UK COLLEGE OFBUSINESS AND COMPUTING

Module Booklet
Course: EDEXCEL BTEC
Group: Ed excel HND Group
Module: Unit 5 Aspects of Contract and Negligence for
Business
Module type: Core
Module Code: Y/601/0563
Module Credit: 15
Teaching Period: (15+6weeks)
QCF Level: 4
Contact Hours: (15*3+6*3 = 63)
Lecturers: 15 weeks
Assignment support: 3 week
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Feedback and assignment guidance:3 weeks

Lecturer:

Mr. Daniel Oluwatayo

Start date: 28/05 /2014

Day: Wednesday
Time: 14.00 17.00
Room: WH
Term: May 2014 - Sept 2014

CONTENTS
1. INTRODUCTION, AIMS AND OBJECTIVES

2. MODULE OUTLINE AND TEACHING METHODS

3. READING AND COURSE PREPRATION

4. LECTURE WITH DETAILED COURSE PROGRAMME AND OBJECTIVES

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5. ASSESSMENT DETAILS
INTRODUCTION
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.

Aim:
The aim of this unit is to provide learners with an understanding of aspects of the law of contract and tort and the skill to apply them,
particularly in business situations.

Key Objectives:
1. Explain the essential elements of a valid contract in a business context
2. Apply the elements of a contract in business situations
3. Explain the principles of liability in negligence in business activities
4. Apply the principles of liability in negligence in business situations
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Learning Outcomes and assessment criteria:

L01 Understand the essential elements of a valid contract in a business context:
1.1 explain the importance of the essential elements required for the formation of a valid contract
1.2 discuss the impact of different types of contract
1.3 analyse terms in contracts with reference to their meaning and effect
LO2 Be able to apply the elements of a contract in business situations:
2.1 apply the elements of contract in given business scenarios
2.2 apply the law on terms in different contracts
2.3 evaluate the effect of different terms in given contracts
LO3 Understand principles of liability in negligence in business activities:
3.1 contrast liability in tort with contractual liability
3.2 explain the nature of liability in negligence
3.3 explain how a business can be vicariously liable
LO4 Be able to apply principles of liability in negligence in business situations:
4.1 apply the elements of the tort of negligence and defences in different business situations
4.2 apply the elements of vicarious liability in given business situations.

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Knowledge and understanding

The learner needs to know and understand,

Definition of a contract

The essential elements of a valid contract

what is and not a valid offer in law

the meaning of acceptance and its consequences

the meaning of consideration, the intention to create a legal relations, the doctrine of privity

types of contract

define the various contractual terms :condition; warranty; innominate term; express; implied; exclusion clauses and their validity

application of relevant principles and case law on business scenarios

contents of a standard form business contract, analysis of terms, the effect of terms

the differences between tort and contract

the elements of tort

the conditions necessary for an action in negligence to succeed duty of care, breach of duty of care, damage causation and remoteness

Liability - employers liability, the vicarious liability, health and safety issues

application of the relevant principles of negligence and regulatory and case law to business scenarios
defences for negligence

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Unit Content:
Understand the essential elements of a valid contract in a business Context
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: condition; warranty; innominate term; express; implied; exclusion clauses and their validity
Be able to apply the elements of a contract in business situations
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
Understand principles of liability in negligencein business activities
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
Be able to apply principles of liability in negligence in businesssituations
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
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Programme Specification
Accrediting Body: EDEXCEL
Course: BTEC HND IN BUSINESS
Unit 5: Aspects of Contract and Negligence for Business
Wk
1

Lecture Schedule

Outcome of session

Introduction to Aspects of
Contract and Negligence for
Business
Essential elements of
contract Offer and
acceptance

