www.cityandguilds.com
September 2012
Version 1.1
Level 2 Award/Certificate/Diploma in Legal
Studies
7657-203
Principles of Contract Liability
D/504/0394
Assignment version: Sample
This guide contains assessor and candidate instructions.
SAMPLE/7657-203/12
This publication has been developed by CILEx. It is part of the method of assessment for
the City & Guilds/CILEx qualifications and whereas CILEx has taken all reasonable care in
the preparation of this publication, neither it nor the City and Guilds of London Institute
accept any liability howsoever in respect of any breach of the rights of any third party
howsoever occasioned or damage caused to any third party as a result of the use of this
publication.
© Copyright CILEx 2012
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Principles of Contract Liability
7657-203
Assessor’s instructions
Assignment number
Version
7657-203/Sample
7657-203
Sample
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Principles of Contract Liability
7657-203
Notes for guidance
This assignment comprises the assessment for the underpinning knowledge requirements
for Unit 203 Principles of Contract Liability.
The importance of safe working practices, the demands of the appropriate national and local
Health and Safety legislation, associated regulations and Codes of Practice associated with
the particular industry, must always be stressed. Candidates have responsibilities for
maintaining the safety of others as well as their own. Anyone behaving in an unsafe fashion
must be stopped and suitable warnings given. A candidate should never be allowed to
continue working on an assignment if they have contravened these requirements. This may
seem rather strict but, apart from the potentially unpleasant consequences, each candidate
must acquire the habits required for the workplace.
The following notes for guidance are provided to assist assessors/tutors in planning
the delivery of this assignment to candidates.
1
Location of assignment
Any suitable location in the workplace or learning environment
2 Equipment/resources required for this assignment
2.1 No specific equipment or resources are required for this assignment although access to
word processing and printer facilities would allow candidates to produce work more
efficiently.
2.2 Candidates will need access to the 7657 Legal Studies Assignment Guide.
3 Evidence and recording
3.1 All work produced by the candidate should be kept together. The candidate is required to
put their name, their City & Guilds registration number, task number and the date on all
pieces of work, either handwritten or typed, however they will not be penalised for not
doing so.
3.2 Candidates will need to be able to organise their information clearly and coherently.
Spelling, punctuation and grammar should be used with considerable accuracy and legal
terminology applied where relevant.
4 Time considerations
4.1 This assignment should take no longer than three hours to complete, excluding research
activities. You should make the candidate aware of your programme’s time frame and
deadlines for completion of this assignment.
4.2 A recommended period of seven days must have elapsed before an unsuccessful
candidate can retake a task within this assignment. Further training/feedback should be
given to candidates before a task is retaken. Should a candidate be unsuccessful in
more than one task, or a referred assignment, then a new assignment should be taken.
5 Additional information
5.1 Answers given in the marking and grading criteria are indicative of the type of answers
candidates should give. They are not definitive.
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Outcomes
Task
Evidence
1
A draft letter, for approval, explaining the legal position of
invitations to treat and offers in a given scenario
2
A set of revision notes which define consideration, explain
its importance in a contract and explain the rebuttable
presumptions that apply to business (commercial)
agreements and social and domestic agreements
LO 1
AC 1.2, 1.3
3
Presentation notes which explain how a contract can be
discharged and what “remedy of damages” means
LO 2
AC 2.1, 2.2
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Page 5
Outcome reference
Underpinning
knowledge
LO 1
AC 1.1
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Principles of Contract Liability
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Candidate’s instructions
Assignment number
Version
7657-203/Sample
7657-203
Sample
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Principles of Contract Liability
7657-203
Assignment 7657-203
You are advised to read all instructions carefully before starting work. Check with your
Assessor/Tutor, if necessary, to ensure that you have fully understood the process.
You must, at all times, observe all relevant Health and Safety requirements.
This assignment should take you no longer than three hours to complete, excluding
research activities. You are required to work to the time frame and deadlines as set
out by your Assessor/Tutor.
Introduction
This assignment is broken down into three tasks:
Task 1 requires you to prepare a draft letter, for approval, explaining the legal position of
invitations to treat and offers in a given scenario.
