, 1st June 2011 2:15 pm – 5:15 pm ______________________________________________________________________ Time allowed: 3 hours ______________________________________________________________________ INSTRUCTIONS TO STUDENTS: 1. This examination contains FIVE (5) questions and comprises SIX (6) printed pages (including cover page). This examination paper contains 3 sections (A, B and C) with a total of 100 marks as follows: Section A: Section B: Section C: 3. 10 multiple-choice questions 2 questions 2 questions 2. Answer Question 1 on the Multiple-Choice Questions (MCQ) Answer Sheet provided separately using a black 2B pencil. Fill the MCQ Answer Sheet carefully. You will get a zero (0) score if your index number is filled incorrectly. Answer Questions 2 to 5 in the answer book provided. Fill the cover page carefully. You will get a zero (0) score if your index number is filled incorrectly. All answers must be clearly written. Begin each question on a fresh page. This is a closed book examination. No materials are allowed to be brought into the examination hall. 4. 5. 6. At the end of the examination Please ensure that you have written your examination number on each answer book used. Failure to do so will mean that your work cannot be identified. If you have used more than one answer book, please tie them together with the string provided. THE UNIVERSITY RESERVES THE RIGHT NOT TO MARK YOUR SCRIPT...
Words: 1388 - Pages: 6
...Vastola entered into a contract to sell the Vastola’s house on June 15, 2004. On June 14th the defendants’ real estate attorney wrote plaintiff’s real estate attorney notifying them that they will not convey the title. The reasoning for breaching the contract is that Joan Vastola has spinal muscular atrophy that has gotten considerably worse between the times the contract was entered to the time of closing of the contract. This disease has made it impossible for Joan to live independently and is now confined to either a wheelchair or her bed. Because of this the defendants no longer find it possible to move to Virginia as they had wished. The plaintiffs argue that specific judgment should be awarded since a valid real estate contract exists. They also argue that since the defendants have delayed their performance under the contract the plaintiffs should be awarded monetary damages resulting from attorney’s fees and higher financing costs for the delay in obtaining a second mortgage commitment. The defendants argue that mortgage rates are still favorable and that their finances are tight and should not be held responsible for an increase in mortgage rates that have not actually risen. Issue: Should specific performance be granted to complete the contract and force the defendants out of their house even though it would cause the defendants hardship? Should the defendants be held liable for attorney fees and higher mortgage rates since their breach of the contract delayed the time it...
Words: 414 - Pages: 2
...Nature of Law Sources of law: 1. Statute law laws crated by State and Federal Parliament 2. Common law courts and judiciary system 3. Equity expands remedies beyond monetary compensation Classification of law: * International v domestic * Public v private * Substantive (rights and duties under the law) v procedural (rules of evidence and conduct) * Common (parliament and courts) v civil (legal code) * Civil actions v criminal actions Origins of Australian Law: * 1865 Colonial Laws Validity Act NSW (AUS) can pass own laws as long as they don’t conflict with England laws * 1901 Federation 6 separate states become 1 Government * 1931 Statute of Westminster legislative independence. * 1986 Australia Act Final court of appeal became the High Court The Westminster System: * A constitutional monarchy * Separation of powers 1) The Parliament Legislative 2) The Executive Government 3) The Judiciary interprets the law Making a law: 1. Draftsman drafts a Bill 2. 1st, 2nd, 3rd reading in HOR 3. 1st, 2nd, 3rd reading in Senate 4. Governor General consent 5. Bill becomes an Act and become law The Judiciary: Rule of law a means of maintaining the balance between personal freedom and legislative power in a modern democracy. Role of the courts: Impose a legally binding decision on the parties to the dispute. Features of the court hierarchy: * Provides a system of appeals ...