Introduction to the module, awareness of awarding body, mode of

assessment, and assessment criteria, referencing

Offer and acceptance

Consideration
Intention to create legal
relations

Privity
Capacity

Types of contracts and their

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After completing this session the learner will be able to explain

the essential elements of a contract and what is and not an offer

After completing this session the learner will be able to explain

the meaning of acceptance, how is acceptance distinguished from
other things , consequence of acceptance and how acceptance
must be communicated to create an agreement
After completing this session the learner will be able to explain
the meaning of consideration, and distinguish the presumption
relating to the intention to create legal relations,
After completing this session the learner will be able to
understandthe doctrine of privity and the main exceptions, the
legal capacities of people and identify those people with limited
power to enter into contracts
Review task LO1.1
After completing this session the learner will be able to identify

Activity/seminar and
formative assessment
Ice breaking, getting to
know each other
Listen and ask questions,
Reading, review of
questions, group
discussion, presentation.
Case study, homework.
Listening, reading,
review of questions,
Case study, group
discussion, presentation
Listen, reading, review
of questions,

Resources
Handbook
Lecture power points
White board
Lecture power points
White board

Lecture power points

White board

Lecture power points

White board, case
studies, module booklet

Question and answer

Listen and ask questions,

Lecture power points

impact
Face to face, written, distance
selling

various forms of contracts and their impact

study
Review of task LO1.2

Type of terms
Express terms, Implied
terms, Conditions, warranty
and innominate terms,
Exclusion clauses , legality
of exemption clauses
Application of Elements of a
valid contract

group discussion, case

White board, case

studies, module booklet

Question and answer

After completing this session the learner will be able to

distinguish terms and mere presentations, explain various
contractual terms, and exclusion clauses and their validity
Review of task LO1.3
After completing this session the learner will be able to apply the
elements of the relevant principles and case law to business
scenarios given in class.
Review of task LO2.1

Listen and ask questions,

group discussion, case
study

Power points
White board,
Case studies,
Internet

Question and answer

7

Analysis of express terms,

implied terms, and
exclusion clauses

After completing this session the learner will be able to review the
contents of a standard form business contract, apply the law on
various terms in the contract and explain the effect of various
contractual terms.

Discharge of contract
Breach of condition,
warranty and innominate
terms,
Remedies, damages

Review of task LO2.2

After completing this session the learner will be able to
understand different ways to discharge a contract, how a contract
can be breached, and the effect of breach of condition, warranty
and innominate terms, remedies for breach of contract andthe
rules relating to the award of damages.

Tort

Review of task LO2.3

After completing this session the learner will be able to define tort

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Listen and ask

questions, group

Lecture power points

White board

discussion, case study

Module booklet
Question and answer
Question and answer,
group discussion, case
study

Power points
White board
Internet, Videos
Module booklet

Reading and open

Power points

Negligence
How tort differs from a
contract
Duty of care
10

Breach of duty of care

11

Damage
Causation and Remoteness of
Damage, Personal injuries
Damage to property,
Economic loss
Occupier liability

12

13

Review of task 3
Liability
Employers liability
Vicarious liability
Health and safety issues
Negligence
Application of the legal
principles

14

Vicarious liability
Assessment

15

Review of task 4
Revision

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and show how it is different from a contract, explain the three

elements of tort, define negligence and explain the three
conditions necessary for an action in negligence to succeed.Be
able to explain the meaning of duty of care, recent developments
in the duty of care, and the limitations to the duty of care.
After completing this session the learner will be able to explain
the circumstances in which breach of duty of care may occur

Case study, question and

answer

After completing this session the learner will be able to

Reading listen and ask

questions, homework

distinguish between causation in fact and remoteness of damage

Listen and ask questions

Reading listen and ask
questions, homework

White board,
Module booklet

Power points
White board, flipchart
Module booklet
Power points
White board, mo

Review of task LO3.1, 3.2 and 3.3

After completing this session the learner will be able to
understand how a business can be vicariously liable. Explain the
liability arising from failure to comply with health and safety at
work
After completing this session the learner will be able to apply the
relevant principles of negligence and relevant statutory and case
law to business scenarios given in class and the defenses to an
action of negligence
After completing this session the learner will be able to apply the
elements of vicarious liability in given business scenarios.
Review of task LO4.1, and 4.2
After completing this session the learner will be able to Work on
assignment addressing LO1, LO2, LO3 and LO4

