Accredited by
Unit 4: Contract Law
Description of unit
All parties involved in a contract need to know the exact terms of that contract, so that their rights and obligations are clearly understood and appropriate action can be taken if the contract is not carried out satisfactorily.
Learners will consider the rules governing the formation of contracts so that they understand the legal effect of each stage involved in negotiating a contract up to and including the final agreement. Sometimes one party to the contract will make incorrect statements about the subject matter. These statements may be a misrepresentation which could give rise to remedies including ending the contract. The law on misrepresentation is explored through the unit together with an outline of other matters that might make a contract voidable or void.
Every contract has terms. These may be expressly agreed by the parties to the contract or may be implied by law. It is central to the unit that learners understand the meaning of terms in a contract. This is done by examining the use of common terms in a contract or contracts. Thus, terms with respect, for example, to time for performance, can be analysed and put in the context of implied terms found in legislation, as can terms relating to rejection of goods supplied. Many contracts have price variation and reservation of title clauses. These need to be understood and their validity and effect examined. Exclusion clauses that attempt to remove all (or some) liability for one party's breach of contract are a common part of written contracts. However, such terms often have no legal effect. The law tries to balance freedom of contract with protection of the weaker party. Finally, discharge and remedies for breach of contract will be considered.
Summary of learning outcomes
To achieve this unit a learner must:
1 Be able to apply the requirements for the formation of a valid contract
2 Understand different types of contract terms
3 Understand the vitiating factors to a contract
4 Know how to discharge a contract and apply the remedies available to the parties to a contract.
