Principles of Business Law - Association of Business Executives

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legal relations.3.3.2 Know how the courts find whether a commercialagreement is, or is not, legally binding.3.4 Define and explain thelaw relating toconsideration.3.4.1 Know what constitutes valid consideration.3.4.2 Know the three different types of consideration.3.4.3 Know that the performance of an existing contractualobligation does not constitute sufficient consideration.3.4.4 Know that performance of an existing public duty doesnot constitute sufficient consideration.3.4.5 Know the rule in Pinnel’s case (1602) and its exceptions,and, be able to apply it in practice.3.5 Distinguish between a 3.5.1 Distinguish between a term and a representation.term and a representation.The 3.5.2 Know that the remedy available for a breach of contractdepends on whether the particular wording of a statement is aterm or a representation.3.5.3 Know that whether a statement becomes a term of thecontract or not depends on the intention of the parties.3.5.4 Know that four factors may be taken into account by thecourts when ascertaining the intention of the parties: theimportance of the statement to the parties; the respectiveknowledge of the parties; the time the statement was made,and whether the statement is included in a written contract.3.6 Define and explain thedifferent types ofcontractual terms.3.6.1 Know what an express contractual term is.3.6.2 Know what a condition is.3.6.3 Know what a warranty is.3.6.4 Know the difference between a condition and a warranty.3.6.5 Know what an innominate term is.3.6.6 Know what an exclusion clause is.3.6.7 Know the three ways that exclusion clauses maybecome incorporated into a contract under the common law.3.6.8 Know about unfair contractual terms in the context ofexclusion clauses only.3.6.9 Know what a penalty clause is.3.7 Define and explain the 3.7.1 Know what constitutes duress including economic
law in relation to vitiatingfactors.duress and undue influence.3.7.2 Know about the types of misrepresentation.3.7.3 Identify and explain when a contract is void or illegal.3.7.4 Understand what a restraint of trade clause is, and beaware of the reasons for their existence in contracts.3.7.5 Know the rules in relation to contracting with minors.Learning Outcome 4The learner will: Understand the law on discharge and breach of a contract.Assessment CriteriaThe learner can:4.1 Discuss the variousforms of discharge ofcontract.Indicative Content4.1.1 A person must perform exactly what he has promised todo. Doing something differently from that which has beenagreed, even though it may be commercially more valuable tothe other party, is not performance in law. Even the slightestdeviation from the agreed terms will entitle the other party toclaim that the contract has not been performed.4.1.2 Know what is meant by prevention of performance.4.1.3 Know what is meant by partial performance, and whetherit can ever be accepted by the other party.4.1.4 Know what is meant by substantial performance.4.1.5. Know that there are four ways in which a contract can bedischarged by agreement: by release; by accord andsatisfaction; by rescission, and by some provision contained inthe contract itself.4.1.6 Know the various different ways in which a contract canbecome frustrated and be able to apply relevant law to ascenario.4.2 Explain the rules andremedies which arerelevant to parties in theevent of a breach ofcontract.4.2.1 Know that all ‘breaches of contract’ entitle the innocentparty to damages, but the right to treat the contract asdischarged (at an end) arises only if the breach is serious, e.g.where there has been a breach of a fundamental condition ofthe contract.4.2.2 Know the consequences of a failure of performance.4.2.3 Know about anticipatory breach.4.2.4 Know the rule in Hadley v Baxendale.
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Principles of Business Law - Association of Business Executives

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