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Contract law, Explain the importance of the essential elements required for the formation of a valid contract, Discuss the impact of different types of contract, Analyse terms in contracts with reference to their meaning and effect, Apply the elements of contract in given business scenarios, Apply the law on terms in different contracts, Evaluate the effect of different terms in given contracts
Banking Academy of Vietnam Assignment Front Sheet Qualification Unit Code / Unit number and title Pearson BTEC Level HND Diploma in Business (Accounting) Y/601/0563 Unit 5: Aspects of Contract and Negligence for Business Student name (vn) Student name (en) Student ID Assessor name Phạm Gia Khánh Kevin F08-032 John M Andre Date issued Hand in deadline 10 September 2016 To be determined Assignment title Submitted on Contracts In this assessment you will have opportunities to provide evidence against the following criteria Indicate the page numbers where the evidence can be found Learnin g Outcom e LO1 LO2 In this assessment you Learning Assessmen will have the opportunity outcome t Criteria to present evidence that shows are able to: Explain theyou importance of the Understand the essential elements of a valid contract in a business context Be able to apply the elements of a contract in business situations 1.1 1.2 Tas k no essential elements required for the formation of a valid contract Discuss the impact of different types of contract Evidence (Page no) 1 1.3 Analyse terms in contracts with reference to their meaning and effect 2.1 Apply the elements of contract in given business scenarios 2.2 Apply the law on terms in different contracts 2.3 Evaluate the effect of different terms in given contracts Student declaration I certify that the work submitted for this assignment is my own I have clearly referenced any sources used in the work I understand that false declaration is a form of misconduct Student signature: ACNB A1 Date: Banking Academy of Vietnam In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades Grade Descriptor M1 Identify and apply strategies to find appropriate solutions Indicative characteristic/s An effective approach to study and research has been applied Contextualisation To achieve M1, you will have participated actively (showing you have done the recommended reading) during in-class discussions (Task 5) M2 Select / design and apply appropriate methods / techniques M3 Present and communicate appropriate findings The appropriate structure and approach has been used D1 Use critical reflection to evaluate own work and justify valid conclusions Self-criticism has been shown regarding analysis and recommendations D2 Take responsibility for managing and organising activities Activities have been managed D3 Demonstrate convergent / lateral / creative thinking Innovative and creative thought have been applied To achieve M3, you will have presented the report in a professional manner (proper formatting, proper use of referencing, depending only on accepted academic references and avoided referencing any public websites, using a proper structure, using persuasive arguments, etc.) and appropriate for those familiar and unfamiliar with the subject of contracts (Task 5) To achieve D1, you will have evaluated your judgements against existing UK or Commonwealth case law (Task 5) To achieve D2, you will have included evidence of relevant, wide reading of academic sources within your report (Task 5) To achieve D3, you will have used innovative and creative thought with regards to arguments and counterarguments (Task 5) ACNB A1 Banking Academy of Vietnam Assignment Brief Qualification Pearson BTEC Level HND Diploma in Business (Accounting) Unit number and title Unit 5: Aspects of Contract and Negligence for Business Assessor name John M Andre Date issued 10 Sept 2016 Hand in deadline To be determined Assignment title Contracts Scenario – The Car On September 2016 Tony walked into Car Max in London to purchase a used car He was surprised to see his sister, Suzi, working there The two had not seen each other in years because Tony had been traveling around the world Tony and Suzi sat down and were talking Suzi said that she had been selling cars for years now and enjoys the work Tony said he could use her help After a long discussion, Tony said “I would love to get that 2010 Porsche 911 Is it in good shape mechanically?” Suzi responded, “The car runs like new and you can see it looks amazing! Since you’re only 17, you have a driver’s license?” Tony said, “Yes, here it is Plus, I’ll be 18 in one week You should come to my birthday party.” Suzi said, “Great Well, the car is £30,000 Do you have that much money?” Tony said, “No, but can I make payments?” Suzi said, “Yes, it will be £970 per month for 60 months with no money down.” Tony said, “OK, I’ll take it.” That day, Tony drove home in his 2010 Porsche 911 He was so happy One month later, two weeks after his birthday party, Tony received his first notice to make his payment of £970 He decided that the car was great but, actually, it was not for him He preferred to ride his bicycle around and save the £970 per month On 16 September 2016, Tony called his sister to tell her he was going to return the car His sister said she was not authorized to approve that and Tony must talk with Suzi’s manager, Frank When Tony called Frank, Frank said “Look, Tony You bought the car already It is yours It ACNB A1 Banking Academy of Vietnam became