NZQA registered unit standard
17703 version 5
Page 1 of 4
Title
Apply legal requirements to credit contracts
Level
4
Credits
10
Purpose
People credited with this unit standard are able to demonstrate
knowledge of: the legal terminology of contracts; the law
relating to the authority of agents; the law relating to business
entities; the law of ownership and transfer of real property; and
consumer legislation and its application to credit contracts.
Classification
Financial Management > Credit Management
Available grade
Achieved
Explanatory notes
1
Legislation applicable to this unit standard includes the Partnership Act 1908, Sale of
Goods Act 1908, Frustrated Contracts Act 1944, Property Law Act 2007, Illegal
Contracts Act 1970, Income Tax Act 2007, Contractual Mistakes Act 1977,
Contractual Remedies Act 1979, Fair Trading Act 1986, Companies Act 1993,
Consumer Guarantees Act 1993, Sale of Goods (United Nations Convention) Act
1994, Credit Contracts and Consumer Finance Act 2003, Personal Property
Securities Act 1999, Privacy Act 1993, associated regulations, and subsequent
amendments.
2
This unit standard may be assessed on-job in the workplace using naturally occurring
evidence or in off-job simulated work situations designed to draw upon similar
performance to that required in work in a credit administration and/or credit
management context.
Outcomes and evidence requirements
Outcome 1
Demonstrate knowledge of the legal terminology of contracts.
Evidence requirements
1.1
Define the elements necessary for a valid contract in terms of legislation.
Range
1.2
offer, acceptance, consideration.
Describe differences and similarities between simple contracts, deeds, and
guarantees in accordance with legislation.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
17703 version 5
Page 2 of 4
1.3
Describe the intention to create contractual relationships in the formation of a
contract in accordance with legislation.
1.4
Describe discharge of a contract in accordance with legislation.
Range
1.5
may include but is not limited to – accord and satisfaction,
agreement, performance.
Describe breach of contract and remedies available in accordance with
legislation.
Outcome 2
Demonstrate knowledge of the law relating to the authority of agents.
Evidence requirements
2.1
Describe the relationship among principal, agent, and third party in terms of
legislation.
2.2
Define the authority of agents.
Range
express authority, ostensible authority.
Outcome 3
Demonstrate knowledge of the law relating to business entities.
Evidence requirements
3.1
Define legal definitions of business entities.
Range
3.2
sole trader, partnership, company, joint venture, incorporated
society, charitable trust, trading trust, Māori trust.
Describe business entities and their legal characteristics in terms of legislation.
Range
formation, limited liability, name, capital, continuity, transferability
of ownership, control, taxation.
Outcome 4
Demonstrate knowledge of the law of ownership and transfer of real property.
Evidence requirements
4.1
Explain transfer of ownership and risk, of real property, from seller to buyer in
terms of legislation.
4.2
Explain the nemo dat principle and its exceptions in terms of ownership and
possession.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
17703 version 5
Page 3 of 4
Outcome 5
Demonstrate knowledge of consumer legislation and its application to credit contracts.
Evidence requirements
5.1
Explain provisions relating to credit contracts in terms of the Fair Trading Act.
5.2
Explain provisions relating to credit contracts in terms of the Consumer
Guarantees Act.
5.3
Explain provisions relating to credit contracts in terms of the Credit Contracts
and Consumer Finance Act.
Planned review date
31 December 2020
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
28 August 2000
31 December 2013
Review
2
28 June 2005
N/A
Rollover and
Revision
3
15 November 2012
N/A
Rollover and
Revision
4
22 May 2014
N/A
Review
5
18 June 2015
N/A
Consent and Moderation Requirements (CMR) reference
0121
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards, or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the (CMR). The CMR also includes useful information
about special requirements for organisations wishing to develop education and training
programmes, such as minimum qualifications for tutors and assessors, and special
resource requirements.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
17703 version 5
Page 4 of 4
Comments on this unit standard
Please contact The Skills Organisation reviewcomments@skills.org.nz if you wish to
suggest changes to the content of this unit standard.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016