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RDI/EDEXCEL
Level 4
BTEC Higher Nationals
Aspects of Contract & Negligence for Business
Assignment
Assessor: Kara Johnson
Date for Submission: Date for Submission: 19th
August 2013
The submission portal on ilearn will close at 23.59 (BST) on 19th
August 2013

2. Tasks
To complete this assignment you are required to undertake the following four tasks.
Credit will be given for the use of relevant case law.
Task 1 – Learning Outcomes 1 & 2
Understand the essential elements of a valid and legally binding contract in a business
context
Be able to apply the elements of a contract in business situations
Al operates a small business manufacturing specialist engine filters. In January he placed
an advertisement in a car trade magazine stating that he would supply filters at £60 per
filter, but would consider a reduction in the price for substantial orders. He received a
letter from Bash Cars plc requesting his terms of supply for 1,000 filters. Al replied,
offering to supply the filters at a cost of £50 each. Bash Cars plc responded to Al’s letter
stating that they accepted his offer but that they would only pay £45 per filter. Al wrote
back to Bash Cars plc stating that he would supply the filters but only at the original
price of £50. When Al’s letter arrived, the purchasing director of Bash Cars plc did not
notice the alteration of the price and ordered the 1,000 filters from Al, which he
supplied.
1a. Explain the requirements for the formation of a valid contract. Apply the rules
on offer and acceptance and advise Al and Bash Cars plc of their rights and
liabilities to each other. (1.1, 1.2, 2.1, 2.2)
1b. How does the law approach the issues of consideration, intention to create
legal relations and the capacity to contract. Use the above scenario to give
examples to illustrate your answer. (1.1, 1.2, 2.1)
Task 2 – Learning Outcome 2
Be able to apply the elements of a contract in business situations
Cool it Ltd manufactures fridge freezers and regularly uses Move it Ltd, a road haulage company,
to deliver products to its network of distributors. Recently Cool it Ltd requested Move it Ltd to
deliver a quantity of fridges to a distributor in Penzance. When Move it Ltd took delivery of the
goods, Cool it Ltd’s distribution manager was given a consignment note which he failed to read.
On the reverse there was a statement reading:

3. “Whilst Move it Ltd undertake to ensure the safety of goods, they cannot accept responsibility
for any loss, damage or delay arising from the transportation of said goods.”
On the way to Penzance and due to carelessness on the part of Move it’s driver, Move it Ltd’s
lorry was involved in an accident which resulted in substantial damage to Cool it Ltd’s
appliances. Cool it Ltd is now suing Move it Ltd for the loss arising from the damage to its
appliances.
Advise Move it Ltd.
2a. This is an example of an exclusion clause. Outline the key problems associated
with exclusion clauses and explain how an exclusion clause becomes
incorporated into a contract. (1.2, 1.3)
2b. How do the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer
Contract Regulations 1999 ensure that exclusion clauses are fair and
reasonable? (1.2)
2c. Will Move It Ltd be able to rely on this exclusion clause? (1.2, 2.2 2.3)
Task 3 – Learning Outcome 3
Understand principles of liability in negligence in business activities
3a. For a successful claim in negligence, a claimant must prove
 A duty of care exists
 The duty of care was breached
 The damage is both direct and foreseeable
Explain and illustrate what is required in establishing each of these
requirements. (3.2)
3b. What is meant by the term vicarious liability? Explain the rules that the courts
will apply in deciding if the blame for a negligent act can be shifted from the
employee to the employer. (3.3)
3c. In what ways is the legal relationship between the parties in tort different to
the relationship in contract law? (3.1)
Task 4 – Learning Outcome 4
Be able to apply the principles of liability in negligence in business situations

4. Dave and Manjit work as delivery drivers for Hurryhaste Ltd. Dave has been employed
for three years. Manjit has been taken on as casual labour. Dave and Manjit decide to
have a race to see who can make the most deliveries. Manjit, in haste, reverses into a
parked car owned by Karen, denting the door. Dave receives an urgent call to pick up his
daughter from school. Dave takes the van to pick up his daughter and to make a couple
of deliveries on the way home. After his last delivery, Dave negligently crashes the van
into Sheila’s car, injuring her. Sheila was not wearing her seat belt.
Apply the rules on both negligence and vicarious liability to consider whether Sheila
and Karen would be able to claim for the injury and damage they have suffered and
against whom. (4.1, 4.2, 3.2, 3.3)
Student Guidelines
1. You should write this assignment in report style, although a formal report
structure will not be required.
2. You should not use diagrams, appendices or tables of figures.
3. Any text that is directly quoted (verbatim) from the Internet or other sources
should be clearly identified as such, e.g. Orwell (1948) wrote:
“’’It was a bright cold day in April, and the clocks were striking thirteen"”.
Please bear in mind that it is your own original writing, rather than direct quotes,
that will gain marks.
4. You should include a list of references to all cited sources using the Harvard
referencing system along with a bibliography if appropriate.
For further information on the Harvard Referencing System see;
http://moodle.bl.rdi.co.uk/file.php/921/output/ref/01.html
5. It is advised that you write your report within approximately 3500/4000 words in
order for your research and summarising skills to be developed, and for effective

