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7/28/2019 Guidelines for 1a, 1b, 1c, 1d, 2a, 2b & 2c
1/5
FO3 ITCC
TASK
1 (a) Explain the different types of business
agreement and the importance of the key elements
required for the formation of a valid contract.
Part 1:
Explain Contract
1.1DEFINE A CONTRACT1.2GIVE EXAMPLES FOR DIFFERENT TYPES OF
CONTRACTS bilateral vs unilateral; express vs implied; promissory
estoppel; quasi; simple; specialty and standard form
(No need to give details but put it in your appendix).
1.3WHEN DO YOU ENTER INTO A CONTRACT WITHSOMEONE?
When you buy a house
When you buy from a shop
When you start working in a company
Part 2:
Explain the different types of Business Agreement
2.1 AGREEMENT AS AN ESSENTIAL ELEMENT IN
FORMATION OF A CONTRACT define agreement
explain the importance of agreement
explain components (offer & acceptance) of agreement
and its validity
apply agreement to your above example of a contract
with someone
2.2 GIVE EXAMPLES OF DIFFERENT TYPES OF
BUSINESS AGREEMENT give 2-3 types of business agreements
Employment contracts
Buying and selling goods
Renting or buyinga property Franchise agreement
Export or import of goods
Use of software licensing agreement
Sub-contracting agreement, etc
apply offer and acceptance by parties to the contracts in
your business agreement examples. E.g. employment
contract.Agreementbetween employee and employer for
the terms of employment. Terms usually include salary,
working hours.
Part 3:
Explain the importance for the key elements
required for the formation for a valid contract
3.1 WHAT ARE THE ESSENTIAL KEY ELEMENTS TOFORM A CONTRACT?
briefly discuss essential elements: agreement;
consideration and intention to create legal relations
briefly discuss validity factors: form; genuine consent;
capacity; content and legality
3.2 EFFECT OF CONTRACT IF KEY ELEMENTS ARE
ABSENT?
3.3 EFFECT ON AFFECTED PARTIES
explain vitiating factors if contracts may be void,voidable or unenforceable
3.4. CONCLUSION
CLAIM 1:
1 (b) YOU ARE REQUIRED TO ANALYSE THE
SCENARIO FROM THE PERSPECTIVE OF THE LAW OF
CONTRACT. APPLY THE RULES OF OFFER AND
ACCEPTANCE IN A GIVEN SCENARIO ALSO
CONSIDERING ANY IMPACT OF NEW TECHNOLOGY
Part 1:
1.1ISSUE whether there was a contract between parties in
question of fact for contract concluded through internet.
1.2ONLINE TRANSACTION what are the principles governing the formation of
written and oral contracts concluded through internet? In the context of the formation of contracts, can offer
and the acceptance be expressed by means of
electronic communications? Refer to page 6,
formation and validity ofcontracts under s.11 of the
Electronic Transaction Act. Cap 88. Give case
example: Chwee Kin Keong v Digilandmall. Pte Ltd.
discuss the effectiveness of contract between parties
on an electronic communication
Is case scenario a type of invitation to treat? (Use s.14
Invitation to make offerunder the Electronic
Transactions Act. Caps 88 to confirm).
Use s.16 part 2a under Error in electronic
communications to explain why contract has becomebinding (i.e. has not used or received any material
7/28/2019 Guidelines for 1a, 1b, 1c, 1d, 2a, 2b & 2c
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FO3 ITCC
benefit or value from the goods or services, if any,
received from the other party).
Part 2:
2.1 ISSUE (MATTERS THAT ARE IN DISPUTES)- whether there is a breach of contract for not deliveringthe 1,000 sets of hand phones to M5.
2.2 DEFENCE AGAINST WINSLOW explain vitiated mistakes shared by both parties i.e.
common mistakes
identify and define the type of mistake for case in claim
apply rule of unilateral mistake
rule: where one party is mistaken as to the terms ofthe contract and the other knows this, contract
will be void, regardless of whether the terms is
fundamental. give case example
analyze case
M5 bears the burden of proof that Winslow actually
knew about the mistake. Explain the proof.
form conclusion (need to draw assumption from analysis)
Part 3:
3.1 ISSUE (MATTERS THAT ARE IN DISPUTES)- whether there is a breach of contract for not delivering
the set of hand phone to Charlene, the university
student
3.2 DEFENCE AGAINST CHARLENE is M5 defense weaker than Mr. Winslow?
analyze case
could M5 prove that Charlene concluded the contract is
under a unilateral mistake in order to make their contract
void?
form conclusion (need to draw assumption from analysis)
Part 4:
4.1WAY OF STRUCTURING ITS MODE OF ONLINETRANSACTION IN PREVENTING A SIMILARINCIDENT FROM HAPPENING AGAIN IN THE
FUTUREdefine counter offer apply counter offer in M5s statement of reply
form conclusion on how counter offer could help M5 notto bind itself until a firm offer is accepted by them,
otherwise there is no contract.