Task 2 requires you to prepare a set of revision notes which define consideration, explain its
importance in a contract and explain the rebuttable presumptions that apply to
business (commercial) agreements and social and domestic agreements.
Task 3 requires you to prepare presentation notes which explain how a contract can be
discharged and what the term “remedy of damages” means.
Note
• You will need access to the 7657 Legal Studies Assignment guide to enable you to
complete this assignment.
• You should read through the instructions for each task carefully before you start.
• Make sure you do everything you are asked to do in the instructions and other notes.
• When you have completed all the tasks, re-read the instructions again just before you
proof read your work for the last time.
• Ensure your name, your City & Guilds registration number, task number and the date are
on all documentation.
• At the conclusion of the task/assignment, hand all paperwork to your Assessor/Tutor.
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Principles of Contract Liability
7657-203
Scenario
You are a trainee legal assistant in Ingram Lochee & Exton, a firm of solicitors with various
branches in the UK. As part of your training you are currently working in the Corporate
Department.
Task 1
A local mobile phone shop has had a problem regarding a mobile phone that has been
displayed in the shop with an incorrect price ticket attached. A customer has insisted that he
is entitled to buy the phone at the price shown on the ticket, even though this was £100
below the correct price. The shop owner, Mr Hoskins, has asked Ingram, Lochee and Exton
to advise him on the legal position.
Your line manager has asked you to draft a letter, for his approval, which explains to Mr
Hoskins whether a buyer can insist on buying the phone at the incorrect price shown on the
price ticket. You should ignore the provisions of consumer protection law and focus purely
on the law of contract.
Task 2
Your annual appraisal is due shortly. Your line manager has told you that he will be testing
your knowledge on the importance of consideration in a contract and also your
understanding of the rebuttable presumptions in law which apply to both business
agreements and those of a social or domestic nature.
Prepare a set of revision notes, including relevant cases, which you can use to help you
prepare for your appraisal. Your notes should:
(a) define consideration and explain its importance in a contract and
(b) explain the rebuttable presumptions in law which apply to
i.
business (commercial) contracts; and
ii.
social and domestic contracts
Task 3
One of the partners in the firm has been asked to give a talk to students studying the law of
contract at a local college. His talk will focus on how a contract can be discharged and what
is meant by “remedy of damages”.
You have been asked to prepare, for his approval, notes for his presentation which should
include names and dates of appropriate cases.
Prepare notes for a presentation which state:
(a) the four basic methods by which a contract can be discharged; and
(b) what the term “remedy of damages” means
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7657-203
Marking & grading criteria
(Not to be shown to candidates until grading is complete)
Assignment number
Version
7657-203
Sample
Candidate name:
Enrolment no:
I confirm that all work submitted is my own
Signature:
Date:
Pass / Merit / Distinction / Resit
Assessor name:
Signature:
Date:
Internal Quality
sampled by:
Signature:
7657-203/Sample
Date:
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Each of the following points should be ticked if satisfactorily met and crossed if not. If a point does not apply it should be crossed through and
annotated with reasons why it is not applicable. Answers given in the marking and grading criteria are indicative of the type of answers
candidates should give. They are not definitive. Professional judgement should be used. All cases cited are examples only unless
specified as established principle.