5. time management. However, you are required to ensure that the assignments
meets all of the learning outcomes and there is no penalty for being over the
suggested word count. Excessive word counts may be asked to be reduced
before marking.
Resources
The following list of resources can be used in conjunction with those identified as part of
the Group Learning Space activities and those listed in the materials.
Elliott C., Quinn F., 2011, Contract Law, London, Longman
Richards P., 2011, Law of Contract, London, Longman
Cooke J., 2011, Law of Tort, London, Longman
Adams A., 2012, Law for Business Students, London, Longman
Formative Feedback Task
You will have the opportunity to submit a piece of work to me to receive some
formative feedback. This is all part of the learning process and will enable you to see
that your learning is on track whilst having some useful comments on your assignment
so far.
Taking each heading of the assignment brief you should start your research & make
some brief notes/bullet points (or a mind-map/diagram) under each heading as to what
you intend to include & discuss. Once you have completed this assignment plan please
submit it me via email (kjohnson@rdi.co.uk) & I will be happy to review your intended
content & give you some feedback on possible areas for development & improvement.
This must be done well in advance of the submission date in order that I can get some
useful comments back to you and that you can act on them.

6. Assessment Criteria for Pass
To achieve a pass you must meet all of the assessment criteria as stated below.
Failure to cover all of the assessment criteria will result in a referral grade and
you be required to re-submit your assignment.
Further guidance on completion of your assignment can be found in the
guidance notes which are posted on the group learning space by your module
tutor. For additional support please post questions onto the group learning
space, or email kjohnson@rdi.co.uk
Learning
Outcomes/
Assessment Criteria
Criteria Met
For tutor use
(you may wish to
use this in your
preparation for
your assignment
submission)
LO1 - Understand the essential elements of a valid and legally binding contract in a business
context
1.1 Explain the importance of the essential elements required for the formation of a valid contract Tasks 1a, 1b
1.2 Discuss the impact of different types of contract Tasks 1a, 1b, 2a, 2b
2c
1.3 Analyse terms in contracts with reference to their meaning and effect Task 2a
LO2 – Be able to apply the elements of a contract in business situations
2.1 Apply the elements of contract in given business scenarios Tasks 1a, 1b
2.2 Apply the law on terms in different contracts Tasks 1a, 2c
2.3 Evaluate the effect of different terms in given contracts Task 2c
LO3 – Understand principles of liability in negligence in business activities
3.1 Contrast liability in tort with contractual liability Task 3c
3.2 Explain the nature of liability in negligence Tasks 3a, 4
3.3 Explain how a business can be vicariously liable Tasks 3b, 4
LO4 – Be able to apply the principles of liability in negligence in business situations
4.1 Apply the elements of the tort of negligence and defences in business situations Task 4
4.2 Apply the elements of vicarious liability in given business situations Task 4
Assessment Criteria for Merit
To achieve a Merit all of the Pass criteria need to be met, then the tutor will
assess whether you have met the Merit Criteria. Each of the Merit criteria must
have been met at least once within the assignment.
The following statements are examples of how a merit may be achieved, if you
do meet the Merit Criteria by showing you have reached this level in other ways

7. then credit will be awarded for this. You will need to meet M1, M2, M3 at least
once.
M1- Identify and apply strategies to find appropriate solutions
 relevant legal issues have been clearly identified e.g. the majority of issues posed by each
of the case scenarios
 relevant legal rules and principles have been applied in a logical way
 reasoned solutions are supported with some case law have been presented to complex
problem style questions.
M1
M2 – Select design and apply appropriate methods/techniques
 a structured and logical approach to legal problem solving has been applied i.e. the legal
argument progresses to a logical and well supported conclusion
 a range of credible primary and secondary sources of information have been used.
M2
M3 – Present and Communicate Findings
 appropriate structure and approach has been used which means that legal argument are
presented in a clear way
 logical and coherent arguments have been presented and supported with either case law
or statute
 legal terminology has been used
M3
Assessment Criteria for Distinction
To achieve a Distinction you have met all of the Pass and the Merit criteria. Each
of the Distinction criteria must be met at least once within the assignment.
The following statements are examples of how a Distinction may be achieved, if
you do meet the Distinction Criteria by showing you have reached this level in
other ways then credit will be awarded for this. You will need to meet D1,D2,D3
at least once.
D1 - Use critical reflection to evaluate your own work & justify valid conclusions
 confident, accurate and reasoned conclusions have been reached on the basis of a
variety of case law and secondary sources. Wider reading beyond the course notes has
been incorporated.
 Proposed legal and non-legal sources have been evaluated in terms of their effectiveness
D1
D2 – take responsibility for managing and organising activities.
 Initiative and independence of thought have been demonstrated through the incorporation of
well chosen research.
D2
D3 – demonstrate convergent, lateral & creative thinking.
 problems have been solved drawing together logical conclusions from the wide range of
sources used
 capacity for innovation and creative thought has been used
 awareness of contentious and/or contemporary issues have been demonstrated
D3