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Posted: June 23rd, 2019

Diploma in Business Unit Number: 5

Diploma in Business Unit Number: 5
BTEC Level 5 HND Diploma in Business Aspects of Contract and Negligence for Business
Student: Please provide Evidence Page Number of your assignment
Learning Outcome

LO1 Understand the
essential elements of a
valid contract in a
business context.

LO2 Be able to apply the
elements of a contract in
business situations.
LO3 Understand
principles of liability in
negligence in business
activities.
LO4 Be able to apply
principles of liability in
negligence in business
and employment
situations.

Assessment Criteria

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
contract.
1.3 Analyse terms in contracts with reference to
their meaning and effect.
2.1 Apply the elements of contract in given
business Scenarios.
2.2 Apply the law on terms in different contracts.
2.3 Write a word essay – Evaluate the effect of different terms in given
contracts.
3.1 Contrast liability in tort with contractual
liability.
3.2 Explain the nature of liability in negligence.
3.3 Explain how a business can be vicariously
liable.
4.1 Apply the elements of the tort of negligence
and defences in different business situations.
4.2 Apply the elements of vicarious liability in
given business situations.

Note: For Severn Business College Use Only

Task
Numb
er

Evidence
Page No

Task-1

Task-2

Task-3

Task-4

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Assignment
Unit aim
The aim of this unit is to provide learners with an understanding of aspects of the law of contract
and tort and the skill to apply them, particularly in business situations.
Unit introduction
The unit introduces the law of contract, with a particular emphasis on the formation and operation
of business contracts. Learners are encouraged to explore the content of these agreements and
then develop skills relating to the practical application of business contracts, including offer,
acceptance, intention, consideration and capacity. Relevant case law examples will be covered.
Learners will consider when liability in contract arises, the nature of the obligations on both sides
of the contract, and the availability of remedies when a contract is not fulfilled in accordance with
its terms. Additionally, the unit will enable learners to understand how the law of tort differs from
the law of contract and examine issues of liability in negligence relating to business and how to
avoid it.

Unit content
Task 1:
1.1 Essential elements: offer and acceptance; intention to create legal relations; consideration;
capacity; privity of contract (note vitiating factors are included in Unit 27: Further Aspects of
Contract and Tort)
1.2 Types of contract: face to face; written; distance selling; impact
1.3 Types of terms: condition; warranty; innominate term; express; implied; exclusion clauses and
their validity
Task 2:
2.1 Elements: application of relevant principles and case law to business scenarios
2.2 Specific terms: contents of standard form business contracts; analysis of express terms,
implied terms and exclusion clauses in a given contract
2.3 Effect of terms: breach of condition, warranty and innominate terms; legality of exemption
clauses; outline of remedies; damages
Task 3&4:
3.1 Negligence: differences to contract; duty of care; breach of duty; damage –causation and
remoteness of damage; personal injuries; damage to property;economic loss; occupier liability
3.2, 3.3, 4.2 Liability: employer’s liability; vicarious liability; health and safety issues
Task 4:
4.1 Negligence: application of the legal principles of negligence and relevant statutory and case
law to business scenarios including: personal injuries, damage to property, economic loss,
occupier liability; defences; contributory negligence; remedies

