Chapter One
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Transcript of Chapter One
Ms Marshall 1
Chapter One
People in BusinessUnit 1 ndash important for Q1 (long qrsquos)
and for ABQ
Ms Marshall 2
People in Business
1 Role of Stakeholders
2 Relationships between
Stakeholders3 Contract Law
Ms Marshall 3
Stakeholders- people affected by how a business is
run
Entrepreneur
Investor
Employer
Service Provider
EmployeeManager
Producer
Consumer
Interest Groups Government
Ms Marshall 4
Section 1 Role of Stakeholders
bull Entrepreneurbull Spots an opportunity and
takes the initiative to set up a business in order to make a profit
bull They are risk takersbull Financial amp Personal Riskbull Eg Tony Ryan set up
Ryanairbull Bill Gates set up Microsoftbull Gillian Bowler set up Budget
Travel
bull Investorbull Investors provide the finance for the
business (shareholdersbanksstate bodies) and expect a return on their investment
bull Equity Capital ndash Shareholders- Dividends
bull Debt Capital ndash Banks-Interestbull Eg Ulster Bank loaned money to
Gillian Bowlerbull Enterprise Ireland gives grants to
entrepreneurs setting upbull The Body Shop sold a half share in
the business for euro7500
Ms Marshall 5
Role of Stakeholdersbull Employerbull The business itself is the employer It
hires employees to work for them and pay them according to their contract
bull Employers rights includebull Recruiting and selecting the
employeesbull Directing the employeesbull Dismissing unsatisfactory employeesbull Employerrsquos responsibilities includebull Providing a contractbull Payment of wagesbull Providing safe working conditionsbull Obeying employer law
bull Employeebull An employee is a person who works
for an employer in return for a wage bull Employeesrsquo Rightsbull Receiving a written contract of
employmentbull Being paid the agreed wagebull Working in a safe and healthy
workplacebull Freedom to join a trade unionbull Employeesrsquo Responsibilitiesbull Following instructionsbull Doing a fair dayrsquos work for a fair dayrsquos
paybull Being honest and loyal in their work
Ms Marshall 6
Role of Stakeholdersbull Managerbull The manager is responsible
for running the business and making sure that it achieves its objective
bull Must have the skills of leading motivating and communicating
bull Must engage in the activities of planning organising and controlling
bull Michael OrsquoLeary of Ryanair
bull Producers bull Producers are
manufacturers who take raw materials and turn them into a finished product to sell on
bull Eg Coca-Cola Cadburys Tayto Butlers
bull They use the factors of production to make a product land labour capital and enterprise
Ms Marshall 7
Role of Stakeholders
bull Consumerbull A consumer is a person
who buys goods or services from the entrepreneur for his own personal use
bull Provide the entrepreneur with a market and with market research
bull Service Providerbull Provide a range of
valuable supportsservices to a business
bull Eg Banks solicitors telephone companies couriers
bull Vital for efficiency
Ms Marshall 8
Role of Stakeholdersbull Interest Groupsbull An interest group is an
organisation which represents the common viewpoints objectives and goals of a particular group eg IBEC and ICTU would have negotiated with the Government in National Wage Agreements during the Celtic Tiger
bull They seek to influence decisions and policies affecting its members through various activities including negotiation lobbying boycotting and possibly legal action
bull Eg IBEC (Irish Business and Employers Confederation) is the main organisation representing large and medium-sized businesses in Ireland It attempts to influence trade unions the Irish government the EU and wider society on issues such as legislation taxation and pay amp conditions
bull Other interest groups ISME Greenpeace
bull Greenpeace organised a boycott of Shell Oil when they attempted to dump an old oil rig in the sea
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 2
People in Business
1 Role of Stakeholders
2 Relationships between
Stakeholders3 Contract Law
Ms Marshall 3
Stakeholders- people affected by how a business is
run
Entrepreneur
Investor
Employer
Service Provider
EmployeeManager
Producer
Consumer
Interest Groups Government
Ms Marshall 4
Section 1 Role of Stakeholders
bull Entrepreneurbull Spots an opportunity and
takes the initiative to set up a business in order to make a profit
bull They are risk takersbull Financial amp Personal Riskbull Eg Tony Ryan set up
Ryanairbull Bill Gates set up Microsoftbull Gillian Bowler set up Budget
Travel
bull Investorbull Investors provide the finance for the
business (shareholdersbanksstate bodies) and expect a return on their investment
bull Equity Capital ndash Shareholders- Dividends
bull Debt Capital ndash Banks-Interestbull Eg Ulster Bank loaned money to
Gillian Bowlerbull Enterprise Ireland gives grants to
entrepreneurs setting upbull The Body Shop sold a half share in
the business for euro7500
Ms Marshall 5
Role of Stakeholdersbull Employerbull The business itself is the employer It
hires employees to work for them and pay them according to their contract
bull Employers rights includebull Recruiting and selecting the