Claim 2:
1 (c) Assess the importance of the rules of intention
and consideration of the parties to the agreementPart 1:1.1 Explain intention and its Importance of the rule
define intention
what are the rules of intention in domestic and
commercial agreement and why is it so important?
Part 2:
2.1 Explain consideration & its importance of the
rule define consideration and why is it so important?
explain the various types of consideration: executory;
executed and past consideration. give case example for each type of consideration
In Cocos case, what was the consideration given by
Mrs. Winslow?
Part 3:
3.1 ISSUE (MATTERS THAT ARE IN DISPUTES) whether there was an agreement between husband and
wife? Was it intended to be legally binding?
3.2 LEGAL INTENTION TO TRANSFER PROPERTY TO
WIFE
In Winslows case, was there an intention to create legalrelation for domestic agreement by both parties by
both parties (husband and wife) from legals
perspective? Give case example.
may court impute an intention to create legal relations
for spouses relating to property maters? Give case
example.
3.3 CONCLUSION draw assumptions from analysis
Part 4:
4.1 ISSUES (MATTERS THAT ARE IN DISPUTES) whether there was an agreement between landlord and
tenant?
whether promise made after a performance is legally
binding?
4.2 LEGAL INTENTION FOR A ROOM RENTAL
CONTRACT was there an intention to create legal relation by both
parties (landlord and tenant) for a commercial
agreement from legals perspective? Give case example.
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FO3 ITCC
4.3EXPLAIN & APPLY CONSIDERATION TO CASE define consideration
explain the various types of consideration: executory;
executed and past consideration.
explain and apply adequate consideration to case
scenario for a room rental contract
4.4REFUSAL TO REDUCE RENT identify the type of consideration
apply rule
give case example
form conclusion
Part 5:
5.1 ISSUE do it on your own
5.2 SEEKING TO INCREASE RENT discuss the terms in existing contract
discuss and apply unsupported fresh consideration rule
discuss and apply mirror image rule
form conclusion (need to draw assumption from
analysis).
Claim 3:
1 (d) Explain the importance of the contracting
parties having the appropriate legal capacity to
enter into a binding agreement
Part 1:
1.1 EXPLAIN THE DIFFERENT GROUPS OF
CONTRACTS BETWEEN A MINOR AND ANOTHER
PARTY explain the different groups of contracts for a minor (i.e.
valid; voidable and unenforceable contract).
Part 2:
2.1ISSUESdo it on your own for three cases (betting, shares and
fake gold chain contracts).
2.2BETTING CONTRACT identify the type of contract between Benny and
bookmaker (William Hill Betting PLC). Use gambling act
to confirm.
apply rule of gambling act (i.e. gambling debts are void)
give case example for a void contract
analyze if Benny would receive anything for his winnings
as well as the money he spent on betting i.e. his
capital?
form conclusion
2.3SHARES CONTRACT is purchasing share a legal activity for Benny? Give
general views of others between purchasing share and
gambling.
identify the type of contract Between Benny and
stockbroker (technically voidable for Benny and may beunenforceable by stockbroker)
apply rule of voidable contract [i.e. binding unless and
until the minor rescinds (withdraws) the contract].
give case example.
apply rule of unenforceable contract [i.e. cannot force a
minor to accept until minor ratifies (adopts) it - but adult
is bound].
provide analysis: cannot force Benny to pay up for the
price of the share. Benny is able to sue the stockbroker
on the contract for lack of payment if he sells the share
and it is possible for Benny to enforce (effective)
contract.-form conclusion (need to draw assumption from analysis).
2.4FAKE GOLD CHAIN CONTRACT discuss caveat emptor
apply rule for Thomas to pay Benny
comment on fraudulent representation made by Benny.
Advice the action and remedy Thomas could take and
have.
