Business environment slides Flashcards
(20 cards)
What are the key elements of a valid contract?
Offer, acceptance, consideration, intention to create legal relations, capacity, and legality.
What is an ‘offer’ in contract law?
A definite promise to be bound on specific terms made by the offeror.
How is an ‘invitation to treat’ different from an offer?
It’s a statement showing willingness to negotiate, not an offer itself (e.g., ads, goods on shelves).
What are ways an offer can be terminated?
Rejection, counter-offer, lapse of time, revocation before acceptance.
What constitutes ‘acceptance’?
An unqualified agreement to all terms of the offer, communicated to the offeror.
What is the ‘postal rule’?
Acceptance is valid once posted, even if delayed or lost.
What is ‘consideration’ in contract law?
What each party gives in return (e.g., payment or a promise).
What makes consideration ‘sufficient’ but not necessarily ‘adequate’?
It must have legal value but need not be equal in value to what is received.
What does ‘privity of contract’ mean?
Only parties to a contract can enforce or be bound by it.
Who is considered an ‘employee’?
A person working under a contract of service with rights and protections.
What are the tests to determine employment status?
Control test, integration test, economic reality test, mutuality of obligations test, multiple test.
Why is the distinction between employee and contractor important?
It affects tax, rights, protections, and liability.
What must be included in a written statement of employment particulars?
Names, start date, pay, hours, job title, holidays, notice period, etc.
What are common implied terms for employees?
Duty of faithful service, obey lawful orders, use reasonable care, confidentiality.
What are common implied terms for employers?
Pay wages, provide work, indemnify employees, maintain trust and confidence.
What is unfair dismissal?
Termination without a fair reason or due process under statutory provisions.
What are automatically unfair reasons for dismissal?
Pregnancy, union membership, enforcing legal rights like minimum wage.
What are potentially fair reasons for dismissal?
Redundancy, misconduct, qualifications.
What are remedies for unfair dismissal?
Reinstatement, re-engagement, compensation.
What is wrongful dismissal?
Termination that breaches the employment contract (e.g., no notice).