Reading, listening and

asking questions, case
study
Case study, Group
discussion group
presentations, home
work
Case study, Group
discussion group
presentations, home
work
Group discussion
Question and answer

Power points
White board, flipchart
Module booklet
Power points
White board,
Module booklet
Power point
White board
Use of internet
Power points
White board,
Module booklet

16

Assignment support and

guidance

Learners will be able to get assignment support and guidance

17

Assignment support and

guidance

Learners will be able to getassignment support and guidance

18

Assignment support and

guidance
Feedback and assessment
Feedback and assessment
Feedback and assessment

Learners will be able to getassignment support and guidance

19
20
21

Practical group
discussion, questions
and answer
Practical group
discussion, questions
and answer
Discussion, questions
and answer

Learners will be able to getfeedback

Learners will be able to getfeedback
Learners will be able to getfeedback

Recommended text and links

Learners should use the latest edition if available.
Textbooks
Adams A , (2010), Law For Business Students, 6th edition, Pearson Education Ltd, ISBN9781408278802
Elliot C and Quinn F (2009), Tort Law, Longman, ISBN: 9781405899338
Horsey K and Rackley E (2009),Tort Law, OUP Oxford, ISBN: 9780199216376
Maclntyre E, (2011), Essentials of business law, 3rd Edition, Pearson Education Ltd ISBN 9781408278765
McKendrick, E,(2008),Contract Law: Text, Cases, & Materials: Text, Cases, andMaterials (OUP Oxford, ISBN: 9780199208012
Peel E and Treitel G H (2007),Treitel on the Law of Contract, Sweet and MaxwellISBN: 9780421948402
Riches S and Allen V (2011), Keenan and Riches Business Law, 10th Edition, Pearson Education Ltd, ISBN 9781408278839

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White board, Internet

Module booklet

Journals
Law Society Gazette (The Law Society)
New Law Journal (LexisNexis Butterworths)

Websites
http://www.e-lawresources.co.uk/

Providing resources for studying law

www.bailii.org/

British and Irish Legal InformationInstitute Access to freely availableBritish and Irish public legal information

http://www.oft.gov.uk/

The Office of Fair Trading

http://iclr.co.uk/

The Incorporated Council of LawReporting for England and Wales

http://www.tradingstandards.gov.uk/

Main site for trading standards andits business advice

http://www.bis.gov.uk/policies/consumer-issues

Department for Business Innovationand Skills - Links and data on

consumer protection

http://www.bis.gov.uk/policies/consumer-issues/buying-and-selling

Department for Business Innovationand Skills - Links and data on

consumer protection

www.hmso.gov.uk/acts/acts2001.htm

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Public Acts of the UK Parliament

Assessment:
The module will be assessed meeting all the LO as specified by the awarding body, Edexcel.
Please read the instructions carefully while addressing the tasks specified.
Contribution: 100% of the module
Outline Details: Individual report approx 4500 words. Details enclosed in the assignment brief.
Teaching and Learning Activities
The module tutor(s) will aim to combine lectures with tutorial activities. This environment will provide opportunities for the student to
understand the course material through case study and text and to apply it in a practical way. The intent is to facilitate interactive class activities,
and discussion about the significant role of research in a global and local business environment.
2.3

Teaching Ethos

The colleges approach towards teaching and learning is simple and effective. The main aim of UKCBC is to assist learners in maximising their
potential by ensuring that they are taught clearly and effectively. This will enable students to engage in the learning environment and promote
success in both their academic studies and subsequent career.