employeesbull Directing the employeesbull Dismissing unsatisfactory employeesbull Employerrsquos responsibilities includebull Providing a contractbull Payment of wagesbull Providing safe working conditionsbull Obeying employer law
bull Employeebull An employee is a person who works
for an employer in return for a wage bull Employeesrsquo Rightsbull Receiving a written contract of
employmentbull Being paid the agreed wagebull Working in a safe and healthy
workplacebull Freedom to join a trade unionbull Employeesrsquo Responsibilitiesbull Following instructionsbull Doing a fair dayrsquos work for a fair dayrsquos
paybull Being honest and loyal in their work
Ms Marshall 6
Role of Stakeholdersbull Managerbull The manager is responsible
for running the business and making sure that it achieves its objective
bull Must have the skills of leading motivating and communicating
bull Must engage in the activities of planning organising and controlling
bull Michael OrsquoLeary of Ryanair
bull Producers bull Producers are
manufacturers who take raw materials and turn them into a finished product to sell on
bull Eg Coca-Cola Cadburys Tayto Butlers
bull They use the factors of production to make a product land labour capital and enterprise
Ms Marshall 7
Role of Stakeholders
bull Consumerbull A consumer is a person
who buys goods or services from the entrepreneur for his own personal use
bull Provide the entrepreneur with a market and with market research
bull Service Providerbull Provide a range of
valuable supportsservices to a business
bull Eg Banks solicitors telephone companies couriers
bull Vital for efficiency
Ms Marshall 8
Role of Stakeholdersbull Interest Groupsbull An interest group is an
organisation which represents the common viewpoints objectives and goals of a particular group eg IBEC and ICTU would have negotiated with the Government in National Wage Agreements during the Celtic Tiger
bull They seek to influence decisions and policies affecting its members through various activities including negotiation lobbying boycotting and possibly legal action
bull Eg IBEC (Irish Business and Employers Confederation) is the main organisation representing large and medium-sized businesses in Ireland It attempts to influence trade unions the Irish government the EU and wider society on issues such as legislation taxation and pay amp conditions
bull Other interest groups ISME Greenpeace
bull Greenpeace organised a boycott of Shell Oil when they attempted to dump an old oil rig in the sea
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 3
Stakeholders- people affected by how a business is
run
Entrepreneur
Investor
Employer
Service Provider
EmployeeManager
Producer
Consumer
Interest Groups Government
Ms Marshall 4
Section 1 Role of Stakeholders
bull Entrepreneurbull Spots an opportunity and
takes the initiative to set up a business in order to make a profit
bull They are risk takersbull Financial amp Personal Riskbull Eg Tony Ryan set up
Ryanairbull Bill Gates set up Microsoftbull Gillian Bowler set up Budget
Travel
bull Investorbull Investors provide the finance for the
business (shareholdersbanksstate bodies) and expect a return on their investment
bull Equity Capital ndash Shareholders- Dividends
bull Debt Capital ndash Banks-Interestbull Eg Ulster Bank loaned money to
Gillian Bowlerbull Enterprise Ireland gives grants to
entrepreneurs setting upbull The Body Shop sold a half share in
the business for euro7500
Ms Marshall 5
Role of Stakeholdersbull Employerbull The business itself is the employer It
hires employees to work for them and pay them according to their contract
bull Employers rights includebull Recruiting and selecting the
employeesbull Directing the employeesbull Dismissing unsatisfactory employeesbull Employerrsquos responsibilities includebull Providing a contractbull Payment of wagesbull Providing safe working conditionsbull Obeying employer law
bull Employeebull An employee is a person who works
for an employer in return for a wage bull Employeesrsquo Rightsbull Receiving a written contract of
employmentbull Being paid the agreed wagebull Working in a safe and healthy
workplacebull Freedom to join a trade unionbull Employeesrsquo Responsibilitiesbull Following instructionsbull Doing a fair dayrsquos work for a fair dayrsquos
paybull Being honest and loyal in their work
Ms Marshall 6
Role of Stakeholdersbull Managerbull The manager is responsible
for running the business and making sure that it achieves its objective
bull Must have the skills of leading motivating and communicating
bull Must engage in the activities of planning organising and controlling
bull Michael OrsquoLeary of Ryanair
bull Producers bull Producers are
manufacturers who take raw materials and turn them into a finished product to sell on
bull Eg Coca-Cola Cadburys Tayto Butlers
bull They use the factors of production to make a product land labour capital and enterprise
Ms Marshall 7
Role of Stakeholders
bull Consumerbull A consumer is a person
who buys goods or services from the entrepreneur for his own personal use
bull Provide the entrepreneur with a market and with market research
bull Service Providerbull Provide a range of