yours when you took delivery of the car which means when you drove it off the car lot Now, you’re an owner and you must take responsibility for your purchase You must now pay £970 per month for 60 months.” Tony is sad and does not know what to Task (LO 1: 1.1) What are the most important elements when determining if a contract exists between two parties? Which are required? What tests the courts use for each element to decide if it is present? Task (LO 1: 1.2) Explain the differences between the following types of contract and how they each could impact The Car case • Valid • Voidable • Void Task (LO 1: 1.3) Explain the similarities and difference between these three terms of contract: • expressed orally • implied in law • implied by trade usage Task (LO 2: 2.1) Identify if all the necessary elements are there in The Car case above to form a contract Show how the tests you included in Task would be applied to this case Task (LO 2: 2.2, 2.3; M1, M3, D1, D2, D3) Identify what implied terms are present in The Car case What is the impact of these implied ACNB A1 Banking Academy of Vietnam terms? Identify what conditions or warranties exist in The Car case What is the impact of these terms? To achieve M1, you will have participated actively (showing you have done the recommended reading) during in-class discussions To achieve M3, you will have presented the report in a professional manner (proper formatting, proper use of referencing, depending only on accepted academic references and avoided referencing any public websites, using a proper structure, using persuasive arguments, etc.) and appropriate for those familiar and unfamiliar with the subject of contracts To achieve D1, you will have evaluated your judgements against existing UK or Commonwealth case law To achieve D2, you will have included evidence of relevant, wide reading of academic sources within your report To achieve D3, you will have used innovative and creative thought with regards to arguments and counter-arguments Evidence checklist Summary of evidence required by student Task Explanation of tests related to elements of contract Task Comparison of types of contract Task Comparison of different terms of contract Task Identification of the presence of elements of contract Task Identification of the presence and impact of implied terms, conditions and warranties Evidence presented PRESENTATION The assignment should have a cover page that includes the assignment title, assignment number, course title, module title, Lecturer name, student’s name and student’s ID This is an individual assignment You are to submit the assignment in the electronic submission system and also email your report (to Students@JohnMAndre.com) before the ACNB A1 Banking Academy of Vietnam submission deadline in DOCX format with the filename ACNB_A1_F01001.docx (where F01-001 is your student ID) Failure to properly submit may cause you to fail all outcomes A fully typed up professionally presented document Use 12 point Calibri font Your assignment should not exceed 2,500 words in length Word count limit includes only the introduction, body, and conclusion Assignment should include an executive summary The assignment should contain a list of any references used in the report Use the Harvard referencing system and standard law/regulation/case referencing NOTES TO STUDENTS FOR SUMMISSION • Check carefully the submission date and the instructions given with the assignment Late assignments will not be accepted • Ensure that you give yourself enough time to complete the assignment by the due date • Do not leave things such as printing to the last minute – excuses of this nature will not be accepted for failure to hand-in the work on time • You must take responsibility for managing your own time effectively • If you are unable to hand in your assignment on time and have valid reasons such as illness, you may apply (in writing) for an extension • Failure to achieve a PASS grade will results in a REFERRAL grade being given • Take great care that if you use other people’s work or ideas in your assignment, you properly reference them in your text and any bibliography • NOTE: If you are caught plagiarizing, the University policies and procedures will apply ACNB A1 Banking Academy of Vietnam Achievement Summary Qualification Pearson BTEC Level HND Diploma in Business (Accounting) Assessor name Unit Number and title Unit 5: Aspects of Contract and Negligence for Business Student name Criteria Reference John M Andre To achieve the criteria the evidence must show that the student is able to: Achieved ? (tick) LO 1.1 Explain the importance of the essential elements required for the formation of a valid contract 1.2 Discuss the impact of different types of contract 1.3 Analyse terms in contracts with reference to their meaning and effect LO 2.1 Apply the elements of contract in given business scenarios 2.2 Apply the law on terms in different contracts 2.3 Evaluate the effect of different terms in given contracts Higher Grade achievements (where applicable) Grade descriptor Achieved ? (tick) Grade descriptor M1: Identify and apply strategies to find appropriate solutions D1: Use critical reflection to evaluate own work and justify valid conclusions M2: Select/design and apply appropriate methods/techniques D2: Take responsibility for managing and organising activities M3: Present and communicate appropriate findings D3: Demonstrate convergent/lateral /creative thinking ACNB A1 Achieved ? (tick) Banking Academy of