2.3.1 Methods of Delivery:

LECTURES:
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These will be developed around the key concepts as mentioned in the indicative course content and will use a range of live examples and cases
from business practice to demonstrate the application of theoretical concepts. This method is primarily used to identify and explain key aspects
of the subject so that learners can utilise their private study time more effectively.
SEMINARS:
These are in addition to the lectures. The seminars are designed to give learners the opportunity to test their understanding of the material
covered in the lectures and private study with the help of reference books. This methodology usually carries a set of questions identified in
advance. Seminars are interactive sessions led by the learners. This method of study gives the learner an excellent opportunity to clarify any
points of difficulty with the tutor and simultaneously develop their oral communication skills.
CASE STUDIES:
An important learning methodology is the extensive use of case studies. They enable learners to apply the concepts that they learn in their
subjects. The learners have to study the case, analyse the facts presented and arrive at conclusions and recommendations. This assists in the
assessment of the learners ability to apply to the real world the tools and techniques of analysis which they have learnt. The case study serves as
a supplement to the theoretical knowledge imparted through the course work.
Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies regulations. In this context the definition and
scope of plagiarism are presented below:
Plagiarism is presenting someones work as your won. It includes copying information directly from the web or books without referencing the
material; submitting joint coursework as an individual effort; copying another students coursework; stealing coursework form another student
and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the
college procedure. (For further details please refer to the plagiarism policy and the student code of conduct .)

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ASSESSEMENT and ASSIGNMENT BRIEF

Unit 5 : Aspects of Contract and Negligence for BusinessUNIT CODE: Y/601/0563
Learning Hours: 63 Hours.
Self-learning hours: 87 hours.
Course: HND Business Level 4
Credits: 15
Term:
Lecturer: Mr. Daniel Oluwatayo
Verifier: Mrs Sunita Kotta
Learners Name
Registration Number
Learners Declaration: I certify that the work submitted for this unit is my own:
Signed:
Hand out Date: 28/05/2014
Submission Date:
The Following Sections to be completed by the assessor:
Center Name:
UKCBC
Center Number:
Please note that the assessors signature below denotes conformation that he/she has in no way
influenced the outcome of the assessment:
Assessors Name:
Assessors Signature:
Has the unit been Internally Verified?
Date of verification:
Internal verifiers signature:
Internal verifiers assignment brief:
Due Dates
Issue Date
Due Task- 1
Due Task- 2
Due Task- 3
Due Task 4

Deadline for JAN 2014 intake

where E-learning will be blocked

Y/N

Thursday 18th
December 2014

10/07/2014
06/08/2014
28/08/2014
17/09/2014

14

Unit 5: Aspects of Contract and Negligence for Business

Learning Outcomes
Outcome

Evidence for the criteria

to pass.

Feedback

Assessors

Internal

decision

verification.

TASK 1: Students are required to demonstrate their knowledge and understanding about
essential elements of a valid contract, the impact of various forms of contract, and to
analyse various terms. You are required to carry out a research by using supportive
materials like Statutes, Decided Cases, books, journals, websites, etc., and give a
feedback of the findings on P1.1, P1.2 and P1.3. Answers without application to an
organization or appropriate examples will be referred.
P1.1 explain the
P1.1
P1.1
P1.Understandi importance of the
(P,M,D)
(P,M,D
ng the
)
essential elements
essential
required for the
elements of a
formation of a valid
valid
contract
contract in a
business
P1.2
P1.2
P1.2- discuss the
context
(P,M,D)
(P,M,D
impact of different
)
types contract
P1.3- analyse terms in
contract with
reference to their

P1.3
(P,M,D)

P1.3
(P,M,D
)

meaning and effect

Summarized
Feedback for
Task 1
(reflecting 1.1,
1.2 and 1.3, Pass
merit and
distinction.)
IV comments
towards
Task 1

