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BANKING ACADEMY, HANOI

BTEC HND IN BUSINESS (FINANCE)

ASSIGNMENT COVER SHEET

NAME OF STUDENT

REGISTRATION NO.

UNIT TITLE Unit 5: Common Law 1

ASSIGNMENT TITLE Business Contract

ASSIGNMENT NO 1 of 2

NAME OF ASSESSOR Ms. Doti Chee

SUBMISSION DEADLINE 19th April 2011

I, __________________________ hereby confirm that this assignment is my own work and notcopied or plagiarized from any source. I have referenced the sources from which information isobtained by me for this assignment.

________________________________ _________________________

Signature Date

----------------------------------------------------------------------------------------------------------------

FOR OFFICIAL USE (Course Administrator)Assignment Received By: Date:

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Unit Outcomes

Outcome Evidence forthe criteria

FeedbackAssessors

decisionInternal

Verification

Understandthe essentialelements ofa valid and

legallybinding

contract andits role in abusinesscontext

(1)

Explain the

different types ofbusiness

agreement andthe importance ofthe key elementsrequired for theformation of avalid contract

a

Apply the rules ofoffer and

acceptance in agiven scenario,also considering

any impact of new

technology

b

Assess theimportance of therules of intentionand considerationof the parties tothe agreement

c

Explain theimportance of thecontracting parties

having theappropriate legalcapacity to enter

into a bindingagreement

d

Explore thesignificance

ofspecific

terms in abusinesscontract

(2)

Analyse specificcontract terms

with reference totheir importance

and impact ifthese terms are

broken

a

Apply and analyse

the law onstandard form

contracts

b

Discuss the effectof exemption

clauses inattempting to

excludecontractual liability

c

Merit grades awarded M1 M2 M3

Distinction grades awarded D1 D2 D3

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Outcome Evidence forthe criteria

FeedbackAssessors

decisionInternal

Verification

Comments by Assessor - Common Skills

A B C D E F G

Assignment( ) Well-structured; Reference is done properly / should be done (if any)

Overall, youve

Areas for improvement:

ASSESSOR SIGNATURE DATE / /

NAME:..........................................................................................

(Oral feedback was also provided)

STUDENT SIGNATURE DATE / /

NAME : .............................................................................

FOR INTERNAL USE ONLYVERIFIED YES NO

DATE : ...........................................................................

VERIFIED BY : ...........................................................................

NAME : ...........................................................................

COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X)

A. MANAGING & DEVELOPING SELF D. MANAGING TASKS & SOLVING PROBLEMS

1. Managing own roles & responsibilities 12. Use information sources X2. Manage own time in achieving objectives 13. Deal with a combination of routine & non-routine tasks

3. Undertakes personal and career development 14. Identify & solve routine & non-routine problems

4. Transfer skills gained to new/changing situations & contexts

B. WORKING WITH & RELATING TO OTHERS E. APPLYING NUMERACY

5. Treat others beliefs and opinions with respect 15. Applying numerical skills and techniques

6. Relate & interact effectively with individuals & groups

7. Work effectively as a team member F. APPLYING TECHNOLOGY

C. COMMUNICATING 16. Use a range of technological equipment and systems

8. Receive and respond to a variety of information G. APPLYING DESIGN AND CREATIVITY

9. Present information in a variety of visual forms 17. Applying a range of skills and techniques to develop a

variety of ideas in the creation of new / modified products,services or situations10. Communicate in writing X

11. Participate in oral & no-verbal communication 18. Use a range of thought processes

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SCENARIO

You are employed as a legal executive in a firm of solicitors. A client (Mr. Winslow)has come and seeking advice on several claims and legal issues, which haverecently arisen. You are required to write a legal report for the following claims:

Tasks

Explain the different types of business agreement and the importance of the keyelements required for the formation of a valid contract. (1 a)

Claim 1M5, a Singapore listed company selling handphones and accessories in Hanoi, hadestablished its own website to offer for sale various products over the Internet. Oneof the products offered was Apple iphone 4, 16gb international model, whichnormally retailed at $1,180. However, due to an error committed by an employee ofM5, the price of the handphone was altered to $588 on the website. Winslow was the

owner of a shop that sold handphones, including a few sets of the said Appleiphones. He came to know of the handphones extraordinarily low price offered byM5 and placed orders through the Internet for 1,000 sets of the handphone. Thetransaction online took place in the following manner: every time an order wasplaced by a buyer after filling up the requisite form, which included the furnishing of avalid credit card account, it would be followed by an automated reply from M5 thatthe transaction was successful.