-form conclusion (need to draw assumption from analysis)
Claim 4:
2 (a) Analyze specific contract terms with referenceto their importance and impact if these terms are
broken.
Part 1:
1.1TERMS IN EXISTING CONTRACT evaluate existing terms
explain effect of terms (i.e. restraint of trade; remedies;
existence of exemption clause)
Part 2:
2.1 ISSUES restraint of trade
remedies
existence of exemption clause
2.2 RESTRAINT OF TRADE & REMEDIES whether there is a possibility to have exclusive
agreement to give intention to restraint trade?
give case examples
apply test of reasonableness and fairness in protecting
Cindys commercial interest
assessment for test of reasonableness for clause 1 :
length of restraint and provision 7
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FO3 ITCC
assessment for test of reasonableness and fairness for
clause 2: no undertaking as to quality of the materials
used and good workmanship
form conclusion for getting an injunction to prevent
Winslow from buying elsewhere or damages for lost
sales.
2.3 EXEMPTION CLAUSE identify the type of term for exemption clause (i.e.
express)
assessment for test of reasonableness and fairness:
apply sale of Goods Act 1979, s.13(1); s.14(2) ands.14(3)
apply UTCA act 1977, Avoidance of liability for breach of
contract s.3(a)
give case example
form conclusion for an effective defense for Cindy (need
to draw assumption from analysis).
2(b) Apply and analyze the law on standard form
contracts
Part 1:
1.2STANDARD FORM CONTRACT define standard form contract
Part 2:
2.1 APPLICATION & ANALYSISexplain express term, its two categories (conditions &
warranties) and the remedies available to injured party.
identify and discuss exemption clauses, if any in the
contract
discuss & apply implied term (by custom, by courts or by
statute) in the contract
discuss & apply main purpose rule, breach of conditions &
warranties and fundamental breach.
discuss & apply UTCA act 1977:
test of reasonableness and fairness s(11)
sale of Goods Act 1979
avoidance of liability for negligence S (2) & S (3)
give case example
form valid conclusion (need to draw assumption from
analysis)
Claim 5:
2(c) Discuss the effect of exemption clauses in
attempting to exclude contractual liability
Part 1:1.1EXCLUSION CLAUSE
Define exclusion clauseDiscuss the conditions for relying on clause (must be
incorporated, interpreted, tested under UTCA Act 1977
and UTCCR 1999)
Part 2:
2.1 ISSUESdo it on your own
2.2 DISCUSS EXCLUSION CLAUSE 1: Newport Servicecan accept no responsibility for any damage
caused as a consequence of repairs carried out
on these premises. explain how the above exclusion clause was incorporated
(by signature, notice or previous dealings?)
discuss when exclusion clause 1 must be brought to the
attention to Winslow and was there also sufficient notice
given to him in order to be binding.
establish whether above exclusion clause was considered
to be incorporated, if so analyze whether breach of
clause has occurred
discuss and apply rules for main purpose; breach of
condition and fundamental breach. Give case
examples.
apply UTCA act 1977, Avoidance of liability for
negligence S3(a & b) on restricting liability for own
breach and non performance.
apply UTCA act 1977, test of reasonableness and
fairness: Sale and supply of goods (ss.6-7), which
cannot exclude or restrict liability for breach of the
conditions.
discuss courts consideration for test of reasonableness
S(11) - refer to lecture 7c, slide 11)
discuss and apply UTCCR 1999 - refer to lecture 7c,slide 11)
apply rule and analyze whether condition could be
contained at the back of the receipt which Winslow had
signed without reading. Give case example. form valid conclusion (need to draw assumption from
analysis).
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2.3 DISCUSS EXCLUSION CLAUSE 2: THESE PREMISES
ARE DANGEROUS. Clients enter these premises
at their own risk and Newport Service accepts
no responsibility for any damage or injury
sustained. explain how the above exclusion clause was incorporated
(by signature, notice or previous dealings?)
discuss when exclusion clause 2 must be brought to the
attention to Winslow and was there also sufficient notice
given to him in order to be binding.
establish whether above exclusion clause was considered
to be incorporated, if so analyze whether breach of
clause has occurred
discuss and apply rules for UCTA act 1977, avoidance
of liability for negligence S2(1) for a void clause on
personal injury (refer to lecture 7C, slide 5).
form valid conclusion (need to draw assumption from
analysis).