TASKS 2, Students are required to apply their skills and learning of essential elements
and terms of a business contract to business scenario given in the assignment and a
standard form contract from an organisation of their choice. You are required to apply the
law with the materials like Statutes, Decided Cases, books, journals, websites, etc in your
15

arguments. Students skills and learning will be assessed against the learning outcomes
labelled as P2.1, P2.2 and P2.3. Answers without application to business scenarios given
in the assignment, standard form contract from a specific organisationand/or appropriate
examples based on decided cases will be referred. Please select two scenarios.
P2.1- apply the elements
P2.1
P2.1
(P,M,D)
(P,M,
of contract in a given
P2. Be able to
D)
business scenarios1, 2,
apply the
and 3
elements of a
P2.2
P2.2
P 2.2 apply the law on
contract in
(P,M,D)
(P,M,
terms in different
business
D)
contracts using a contract
situations
of your choice.
P 2 .3 evaluate the effect
of different terms in

P2.3
(P,M,D)

given contracts using

P2.3
(P,M,
D)

business scenario 4
Summarized
Feedback for
Task 2
(reflecting
2.1, 2.2 and
2.3, Pass
merit and
distinction.)
IV
comments
towards
Task 2
Task 3Students are required to demonstrate knowledge and understanding of the
principles of negligence in business activities and present their answer in form of an
essay. You are required to carry out research using law materials like Statutes, Decided
Cases, books, journals, websites, etc in your argument and give feedback to P3.1, P3.2 and
P3.3.Answers without application to an organisation and appropriate examples from
decided cases and statutes will referred.
P3.
Understand
Principles of

P3.1 contrast liability in

tort with contractual

P3.1
(P,M,D)

P3.1
(P,M,D)

liability

16

liability in

P3.2 explain the nature of

negligence in liability in negligence

business
activities

P3.3 explain how a

business can be

P3.2
(P,M,D)

P3.2
(P,M,D)

P3.3
(P,M,D)

P3.3
(P,M,D)

vicariously liable
Summarized
Feedback for
Task 3
(reflecting
3.1, 3.2 and
3.3, Pass
merit and
distinction.)
IV
comments
towards
Task 2
TASK 4Students are required to apply principles of liability in negligence in business
situations and submit a report. Students need to apply the elements of the tort of
negligence and defences and vicarious liability to the business scenarios given in the
assignment. In their report students are required to answer P4.1 and P4.2. Answers
without use of the business scenarios given in the assignment and appropriate examples
from decided cases and statutes will be referred.
Be able to
P4.1
P4.1
P4.1 apply the elements
(P,M,D)
(P,M,D)
apply
of the tort of negligence
principles of

and defences in different

liability in

business situations using

negligence in business scenarios 5 and

businesssitu 6
ations

P 4.2 apply the elements

of vicarious liability in

P4.2
(P,M,D)

P4.2
(P,M,D)

given business situations

using business scenarios
7 and 8.

17

Summarized
Feedback for
Task 4
(reflecting
4.1, and 4.2,
Pass merit
and
distinction.)
IV
comments
towards
Task 4
Merit grades
awarded

M1

Distinction

M2
D1

M3
D2

P1
D3

P2

P3

P4

Resubmit :

grades awarded
Any other comments
Grade given by the tutor:
Pass

Merit

Tutors Signature:

Distinction
Date:

IV Grading Check:

Comments if any:

Agree
Disagree

Modify grade to

IV signature:
Date:
Students feedback:
Student Signature:

Date:

Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies regulations.
In this context the definition and scope of plagiarism are presented below:
Plagiarism is presenting someones work as your won. It includes copying information directly from the web
or books without referencing the material; submitting joint coursework as an individual effort; copying
another students coursework; stealing coursework form another student and submitting it as your own work.
Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the
college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)