Charlene, a university student, had always wanted to buy herself a handphone. Shesaw M5s website and thought that the price of $588 was very reasonable. She alsoplaced an order for one set of the handphone through the same manner asdescribed above.

M5 subsequently discovered the error and refused to honour the orders.

You are required to analyse the scenario from the perspective of the law ofcontract. Apply the rules of offer and acceptance in a given scenario, alsoconsidering any impact of new technology (1 b)

Hints: Explain whether the mode of the online transaction described in the case

constitutes a valid contract between the parties; State whether M5 can successfully defend its case against: (i) Winslow; (ii)Charlene;

Suggest a way by which M5 can structure the mode of its online transaction toprevent a similar incident from happening again in the future.

Claim 2

Mr. Winslow bought a freehold house under his name with considerable sum onmortgage with a bank. Unfortunately in early 2007, Mr. Winslow formed anattachment for another woman. He said to Mrs. Winslow that he would make her a

monthly payment of 200 and she would have to make the 500 outstanding to thebank. Before leaving, he wrote these words on a piece of paper.

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In consideration of the fact that you will pay all charges in connectionwith the house at 34 Low Road, Sunderland, until such time as themortgage repayment has been completed, when the mortgage has beencompleted I will agree to transfer the property in to your sole ownership.

Signed. Winslow 1stNov 2008

Mrs. Winslow did, in fact, over the ensuing months pay off the balance of themortgage. When the mortgage had been paid off, Mr. Winslow refused to transferthe house into her sole ownership.

To keep up her monthly payment to the bank, Mrs. Winslow rented out a room toCoco. Coco has agreed to a rent of 150 per calendar month. After moving into theroom, she installed new air con and changed the wardrobe at a cost of 2000. Mrs.Winslow was so pleased with the work that had been carried out that she promisedto reduce her rent by 50 per month.

Mrs. Winslow is now refusing to reduce the rent; in fact it is seeking to increase it to

200 per month. Advise Coco.

Assess the importance of the rules of intention and consideration of the parties tothe agreement (1 c)

Claim 3Benny is 17 years old (son of Mr. Winslow) and entered the William Hill Betting PLCand placed a bet on the 6.30 pm race at Newbury Race Course. While he waswaiting for the race to finish, he read in the paper that Angel Biotechnology Holdingswas doing well so he contacted a stockbroker and purchased 10,000 shares in thatcompany. Later, and before the race had finished, he agreed to sell a faked goldchain to Thomas. The horse won the race, the stock which he purchased increasedin value and he made a good profit on the gold chain. He asked each party for hismoney and none of them were prepared to pay him. Advise Benny and Winslow.

Explain the importance of the contracting parties having the appropriate legalcapacity to enter into a binding agreement (1 d)

Claim 4

Winslow, an owner of few restaurants usually contracts Cindy to decorate hisrestaurants. He contracted Cindy to complete the decked area outside the front ofone of his restaurants. Upon satisfactory completion, Winslow was to pay Cindy1000.

The agreement contained the following provisions:

1. It is agreed between the parties that in return for executing this agreement,Winslow will not use the service of another contractor for all his restaurantsfor year 2009.

2. It is agreed that no undertaking as to quality of the materials used for thedeck and good workmanship is given by Cindy and no compensation shallbe payable in respect of the quality and workmanship.

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Winslow was however unhappy with Cindys workmanship and decided to terminatethe contract early. He then contracted with Jonathan to fix and finish the decking.

Analyse specific contract terms with reference to their importance and impact ifthese terms are broken (2 a)

Apply and analyse the law on standard form contracts (2 b)

Claim 5Winslow usually takes his car to be serviced by Oldport Garage and is aware thatthey always get him to sign a form which states that they are not to be heldresponsible for any damage caused to the vehicle consequent upon the service.However, a new garage, Newport Service, has just started business and, as it ismuch cheaper than Oldport Garage, Winslow decides to have his car serviced there.

