Unit 21 Assignment 1 Guidance

P1 Identify the legal criteria for offer and acceptance in a valid contract.

P2 Explain the law in relation to the formation of a contract in a given situation

P3 Describe the law with respect to misrepresentation in a given situation

M1 Analyse the impact of the requirements for a valid contract in a given situation.

Describe- Give a clear, straightforward description that includes all the main points and link these together
logically.

Identify- Distinguish and state the main features or basic facts relating to a topic.

Explain - Set out in detail the meaning of something, with reasons. It is often helpful to give an example of
what you mean. Start with the topic then give the how or why.

Analyse- Identify separate factors, say how they relate to each other and how each one relates to the topic.

Please follow the layout in your assignment

General Introduction

Main body
Specific

Conclusion

General

(Any assignment submitted without referencing will be returned!!)

To do this assignment, you must read the Prospective Case - Marcus Hardy VS Vodafone 2020 in
assignment 1 brief on the VLE in order to inform Marcus Hardy whether or not he would be able to
take legal action. (The information will be required to apply to the tasks to achieve the relevant
assessment criteria)

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Assignment Task

In Microsoft word, prepare a report that identifies and explains when (and therefore how) the
contract chosen would come into existence.

P1- Identify the legal criteria for offer an acceptance in a valid contract

 Introduction – inform what the task is about

 Contract
o Define what a contract is
o Explain how contracts are formed:
 different kinds of contracts - verbal and written (give example for both
kinds); what are some benefits of written contracts?
 what is a standard form contract? Why do businesses benefit from using
standard form contracts?

 Describe the FOUR elements of a valid contract.

o 1. Offer
 Define offer, offeree, offeror
 What is invitation to treat?
 What is counter-offer?
 Distinguish between offer and counter-offer. (Give an example from a legal
case)
 (It is recommended that you use the case - Stevenson Jacques & Co.
v McLean (1880) at the end of this guidance in your example)

 Distinguish between invitation to treat and offer (Give an example from a

legal case)
 (It is recommended that you use the case - Carlill v Carbolic Smoke
Ball Company (1892) at the end of this guidance in your example)

 Distinguish between Communication of an offers and reward cases (Give

examples).

o 2. Acceptance
 Define acceptance
 Explain rules of acceptance
 Explain postal rule
 Describe battle of forms (give an example)

 3. Consideration
o Define consideration
o Explain executed consideration and executory consideration (give examples)
o Differentiate between the promise and the promiser

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 o What is privity of contract?
o Describe Rights of Third Parties Act 1999

 4. Capacity
o Explain what is meant by capacity
o What is the rule in regards to minors? (give an example of how this might occur
in a contract)
o What is the rule in regards to incapacitated person? (give an example of how
this might occur in a contract)

 Conclusion - summarise what the task was about

 Reference – Provide a reference list using Harvard Referencing Style

Cases to support P1

1. Distinguish between offer and counter-offer in the case ‘Stevenson v Jacques & con. V
McLean (1880)’.

Stevenson Jacques & Co. v McLean (1880)

An offer was made to sell a quantity of iron by Mr. McLean. The offer was accepted by Mr. Stevenson, but he wanted to
know if delivery of the iron could be done in stages as he was unable to accept all of the iron at once. Mr. Stevenson,
having heard nothing, then sent a formal letter of acceptance. Mr. McLean, however, based on the enquiry about
delivery methods, believed that the contract was ended and had sold the iron to a third party.

Mr Stevenson successfully sued for breach of contract.

The defendant’s argument that there had been a counter-offer failed. The Court held that the enquiry was not a
counter-offer.

2. Distinguish between invitation to treat and offer - Carlill v Carbolic Smoke Ball Company
(1892)

Carlill v Carbolic Smoke Ball Company (1892)

The Carbolic Smoke Ball Company placed advertisements in various newspapers advertising the new flu remedy. The
advertisement stated that it would pay £100 to any person who used their smoke balls for 14 days and still caught flu.
Mrs Carlill used the remedy but unfortunately still caught the flu and made a claim against the company for the money.

The Smoke Ball Company refused to pay the money, so she took legal action to recover the money. Amongst many
arguments put forward by the company was that the advertisement was an attempt to make an offer to the whole
world which meant communication of it was impossible. Finding in favour of Mrs Carlill, the Court of Appeal stated that
the company had made an offer to the whole world which was capable of being accepted by anyone coming forward to
perform the required conditions of the offer.

P2 Explain the law in relation to the formation of a contract in a given situation.

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You have to apply all the areas of the law that you have discussed in P1 and relate them to the
scenario in the assignment brief.
Show that you are able to explain the law in your own words and reference your work.
You must not present your work in bullet point format.