Vietnam Assignment Feedback Formative Feedback: Assessor to Student Action Plan Summative feedback Feedback: Student to Assessor Assessor Signature Date Student Signature Date FOR INTERNAL USE ONLY VERIFIED DATE YES NO : VERIFIED BY : NAME ACNB A1 : Banking Academy of Vietnam Contents ACNB A1 Banking Academy of Vietnam Introduction Tony is a car purchaser When he make contract with Car Max, he did not know clearly about his contract at all Then, this repost will describe every detail about the contract and help Tony know how to make appropriate solutions ACNB A1 10 Banking Academy of Vietnam Main Body Task Explain the importance of the essential elements required for the formation of a valid contract: - Contract is defined as the agreement which binding parties involved legally There are three types of contract include: Implied, verbal, and written contract A contract is considered as valid until it have these essential elements below: • Capacity: • Agreement: offer and acceptance • Consideration • Intention to create legal relations Capacity: The parties participated in the contract must be able to create a legal relationship between them (Quinn, 2009) Some groups have limited proportion to create valid contract, because they may not in capable of fully understanding the contract they have involved The main parties include: minors; people suffering from a mental incapacity; and corporations (Quinn, 2009) Test of the courts: Minor: - Contract for supply of goods and service for minor is valid and binding if it is necessaries Minor just has to pay reasonable price, under the price of contract - In general, contract with minor is voidable It not requires any kind of ratification and binding until minor repudiates within a reasonable time, or before coming to 18 People suffering from mental incapacity: Person is incapable of understanding the nature of the contract and the other party knows this In this case, the contract is voidable Then, the party facing from mental disability or drunkenness can choose whether or not to repudiate it Corporations: - Registered companies: Under the Companies Act 1989, a corporation can take responsible for a contract made outside its stated activities in the memorandum of association if the other party has conducted in good faith - Statutory corporations: The statue making each organization will define the purposes for which that organization may make contracts, and any contract entered into which is outside those powers can be seemed ultra vires and then, void - Chartered corporations: set up by Royal Charter, These organizations have the same contractual capacity as an adult human being of full capacity Then, can be able to enter into any kind of contract - Limited liability partnerships: benefit from “unlimited capacity”, so that they not raise any problems of capacity in term of contract law ACNB A1 11 Banking Academy of Vietnam Agreement which means contain both offer and acceptance • Offer: An offer is an interpretation of willingness to enter the contract on specific - • - terms The person who create an offer is called offeror, and the person who receives an offer is called offeree Communication is considered as an offer if it indicates the terms on which the offeror prepare to make a contract, and gives a clear intention that the offeror agree to be bound by those terms if they are accepted by the offeree (Quinn, 2009) For example, Ann tells Ben that she will sell her iPad for $50 So Ann is offeror, and Ben is offeree Also, an offer can be accepted by conducting without further negotiations or discussions demanded, it is a kind of unilateral contract For example, in the case Errington v Errington 1953, the father bought a house for both of the son and daughter – in – law to live Subsequently, the father have entered the unilateral contract which cannot eject his daughter-in-law from the property Then, he cannot revoke it once the couple entered the performance of the act Test of the courts: Offer must contain specific terms Offer indicates the terms on which the offeror prepare to make a contract, and gives a clear intention that the offeror agree to be bound by those terms if they are accepted by the offeree Acceptance of an offer is the unqualified agreement to all the terms of the offer (Quinn, 2009) Acceptance can be expressed by word, action or conduct In example of Brogden v Metropolitan Railway (1877), the claimants were the coal suppliers to the defendant railway company for some years Also, the defendant acceptance this agreement without acceptance on the written contract Then, the contract still valid in term of performance Valid acceptance must be unconditional which means it must adopt the precise terms of an offer (Quinn, 2009) According to TInn v Hoffman (1873) case, one party agreed to sell the 1,200 tons of iron to the other It was held that the other party’s order for 800 tons was not acceptable Test of acceptance: Acceptance must be unconditional to all the term of contract Acceptance does not usually take effect until it communicated with offeree ACNB A1 12 Banking Academy of Vietnam Consideration: A valuable consideration as set out in Currie v Misa (1875) In the sense of the law, consideration may contain either in some right, interest, and profit accruing to the one party, or forbearance, detriment, loss or responsibility given, suffered or contracted by other A valid consideration must not be past (Quinn, 2009) According to the case of Roscoria v Thomas (1842), the