valuable supportsservices to a business
bull Eg Banks solicitors telephone companies couriers
bull Vital for efficiency
Ms Marshall 8
Role of Stakeholdersbull Interest Groupsbull An interest group is an
organisation which represents the common viewpoints objectives and goals of a particular group eg IBEC and ICTU would have negotiated with the Government in National Wage Agreements during the Celtic Tiger
bull They seek to influence decisions and policies affecting its members through various activities including negotiation lobbying boycotting and possibly legal action
bull Eg IBEC (Irish Business and Employers Confederation) is the main organisation representing large and medium-sized businesses in Ireland It attempts to influence trade unions the Irish government the EU and wider society on issues such as legislation taxation and pay amp conditions
bull Other interest groups ISME Greenpeace
bull Greenpeace organised a boycott of Shell Oil when they attempted to dump an old oil rig in the sea
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 4
Section 1 Role of Stakeholders
bull Entrepreneurbull Spots an opportunity and
takes the initiative to set up a business in order to make a profit
bull They are risk takersbull Financial amp Personal Riskbull Eg Tony Ryan set up
Ryanairbull Bill Gates set up Microsoftbull Gillian Bowler set up Budget
Travel
bull Investorbull Investors provide the finance for the
business (shareholdersbanksstate bodies) and expect a return on their investment
bull Equity Capital ndash Shareholders- Dividends
bull Debt Capital ndash Banks-Interestbull Eg Ulster Bank loaned money to
Gillian Bowlerbull Enterprise Ireland gives grants to
entrepreneurs setting upbull The Body Shop sold a half share in
the business for euro7500
Ms Marshall 5
Role of Stakeholdersbull Employerbull The business itself is the employer It
hires employees to work for them and pay them according to their contract
bull Employers rights includebull Recruiting and selecting the
employeesbull Directing the employeesbull Dismissing unsatisfactory employeesbull Employerrsquos responsibilities includebull Providing a contractbull Payment of wagesbull Providing safe working conditionsbull Obeying employer law
bull Employeebull An employee is a person who works
for an employer in return for a wage bull Employeesrsquo Rightsbull Receiving a written contract of
employmentbull Being paid the agreed wagebull Working in a safe and healthy
workplacebull Freedom to join a trade unionbull Employeesrsquo Responsibilitiesbull Following instructionsbull Doing a fair dayrsquos work for a fair dayrsquos
paybull Being honest and loyal in their work
Ms Marshall 6
Role of Stakeholdersbull Managerbull The manager is responsible
for running the business and making sure that it achieves its objective
bull Must have the skills of leading motivating and communicating
bull Must engage in the activities of planning organising and controlling
bull Michael OrsquoLeary of Ryanair
bull Producers bull Producers are
manufacturers who take raw materials and turn them into a finished product to sell on
bull Eg Coca-Cola Cadburys Tayto Butlers
bull They use the factors of production to make a product land labour capital and enterprise
Ms Marshall 7
Role of Stakeholders
bull Consumerbull A consumer is a person
who buys goods or services from the entrepreneur for his own personal use
bull Provide the entrepreneur with a market and with market research
bull Service Providerbull Provide a range of
valuable supportsservices to a business
bull Eg Banks solicitors telephone companies couriers
bull Vital for efficiency
Ms Marshall 8
Role of Stakeholdersbull Interest Groupsbull An interest group is an
organisation which represents the common viewpoints objectives and goals of a particular group eg IBEC and ICTU would have negotiated with the Government in National Wage Agreements during the Celtic Tiger
bull They seek to influence decisions and policies affecting its members through various activities including negotiation lobbying boycotting and possibly legal action
bull Eg IBEC (Irish Business and Employers Confederation) is the main organisation representing large and medium-sized businesses in Ireland It attempts to influence trade unions the Irish government the EU and wider society on issues such as legislation taxation and pay amp conditions
bull Other interest groups ISME Greenpeace
bull Greenpeace organised a boycott of Shell Oil when they attempted to dump an old oil rig in the sea
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 5
Role of Stakeholdersbull Employerbull The business itself is the employer It
hires employees to work for them and pay them according to their contract
bull Employers rights includebull Recruiting and selecting the
employeesbull Directing the employeesbull Dismissing unsatisfactory employeesbull Employerrsquos responsibilities includebull Providing a contractbull Payment of wagesbull Providing safe working conditionsbull Obeying employer law
bull Employeebull An employee is a person who works
for an employer in return for a wage bull Employeesrsquo Rightsbull Receiving a written contract of
