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LawForBusinessStudentsTwelfthEditionPartIIntroduction:gettingstartedChapter01StudyskillsStartingtostudy–studyinglawRelevanceoflawImportanceofreadingandkeepinguptodatewithcurrentissuesTimemanagementessentialNote-takingReadingrelevantsourcesCheckinglearningWritinglawassignmentsStyleEvidenceAvoidplagiarismChecksubmissionrequirementscarefullyAnsweringlawproblemquestionsCLEOC–claimIdentifyparties,areaoflawandremedysoughtbyclaimantL–law–legalrulesrelatingtotheclaimE–evaluation–applicationofthelaw(legalrules)tothefactsoftheproblemO–outcome–reasonedconclusion/adviceasappropriateAnsweringlawessayquestionsEssaysandReportsCheckwhatthequestionisaskingCommandwordsDotheresearchPlantheanswerWritethefirstdraftEditthoroughlyFinalchecksRevisionandexaminationtechniqueTimeplanningessentialRevisiontechniquesThoroughreadingNote-takingTestingExaminationtechniquePlananswersWriteclearlyandgrammaticallyLawForBusinessStudentsTwelfthEditionPartIIntroduction:gettingstartedChapter02ThenatureoflawLawdefinedLawdistinguishedfromrulesCreatedbystatuteJurisdictionofthestateStateenforcementCharacteristicsofEnglishlawSlowanduninterruptedevolutionLackofRomanlawinfluenceJudgeshavecreativepowersDoctrineofbindingprecedentAdversarialnatureCriminalandcivillawdefined
anddistinguishedPurposeProcedurePenaltiesChangingthelawSocialChangePoliticalchangeEconomicandtechnologicalchangeEssentiallegaltermsTheclaimantandthedefendantProsecutionand(s)
defendantTheappellantandtherespondentThecommonlawCaselawasopposedtostatutelawCaselawandstatutelawasopposedtoprinciplesofequityLawForBusinessStudentsTwelfthEditionPartIIntroduction:gettingstartedChapter03HowthelawismadeEuropeanlawInstitutionsEuropeanCouncilEuropeanCommissionEuropeanParliamentEuropeanCourtofJusticeThesourcesofEuropeanlawThetreatiesRegulationsDirectivesDecisionsTheimpactofEUmembershiponEnglishlawImpactofBrexitParliament–actsofparliamentstatuteanddelegatedlegislationPrimarylegislationThepre-legislativestageParliamentaryprocedureDelegatedlegislationOrdersinCouncilStatutoryinstrumentsRegulationsBye-lawsAdvantagesanddisadvantagesofdelegatedlegislationThecourtsCreativepowersInterpretativepowersIntrinsicaidsExternalaidsJudicialprinciplesofstatutoryinterpretationContextualapproachLiteralruleGoldenruleMischiefrulePurposiveapproachJudicialprecedentHumanrightsact1998ThelegalandpoliticalbackgroundtotheActTheoperationoftheHRA1998S.6–publicauthoritiesmustactcompatiblywiththeconventionS.2interpretationofconventionrightsS.3interpretationoflegislationS.8judicialremediesImpactoftheHRA1998DirectandIndirecteffectImpactondevelopmentoflawLawForBusinessStudentsTwelfthEditionPartIIntroduction:gettingstartedChapter04Resolvinglegaldisputes©2023PearsonEducationLimited.AllRightsReservedThecourtsystemTheMagistrates’CourtTheCrownCourtTheCountyCourtTheHighCourtTheCourtofAppeal(CivilDivision)TheCourtofAppeal(CriminalDivision)TheSupremeCourtBringingacaseinthecivilcourtsWoolfReforms1999SettlementoutofcourtPaymentintocourtandofferstosettleCivillitigationproceduresLettersofclaimandpre-actionprotocolsIssueofclaimThedefendant’sresponseThecaseallocationtotherelevanttrackThesmallclaimstrackThefasttrackThemulti-trackTheinterlocutorystagesThetrialofthecaseExecutingthejudgementAlternativedisputeresolutionArbitrationCommercialarbitrationCodearbitrationOmbudsmenservicesConciliationMediationADRandthecourtsEUOnlineDisputeResolutionPlatformThetribunalsystemDeterminesrightsofindividualsagainstgovernmentdepartmentsE.G.immigration,socialsecurity,planningetc.FirstTierandUpperTiertribunalsEmploymentdisputes–seeEmploymentRightsAct1996JurisdictionBenefitsoftribunalsCriticismsoftribunalsLawForBusinessStudentsTwelfthEditionPartIILawofcontract,agencyandsaleofgoodsChapter05Thelawofcontract:
OfferandacceptanceTheessentialsofabindingcontractOfferAcceptanceConsiderationIntentiontocreatelegalrelationsWritingnotusuallyessentialContractswhichrequirewritingContractswhichrequirewrittenevidenceDeedsTheofferOfferor/offereeBilateral/unilateraloffersOffermusthave:ClearlystatedtermsIntentiontobelegallyboundCommunicationofthatintentionOffermustbedistinguishedfrom:Invitationtotreat–PartridgevCrittenden(1968)FishervBell(1960)NegotiationHarveyvFacey(1893)BiggvBoydGibbons(1971)Offermustbecommunicated–CarlillvCarbolicSmokeBallCo(1893)TendersTheterminationofoffersDeathRefusalandcounter-offer–HydevWrench(1840)Lapseoftime–RamsgateVictoriaHotelvMontefiore(1866)Revocation–DickinsonvDodds(1876)Promisestokeeptheofferopen–RoutledgevGrant(1828)TheacceptanceMustbeamirrorimageButlerMachineToolvEx-Cell-OLtd(1979)MustbeunconditionalImminghamStorageCoLtdvClearplc(2011)ReasonableexpectationsofhonestmenReveilleIndependentplcvAnotechInternational(UKLtd)(2016)CommunicationofacceptanceAcceptancemustbecommunicatedCommunicationmustbebyanauthorisedperson–PowellvLee(1908)MethodsofcommunicationConduct–BrogdenvMetropolitanRailway(1877)IRCvFry(2001)Verbalcommunication–instantaneouscommunicationsEntoresvMilesfarEastCorporation(1955)Electroniccommunications–emailsPostalAcceptancerule–AdamsvLindsell(1818)ByrnevVanTienhoven(1851)HolwellSecuritiesvHughes(1974)SilencecannotbeacceptanceFelthousevBindley(1862)OffermayrequirespecificmethodofcommunicationLawForBusinessStudentsTwelfthEditionPartIILawofcontract,agencyandsaleofgoodsChapter06Thelawofcontract:Consideration,intention
andprivityConsiderationDefinedandexplainedExecutoryandexecutedconsiderationTherulesgoverningconsiderationConsiderationmustnotbepast–ReMcArdle(1951)ConsiderationmustmovefromthepromiseeConsiderationmustbesufficientWhitevBluett(1853);ThomasvThomas(1842)SufficiencyofconsiderationINSUFFICIENTCONSIDERATION
i)Performanceofanexistingpublicduty
CollinsvGodefroy(1831) Policeofficersoughtpaymentforthegiving
ofevidenceinacourtcase
ii)Performanceofanexistingcontractualduty
StilkvMyrick(1809) Twosailorsdesertedaship–captain
promisedtopaycrewsumofmoneyif
completedthejourney c.f.HartleyvPonsonby(1857)crewdidextraworksoentitledtopaymentConsiderationRuleinWilliamsvRoffeyBros(1990)PartpaymentofadebtisnotsufficientconsiderationPromissoryestoppelCentralLondonPropertyvHighTeesHouse(1947)D&CBuildersvRees(1965)IntentiontocreatelegalrelationsDomesticandsocialagreementsBalfourvBalfour(1919)BusinessagreementsRose&FrankCo.vJRCrompton&Bros(1925)ComfortLettersKleinwortBensonvMalaysiaMiningCorporation(1989)PrivityofcontractGenerally,onlyapartywhoprovidesconsiderationmayenforcethecontractTheContracts(RightsofThirdParties)
