Aspects of Contract and Business Law
An optional unit towards your BTEC qualification in Business.
This Unit is one of the optional units you can study towards your BTEC qualification in Business.
Edexcel BTEC Level 3 Subsidiary Diploma in Business
Edexcel BTEC Level 3 Diploma in Business
Edexcel BTEC Level 3 Extended Diploma in Business.
A business can only make money legitimately by making contracts with other businesses and customers. Businesses want to make the terms of these contracts the most favourable to themselves. All those involved in a contract need to know the exact terms on which it is based so that their rights and obligations are clearly understood and appropriate action can be taken if the contract is not implemented satisfactorily. Many businesses try to minimise their responsibilities under a contract, and the law attempts to balance the customer’s interests and gives consumers, in particular, rights in relation to business sellers and service providers.
Learners will consider rules for the formation of contracts and develop an understanding of the legal effect of each stage in negotiating a contract, up to and including the final agreement. The law on misrepresentation and the terms in contracts are explored. It is central to the unit that learners understand the meaning of express and implied terms in a contract. They will examine a contract or contracts to consider the use of key terms. For example, terms with respect to payment can be analysed and put into the context of implied terms found in legislation and the remedies available for failure to honour the terms of a contract.
Exclusion clauses that attempt to remove all or some liability for one party’s breach of contract are a common part of written contracts, yet these terms often have no legal effect. The law is concerned to balance freedom of contract with protection of the weaker party (usually a consumer) and this can be evaluated as part of the overall contract.
Learners will also consider the statutory consumer protection laws in relation to contracts for the sale and supply of goods and services, both face to face and at a distance. Learners will analyse the terms of contracts so as to understand the rights and responsibilities that arise from the contract and consider the overall effect of the contract and the remedies that are available.
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