Aspects of contract & business law - week 2

• BTEC
• MBO
• Studiejaar 3

Factors which invalidate or vitiate contracts

Week 2

This week you:  

* learn about factors which invalidate or vitiate contracts

* Learn from 2 case studies

* prepare a report that describes the essential elements of a contract.

* Create a class contract with your teacher regarding your grades.

What does vitiate mean?

1. to invalidate
2. to warrantee
3. to mitigate
4. to corrupt

Misrepresentation

Contracts are often started with negotiations between parties.

These negotiations are a series of representations forming the basis of the contract itself. If these representations are misrepresentations, then the contract is in doubt.

A misrepresentation is...

a false statement of fact made by one party to the other party before the contract is made to convince the other party to enter into the contract.

(een leugen als lokkertje)

If the person to whom the statement was made tries to check the statement, then they clearly already have doubts and the statement cannot be a misrepresentation.

Why cannot the statement be a misrepresentation in this case? (Write down in your notes)

Types of misrepresentation, resulting in a voidable contract:

- Fraudulent

- Negligent

- Innocent

What 4 types of information HAVE to be dislosed?

Explain why a statement
will not be considered a
misrepresentation?

What can result in a
voidable contract?

An opinion can be considered to be a misrepresentation

1. True
2. False

Activity

 - Read pages 90/91 about misrepresentation and make notes/a summery

- Do case study Spice Girls Ltd. v Aprilia World Service BV (2000)

- Do case study Hedley Byrne & Co. Ltd v Heller & Partners (1963)

Upload both outcomes of case studies onto Moodle.

Next time

- Check case studies

- Quiz Chapter 1

- Assessment activity 21.1

Fraudulent
misrepresention

Explain the difference between a negligent- and an innocent misrepresentation.

Activity

Read page 92 (Mistake, Duress and Undue influence)

- Make u summary in your own words.

- Switch summaries with the student next to you

- Check each others summary.

(next: a quiz to test what you already know)

What are the four main elements in a contract?

1. Acceptance, Consideration, Capacity and Offer
2. Terms, conditions, Offer and Offeree
3. Offer, Offeree, signature and terms
4. Acceptance, Considaration, Capacity and Offeree

Two friends have decided to form a partnership. One of them enters into an agreement on behalf of the partnership. Who is liable on this contract?

What are the three types of misrepresentation?

1. False, Innocent, Mistaken
2. Fraudulent, Innocent and Negligent
3. Fraudulent, Mistaken, Negligent.

There are two types of contracts that minors can enter into. Which two?

1. Employment and Renting a house
2. Supply of necessary goods and consideration
3. Supply of necessary goods and Employment
4. Consideration and renting a house

Explain consideration

An offer was made to sell goods by a company. The offer was accepted by the buyer, but he wanted to know if payment could be done in terms. The buyer, having heard nothing, accepted the offer by sending a formal letter. 

False

True

A. the offer is not legally binding. 

B. A counter-offer has been made.  

Last activity for today

MAKE A CONTRACT - Your teacher will hand out the assignment for you to do.

Homework: Assessment activity 21.1 on page 93

presentation to be uploaded onto Moodle