defendant sold the plain-tiff a horse After the sale finished, the plaintiff sued the court The plaintiff cannot be given in return of the defendant’s promise As a result, the consideration was past Valid consideration must satisfy with the following rules: - Performance must be legal Performance must be possible Performance must pass from the promise Consideration must be sufficient but necessarily adequate A valid consideration need not be adequate but it must be sufficient, which means the consideration is something more than the party entered already intended to Besides, consideration must be of economic value For example, in the case of Thomas v Thomas (1892), the plaintiff husband had stated that if he dead before her, she was allowed to live in his house The widow return a promise by paying £1 a year and keep the house in good repair That is the act of sufficient consideration to make the husband’ promise binding Consideration is often divided into two groups: executory and executed Executory consideration is exists when the contracting parties make promises to each other because they are promising something for the future, after the contract has been created • Executed consideration: at the time of the formation of the contract, the consideration performed, executed or acted in return Test of the court: - Each party in contract must give up something in return for what is gained from the other party - Consideration must be sufficient but need not be adequate It means providing something more than the party involved already intended to Intention to create legal relations: • The concept of contract indicate that the contract become legally binding until the parties involved intend to be so This is strongly presumed in the case of business agreement and agreement of a friendly social or domestic nature There are rebuttable assumption: ACNB A1 13 Banking Academy of Vietnam - - - Social domestic and family arrangements considered as not usually intended to be binding In some case, the courts may not really want to enter with an example of Balour v Balour (1919) case Commercial agreement usually intend to be binding by parties participated, unless, there is very strong contrary evidence, this assumption will not be rebutted For example of Esso Petroleum Ltd v Customs and Excise Commissioners (1976) case Test of the court: Social domestic and family arrangements considered as not usually intended to be binding Commercial agreement usually intend to be binding Task Discuss the impact of different types of contract There are three types of contract include: - - - Valid contract: agreement which legally bindings all parties involved A valid contract must require those element: capacity, agreement, consideration and intention (Quinn, 2009) Void contract: a void contract is not a contract at all, which cannot bound any parties entered If they transfer property to the third party, they are capable of recover it (Quinn, 2009) Voidable contract: a contract which one party may avoid, that is terminate, at his option The contract is considered as valid unless and until it is avoided Property transferred to a third party before avoidance is usually irrecoverable from that third party (Quinn, 2009) Apply to scenario: - ACNB A1 Valid: The contract between Tony and Car Max is valid It contain all the required elements: capacity, agreement, consideration and intention Tony is under 18, so he also capable of entering valid contract Then this contract is valid and enforceable in a court of law So Tony must keep the car and pay for its price 14 Banking Academy of Vietnam - - Void contract: The contract of Tony may be missing one or all of the required elements needed for a valid contract This contract has no effect in a court of law and unenforceable in a court of law The contract between Tony and Car Max is void Then, at the time Tony make contract, he is a minor, so he may be too naive and unlikely to have comprehended about the term of contract The Suzi’s manager, Frank may exploit the naive of Tony, persuade him to pay the price of the car: £970 per month for 60 months However, the price is undue influence for Tony So the contract would be unenforceable, then Tony can terminate it That means he must return the car and not have to pay Voidable contract: The contract between Tony and Car Max is voidable contract Because it is created within Tony’ minority time So the contract has all the necessary elements: capacity, agreement, consideration and intention to be enforceable by the court of law Therefore, Tony must terminate the contract based on his option Task Analyse terms in contracts with reference to their meaning and effect The terms of contract present the duties and obligations of each parties under the contract The similarities and difference between these three terms of contract: - Expressed orally - Implied in law - Implied by trade usage The similarities and difference between terms expressed orally, term implied in law and term implied by trade usage • Similarities - All type of terms are not laid down in the contract - Created by intention of parties into contract - Can imply to the same type of contract With regard to Term implied by law, courts will imply the term which is necessary incident Then, such terms can be implied into the future contracts of same types - Term implied in law and term implied by trade usage imply in particular types of contract Besides, both type of terms are implied which not expressly mentioned in the form