18

ASSIGNMENT
Unit 5: Aspects of Contract and Negligence for Business QCF Level: 4

Credit value: 15

TASK 1:
Students are required to demonstrate their knowledge and understanding about essential
elements of a valid contract, the impact of various forms of contract, and to analyse various
terms. You are required to carry out a research by using supportive materials like Statutes,
Decided Cases, books, journals, websites, etc., and give a feedback of the findings on P1.1,
P1.2 and P1.3. Your answer should be in essay form. Answers without application to an
organization or appropriate examples will be referred.
Due date is 10/07/2014
P1 Understand the essential elements of a valid contract in a business context:
P1.1 explain the importance of the essential elements required for the formation of a valid
contract
(Explanation should be supported with an example from business practices of daily life for each
and every element)
P1.2- discuss the impact of different types contract
(Such as face to face, written, by conduct, distance selling etc. and its impact)
P1.3- analyse terms in contract with reference to their meaning and effect
(Content of the agreement, Express term, implied term and relative importance of contractual
terms)
TASK 2
P2. Be able to apply the elements of a contract in business situations
P2.1 Apply the elements of contract in given business scenarios .
Students are required to apply their skills and learning of essential elements and terms of a
business contract to business scenarios 1, 2 and 3 given below. You are required to apply the
law with the materials like Statutes, Decided Cases, books, journals, websites, etc in your
arguments.
Answers without application to business scenarios given below and/or appropriate examples
based on decided cases will be referred. Please select two scenarios.
Due date is 06/08/2014
Business Scenario 1
Miss Kaur, a keen Fine Watches, Pens and Luxury Accessories collector, saw a notice for an
auction of Montblanc, Catherine the Great, Limited Edition Patron of the Art's Series fountain
pen in the July edition of Antiques News. She travelled 264 kilometres from London to attend the
19

auction in Manchester in order to bid for a particularly Limited Edition Patron of the Art's Series
fountain pen which was specifically mentioned in the lists of items to be auctioned.
The auction was to last two days. However, on the second day the lot for luxury pens was
cancelled. Miss Kaur went into a nearby antique shop and saw a similar type of fountain pen she
had come to bid for. The price ticket stated that it was 1,050, but Kaur said she was only willing
to pay 800 for it. The shop assistant, Harry said he would sell it for 950 and Miss Kaur said she
would like time to think about it over lunch, Harry agreed not to sell it before Kaur returned.
After Lunch Miss Kaur came back to buy the fountain pen, she found that Harry had already
sold it to another customer, who had paid 1000 for the fountain pen.
In the context of contract law, advise Miss Kaur whether she can take action against the
auctioneer for the expense of her travel to the auction and Harry for not selling the fountain pen
to her.
Business Scenario 2
In September 2011 Charles bought a grade 1 listed building which was in a dilapidated state from
an auction with the intention of converting it into a guest house. The building is located in a busy
tourist area and the busy tourist season begins in April and ends in October. Charles entered
into a contract with Murphy in October 2011 to do all the necessary renovations for a fixed price
of 50,000. Murphy received initial payments of 20,000 and agreed to have the work completed
on 1 March 2012, as the guest house had to be ready for its opening on 1 April.
At the end of January, Murphy wrote to Charles that he would not complete the renovation in
time unless he agreed to increase his payment by a further 10,000. After a bitter argument
Charles reluctantly agreed to pay the increased sum in order to ensure that the job was done on
time.
After completing the work on time Charles refused to make the additional payments to Murphy
outside the original contractual price.
You are required to advise Murphy whether he has any rights in law to enforce Charless
promise to pay the extra 10,000.
Business scenario 3
In January 2009, Mia started a business as a self employed builder.
To give him a start in his career, his brother Hakim, who ran a retail estate agency business, said
he would give him 2,000 if he repairs the bathroom and a roof in one his properties. At the same
time, his friend Jane asked him to do work for her business for a fixed price of 1,000.