Act(1999)–enablesacontractualbeneficiarytosueforbreachofcontractthatwasclearlymadefortheirbenefit,eventhoughtheyhavenotprovidedanyconsideration.LawForBusinessStudentsTwelfthEditionPartIILawofcontract,agencyandsaleofgoodsChapter07ThetermsofthecontractatcommonlawExpressandimpliedtermsThesourcesofimpliedtermsBusinessefficacy–TheMoorcock(1889)TradecustomandpracticeStatuteSaleofGoodsAct1979(asamended)ConsumerRightsAct2015ClassificationoftermsaccordingtotheirrelativeimportanceConditions–PoussardvSpiers&Pond(1876)Warranties–BettinivGye(1876)Innominateterms–HongKongFirShippingCovKawasakiKisenKaisha(1962)CehavevBremner(1975)CriteriafordeterminingstatusofinnominatetermsSchulervWickmanMachineToolsSales(1974)TheMihalisAngelos(1970)LimitationandexclusionofliabilityLimitationclauseExclusionclauseCommonlawrequirementsIncorporationConstructionIncorporationTimingofnoticeOlleyvMarlboroughCourt(1949),ThorntonvShoeLaneParking(1971)ChapeltonvBarryUrbanDistrictCouncil(1940)PreviousbusinessdealingsKendallvLillico(1968)McCutcheonvMcBrayne(1964)SufficiencyOnerousterms–InterfotoPictureLibraryvStilettoProductions(1988)SufficiencySignatureL’EstrangevGraucob(1934)Misrepresentation–CurtisvChemicalCleaning(1951)ConstructionExclusionclauseisineffectiveifambiguousContraproferentumruleAndrewsvSinger(1934)LiabilityforfundamentalbreachPhotoProductionLtdvSecuricorTransportLtd(1980)LawForBusinessStudentsTwelfthEditionPartIILawofcontract,agencyandsaleofgoodsChapter08StatutorytermsincontractsforsaleofgoodsandservicesBusiness2businessagreementsThetermsimpliedbytheSaleofGoodsAct1979s12Titles13Descriptions14(2)Satisfactoryqualitys14(3)Fitnessforpurposes15Goodsmustcorrespondwithsamples35Therighttorejectgoods
Unfaircontracttermsact1977ThescopeoftheActThesubstanceoftheActWhatis‘reasonable’forthepurposesofUCTA1977ReasonablenessguidelinesImbalanceofbargainingpowerInducementsandchoicesPriorknowledgeSpecialrequirementsGreenvCadeBros(1978)GeorgeMitchellvFinneyLockSeeds(1983)ConsumersalesConsumerRightsAct2015Consumercontractsforgoods,servicesanddigitalcontentSection2definitionsofkeytermsTheconsumer’srightsinallcontractsforsupplyofgoodsNoliabilityexclusionsContractstosupplydigitalcontentRightsoftheconsumerifthedigitalcontentdoesnotconformtothecontractTheConsumerRightsAct2015–
unfairtermsMeaningofunfairtermsExamplesofunfairtermsNegligentliabilityforpersonalinjurycannotbeexcluded(s65)Theconsequencesofanunfairterm(s67)EnforcementLawForBusinessStudentsTwelfthEditionPartIILawofcontract,agencyandsaleofgoodsChapter09Defectsinthecontract:Misrepresentation,mistake,duressandundueinfluenceVitiatingelementsAvoidablecontractAvoidcontractAnunenforceablecontractMisrepresentationStatementoffactStatementactedasamaterialinducementExclusionofliabilityformisrepresentationRemediesformisrepresentationMisrepresentation(Continued)TypesofmisrepresentationMisrepresentationmaybefraudulent,negligentorpurelyinnocentandtheremediesformisrepresentationarefoundintheMisrepresentationAct1967.Fraudulent–astatementmadewithknowledgethatitisuntrue,orwithoutbelievingittobetrue,orrecklessly,carelesswhetheritbetrueorfalse;Negligent–astatementmadeinthebeliefthatitistruebutwithoutreasonablegroundsforthatbelief;andInnocent–astatement