As he drives the car into the Newport Service, he notices a sign which proclaims inlarge letters:

THESE PREMISES ARE DANGEROUS. Clients enter these premises at theirown risk and Newport Service accepts no responsibility for any damage or

injury sustained.

After Winslows car had been serviced he was driving home when it broke down. Thefailure and subsequent major damage was later diagnosed as being caused by thefact that the Newport Service mechanic had failed to replace the timing belt in theengine as required in the service.

On returning to Newport Service, the manager drew Winslows attention to the termsof dealing stated on a large notice prominently displayed in the foyer of the receptionarea, stating:

Newport Service can accept no responsibility for any damage caused as aconsequence of repairs carried out on these premises.

The manager also drew Winslows attention to the fact that the same condition wascontained on the back of the receipt that Winslow had signed without reading.

On leaving the managers office, Winslow was severely injured by one of theNewport Service employees negligently reversing a car into him.

Discuss the effect of exemption clauses in attempting to exclude contractualliability (2 c)

GRADING

Pass is achieved by meeting all the requirements defined in the assessment

criteria.

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Merit Identify and apply strategies to find appropriate solutions (M1)

Characteristics / Possible Evidence Identify different elements ofvalid and binding contract; apply the rules and assess the importanceof the rules legally binding contract in the given situation.

Select and apply appropriate techniques (M2)

Characteristics / Possible Evidence Select and apply appropriatelegal rules using of various case examples related to offer andacceptance, consideration, capacity, specific contact terms for thegiven claims.

Present and communicate appropriate findings (M3)

Characteristics / Possible Evidence An appropriate structure andapproach has been used to prepare legal report and advises for the

client. Present data using a range of case examples to support yourexplanation.

Distinction Use critical reflection to evaluate own work and justify valid conclusions(D1)

Characteristics / Possible Evidence creation has been used togenerate and justify valid comments on related to essential elements ofa valid contract and specific terms in a business contract.

Take responsibility for managing and organizing activities (D2)

Characteristics / Possible Evidence independence demonstrated andsubstantial investigation have been planned and organized related tospecific contract terms and also exemption clauses.

Common Skills Grading

To achieve a PASS, students answers should display receive and respond to avariety of information, legible and neat written of work, different sources ofinformation used widely and use technological equipment to aid problem solving.

To achieve a MERIT, students answers should display clear and appropriaterespond to variety of information, legible, clear and neat written of work, clear varietyof information sources used and confident in using equipment and gained knowledgefrom use of equipment.

To achieve a DISTINCTION, students answers should display clear understanding,further research undertaken; work is well structured with evidence of planning, widerange of information sources used and willingness to use a variety of equipment tofind best solution.

PRESENTATION

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1. The assignment should have a cover page that includes the assignment title,assignment number, course title, module title, Lecturer/tutor name andstudents name. Attach all the pages of assignment brief/cover sheet with yourreport and leave them blank for official use.

2. Ensure that authenticity declaration has been signed.

3. This is an individual assignment.

4. Content sheet with a list of all headings and page numbers.

5. A fully typed up professionally presented report document. Use 12 point Arialor Times New Roman script.

6. Your assignment should be word-processed and should not exceed from2,500 to 3,000 words in length.

7. Use the Harvard referencing system.

8. Exhibits/appendices are outside this limit.

9. The assignment should be not contain a bibliography but should contain alist of any references used in the assignment.

NOTES TO STUDENTS FOR SUMMISSION

Check carefully the submission date and the instructions given with theassignment. Late assignments will not be accepted.

Ensure that you give yourself enough time to complete the assignment by thedue date.

Do not leave things such as printing to the last minute excuses of this naturewill not be accepted for failure to hand-in the work on time.

You must take responsibility for managing your own time effectively.

If you are unable to hand in your assignment on time and have valid reasons

such as illness, you may apply (in writing) for an extension. Failure to achieve a PASS grade will results in a REFERRAL grade being

given.

Take great care that if you use other peoples work or ideas in yourassignment, you properly reference them in your text and any bibliography.

NOTE: If you are caught plagiarizing, you could have your gradereduced to zero, or at worst, you could be excluded from the course.