Topic 1 - Legal Principles and contract formation

Question 1

Civil Courts

Small Claims Court

Answer 1

Cases below £10,000

Small claims court

Question 2

Civil Court

County Court

Answer 2

• Cases between £10,000 and £25,000
• heard within 1 day

fast track

Question 3

Civil Court

High Court

Answer 3

Cases above £25,000 (high value)

Multi-track

Question 4

Appeals

Answer 4

Civil Courts:
* Court of Appeal
* Supreme Court
Criminal Courts:
* Additional of High Court

Question 5

Criminal

Criminal Cases

Answer 5

• Magistrates Court for minor offences
• Crown Court for more serious cases (jury and judge)

Question 6

Invitations to Treat

Answer 6

• Goods displayed in a shop window
• Goods in shop itself
• A share propsectus
• Advertisements (depends)
• Circulation of a price list

Question 7

Alternative Dispute Resolution (ADR)

Answer 7

Advantages:
* cheaper than going to court
* inventive resolutions
* greater privacy
* quicker process

Disadvantages:
* not legally binding
* requires agreement of all parties (if you can’t reach an agreement you will end up going to court)

Question 8

Arbitration

Answer 8

• independant person is chosen and they act in a similar way to a judge but the outcome is not legally binding
• often are technical experts in a relevant area to the subject
• disagreement will lead to litigation process

Question 9

Mediation and conciliation

Answer 9

• independent individual helps parties to reach a resoltuion (less like a judge) and not legally binding
• disagreement leads to litigation

Question 10

Factors affecting validity of a contract

Answer 10

• lack of capacity (18+ and sound mind) - voidable
• absence of free will - voidable
• misrepresentation (false statement made with intention of getting you to enter contract) - voidable
• illegality -void

void (not a contract at all) - fully recoverable
voidable - irrecoverable form 3rd party