20

However, after completing the two projects Hakim and Jane have failed to pay for the work they
had commissioned.
Hakim said he would not pay anything as he had only offered the work to help his brother out to
gain more experience. Jane said she would not pay anything either, on the basis that she had only
given her work to do on the basis of their friendship to help him gain more experience.
You are required to advise Mia whether he can demand Hakim and Jane to pay the full amounts
of their initial promises.
P2.2 Apply the law on terms in different contracts
Students are required to review contents of a standard form contract from an organisation of
their choice and apply express terms, implied terms and the legality of the exclusion clauses.
Your answer need to be supported with relevant statutes and case laws.You need to select three to
five sections as supporting evidence. Answers without application to standard form contract of a
specificorganisation and appropriate examples based on decided cases and statutes will be
marked as fail.
P2.3 Evaluate the effect of different terms in given contracts using business scenario 4given below
Business scenario 4
In March X engaged Miss Y for 3 years as his research assistant at a salary of 25000 under a
written agreement which included the following clauses:
6- The research assistant will dress smartly at all times. It is understood that trousers are
not an acceptable form of dress under any circumstances.
7- The research assistant will work whatever hours are necessary to complete the
assignments given to her.
On 1st June X asked Y to produce certain statistics for a meeting with an important client at 9 am
on 2nd June. In spite of staying in the office until midnight, Y was not able to complete the
statistics on 1st June. She returned to the office at 7 am on 2nd June but had still not quite finished
the work when X arrived at 8:30.
X was angry. He then noticed that Y was wearing trousers and told her, in front of several
colleagues, that her contract was terminated. Y was extremely upset and humiliated. She is now
receiving medical treatment for depression.
TASK 3
Students are required to demonstrate knowledge and understanding of the principles of
negligence in business activities and present their answer in form of an essay. You are required to
carry out research using law materials like Statutes, Decided Cases, books, journals, websites, etc
in your argument and give feedback to P3.1, P3.2 and P3.3. Answers without application to an
organisation and appropriate examples from decided cases and statutes will be marked as fail.
Due date is 28/08/2014
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P3. Understanding the principles of liability in negligence in business activities

P3.1 Contrast liability in tort with contractual liability
P3.2 Explain the nature of liability in negligence
P3.3 Explain how a business can be vicariously liable
TASK 4:
Students are required to apply principles of liability of negligence to business situations
based on the four business scenarios given below and submit a report. In their report
students are required to answer P4.1 and P4.2. Answers without application to the business
scenarios or appropriate use of examples from decided cases and statutes will be referred.
Due date is 17/09/2014
P4. Be able to apply principles of liability in negligence in business situations
P4.1 Apply the elements of the tort of negligence and defences in different business situations
using the scenarios 5 and 6 given below.
Business Scenario 5
A UK ship was taking on oil in Sydney harbour. Oil was spilled onto the water and it drifted to a
wharf 200 yards away where welding equipment was in use. The owner of the wharf carried on
working because he was advised that sparks were unlikely to set fire to furnace oil. Safety
precautions were taken. A spark fell onto a piece of cotton waste floating in the oil, thereby
starting a fire which damaged the wharf. Advise the owners of the wharf if they can sue the
chatterers of the ship.
Business Scenario 6
Bell was employed by Shell on vehicle maintenance. Bell had already lost the sight of one eye. It
was not a normal practice to issue protective goggles since the risk of eye injury was small. A
chip of metal flew into Bells good eye and blinded him.
P4.2 Apply the elements of vicarious liability in given business situations given in the business
scenarios 7 and 8 below.
Business scenario 7
Alf is employed by Safe Care Homes ltd a company which runs care homes for vulnerable
children in London. Alf is a warden of a care home and has been accused of sexually abusing
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boys under his care. The parents and guardian of the children are angry andare suing Safe Care
Homes ltd for being vicariously liable as Alf is an employee of the company. You have been
contacted by Safe Care Homes ltd for advice as to whether the company may be vicariously liable
for the torts of Alf.
Business scenario 8
Amos Bridge is a pump attendant employed by AB and Sons garage ltd. While on duty on Friday
he challenged a customer Mr Alex Khan believing that he wanted to drive off without paying for
the diesel. After a heated argument Mr Khan accused Mr Bridge of disrespect and threatened to
report him to his manager. In response the attendant hit him on the chin. Mr Khan has taken the
case to court suing both the employee and his employer.
You have been approached by the manager for AB and Sons Garage ltd for advice as to whether
the company is vicariously liable for the torts of Mr Bridge.

