Assignment front sheet
Unit number and title
Pearson BTEC Level 5 HND Diploma in
Unit 5: Aspects of Contract and Negligence for
Barrister A S M Sayem Uddin Khondoker
03 February 2014
Contractual Aspects and Business Negligence: Application in Business
Assessment criteria for pass
The learner can:
LO1 Understand the essential elements of a valid contract in a business context
1.1 explain the importance of the essential elements required for the formation of a valid contract
1.2 discuss the impact of different types of…show more content… He lives near to you. By an agreement he provides you with a lift to work in return for a contribution towards the petrol. Would this contract be legally enforceable? Justify your answer with legal arguments.
Alban is the business development manager of Green Pharma. Four months ago he bought a
‘Landmaster’ car from Brenda’s Garage Ltd for use in his business activities. He paid £12,500 for the car and was given a written guarantee in the following terms. ‘Brenda’s
Garage Ltd guarantees that, for three months from the date of purchase, it will put right free of charge any defects in the vehicle which cannot be discovered on proper examination at the time of purchase.
Thereafter all work and materials will be charged to the customer.’
The sales manager recommended to Alban that he should take out the ‘special extended warranty’ under which, for payment of £350, the car would have been guaranteed in respect of all defects for a further two years, but Alban declined.
Last week the engine and gearbox seized up. The repairs will cost £2,000.
Advise Alban. Would your answer differ if he bought the car only for his personal use?
Q2.3: Explain the effects of the following in the running of a Pharmaceutical company such as Green
a) breach of conditions, warranty and innominate terms,
b) Legality of exemption clauses. Please include relevant examples to