madeinthebeliefthatitistrueandwithreasonablegroundsforthatbelief.MistakeAnoperativemistakemakesthecontractvoidCommonmistakeconcerningtheexistenceofthesubjectmatterMutualmistakeconcerningtheidentityofthesubjectmatterUnilateralmistakeTheequitableremedyofrectificationDocumentssignedbymistakeDuressandundueinfluenceDuressThreatsoruseofviolencetoforceapartytomakeacontractmaymakeitvoidableUndueinfluenceAcontractresultingfrommoresubtleformsofillicitpersuasionthanduressmaybevoidablePresumedundueinfluenceActualundueinfluence.LawForBusinessStudentsTwelfthEditionPartIILawofcontract,agencyandsaleofgoodsChapter10Theconsequencesofillegalityandincapacity:IllegalityandincapacityIllegalityContractsillegalbystatuteContractsillegalatcommonlawAcontracttocommitacrime,atortorafraudAcontractwhichisdamagingtothecountry’sforeignrelationsAcontractforasexuallyimmoralpurposeAcontractwhichprejudicestheadministrationofjusticeIllegality(Continued)AcontracttodefraudtheRevenueAcontractendangeringpublicsafetyContractspromotingcorruptioninpubliclifeContractsprejudicialtomarriageTheconsequencesofanillegalcontractContractsinrestraintoftradeContractsagainstthepublicinterestContractsofemploymentContractsforthesaleofabusinessSolusagreementsContractsinrestraintoftrade(Continued)RestraintsinemploymentcontractsForster&SonsLtdvSuggett(1918)RestraintonthesellerofabusinessBRCEngineeringvSchelff(1921)SolusagreementsEssoPetroleumvHarper’sGarage(Stourport)Ltd(1968,HL)ContractualincapacityMinorsContractscapableofbindingaminorContractswhicharenotenforceableagainstaminorMinors’ContractsAct1987MentallyimpairedpersonsBoundtopayareasonablepricefornecessariesevenifthesellerisawareoftheincapacityAllothercontractsarevoidablebythemiftheotherpartyshouldhavebeenawareoftheincapacityLawForBusinessStudentsTwelfthEditionPartIILawofcontract,agencyandsaleofgoodsChapter11DischargeofthecontractandremediesforbreachDischargeofcontractsDischargebyperformanceDivisiblecontracts;acceptanceofpartperformance;substantialperformanceDischargebyagreementDischargebyfrustrationDestructionofsubjectmatter;deathorillness;illegality;governmentintervention;eventonwhichthecontractisbasedfailstooccur;delayinperformanceRemediesforbreachDamagesRemotenessofdamageHadleyvBaxendale(1854)UsualdamageNon-usualdamageVictoriaLaundryvNewmanIndustriesLtd(1949,CA)–speciallossMeasureofdamagesa)Expectationloss–lossofbargainObjecttoputclaimantinsamepositionasfaraspossibleasifcontracthadbeenperformedb)Relianceloss–costsandlossofprofits–AngliaTVvReed(1971)OnlyactualfinanciallosscanberecoveredIfgoodsnotdelivered,marketruleappliesDamagesQuantumofdamagesLiquidateddamagesandpenaltiesGuidelinesinDunlopPneumaticTyrevNewGarageandMotorCo(1915)
ThedutytomitigateEquitableremediesRescissionSpecificperformanceRainbowEstatesLtdvTokenhold(1998)InjunctionWarnerBrosvNelson(1936)LawForBusinessStudentsTwelfthEditionPartIILawofcontract,agencyandsaleofgoodsChapter12ThelawofagencyCreationofagencyAgencybyagreementAgencybyestoppelAgencyarisingfromnecessityAgencybyratificationAuthorityofanagentActualauthorityImpliedorcustomaryauthorityApparentapparentauthorityDisclosedandundisclosedprincipalTherightsanddutiesofanagentRightsPaymentIndemnityMaintaingoods(lien)DutiesPerformanceReasonableskillAccountabilityAvoidanceofconflictofinterestTherightsanddutiesoftheprincipalInrelationtotheagentPerformreciprocalfiduciarydutyPrincipal
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