To achieve a Pass, candidates must meet all criteria shown as and 15 of the criteria shown as To achieve a Merit, candidates must pass all the tasks and meet at least 19 of the criteria shown as To achieve a Distinction, candidates must pass all the tasks and meet at least 23 of the criteria shown as Task
Outcome
ref
Marking criteria
1
1.1
Draft letter produced
Marking
•
Offer and acceptance essential to any contract
•
Definition of “offer”
•
Items displayed for sale in shop do not constitute an offer to sell
•
Display is an invitation to treat
•
Identification of one case to support
o
(e.g. Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd (1953),
Fisher v Bell (1961))
•
Shop is inviting offers from an intending buyer
•
Price ticket only shows an indication of the expected price
•
Customer makes the offer to buy (as opposed to shop offering to sell)
•
Shop can accept or reject offer from customer
•
If shop accept there is a contract and customer buys at ‘wrong’ price
•
If shop rejects there is no contract and customer cannot take any action against shop
Pass / Fail
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7657-203
Task
Outcome Marking criteria
ref
To pass Task 1, candidates must meet all criteria shown as and 5 of the criteria shown as Candidate’s name:
Date:
Assessor’s name:
Assessor’s signature:
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Marking
No
of
_______
Level 2 Award/Certificate/Diploma in Legal Studies – Principles of Contract Liability
7657-203
Task
Outcome
ref
1.2
Define consideration and explain its importance in a contract
•
•
(b)
Marking
Revision notes produced
2
(a)
Marking criteria
1.3
7657-203/Sample
Definition of consideration (e.g. something of value that is provided and which acts as the
inducement to enter into the agreement)
Appropriate case in support (e.g. Currie v Misa (1875))
•
Explanation (e.g. essential to contract, must not be past, nor something for which an obligation
already exists, part payment)
•
Consideration is an essential part of a contract, without which there is merely an unenforceable
agreement
Rebuttable presumptions
•
If two or more people make an agreement without the intention of being legally bound by it, that
agreement will not be regarded by the courts as a contract
•
Rebuttable presumption that business (commercial) agreements are intended to create legal
relations but social and domestic agreements are not intended to create legal relations
•
Appropriate case in support for business agreements (e.g. Esso Petroleum Ltd v Commissioners
of Customs and Excise (1976))
•
Appropriate case in support for social and domestic agreements (e.g. Balfour v Balfour (1919))
•
Where spouses are no longer cohabiting, courts may enforce agreements if considered
appropriate
•
Appropriate case in support (e.g. Merritt v Merritt (1969))
•
Agreements between parents and children are also presumed not to create legal relations
•
Appropriate case in support (e.g. Jones v Padavatton (1969))
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Task
Outcome
ref
Marking criteria
Marking
To pass Task 2, candidates must meet all criteria shown as and 5 of the criteria shown as Candidate’s name:
Date:
Assessor’s name:
Assessor’s signature:
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Pass / Fail
No
of
_______
Level 2 Award/Certificate/Diploma in Legal Studies – Principles of Contract Liability
7657-203
Task
Outcome
ref
Marking
Presentation notes produced
3
(a)
Marking criteria
2.1
•
Methods by which a contract can be discharged (all four identified)
Performance
•
Explanation (e.g full performance, part performance, substantial performance)
•
Appropriate case in support (e.g. Cutter v Powell (1795); Sumpter v Hedges (1898); Hoeing v
Isaacs (1952))
Agreement
•
Explanation (e.g. parties can release each other from their obligations but agreement must be
supported by consideration)
•
Appropriate case in support (e.g. Pinnel’s Case (1602))
Breach
•
Explanation (e.g. breach of a term by one party, breach of
anticipatory breach)
•
Appropriate case in support (e.g. Hochester v De La Tour (1853), Avery v Bowden (1855))
condition, breach of warranty,
Frustration
(b)
2.2
•
Explanation (e.g. contract becomes impossible/illegal to perform or radically different from that
contemplated and this was not the parties’ fault)
•
Appropriate case in support (e.g. Taylor v Caldwell (1863), Krell v Henry (1903)
“Remedy of damages”
•
7657-203/Sample
Explanation (e.g. aggrieved party entitled to compensation; usually in the form of damages; applies
to both breach of condition and warranty; represents any losses sustained following breach of
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Task
Outcome
ref
Marking criteria
Marking
contract; attempts to place aggrieved party in the position he/she would have been in had the
contract been completed; foreseeability of damage
•
Damages = monetary compensation
To pass Task 3, candidates must meet all criteria shown as and 5 of the criteria shown as Candidate’s name:
Date:
Assessor’s name:
Assessor’s signature:
To achieve a Pass, candidates must meet all criteria shown as and 15 of the criteria shown as To achieve a Merit, candidates must pass all the tasks and meet at least 19 of the criteria shown as To achieve a Distinction, candidates must pass all the tasks and meet at least 23 of the criteria shown as Pass / Fail
No
of
_______
Total No of O
_______
Pass / Merit /
Distinction
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