employmentbull Being paid the agreed wagebull Working in a safe and healthy
workplacebull Freedom to join a trade unionbull Employeesrsquo Responsibilitiesbull Following instructionsbull Doing a fair dayrsquos work for a fair dayrsquos
paybull Being honest and loyal in their work
Ms Marshall 6
Role of Stakeholdersbull Managerbull The manager is responsible
for running the business and making sure that it achieves its objective
bull Must have the skills of leading motivating and communicating
bull Must engage in the activities of planning organising and controlling
bull Michael OrsquoLeary of Ryanair
bull Producers bull Producers are
manufacturers who take raw materials and turn them into a finished product to sell on
bull Eg Coca-Cola Cadburys Tayto Butlers
bull They use the factors of production to make a product land labour capital and enterprise
Ms Marshall 7
Role of Stakeholders
bull Consumerbull A consumer is a person
who buys goods or services from the entrepreneur for his own personal use
bull Provide the entrepreneur with a market and with market research
bull Service Providerbull Provide a range of
valuable supportsservices to a business
bull Eg Banks solicitors telephone companies couriers
bull Vital for efficiency
Ms Marshall 8
Role of Stakeholdersbull Interest Groupsbull An interest group is an
organisation which represents the common viewpoints objectives and goals of a particular group eg IBEC and ICTU would have negotiated with the Government in National Wage Agreements during the Celtic Tiger
bull They seek to influence decisions and policies affecting its members through various activities including negotiation lobbying boycotting and possibly legal action
bull Eg IBEC (Irish Business and Employers Confederation) is the main organisation representing large and medium-sized businesses in Ireland It attempts to influence trade unions the Irish government the EU and wider society on issues such as legislation taxation and pay amp conditions
bull Other interest groups ISME Greenpeace
bull Greenpeace organised a boycott of Shell Oil when they attempted to dump an old oil rig in the sea
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 6
Role of Stakeholdersbull Managerbull The manager is responsible
for running the business and making sure that it achieves its objective
bull Must have the skills of leading motivating and communicating
bull Must engage in the activities of planning organising and controlling
bull Michael OrsquoLeary of Ryanair
bull Producers bull Producers are
manufacturers who take raw materials and turn them into a finished product to sell on
bull Eg Coca-Cola Cadburys Tayto Butlers
bull They use the factors of production to make a product land labour capital and enterprise
Ms Marshall 7
Role of Stakeholders
bull Consumerbull A consumer is a person
who buys goods or services from the entrepreneur for his own personal use
bull Provide the entrepreneur with a market and with market research
bull Service Providerbull Provide a range of
valuable supportsservices to a business
bull Eg Banks solicitors telephone companies couriers
bull Vital for efficiency
Ms Marshall 8
Role of Stakeholdersbull Interest Groupsbull An interest group is an
organisation which represents the common viewpoints objectives and goals of a particular group eg IBEC and ICTU would have negotiated with the Government in National Wage Agreements during the Celtic Tiger
bull They seek to influence decisions and policies affecting its members through various activities including negotiation lobbying boycotting and possibly legal action
bull Eg IBEC (Irish Business and Employers Confederation) is the main organisation representing large and medium-sized businesses in Ireland It attempts to influence trade unions the Irish government the EU and wider society on issues such as legislation taxation and pay amp conditions
bull Other interest groups ISME Greenpeace
bull Greenpeace organised a boycott of Shell Oil when they attempted to dump an old oil rig in the sea
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 7
Role of Stakeholders
bull Consumerbull A consumer is a person
who buys goods or services from the entrepreneur for his own personal use
bull Provide the entrepreneur with a market and with market research
bull Service Providerbull Provide a range of
valuable supportsservices to a business
bull Eg Banks solicitors telephone companies couriers
bull Vital for efficiency
Ms Marshall 8
Role of Stakeholdersbull Interest Groupsbull An interest group is an
organisation which represents the common viewpoints objectives and goals of a particular group eg IBEC and ICTU would have negotiated with the Government in National Wage Agreements during the Celtic Tiger
bull They seek to influence decisions and policies affecting its members through various activities including negotiation lobbying boycotting and possibly legal action
bull Eg IBEC (Irish Business and Employers Confederation) is the main organisation representing large and medium-sized businesses in Ireland It attempts to influence trade unions the Irish government the EU and wider society on issues such as legislation taxation and pay amp conditions
bull Other interest groups ISME Greenpeace
