Lesson : Contracts and Agreements
Lesson 1: Contracts
Text A: Breach of Contract Claim
Contracts are legally binding promises between individuals or companies, falling under civil law. A breach of contract occurs when one party fails to adhere to the agreed-upon terms. Contracts may have express or implied terms, with the latter often originating from caselaw or statute. Initiating a breach of contract claim involves a Claimant accusing a Defendant of non-compliance. Legal proceedings are initiated by bringing an action to court, typically for damages as compensation. The text introduces the legal concepts and procedures related to breach of contract claims.
Exercise 1 – Comprehension
- Types of contracts could include employment contracts, sales contracts, etc.
- Contract law is under civil law.
- Terms of a contract refer to the agreed-upon conditions.
- The two main types of contract terms are express and implied.
- Case-law is legal decisions made by courts.
- A statute is a written law passed by a legislative body.
- The party bringing a claim is the Claimant.
- The implied term of satisfactory quality refers to an unwritten guarantee that goods will meet a reasonable standard.
Text B: Legal Proceedings
The text discusses the transition from old-fashioned legal language to modern equivalents in legal proceedings. It emphasizes the importance of using plain English while drafting legal documents, with a focus on precision. The provided table offers modern alternatives to traditional legal terms.
Lesson 2: Agreements
Text: Marketing Agreements
Marketing agreements encompass various types, such as Agency, Distribution, Franchising, and Joint Venture agreements. The text provides insights into each type:
- Agency Agreement: Authorizes an agent to sell goods on behalf of a principal.
- Distribution Agreement: Involves selling goods from a supplier to a distributor, who then sells to customers.
- Franchise Agreement: Allows a franchisor to expand by partnering with franchisees, maintaining a uniform business model.
- Joint Venture Agreement: Involves collaboration between businesses on a specific project, sharing resources and risks.
Exercise – Comprehension
- McDonald's is an example of a franchise.
- An agent's income from sales is known as a commission.
- A distributor earns income from the markup between the supplier's price and the selling price.
- One benefit of a joint venture agreement is the ability to undertake initiatives collectively, sharing resources and risks.
Q&A for Lesson 1: Contracts
Text A: Breach of Contract Claim
Q1: What is the focus of contract law, and under which branch of law does it fall?
- A: Contract law is concerned with legal rights and remedies resulting from agreements and falls under civil law.
Q2: How is a breach of contract defined, and when does it occur?
- A: A breach of contract occurs when one party alleges that the other has failed to comply with the terms of the agreement, essentially breaking the promise made.
Q3: Explain the difference between express and implied terms in a contract.
- A: Express terms are specifically written or stated, while implied terms are created through caselaw or statute and are not explicitly written but inferred.
Q4: What is the role of the Claimant and Defendant in a breach of contract claim?
- A: The party initiating the claim is the Claimant, accusing the other party, known as the Defendant, of breaching the contract.
Q5: How is a breach of contract claim initiated, and what is the usual remedy sought in court?
- A: A breach of contract claim is initiated by issuing proceedings in court, and the typical remedy sought is damages, which means monetary compensation.
Q6: Provide an example of an implied term in a contract mentioned in the text.
- A: The Sale of Goods Act 1979 implies a term into a contract for the sale of goods that the goods will be of satisfactory quality.
Text B: Legal Proceedings
Q7: What are the two key documents that need to be drafted when commencing legal proceedings?
- A: The two documents are a Claim Form and Particulars of Claim, collectively known as statements of case.
Q8: Why has there been a push for greater use of plain English in legal documents?
- A: Recent reforms, including the 'Civil Procedure Rules,' encourage greater use of plain English to improve clarity, though precision remains essential.
Q9: Explain the significance of the table in Text B.
- A: The table provides modern equivalents for old-fashioned legal terms used in statements of case, promoting a shift towards more understandable language.
Q10: What is the purpose of statements of case in legal proceedings?
- A: Statements of case, previously known as pleadings, serve as court documents providing details of the legal claims and defenses in a case.
Q&A for Lesson 2: Agreements
Text: Marketing Agreements
Q1: Name one type of marketing agreement mentioned in the text.
- A: Franchise agreements are one type of marketing agreement discussed.
Q2: What does an agent's income from sales in an agency agreement typically involve?
- A: An agent's income from sales is known as a commission.
Q3: How does a distributor earn income in a distribution agreement, and why should such agreements be drafted carefully?
- A: A distributor earns profit from the markup between the supplier's price and the selling price. These agreements must be drafted carefully due to legal restrictions on competition.
Q4: What is one benefit to a company entering into a joint venture agreement?
- A: One benefit is that companies can undertake initiatives collectively, sharing resources and risks.
