GCSE Law - Consumer Rights and Responsibilities - Chapter 16

Notes on Chapter 16 of 'OCR Law for GCSE' - Unit 4 - Consumer Rights and Responsibilities

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16.1.1. What is a contract?
We form contracts every day;
Having contracts mean we have enforceable rights. If rights are interfered with, compensation can be
Contract = completed when both parties carry out agreement;
Breach of contract = fails to do what one was supposed to do;
B/c of enforceable nature of contractual agreements, we cannot identify a breach where we feel that we
have not received what we bargained for, w/o showing that a contract existed rather than just an
unenforceable agreement.
16.1.2. Forming a contractual agreement
T4 we need to prove contract. Three main rules:
Agreement: parties must reach agreement (legitimate offer accepted unconditionally);
Consideration: in effect = price prepared to pay for what is given by other side;
Legal intent: must intend for the contract to be enforceable in court of law.
Offer and acceptance have to be communicated;
Person making offer can withdraw before the acceptance;
Pharmaceutical Society of GB v Boots Cash Chemists Ltd (1953) ­ went to self-service, but law required an
assistant needed to be present to purchase certain drugs, it was decided that they were required only when
the drugs were taken to the cash desk, not when they were taken from the shelf.
The law simply needs to know that there has been some consideration involved;
This can be anything: e.g. you do not have to pay the value of the goods.
Legal Intent:
Generally, the law operates two presumptions, both of which can be rebutted if there was evidence:
The law presumes that domestic agreements aren't enforceable;
It also presumes that in any business agreement there is intention that it will be enforceable
(useful because it stop businesses from trying to avoid their obligations).

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Basic character of terms
Terms of contracts can be what the parties have expressly agreed on, but they can also be what the law has
said should be included (implied).
Type of statement Contractual Reasoning
Terms You can rely on these and can Because they are actually
sue for a breach of contract incorporated into the contract.
Mere representations You cannot rely on these Because they are not part of
the contract. They are not
important enough.…read more

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The importance of different types of term
Some terms are more important than others ­ some are vital to the contract;
Some may, if breached, not mean that the contract cannot be carried out;
Therefore, depending on the type of term, different remedies apply;
There are two different types of term: conditions and warranties;
Condition is a term which, if breached, results in the inability to carry out the contract;
Condition = `going to the root of the contract';
Breach = compensation or avoidance…read more

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However, no D of C owed where damage is unforeseeable, where defendant could not have been aware of
the claimant and where it would be generally unfair to allege liability on the defendant.…read more


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