Unit 21: Aspects of Contract and
Business Law
Unit code: F/502/5452
QCF Level 3: BTEC National
Credit value: 10
Guided learning hours: 60
Aim and purpose
The aim of this unit is to introduce learners to the operation of the law of contract as it applies to businesses.
Learners will apply the law to business and consumer situations and consider the meaning and effect of
standard form contracts.
Unit introduction
A business can only make money legitimately by making contracts with other businesses and customers.
Businesses want to make the terms of these contracts the most favourable to themselves. All those involved
in a contract need to know the exact terms on which it is based so that their rights and obligations are clearly
understood and appropriate action can be taken if the contract is not implemented satisfactorily. Many businesses
try to minimise their responsibilities under a contract, and the law attempts to balance the customer’s interests
and gives consumers, in particular, rights in relation to business sellers and service providers.
Learners will consider rules for the formation of contracts and develop an understanding of the legal effect
of each stage in negotiating a contract, up to and including the final agreement. The law on misrepresentation
and the terms in contracts are explored. It is central to the unit that learners understand the meaning of express
and implied terms in a contract. They will examine a contract or contracts to consider the use of key terms.
For example, terms with respect to payment can be analysed and put into the context of implied terms found
in legislation and the remedies available for failure to honour the terms of a contract.
Exclusion clauses that attempt to remove all or some liability for one party’s breach of contract are a common
part of written contracts, yet these terms often have no legal effect. The law is concerned to balance freedom
of contract with protection of the weaker party (usually a consumer) and this can be evaluated as part of the
overall contract.
Learners will also consider the statutory consumer protection laws in relation to contracts for the sale and
supply of goods and services, both face to face and at a distance. Learners will analyse the terms of contracts
so as to understand the rights and responsibilities that arise from the contract and consider the overall effect
of the contract and the remedies that are available.
Edexcel BTEC Level 3 Nationals specification in Business
– Issue 1 – January 2010 © Edexcel Limited 2009
1
, Learning outcomes
On completion of this unit a learner should:
1 Understand the legal requirements for a valid contract
2 Understand the meaning and effect of terms in a standard form contract
3 Understand the impact of statutory consumer protection on the parties to a contract
4 Know the remedies available to the parties to a contract.
Edexcel BTEC Level 3 Nationals specification in Business
2 – Issue 1 – January 2010 © Edexcel Limited 2009
Business Law
Unit code: F/502/5452
QCF Level 3: BTEC National
Credit value: 10
Guided learning hours: 60
Aim and purpose
The aim of this unit is to introduce learners to the operation of the law of contract as it applies to businesses.
Learners will apply the law to business and consumer situations and consider the meaning and effect of
standard form contracts.
Unit introduction
A business can only make money legitimately by making contracts with other businesses and customers.
Businesses want to make the terms of these contracts the most favourable to themselves. All those involved
in a contract need to know the exact terms on which it is based so that their rights and obligations are clearly
understood and appropriate action can be taken if the contract is not implemented satisfactorily. Many businesses
try to minimise their responsibilities under a contract, and the law attempts to balance the customer’s interests
and gives consumers, in particular, rights in relation to business sellers and service providers.
Learners will consider rules for the formation of contracts and develop an understanding of the legal effect
of each stage in negotiating a contract, up to and including the final agreement. The law on misrepresentation
and the terms in contracts are explored. It is central to the unit that learners understand the meaning of express
and implied terms in a contract. They will examine a contract or contracts to consider the use of key terms.
For example, terms with respect to payment can be analysed and put into the context of implied terms found
in legislation and the remedies available for failure to honour the terms of a contract.
Exclusion clauses that attempt to remove all or some liability for one party’s breach of contract are a common
part of written contracts, yet these terms often have no legal effect. The law is concerned to balance freedom
of contract with protection of the weaker party (usually a consumer) and this can be evaluated as part of the
overall contract.
Learners will also consider the statutory consumer protection laws in relation to contracts for the sale and
supply of goods and services, both face to face and at a distance. Learners will analyse the terms of contracts
so as to understand the rights and responsibilities that arise from the contract and consider the overall effect
of the contract and the remedies that are available.
Edexcel BTEC Level 3 Nationals specification in Business
– Issue 1 – January 2010 © Edexcel Limited 2009
1
, Learning outcomes
On completion of this unit a learner should:
1 Understand the legal requirements for a valid contract
2 Understand the meaning and effect of terms in a standard form contract
3 Understand the impact of statutory consumer protection on the parties to a contract
4 Know the remedies available to the parties to a contract.
Edexcel BTEC Level 3 Nationals specification in Business
2 – Issue 1 – January 2010 © Edexcel Limited 2009