bull Greenpeace organised a boycott of Shell Oil when they attempted to dump an old oil rig in the sea
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 8
Role of Stakeholdersbull Interest Groupsbull An interest group is an
organisation which represents the common viewpoints objectives and goals of a particular group eg IBEC and ICTU would have negotiated with the Government in National Wage Agreements during the Celtic Tiger
bull They seek to influence decisions and policies affecting its members through various activities including negotiation lobbying boycotting and possibly legal action
bull Eg IBEC (Irish Business and Employers Confederation) is the main organisation representing large and medium-sized businesses in Ireland It attempts to influence trade unions the Irish government the EU and wider society on issues such as legislation taxation and pay amp conditions
bull Other interest groups ISME Greenpeace
bull Greenpeace organised a boycott of Shell Oil when they attempted to dump an old oil rig in the sea
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 9
Role of Stakeholders
bull Governmentbull Refers to local and
national authorities that set the rules and regulations by which businesses must operate
bull Changes in laws or taxes can affect how a business is run and what profits are earned
bull The government wants businesses to
Provide Jobs Pay their fair share of
taxes Obey the law
In return the government provides services such as schools hospitals roads and policing needed by business and society
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 10
Recent Exam Questionsbull Stakeholdersbull HL 20092003 (10 marks)bull Outline using an example the role of interest groups in business bull HL 2007 (10 marks) OL 2007bull Explain the term lsquoproducerrsquo and give two examplesbull HL 2002 (10 marks) bull Outline the role of any two parties involved in businessbull OL 20092003 (Section 1 10 marks)bull Explain the term investor and give two examples of investors bull 1999 (Section 1 10 marks each) bull List the main parties involved in business bull Explain the role of the entrepreneur in business
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 11
Section Two Relationships between Stakeholders
bull Common Questionsbull Discuss the relationship that would typically
exist between bull Entrepreneur ndash Investorbull Producer ndash Consumerbull Competitors Producersbull Employer - Employee
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 12
Relationships between Stakeholders
bull To answer this type of question we need to follow the following steps
bull 1) State the type of relationship that existsbull 2) Quick introduction to the stakeholdersbull 3) Define the type of relationshipbull 4) Expand your answerbull 5) Illustrate your answer with an example
relevant to the stakeholders in question
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 13
Relationships between Stakeholders
Relationships
CooperativeDynamic
Dependent Competitive
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 14
Relationships between Stakeholders
Examples from recent examsDescribe the relationship which exists between an employer and employee (15 marks)bull Employers hire other people to perform specific duties Employees are hired to carry out
certain duties in return for a wage eg Dept of Education is an employer teachers are their employees
bull Cooperative Relationship this means that the parties in business work together to achieve their goals It is a win-win relationship For example employees agreeing to take a pay cut during the recession to help the company reduce costs The employee keeps their job the employer reduces expenses
Cooperative Relationship this is where both parties work together to achieve their goal It is a win-win situation Working together produces
better results than working alone
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 15
Relationships between Stakeholders
Competitive Relationship this is a win-lose situation where one party wants to be more successful than the other They are rivals
Competitive This means that one party wants to be more successful than the other It is a win lose situation eg The employees want job security but the employer wants to make redundancies
Dependent Relationship This means that the parties in business need each other to be successful eg The employer needs the workers to do the jobs he is not able to do The employee needs their boss to provide wages
Dependent Relationship the two parties rely on each other for success They need each other
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 16
Relationships between stakeholdersbull Describe important aspects of the relationship between producers and consumers in business (15 marks) bull Approach define the two terms Describe the relationships under 3 headings to be safe as it is worth 15 marks Some
years they might have allocated 8m and 7m bull Answer Producers turn raw materials into finished products by combining the four factors of production ie Land labour
capital and enterprise eg Tayto turn potatoes into crispsbull Consumers buy products for their own personal use and do not sell them on eg Buying a packet of Tayto crisps and