Note: For Severn Business College Use Only

2|Page

Task 1 (this provides evidence for 1.1, 1.2, 1.3).
Task 1 (LO1): Understand the essential elements of a valid contract in a business context
a) Outline the essential elements for the formation of a valid contract; explain the importance of
these elements in the formation of a valid contract. (AC1.1)
b) Discuss the impact of different types of contract and analyse terms in contracts with reference
to their meanings and effect in a business context. (AC1.2) (AC1.3)
Task 2 (this provides evidence for 2.1, 2.2, 2.3)
Task 2 LO2: Be able to apply the elements of a contract in business situations
In March Norman offered to buy Jackie’s car for £4500. Jackie immediately wrote a letter to
Norman saying “For a quick sale I would accept £5000. If you are not interested please let me
know as soon as possible”.
Norman did not see the letter until May when he returned from a business trip but then replied. “I
accept your offer. I trust that if I pay £4500 now, you can wait until September for the remaining
£500”. On receiving the letter, Jackie attached a “sold” sign on the car but forgot to reply to
Norman.
a) Explain the requirements for the formation of a valid contract. Apply the law on terms and
advise Norman and Jackie as to whether or not he has a claim against Jackie for the car. (AC2.1)
(AC2.2)
b) Write a word essay – Evaluate the effect of different terms in given contracts. How does the law approach the issues
of intention to create legal relations and the capacity to contract Use the above scenario to
illustrate your answer. (AC2.3)
Task 3 (this provides evidence for 3.1, 3.2, 3.3)
Task 3 LO3: Understand principles of liability in negligence in business activities
a) What is meant by Tort, contrast liability in Tort with contractual liability (AC3.1)
b) Explain the nature of liability in negligence in business activities. Use relevant examples to
illustrate your answer. (AC3.2)
c) Explain what is meant by vicarious liability and how a business can be vicariously liable.
Support your answer by relevant examples. (AC3.3)
Task 4 (this provides evidence for 4.1, 4.2)
Task 4 (LO4) LO4: Be able to apply the principles of liability in negligence in situations.
Jane is employed in a factory as a cleaner. Her job is to keep the factory floor clean. From time to
time, she is asked by other members of staff to help clean other areas in the workplace.
One day Tony, a warehouseman, asks Jane to help him drive the forklift truck and move some
boxes into the rear of the warehouse so that they can clean. Jane has never driven a forklift truck
before but reluctantly agrees.
Jane starts the forklift truck but immediately loses control and crashes into some boxes, which fall
onto Simon, a co-worker. Simon is badly injured.
Later that day James, a delivery driver, receives an urgent call to pick up his daughter from
school, as she is ill. James decides to take the works’ van to pick up his daughter and to make a
couple of deliveries on the way to his home. However, after making the last delivery, he
negligently crashes the van. The van crashes into Richard severely injuring him. Richard was not
Note: For Severn Business College Use Only
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wearing his seatbelt.
a) Apply the elements of the tort of negligence and vicarious liability to consider whether Simon
and Richard would be able to claim for their injuries. (AC4.1) (AC4.2)

What you must hand in for assessment
Task 1:

Report

Task 2:

Report

Task 3:

Report

Task 4:

Report

SUBMISSION GUIDELINES:
Assignment must include: Assignment Front Sheet (filled assignment front sheet & filled evidence page
number) + Assignment (answers to all assessment criteria and properly numbered) + Plagiarism Report
(submit plagiarism report) + Filled Declaration Form (student declaration, assessor feedback and result
form)

Title

Unit Name and Course Name.

Presenter’s
information

Full Name & Student Reference Number.

Submission
Deadline
Assignment
Length

Methodology

Bibliography/
References

No restriction on the word limit (suggested 3000 words)
The student needs to demonstrate an awareness of the methodological tools
in the form of documented process that contains procedures, definitions and
explanations of techniques used to collect, store, analyze and present
information. It may be that qualitative methods, including the analysis of
interviews, are appropriate. Alternatively the student’s approach may involve
forecasting or statistical, financial or econometric modelling. In other cases
the student may be combining methodologies as his/her research is basically
the analysis of the principles of methods, rules, and postulates employed by
a discipline. Basically, the student needs to specify the approach he/she feels
will be most appropriate.
Please list down “works cited” within the framework of an enumerative
bibliography — a list of references to key articles and texts. Verify each
reference carefully; the references must correspond to the citations in the
text. The list of references should start on a new page and be listed
alphabetically by the last name of the author(s) and then by year,
chronologically. Only the first author’s name is inverted. List all authors’ full

Note: For Severn Business College Use Only

4|Page

names and avoid using et al. The name of each author and the title of the
citation should be exactly as it appears in the original work.