Assignment Guidelines:
Use a standard report structure, Word-process the report and use Normal script of a proper font
size 12.
Produce an academic report, detailing the above issues with a word limit of 4000 to 4500 words.
Complete the title page and sign the statement of authenticity.
The Assignment sheet should be attached in the front.
Submit the document in a folder in the form of a file as well as a soft copy on the submission date.
It should be uploaded on E-Learning platform before the deadline and submitted to -------- and
sign the submission form of the college.
Assignments submitted after the deadline will not be accepted unless mitigating and may be
entitled for a late fee.
Collusion and Plagiarism must be avoided.
Start each answer on a new page and pages should be numbered. Highlight each question clearly.
Include a Bibliography at the end of the assignment and use the Harvard referencing system.
All work should be comprehensively referenced and all sources must be fully acknowledged, such
as books and journals, websites (include the date of visit), etc.
Try to give the page numbers, publishers' details and the year of publication
In order to pass you need to address all the LO
In order to get a merit you need to address the characteristics of Pass and then M1, M2,M3
In order to get a Distinction you need to address the characteristics of Pass, Merit and then D1, D2
and D3.
Use a common format for the questions, for example:
Introduction (analyze the question.)
Underpinning Knowledge (write about the relevant theory/points)
Applied knowledge(Data Analysis)
Conclusions and Recommendations (summarizing the whole scenario keeping in view pass, merit,
distinction criteria.)

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Student feedback form with the Assessment Grid indicating their pass, merit and distinction:
Name:

Registration Number:

Unit: 5: Aspects of Contract and Negligence for Business

Outcomes/criteria:

Indicative characteristics

Possible evidence

P1. Understand the essential

As per the assessment criteria

Task 1

elements of a valid contract

specified for pass

Feedback

in a business context

P2.

Be able to apply the

elements of a contract in

Task 2
Do

business situations

P3 Understanding the

Do

principles of liability in

Task 3

negligence in business
activities

P4. Be able to apply

Do

principles of liability in

Task 4

negligence in business
situations
Merit Description:
M. Identify and apply strategies

. Relevant theories and

to find appropriate solutions.

techniques have been applied.

. Effective judgments have been
made.
. Complex problems with more
than one variable have been
explored.
. An effective approach to study
and research has been used.

M2. Select/ design and apply

. A range of methods and

appropriate methods/

techniques has been applied.

techniques.

. A range of sources of
information used.

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. The selection of methods and

techniques justified.
. Complex information/data
have been synthesized and
processed.
.Appropriate learning methods/
techniques applied.
. Appropriate structure and
M3. Present and communicate
appropriate findings.

approach has been used.

. Logical and coherent arguments
have been presented
. Technical language accurately
used.
. A range of methods of
presentation has been used.
. Familiar and unfamiliar
contexts have been used.
. It is appropriate for familiar and
unfamiliar audiences.

Distinction Description:
D1. Use critical reflection to

. Synthesis has been used to

evaluate own work and justify

generate and justify valid

valid conclusion.

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.

D2. Take responsibility for

Autonomy/independence

managing and organizing

demonstrated

activities.

Substantial activities/projects or
investigations have been
planned, managed and
organized.

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The unforeseen has been

accommodated.
The importance of
interdependence has been
recognized.
D3. Demonstrate convergent,

Ideas generate and decisions

lateral and creative thinking

taken
Convergent and lateral thinking
have been applied
Capacity for innovation and
creative thought has been used.
Receptiveness to new ideas has
demonstrated.
Unfamiliar contexts have been
applied.

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