eating them bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together
produces better results than working alone When consumers take the time to fill out questionnaires or take part in focus groups they provide market research for the producer This results in products that a consumer actually wants and the ability to make a profit for the producer
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg
A producer in a monopoly situation can charge a higher price to consumers without improving quality eg The ESB are increasing prices by 5
bull Dependent the two parties rely on each other for success eg The producer needs customers in order to make a profit
and continue in business in the pharmaceutical business industry profits may be reinvested into further research and development of drugs The consumer needs producers to provide them with essential products such as medicine
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 17
Relationships between stakeholders
bull 2008bull Competitive and Co-operative relationship between producers in the same business (describe with
examples) bull (A) Competitive Relationship bull A competitive relationship between two producers in the same line of business means each is pursuing
different objectives in an effort to achieve particular objectives at the expense of each other This is a win lose situation This is beneficial for the consumer as every business must work harder to satisfy consumer needs
bull Examples bull Producers in the same line of business may compete on prices of goods and services quality sales the
recruitment of labour etc bull Co-operative Relationship bull A co-operative relationship exists where joint action or effort is required so that producers work together
to everyonersquos benefittowards a common goalact in a mutually beneficial manner This is a win win situation
bull Examples bull Producers in the same line of business sometimes get together and co-operate with each other to protect
their specific industry against an outside threatto encourage economic development and to create jobs for the benefit of the community two producers may get together to lobby government to solve problems of mutual interest
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 18
Relationships between stakeholders
bull 2009bull Discuss how consumers may benefit from the existence of a competitive relationshipbull between producersbull A competitive relationship between producers in the same line of business means each isbull pursuing different objectives in an effort to achieve particular objectives at the expense of thebull other (win-lose relationship) This is beneficial for the consumer as every business must workbull hard to satisfy customer needsbull Examplesbull Producers in the same line of business may compete on prices of goods and servicesbull quality sales recruitment of labour etcbull Customer will benefit frombull 1048696 Improved qualitybull 1048696 Improved customer Servicebull 1048696 Better choice of productsbull 1048696 Better value for money
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 19
Relationships between stakeholders
bull The CEO of Mecca Enterprises a national firm in the leisure business believes that good relationships which help in resolving situations of conflict between business organisations are most important At present however she feels that there is a very high risk of ongoing conflict in the future (20 marks)
bull Describe a cooperative and a competitive relationship that would typically exist between Mecca and other business organisations
bull Approach decide on business organisations they would be dealing with eg Competitors You could choose two different organisations or just one Define cooperative and competitive relationships and give examples relevant to the text
bull Cooperative this is where both parties work together to achieve their goal It is a win-win situation Working together produces better results than working alone For example Mecca may provide certain leisure facilities but maybe not all eg They may have a beauty salon but not a hairdressers They could enter into a strategic alliance or joint venture with the local hairdressers eg Half price manicure with highlights
bull Competitive this is a win-lose situation where one party wants to be more successful than the other They are rivals eg Mecca Enterprises could compete with other National Leisure businesses eg Salons gyms on the basis of price They could increase advertising to increase awareness amongst consumers or to directly compare themselves with their competitors which can be seen in the leisure industry already with Jackie Skelly and Ben Dunne
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 20
Class workbull 2011bull (A) Outline using examples the relationship that can exist between
lsquoInvestorsrsquo and bull lsquoEntrepreneursrsquo in business (15 marks) bull 2012 Mocks bull Describe a cooperative and a competitive relationship that could exist
between two competing businesses in the transport industry Support your answer with examples (15 marks)
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 21
