Unit 48: Law of Contract and Tort
Unit code M/617/0738
Unit level 5
Credit value 15
Pre-requisite Unit 7
The aim of this
unit is to provide students with the knowledge and understanding of the
essential elements of a valid contract and the principles of the tort of
negligence. The unit identifies essential elements of an enforceable contract
and the situations wherein the law requires the contract to be in a particular
form. It discusses how the law determines whether negotiating parties reached
an agreement and further, when the parties will be regarded as intending the
agreement to be legally binding. Students will be able to identify the key
terms and conditions to be found in a business contract. The unit investigates
the importance of classification of terms and how they are established.
experiences in this unit will help them to better understand the duty of care
in general and especially for businesses. They will be able to illustrate the
impact of tort on normal business operations and the role of modern law of
negligence such as, professional negligence in providing services to clients.
of this unit, students will gain an understanding of appropriate remedies to
contracts which have been discharged by breach and how the law attempts to
compensate for harm done by awarding damages to given situations in tort.
Students will then explore the appropriate remedies to contract and tort in the
business scenario using examples of decided cases.
Learning Outcomes and Assessment Criteria
LO1 Examine the essential elements of a valid contract
LO1, LO2 and LO3
D1 Provide a critical evaluation of how contracts are formed, recognising law and remedies for breach of contract with evidence drawn from local and international case law and judgement.
P1 Examine how the law determines the essential elements of a valid contract to make it enforceable, using case law examples.
M1 Apply examples of case law to determine the elements of valid contract including consideration in different circumstances.
LO2 Discuss how the contents and the terms of contract are established
P2 Examine how law determines whether negotiating parties have reached agreement using a range of case law examples.
M2 Evaluate the contents of the contract and incorporation of terms using a range of case law examples.
P3 Demonstrate how the terms of a contract are established
LO3 Illustrate the impact of contractual breakdown and suggest remedies available for breach
P4 Discuss the type of breach necessary to cause contractual breakdown and remedies.
M3 Analyse remedies for breach of contract including monetary and non-monetary remedies.
LO4 Evaluate the elements of tort of negligence and
D2 Critically evaluate principles of the tort of negligence with reference to professional advice.
P5 Assess the elements
M4 Compare and
of tort of negligence
contrast tort of
using specific examples.
negligence with breach of
contract using specific
By the end
of this unit students will be able to:
1. Examine the essential elements of a
2. Discuss how the contents and the terms
of contract are established.
3. Illustrate the impact of contractual
breakdown and suggest remedies available for breach.
4. Evaluate the elements of tort of
negligence and remedies available.
the essential elements of a valid contract
of a contract.
defining aspects of law of contract e.g. relationships, obligations, measure of
damage and remoteness of damages.
relationships e.g. third party contracts.
The elements of
a valid contract:
offer: revocation of offer, counter offer, lapse of offer, meeting of minds.
acceptance, subject to contract, intention that the agreement should be legally
Meaning and requirement in English law, types of consideration, past
consideration, a promise to perform an existing obligation and public duty, and
consideration in deeds.
rule, corporate capacity to contract, ultra-vires rule, void, voidable and illegal
LO2 Discuss how
the contents and the terms of contract are established
actual notice, signature, reasonable notice, cause of previous dealings.
differences between expressed and implied terms.
terms are agreed by parties. Implied terms by courts, by law.
of application e.g. Consumer Rights Act (2015), seller has the right to sell,
description, bulk and sample, satisfactory quality.
The status of
warranty, how to determine the status of contractual terms, exemption clauses
and unfair contract terms.
Illustrate the impact of contractual breakdown and suggest remedies available
of performance contract.
types of performance e.g. actual partial performance, substantial Exceptions,
divisible contract, valid reasons for non-performance.
types of breach:
of breach, serious breach and the different types of breaches necessary to
cause contractual breakdown.
breach of contract:
types of remedies e.g. discharge for breach, consumer cases, non- monetary
remedies, payment of the price, damages for breach, remoteness and causation,
measure, mitigation by claimant and contributory negligence.
the elements of tort of negligence and remedies available
Tort as a civil
wrong and negligence:
of tort and tort of negligence, essential elements such as duty to take care,
circumstances required to establish negligence, breach, causation and
remoteness, defences in tort.
Donoghue vs. Stevenson, to Carpro case – history of the duty of care with
influence of tort in similar areas e.g. Consumer Protection and Occupiers
Breach of duty
and damages caused by negligence:
standard of duty to take care, reasonable care, higher duties such as towards
vulnerable victims and children. Damages, personal injury, damage to property,
financial loss connected to personal injury.
for defective products: consumer protection measures and statutory protection
under sale of goods.
of duty of care between professionals and clients.
Byrne Principle and awarding economics loss to the client