2.6 NDipA Contract Law

Question 1

A VALID SIMPLE CONTRACT that the law will recognise and enforce must have the following essential features:

7 POINTS

Answer 1

1. AGREEMENT - between the parties (consensus ad idem)
2. CONSIDERATION - something of value must be given in exchange for a promise
3. LEGAL RELATIONS - legal consequences
4. LEGAL CAPABILITY - able to make a legal contract (over 18, of sound mind, not drunk) protects vulnerable people in society
5. NO ILLEGAL CIRCUMSTANCES - nothing surrounding the contract which makes it unenforceable, illegal, void
6. WRITTEN, VERBAL, EXPRESS, IMPLIED - a contract can be any
7. LIMITATION PERIOD 6 YEARS - the claimant can only pursue legal action for failure to fulfil a simple contract for up to 6 yrs

Question 2

DIFFERENCES BETWEEN SIMPLE CONTRACTS

WRITTEN
VERBAL
EXPRESS
IMPLIED

Answer 2

WRITTEN.

VERBAL - equally valid but more difficult to prove

EXPRESS - all of the terms are specifically stated, usually in writing (offer, acceptance and consideration)

IMPLIED - contract exists based on the circumstances, ER owes EE a duty of care (whether or not it is written in the employment contract….)

Question 3

PRODUCER TO VENDOR RELATIONSHIP

Answer 3

VENDOR -

Sells it…

PRODUCER -

Produces (makes) an item for sale

Must make sure the article complies with relevant legislation and standards and is ‘fit for purpose’

IP would sue the producer if injured by a defective product

Producers owe a duty of care to persons affected by the products under
the TORT OF NEGLIGENCE and
the CONSUMER RIGHTS ACT 1987

Question 4

VENDOR TO CONSUMER RELATIONSHIP

Answer 4

CONSUMER -

Buys it…

VENDOR -

Neither amends nor makes a product but merely sells it

May be liable in TORT if they have a duty to inspect the goods and fail to do so. (Donoghue V Stevenson) not inspect as the bottle was opaque, however a second hand car dealer would be expected to identify a defect that meant a car was dangerous

Question 5

CLIENT AND CONTRACTOR RELATIONSHIP CONTRACTOR

Answer 5

CLIENT -

Person using the services of a professional person

CONTRACTOR -

Provides a specific service

Each part owe a duty of care to each other

Client has a responsibility to appoint a competent contractor (by checking qualifications)