Your report will now require an analysis of the law relating to invitations to treat, which party
makes the offer, any counter-offers, acceptance and consideration and the application of these
principles to the contract in question.

Task

In reference to the information covered in the law in P1, explain when (and therefore how) the
contract in the scenario Prospective Case - Marcus Hardy VS Vodafone 2020 would come into
existence. Write from the perspective of a lawyer advising a client of their rights.

 Introduction – inform what the task is about

1. An offer (Explain the law’s perspective on whether there was an offer (justify with quotes
from the contract to imply whether or not the same was legal).

2. An invitation to treat (Explain the law’s perspective on whether there was an invitation to
treat (justify with quotes from the contract to imply whether or not the same was legal).

3. An acceptance (Explain the law’s perspective on whether there was an acceptance (justify
with quotes from the contract to imply whether or not the same was legal).

4. Battle of Form (Explain the law’s perspective on whether the battle of form was presented
(justify with quotes from the contract to imply whether or not the same would be legal).

5. Counter-offer Explain the law’s perspective on whether there was a counter-offer (justify
with quotes from the contract to imply whether or not the same would be legal).

6. A standard form contract (Explain the law’s perspective on whether a standard form of
contract was presented to Marcus Hardy (justify with quotes from the contract to imply
whether or not the same was appropriate) (How would Vodafone benefit from using a
standard form of contract? Why should Marcus take care when agreeing to a standard form
contract?).

7. Capacity (Explain the law’s perspective on whether or not Marcus had legal capacity (justify
with quotes from the contract) (Was Vodafone’s action appropriate?).

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 8. Consideration (Explain the law’s perspective on whether or not there was a degree of value
attached on the contract (justify with quotes from the contract to imply whether or not the
same was suitable).

9. Privity of contract (Explain the law’s perspective on whether there was privity of contract
(justify with quotes from the contract to imply whether or not the same was legal).

10. The need for the Third-Party Act (Explain the law’s perspective on whether there was an
accommodation given to the rights of third parties (justify with quotes from the contract to
imply whether or not the same was appropriate)

 Conclusion – provide a summary to Marcus what his best option would be as a customer of
Vodafone.

 Reference – Provide a reference list using Harvard Referencing Style

P3 Describe the law with respect to misrepresentation in a given situation

Task

In the report, you are required to show an application of the law on misrepresentation to a
given situation in relation to the formation of contract so that the types of
misrepresentation can be explored in the context of an everyday contract.

 Introduction – inform what the task is about

 Describe and explain the 4 factors that could invalidate a contract

o Misrepresentation
 Explain the Misrepresentation Act (1967)

 Explain all three different types of misrepresentation.

 Discuss the possible examples of the types of misrepresentation in Marcus’

and Vodaphone’s contract.
 Explain the impact such misrepresentation will have on both parties’
position in the intended contract.
(You can also choose additional contracts to explain how the
misrepresentation will affect the contracts).

 What are the remedies for injured party in each different kind of
misrepresentation?

o Mistake (give brief explanation of the terminology with an example of the same
occurring in a contract)
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 o Duress give brief explanation of the terminology with an example of the same
occurring in a contract)

o Undue Influence give brief explanation of the terminology with an example of the
same occurring in a contract)

 Conclusion

 Reference – Provide a reference list using Harvard Referencing Style

M1 Analyse the impact of the requirements for a valid contract in a given situation.

Task

Prepare an article analysing the impact of the requirements for a valid contract in a given situation

 Introduction – inform what the task is about

 Assess the strengths and weaknesses of the formation of the contract between Marcus and
Vodafone

o Analyse how the contract demonstrates strengths & weaknesses through the
requirements (offer, acceptance, consideration and capacity) for a valid contract
(in accordance to the Law).

o Include relevant problems such as:

 what is good or weak about the offer?

 the implications (consequences) of pricing through the invitation to

treat (what would be the positive/negative outcomes to both parties)

 clarity of communication (Was the communication clear between both

parties? What was the outcomes of the communication – was it
positive/negative for both parties?

 capacity for acceptance (Was capacity a factor? Why/why not? Was this
a problem for any of the parties?

 Likelihood of counter-offers and their effect (Would the outcome be

positive/negative for Marcus and Vodafone – explain why?)

o Discuss solution to the problems experienced through the contract

(cover all areas above)

o Apply the principles of consideration (strengths & weaknesses) and the

impact on both parties (advantages & disadvantages)
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 o Show how the theoretical problems seen in the contract can be used to
analyse the formation of a real contract (similarities/differences)

 Conclusion – summarise what the section was about

 Reference – Provide a reference list using Harvard Referencing Style