of the contract Representation of intentions of the parties in the contract • ACNB A1 15 Banking Academy of Vietnam • Differences: Term expressed orally Term implied in law Term implied by trade usage Both party agreed to enter into contract through negotiations For example, in Bannerman v White (1861), White emphasized for the seller that the hops should not have been treated with Sulphur adding that, if they had, he would not bother to ask the price Then, it turn out to be term of contract Term implied without expressly mentioned Regardless whether or not the parties want them (Quinn, 2009) Term implied without expressly mentioned Regardless whether or not the parties want them (Quinn, 2009) Can be able to present in every type of contract Presented in certain types of contracts For example: - In case of Liverpool City Council v Irwin 1977, tenancy agreements will include implied term that the landlord must take reasonable care to keep parts of property in good repair - Under the provision of Sale of Goods Act 1979, sale of goods to customers will have implied term that goods must have satisfactory quality - Contracts of employment include implied term that employer will offer departing employee a job reference (Spring v Guardian Assurance plc - (1994)) and implied term that employer and employee will not act in ways “likely to undermine the trust and confidence required if the employment relationship is to continue” (Malik v Bank of Credit and Commerce International SA (1997)) Cf Crossley v Faithful & Gould Holdings Ltd (2000) - Implied in commonly terms by trade usage In the case of British Crane Hire Corp Ltd v Ipswich Plant Hire Ltd (1975) The owner of a crane hired it to a contractor, who was entered into the same sort of business Then, terms frequently used in contracts can be implied into other such contracts ACNB A1 16 Banking Academy of Vietnam Task Apply the elements of contract in given business scenarios Element of contract - Offer Offer must be specific Offer indicates the terms of contract, and gives a clear intention that the offeror agree to be bound by those terms if they are accepted by the offeree Acceptance: - Acceptance must be communicated - Intention to create legal relation: - Social domestic and family arrangements considered as not usually intended to be binding - Commercial agreement usually intend to be binding Capacity: In case of minor, contract with minor is voidable If contract for supply of goods or services is necessaries It will be valid contract ACNB A1 In case scenarios, Suzi is offeror and Tony is offeree - The car runs like new and it looks amazing - The terms of contract for Tony is he must pay £970 per month for 60 months with no money down - Suzi is a representative of Car Max Then, Suzi is likely to help Tony choose the right car with appropriate price - Acceptance must be unqualified to all the terms of the contract Case - When Suzi offer to sell the car She and Tony have communicated carefully in order to create a contract Tony must pay exactly £970 per month for 60 months with no money down - Suzi and Tony have family relations - The contract between Tony and Car Max is commercial agreement, so it intend to be binding The contract that Tony entered with Car Max is voidable contract because it is made during his minority However, the car is necessary goods because it satisfy the demand of travelling and working for people The Porsche is considered as reasonable car because of its professional function in travelling and racing Since, Tony is 17 years old and has license driver required Besides, he had been travelling around the world, so the Porsche will be necessary for demand of Tony for travelling I Then, the contract turn out to be valid 17 Banking Academy of Vietnam When contract is made, Tony provided a promise: “OK, I’ll take it” That means he agreed to be bound by the term: “pay £970 per month for 60 months with no money down” Consideration - Consideration is provided by both sides - Consideration must be sufficient but not be adequate Task Implied terms are present in The Car case include: Implied Term Case study Term implied by facts Terms are not laid down in the contract, but both parties intended to include if they thought about it (Quinn, 2009) Based on Business efficacy test, term must be implied to make contract work So, Tony must follow the implied term to make the contract work efficiently In this case, Tony must pay £970 per month for 60 months with no money down Terms of the contract will not imply if one of the party unaware of subject matter of suggested term to be implied So, although there are no written contract, Tony must aware of term (£970 per month for 60 months with no money down) of contract He must pay the price of the car as contracted before Term implied by law Under Sale of Goods Act 1979, goods for sale must have satisfactory quality In term of minors, good must suitable with conditions in life of them and they just have to pay reasonable price for it The goods is a 2010 Porsche 911, which runs like new and look amazing (Scenario, 2016) Besides, Tony has a driver’s license, then the car may suitable with his condition When Tony made contract with Car Max, he was a minor So he just has to pay reasonable price, which not need be contract price ACNB A1 18 Banking Academy of Vietnam Conditions or warranties exist in The Car case Condition is the most important terms of contract If it is breached, it lead to significant consequences for innocent party (Quinn, 2009) They can repudiate the contract and sue for damages Certain term are able to be considered as conditions For example, The Sale of Goods Act 1979 stated that certain terms relating to title to goods and their quality are regard to be conditions In the Car case, the term in contract of buying the Porsche is considered to be condition Because it indicated fully about detail of the car: 2010 Porches 911 version, it runs like new and looks amazing Besides, it presented the price of the car which is £30,000 About the payment, Suzi indicate that it will be £970 per month for 60 months with no money down Then, if the term is breached, it give significant consequences for innocent party When Tony does not make payment of £970 for the first month, and want return the car so Tony has breached the contract It lead to significant consequences for Car Max So Car Max Company can sue for damages with Tony Warranty: describes a contractual term that can be broken with not significant important consequences When Tony consider to buy a used car, Suzi stated that is runs like new and looks amazing It becomes a warranty of contract So when Tony suffer damages like accident, or break down, he can sue for damage but cannot breach the contract ACNB A1 19 Banking Academy of Vietnam Conclusion From my analysis about term and element of contract between Tony and Car Max Tony can has more knowledge about his circumstance ACNB A1 20 Banking Academy of Vietnam Reference (Quinn, 2009) ACNB A1 21 [...]... accident, or break down, he can sue for damage but cannot breach the contract ACNB A1 19 Banking Academy of Vietnam Conclusion From my analysis about term and element of contract between Tony and Car Max Tony can has more knowledge about his circumstance ACNB A1 20 Banking Academy of Vietnam Reference 1 (Quinn, 2009) ACNB A1 21 ... Ipswich Plant Hire Ltd (1975) The owner of a crane hired it to a contractor, who was entered into the same sort of business Then, terms frequently used in contracts can be implied into other such contracts ACNB A1 16 Banking Academy of Vietnam Task 4 Apply the elements of contract in given business scenarios Element of contract - Offer Offer must be specific Offer indicates the terms of contract, and... of contract indicate that the contract become legally binding until the parties involved intend to be so This is strongly presumed in the case of business agreement and agreement of a friendly social or domestic nature There are 2 rebuttable assumption: ACNB A1 13 Banking Academy of Vietnam - - - Social domestic and family arrangements considered as not usually intended to be binding In some case, the... irrecoverable from that third party (Quinn, 2009) Apply to scenario: - ACNB A1 Valid: The contract between Tony and Car Max is valid It contain all the required elements: capacity, agreement, consideration and intention Tony is under 18, so he also capable of entering valid contract Then this contract is valid and enforceable in a court of law So Tony must keep the car and pay for its price 14 Banking Academy... term implied in law and term implied by trade usage • Similarities - All type of terms are not laid down in the contract - Created by intention of parties into contract - Can imply to the same type of contract With regard to Term implied by law, courts will imply the term which is necessary incident Then, such terms can be implied into the future contracts of same types - Term implied in law and term... Besides, both type of terms are implied which not expressly mentioned in the form of the contract Representation of intentions of the parties in the contract • ACNB A1 15 Banking Academy of Vietnam • Differences: Term expressed orally Term implied in law Term implied by trade usage Both party agreed to enter into contract through negotiations For example, in Bannerman v White (1861), White emphasized for... capacity Then, can be able to enter into any kind of contract - Limited liability partnerships: benefit from “unlimited capacity”, so that they do not raise any problems of capacity in term of contract law ACNB A1 11 Banking Academy of Vietnam Agreement which means contain both offer and acceptance • Offer: An offer is an interpretation of willingness to enter the contract on specific - • - terms The person... Acceptance must be unconditional to all the term of contract Acceptance does not usually take effect until it communicated with offeree ACNB A1 12 Banking Academy of Vietnam Consideration: A valuable consideration as set out in Currie v Misa (1875) In the sense of the law, consideration may contain either in some right, interest, and profit accruing to the one party, or forbearance, detriment, loss... Banking Academy of Vietnam - - Void contract: The contract of Tony may be missing one or all of the required elements needed for a valid contract This contract has no effect in a court of law and unenforceable in a court of law The contract between Tony and Car Max is void Then, at the time Tony make contract, he is a minor, so he may be too naive and unlikely to have comprehended about the term of contract... be enforceable by the court of law Therefore, Tony must terminate the contract based on his option Task 3 Analyse terms in contracts with reference to their meaning and effect The terms of contract present the duties and obligations of each parties under the contract The similarities and difference between these three terms of contract: - Expressed orally - Implied in law - Implied by trade usage