Legislation Flashcards
(37 cards)
What is consideration?
Value given by both parties e.g supplier agrees to sell goods to customer then supplier is agreeing to deliver the goods and customer is agreeing to pay for goods
What consideration must be ?
It must be sufficient but need not be adequate
Type of contracts
A void contract
A voidable contract
An unenforceable contract
A frustrated contract
What is the void contract?
It is one that cannot be enforced by law
What is the voidable contract ?
It is a valid contract that can be nullified - One party is bound to a
contract but the other party is not, so can withdraw from the contract
What is the unenforceable contract ?
It is one that is valid but if one party withdraws from the contract
the courts of law will not enforce them to meet the requirements of
the contract
What is the frustrated contract?
It occurs if an unforeseen event either renders contractual obligations
impossible or radically changes the party’s principal purpose for entering into the contract
Frustrated contracts could occur in the following circumstances….
1) item or building essential to the contract is destroyed though
no fault of either party
2) A law is passed subsequent to the formation of the contract which makes the contract illegal
3) A person or group under contract becomes unavailable though
death, illness or unavailability
What is the contract?
It is a legally binding agreement between two parties
4 ways an offer can be terminated
1) Revocation: means an offer is cancelled
2) Lapse of a specified time period
3) Counter offer: will be a rejection of fre original offer as a new is made
4) Acceptance will end the offer and form contractual obligations
Trade Descriptions Act 1968 & 1972
- describe them
The 1968 Act makes it a criminal offence to apply a false or misleading description to goods and services
the 1972 Act requires that certain imported products should have their country of origin clearly displayed
Unfair Contract Terms Act 1977
To ensure that unfair terms Are not included in the small print. Indemnity clauses ( business protect against its own negligence - seem to be unfair) are also covered
It is not possible for business to incorporate terms into a contract that would exclude themselves from legal liability for defective goods
This applies to business to business contracts
Sale and Supply of Goods Act 1994
This Act governs contracts for the sale of goods
This applies to business to business contracts
Sale and supply of Goods Act 1994 says that all products have to be …
Satisfactory quality
1) Be safe
2) Last for a reasonable amount
of time
3) be fit for their intended purpose
4) Have nothing wrong with them
Consumer Rights Act 2015
This applies a business to consumer contract
It is offered more protection then businesses
Late Payment of Commercial Debt ( Interest ) Act 1998
It gives small businesses the right to charge interest to larger companies who take a long period of time to pay them
The rate of interest is 8% , above the back of England’s base rate
Late payment of Commuraice Debt (Interst) Act 1998
- Statutory compensation
up to £999.99 = £ 40.00
£ 1000 - £9999.99 = £ 70.00
£ 10000 + = £ 100.00
Data Protection Act 2018
To restrict the use of data that is held about individuals
Tor apply to the storage of data of our customers and for credit customers
Data Protection Act 2018 principles
1) Information must be processed lawfully I fairy and in a transparent manner
2) used for the declared purpose only
3) Limited to the data needed for the declared purpose
4) Accountk and up to date
5) Not supt for longer than necessary
6) Held securely
7) The Data Controller is accountable for compliance
Data Protection Act 2018
Rights of the Data Subject
1) Right to be informed about the collection and use of their data
2) Right to access the data
3) Right to rectification of inaccurate data
4) Right to erasure ie the right to be forgotten
5) Right to restrict processing
6) Right to dath portability ie to obtain and reuse their data
7) Right to object
8) Rights in relation to automated decision making and profiling
The Consumer Credit Act protects individuals who buy goods or services on their credit card for….
Over £100 but not more than £30000
Consumers Credit Act
It regulates most agreements for granting credit. These include credit
sales agreements where ownership passes to the purchaser straight away on purchase and also hire purchase agreements where the consumer pays instalments to hire the item but will only take
ownership when the final instalments has been paid
Data protection Act - principles
1) Lawfulness , fairness , and transparency
2) Purpose limitation
3) Data minimisation
4) Accuracy
5) Storage Limitation
6) Integrity and confidentiality
7) Accountability
What is the invitation of treat?
Invitation of treat is an invitation by the seller of the goods for the buyer to make an offer to buy them at that price
