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In this Assignment I am going to describe the requirements of a valid contract and also describe how statutes affect contractual terms.

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Introduction

BTEC National Diploma in Business Aspect of Contract and Business Law Introduction: In this Assignment I am going to describe the requirements of a valid contract and also describe how statutes affect contractual terms. Task 1.1 (p1) In this first task I will be explaining the requirements to create a valid contract and I will also point out the differences between an offer and an invitation to treat. A contract is an oral or written agreement between people. A contract is made in order to know your rights so that you cannot breach it, which means a contract binds the parties together so that no one can breach the agreement in future. A contract is an agreement between two or more parties who intend to be bounded by law. A valid contract has to consist the following: * A valid offer * A valid Acceptance * A valid Consideration * Intention * Capacity * Legality Offer This is the first stage of a contract, this is when the offeror the person who makes the offer, states an interest to enter an agreement, if the offer that the offeror sets is accepted by the other party (the offeree). An offer is a proposal, promise or other manifestation of willingness to make and fulfil a contract. However and offer from the offeror could also be terminated if the offeree does not accept the terms of the agreement. There are certain rules relating to what a valid offer is one of those is that the offer must contain all of the terms of the proposal contract so that the offeree (the person to whom an offer is made) ...read more.

Middle

an offer is a contract is formed when an invitation to treat is "accepted" no contract has yet been formed. There must still be an offer made usually by the person who has accepted the contract to treat for example gone into a shop and ask about a product. Task 1.2 (p2) Statute law is law that has been created by the Parliament in the form of legislations, which means when a consumer buys a product from a company they enter into a contract and the contract has different type of terms attached to it e.g. express terms and implied terms. The most useful terms are implied terms. Created by some of this legislation because it gives extra coverage to customers when they buy products from someone selling in the course of a business. * Express term: This is when the two parties agreeing to a contract set the rules or terms of the contract by themselves, it could be in a form of negotiation but the terms are often set there by the people who create the contract. Express term are those promises and statements which have been made either orally or in writing and which are included in the contract. The parties themselves will have agreed these terms. * Implied terms: A term may either be express or implied. An express term is stated by the parties during negotiation or written in a contractual document. Implied terms are not stated but nevertheless form a provision of the contract. ...read more.

Conclusion

If a customer goes into an organisation to purchase a product, the correct price of the product will appear when it's scanned. Failure in this will lead to the sales person asking another colleague for the price of the product and apologising to the customer. This could lead to predicting wrong prices to the customer. * Lie to consumers' regarding sales prices and making up price reduction. Organisation's sales personnel (if qualified) are aware they are not allowed to do this. * Supply faulty goods to consumers. Organisations providing goods for consumption have to en sure expiry dates are displayed on food items and gives advice on how faulty goods can be returned between certain periods. In 1994, this aspect of the Act was strengthened by the General Products Safety regulations. Conclusion All of these, means that organisations are not allowed to charge customers unreasonably for goods and services provided (this includes giving wrong prices on goods). If customers felt they have been charged unreasonably they can always contact the office of Trading Standard just like in the Sales of Goods Act. This act basically relates to both Sales of Goods Acts and Trade Description Act as we can see it talks about the prices and condition of goods and services provided. Organisations have to make sure all repairs and installations are done properly by using the best tools and also carrying out all their services within a reasonable period of time. They have to give guarantee on the services they provide (like fixing an electrical item). If the services don't meet the guaranteed period, organisations are obliged to provide the services again without charging the customer. ...read more.

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A good essay for the law and business module. More detail on key principles, and case law, would improve the grade.

Marked by teacher Edward Smith 09/07/2013

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