Dynamicbull Some relationships could also
be called dynamic This is a situation where the relationship is changing Eg Peoplersquos roles in a business can change An employee might be promoted to manager changing his relationship with his work colleagues and management He could buy shares if the company becomes a PLC making him an investor Eg Facebook employees
bull ldquoNow after a blockbuster $5billion Facebook stock exchange flotation moved a step closer today at least 1000 employees of the social network based in Menlo Park California are finally on their way to becoming millionaires
bull Facebook today submitted paperwork to regulators for the most anticipated initial public offering since Google in 2004 expected to value the hugely-successful company at up to $100billionrdquo
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 22
Contract Law
bull There are eight elements which must exist in order for a contract to be deemed legally binding
Contract a legally binding agreement between two or more parties that is enforceable by law Eg an employment contract given to an employee by an employer
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 23
Contract Law
8 Elements of a Valid Contract
1 Offer
2 Acceptance
8 Legality of Purpose
3 Consideratio
n4 Intention5 Consent
6 Capacity
7 Legality of Form
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 24
Contract Law
bull Offer One party ask another party to enter into a deal with clear terms It is a promise to by bound by the contract if offer is accepted
bull Offers may be made verbally in writing or by conduct
bull Terminated ifbull withdrawn before
acceptancebull Not accepted in timebull Rejected by other partyNote Invitation to Treat price
tags are an invitation to pay a certain price for an item They are not a legal offer the seller can still refuse to sell the item to you for that price
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 25
Contract law
bull Acceptance Other party agrees to accept all terms of the offer without any conditions
bull Any change in terms would be a counter offer
bull Acceptance can be verbal in writing or by conduct
bull Consideration this is what each party offers the other as evidence of their agreement Both parties must receive something real and valuable quid pro quo Eg one party gets the product the other the money
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 26
Contract Lawbull Intention to contractbull This means that both parties
must mean the agreement to be a legally binding contract
bull Irish law makes two assumptions
bull 1 Agreements between business people are always contracts
bull 2 All social agreement are not intended to be legally binding Non-business transactions between family members are included in this
bull Consent to Contractbull Each party must enter
the contract of their own free will and cannot be forced
bull Consent may not exist ifbull There was physical or
mental intimidationbull There was deliberate
misrepresentation
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 27
Contract Lawbull Capacity to Contractbull This means that the people entering
the contract have the legal ability and power to do so
bull Those who do not have capacity to contract include
bull Under 18rsquosbull Those who are mentally
incapacitated because they are drunk on drugs or insane
bull Diplomats ndash they have diplomatic immunity
bull Company directors who act ultra vires
bull Bankrupt persons
bull Legality of Formbull This means that certain contracts
must be drawn up in writing before they can become legally binding Eg when buying a house entering a hire purchase agreement or taking out insurance policies
bull Legality of Purposebull Means that for a contract to be
legally binding it must be for a legal purpose and not involve committing any crime or breaking the law Eg if someone refuses to pay you for illegal drugs you cannot bring them to court
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 28
Definitions relating to contract lawbull Ultra Vires this is when a company director acts
outside their authority by authorising actions not covered in the Memorandum of Association
bull Condition an essential part of the contract if it is broken the contract is breached Eg a singer fails to turn up to a concert
bull Warranty an element of a contract if it is broken the contract is not cancelled but the injured party can claim for damages in court Eg a builder finishing a project late
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 29
Termination of a Contract
bull Performance both sides to a contract carry out their duties as agreed Eg John hires Tom to build a wall Tom builds the wall and John pays him the agreed price
bull Agreement both parties agree to end the contract Eg John and Tom both agree to leave this contract
bull Frustration the contract ends due to an unforeseen event ie death of one party insanity or bankruptcy Eg Michael Jackson died just before his ldquoThis is itrdquo tour
bull Breach of Contract this is where one party breaks a condition in the contract Eg John does not pay Tom for the work completed
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 30