Words: 5433 - Pages: 22
...charges for those clients for the twelve months immediately preceding their loss (the measure of damages or liquidated damages provision). After Christian’s expulsion from Weber, certain clients took their business to Christian. Weber sued Christian for liquidated damages in accordance with the agreement, and Christian cross-complained for breach of contract. Even though the trial court denied Christian’s motion for judgment notwithstanding the verdict, the court awarded a new trial, on the ground that it was essential to define whether Weber had decent reason to eject Christian from the partnership. Issue: 1) Is the restricted covenant reasonable and enforceable regardless of the reason Christian expelled? 2) Did the trial court erroneously fail to enforce the liquidated damages clause? Rule: Not only is restrictive covenant reasonable and enforceable (under New York law, as agreed by the parties), so is liquidated damages clause (under California Law, as agreed by partiers). Civil Code sec. 1671, sub. (b) provides, “Except as provided in subdivision (c), a provision in a contract liquidating the damages for breach of the contract is valid unless the party seeking to invalidate the provision establishes that the provision was...
Words: 487 - Pages: 2
...Business Law 1 Week 4 Seminar Questions Natasha Dunn, Forensic Investigation Q1) This issue is governed under the Law of Contract, under the formation of contract and the revocation of a contract specifically under contractual capacity. Contractual capacity states that young persons aged sixteen and seventeen have full legal capacity. This protects young persons against ‘prejudicial transactions’ until they turn 18 and any contracts like this can be put aside by the court. However, there are exceptions to the rule: if under 18 and running your own business; if ratified before turning 18; if age is misrepresented when entering contract. In this case, Jean is seventeen, running her own business and wants to get out of a legally bounding contract for an object in which has already been ordered. However, Jean cannot get out of the contract just because she is under eighteen years of age because she is running her own business and therefore she is not subject to the protection anymore. Therefore, this puts her in the same legal position that any other adult would be in, in her situation. She could attempt to revoke the offer by emailing or writing to the seller but she is still legally bound by the contract made. Q2) This issue is governed under the Law of Contract, under the formation of contract and specifically contractual capacity. Contractual capacity states that generally children under sixteen years of age have no capacity and the contract is void. However, the...
Words: 629 - Pages: 3
...(a) • Both parties had the intention to enter into a contract. The intention does not need to be expressed in writing – it can be inferred from one party’s words or actions. • All contracts must include an offer and its acceptance. So I have received 3 quotes from 3 plumbers for work of a large house I am building under a contract with the owner. • A contract is formed with my acceptance of the offer. If any new terms or conditions introduced not covered in the offer will be a counter-offer. There is also a postal acceptance rule that the contract is complete once the plumber places the acceptance in the mail. Acceptance may be spoken, written or inferred from conduct. I have accepted plumber A’s price by telephone and without written confirmation, but I made a note in my files that I have done so. Plumber A reinforced/acknowledge this agreement by starting work on site. So there can be no argument that there is no contract. • Valuable consideration is the element that shows the parties intend to be bound by their agreement. There is a valuable consideration as I agreed on the price Plumber A submitted. Consideration can be regarded as the ‘price of a promise’, but consideration must be something of value and may take various forms as stated in Currie v. Misa (1875). • Capacity of the parties is that the enforcement of a contract depends on the parties possessing recognised and legal capacity. Their ability to contract must be free of particular limitations. Examples of...
Words: 678 - Pages: 3
...Source Selection, Contract Administration, and Contract Close-Out • Be familiar with Input, Tools and Techniques, and Output for each phase) • VERY IMPORTANT: Understand the viewpoint of the PMBOK. Project Procurement Management is discussed from the perspective of the buyer in the buyer-seller relationship. The buyer is the organization seeking the service or product. The seller is the provider of the service or contract and is referred to as the vendor, the supplier, or the contractor. Project Management should be done by both the buyer and the seller. • Understand the definitions and terms. (buyer, seller, express and implied warranties, "fitness for a particular use", invitation to bid, request for proposal, etc.) • Understand the viewpoint of the reading material. Is procurement management discussed from the viewpoint of the buyer (the organization or person seeking to outsource) or the seller (the person or organization selling their services / products)? • Understand the different types of contracts: fixed price, cost plus percentage, cost plus fixed fee, cost plus incentive fee, and fixed price plus incentive fee. Know who assumes the most risk (buyer or seller) in each type of contract. Study examples of each type of contract so that you are comfortable with the different types and can adequately distinguish between each type of contract (especially the various shades of cost plus contracts!). • Know the elements of a legally enforceable contract: Mutual assent, consideration...
Words: 3835 - Pages: 16