Tables/Charts

Make sure all tables and charts are referenced in the text. Give each table
and chart a title and number consecutive with the order it is mentioned in the
text. Notes for tables and charts are independent of Notes in the rest of the
paper and should be ordered using lowercase letters, beginning with the
letter a (including the Source note, which should be listed first). The
sequence runs from left to right, top to bottom. The order of the notes as they
appear below the tables or charts are (1) Source, (2) general notes to the
table or chart, if any and (3) letter notes.

Times
scale/Research
Planning

Please follow the classroom progress on the assignment brief to exercises.
Since each student is encouraged to develop his/her own timescale the effort
at the Assessor/ Faculty level is to subject them to random periodical checks
in the view of their submission deadline.

Style Sheet

Harvard Reference /APA/ Chicago Manual of Style/ MLA Handbook

Formatting

Use Microsoft Word and keep your formatting very simple.
Double-spaced, semi-block or full-block lay-out
Arial/Times Roman (Italicize or boldface wherever necessary)

Biographical notes

If possible, please explain your background and credentials as it relates to
the work you are presenting on. This is not a request for your résumé.

For specific questions on formatting, use the APA/ Chicago Manual of Style/
MLA Handbook as a guide for notes, citations, references, and table
Additional Details
presentation.

Essential resources
Indicative resource materials
Textbooks
BTEC Higher National Business Study Guide
Elliot C and Quinn F – Tort Law (Longman, 2009) ISBN: 9781405899338
Horsey K and Rackley E – Tort Law (OUP Oxford, 2009) ISBN: 9780199216376
McKendrick, E – Contract Law: Text, Cases, & Materials: Text, Cases, and
Materials (OUP Oxford, July 2008) ISBN: 9780199208012
Peel E and Treitel G H – Treitel on the Law of Contract (Sweet and Maxwell
2007) ISBN: 9780421948402
Journals
Law Society Gazette (The Law Society)
Note: For Severn Business College Use Only

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New Law Journal (LexisNexis Butterworths)
Websites
o https://monkessays.com/write-my-essay/smallbusiness.wa.gov.au/four-essential-elements-of-a-contract/
o http://shivamlawworld.blogspot.co.uk/2012/02/essential-elements-of-validcontract.html
o https://monkessays.com/write-my-essay/wisegeek.org/what-is-privity-of-contract.htm
www.bailii.org/
British and Irish Legal Information Institute – access to freely available British and Irish public legal
Information
https://monkessays.com/write-my-essay/oft.gov.uk/
The Office of Fair Trading
http://iclr.co.uk/
The Incorporated Council of Law Reporting for England and Wales
https://monkessays.com/write-my-essay/tradingstandards.gov.uk/
Main site for trading standards and its business advice
https://monkessays.com/write-my-essay/berr.gov.uk/whatwedo/consumers/ buying-selling/ucp/
Department for Business Innovation and Skills – Links and data on consumer protection
www.hmso.gov.uk/acts/acts2001.htm
Public Acts of the UK Parliament

Checklist
Your assignment must be handed in with a Filled Declaration Form (student declaration,
assessor feedback and result form).
Your work must be referenced and any quotations clearly sources. Assignment must be
hand in with a Plagiarism Report.
All Assessment Criteria must be answered and properly numbered. You must hand in
your own work for assessment for all task (include group work tasks).
You must include an Assignment Front Sheet (filled assignment front sheet and filled
evidence page number).
Note: For Severn Business College Use Only

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Grade Descriptors
Pass Grade
A pass grade is achieved by meeting all the requirements defined in the assessment criteria for pass for each
unit.
Merit Grade
In order to achieve a merit the learner must need to achieve the following criteria as well as meeting all the
requirements of pass grade:
Merit Descriptors
In order to achieve a merit
the learner must:

Indicative Characteristics
The learner’s evidence shows:

M1 – identify and apply
strategies to find
appropriate solutions

M1.1 – effective judgements have
been made
M1.2 – complex problems with
more than one variable have been
explored
M1.3 – an effective approach to
study and research has been
applied

To achieve M1:

M2 – select/design and
apply appropriate
methods/techniques

M2.1 – relevant theories and
techniques have been applied
M2.2 – a range of methods and
techniques have been applied
M2.3 – a range of sources of
information has been used
M2.4 – the selection of methods
and techniques/sources has been
justified
M2.5 – the design of
methods/techniques has been
justified
M2.6 – complex information/data
has been synthesised and
processed
M2.7 – appropriate learning
methods/techniques have been
applied

To achieve M2:
1
M3 – present and
communicate appropriate
findings

M3.1 – the appropriate structure
and approach has been used
M3.2 – coherent, logical
development of principles/concepts

Note: For Severn Business College Use Only

Contextualisation

You will make effective judgements about
fundamental concepts and principles in
selected organisation.
You will provide supporting and
contrasting examples to explain a
complex issue.
You will also adopt an effective approach
to study and research by integrating
secondary and empirical examples in the
report. In addition, you will use resources
to support your arguments which are
academically accredited, good quality, upto-date, relevant and appropriate to the
level of this course of study.

You will apply relevant theories of
conducting academic research. You will
also use range of sources of information
including the internet, journals, books etc.
You will also acknowledge all resources
using correct Harvard Referencing
System.

To achieve M3:
You will use appropriate academic report

7|Page

for the intended audience
M3.3 – a range of methods of
presentation have been used and
technical language has been
accurately used
M3.4 – communication has taken
place in familiar and unfamiliar
contexts
M3.5 – the communication is
appropriate for familiar and
unfamiliar audiences and
appropriate media have been used

format to present the work neatly and
professionally maintaining highest
academic and professional standard.
Make sure arguments/theories provided
are appropriate to the audience. You will
also use technical language accurately in
the context and check the work for
spelling errors.

Distinction grade
In order to achieve a distinction the learner must need to achieve the following criteria as well as meeting all the
requirements of pass grade and merit grade:
Distinction Descriptors
In order to achieve a
distinction the learner
must:

Indicative Characteristics
The learner’s evidence shows:

D1 – use critical reflection to
evaluate own work and
justify valid conclusions

D1.1 – conclusions have been
arrived at through synthesis of
ideas and have been justified
D1.2 – the validity of results has
been evaluated using defined
criteria
D1.3 – self-criticism of approach
has taken place
D1.4 – realistic improvements have
been proposed against defined
characteristics for success

To achieve D1:

D2 – take responsibility for
managing and organising
activities

D2.1 – autonomy/independence
has been demonstrated
D2.2 – substantial activities,
projects or investigations have
been planned, managed and
organised
D2.3 – activities have been
managed
D2.4 – the unforeseen has been
accommodated
D2.5 – the importance of
interdependence has been
recognised and achieved

To achieve D2:

D3 – Demonstrate
convergent/lateral/creative
thinking

D3.1 – ideas have been generated
and decisions taken
D3.2 – self-evaluation has taken
place
D3.3 – convergent and lateral
thinking have been appliedD3.4 – problems have been solved

To achieve D3:

Note: For Severn Business College Use Only

Contextualisation

You will provide conclusion for each
assignment that would derive directly from
your analysis. You should justify the
conclusion you have reached. Provide
recommendation for further research.

You will have demonstrated an effective
approach to independent research and
study and will have met the deadline to
submit the tasks and achieve the unit
assessment criteria.

The originally of your work will be evident.
You will critically analyse information. In
addition, you will write a self-evaluation
showing your ability to reflect upon your
learning by identifying strengths and areas

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D3.5 – innovation and creative
thought have been applied
D3.6 – receptiveness to new ideas
is evident
D3.7 – effective thinking has taken
place in unfamiliar contexts

Note: For Severn Business College Use Only

for improvement in relation to unit.

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