Remedies for Breach of Contractbull Damages the party who breached the contract is ordered by the judge
to pay financial compensation Eg a singer pulling out of a concert at the last minute may have to pay damages for the lost revenue of the event organisers
bull Specific Performance the court may order that the contract be carried out in accordance with the term of the agreed contract Eg the court orders that a singer who backed out of a concert at the last minute plays the concert at a later date
bull Rescind the Contract the contract is cancelled and the situation returns to what it was before Eg when Michael Jackson died any contracts such as his concert dates were terminated due to frustration The judge could not order compensation to these event organisers Instead they would return to the situation they were in before
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 31
Contract Law - Summary State Explain Expand Example
Offer Ask another person to enter into a deal with clear terms
Can be withdrawn at any stage before it is complete
Making an offer of euro280000 on a house
Acceptance Other party agrees to accept all terms of the offer
Any change in terms would be a counter offer
Acceptance= agreeing to the euro280000 offer Counter offer = wanting euro285000
Consideration Financial value Ie payment
Quid pro quo = both parties get something out of it
The euro280000 for one party the house for the other
Intention Both parties understand it is a legally binding contract
Family non business agreements-not binding
A promise to look after your parents in their old age - not binding
At HL Offer amp Acceptance
are accepted only as one
element ldquoAgreementrdquo
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 32
Contract Law - SummaryState Explain Expand Example
Capacity Legal ability to make contract
Over 18 Not incapacitated or a diplomat
eg A director acting outside his authority -not binding Ultra Vires
Consent Cannot be forced own free will
Real permission given know what they are getting into
Not binding if you signed a contract with a gun to your head
Legality of Form Drawn up in a certain way
Some contracts must be written
Contract for selling a house HP insurance
Legality of Purpose
Contract law only applies to legal transactions
A drug deal is not legally binding
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 33
Recent Exam Questionsbull Contract Lawbull 2012bull A legal contract can be terminated by breach frustration or agreement Illustrate your understanding of the
underlined terms (hl 20 marks) bull OLbull (A) Joe and Michael entered into a contract What is a contract (10 marks) bull (B) Offer Acceptance Consideration and Consent to Contract are elements of a valid contract bull Explain any three of these elements Illustrate your answer with reference to the above text bull (25 marks) bull (C) A contract can be terminated (ended) by Performance or Frustration bull Explain the underlined terms (15 marks) bull 2009 2007 Higher Level (10 marks)bull Explain the term lsquoconsiderationrsquo Outline two other elements of a legally binding contractbull 2009 Ordinary Level (30 marks 152)bull James has decided to sell his car privately He advertised in a local newspaper Tom rang James and after
much discussion he said he would drop by the following day to buy the car Tom did not however come to buy the car
bull (I) State and explain two elements of a valid contractbull (ii) Do James and Tom have a contract Explain your answer
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-
Ms Marshall 34
Recent Exam Questionsbull 2008 HL (10 marks)bull In relation to the law of contract distinguish between the terms lsquoofferrsquo and
lsquoinvitation to treatrsquobull 2008 Ordinary Level (10 marks)bull List three elements of a valid contractbull 2006 HLbull Explain the elements of a valid contract(20 marks) (give 5 points)bull 2005 HL (10 marks)bull Explain four methods by which a legal contract may be terminated (20 marks)bull 2005 HL (10 marks)bull Explain the legal term lsquocapacity to contractrsquo Give two examples of situations
where an individual or legal entity does not have capacity to contractbull 2001 HL (20 marks)bull Define Contract Outline why an invitation to treat in not a contract
- Chapter One
- Slide 2
- Slide 3
- Section 1 Role of Stakeholders
- Role of Stakeholders
- Role of Stakeholders (2)
- Role of Stakeholders (3)
- Role of Stakeholders (4)
- Role of Stakeholders (5)
- Recent Exam Questions
- Section Two Relationships between Stakeholders
- Relationships between Stakeholders
- Relationships between Stakeholders (2)
- Relationships between Stakeholders (3)
- Relationships between Stakeholders (4)
- Relationships between stakeholders
- Relationships between stakeholders (2)
- Relationships between stakeholders (3)
- Relationships between stakeholders (4)
- Class work
- Dynamic
- Contract Law
- Contract Law (2)
- Contract Law (3)
- Contract law
- Contract Law (4)
- Contract Law (5)
- Definitions relating to contract law
- Termination of a Contract
- Remedies for Breach of Contract
- Contract Law - Summary
- Contract Law - Summary (2)
- Recent Exam Questions (2)
- Recent Exam Questions (3)
-