Course Title: Law of contract

Part A: Course Overview

Program: C6106

Course Title: Law of contract

Portfolio: BUS

Nominal Hours: 51.0

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Course Code	Campus	Career	School	Learning Mode	Teaching Period(s)
LAW5184	City Campus	TAFE	650T Vocational Business Education	Distance / Correspondence or Face-to-Face or Internet or Workplace	Term1 2014, Term1 2015, Term2 2013, Term2 2014

Course Contact: Doug Gourlay

Course Contact Phone: +61 3 9925-5944

Course Contact Email: doug.gourlay@rmit.edu.au

Course Description

 The purpose of this module is to provide a detailed knowledge of contract law as might be relevant to a person working in a legal office, private or public sector organisation or other area requiring a specialised knowledge of contract law principles and to enable the learner to evaluate contractual issues in both social and domestic, and commercial environments.

Pre-requisite Courses and Assumed Knowledge and Capabilities

Pre-requisite:  VU20111 Legal Process

National Competency Codes and Titles

National Element Code & Title:

VU20108 Law of contract

Learning Outcomes

Upon successful completion of this course you will be able to:

Learning Outcome 1 - Analyse and evaluate the nature and meaning of contracts, the regulation of the form of contracts, and evaluate the impact of legislation upon contract law.
Assessment criteria
1.1 Define the nature and meaning of a contract.
1.2 Distinguish between deeds/contracts under seal and simple contracts.
1.3 Analyse the relationship between common law and legislation in contract including reference to the Trade Practices Act 1974 (Cth) and the Fair Trading Act 1999 (Vic).
1.4 Identify the regulation of the form of contracts and apply relevant examples.
1.5 Evaluate and specify the impact of legislation upon contract law by use of relevant examples or case studies.
1.6 Assess the significance of contracts and contract law in business.

Learning Outcome 2 - Scrutinize and apply the rules governing the requirement that the parties to a contract must reach an agreement comprised of offer and acceptance.
Assessment criteria
2.1 Define the terms ‘offer’ and ‘acceptance’.
2.2 Explain the details pertaining to the rules governing offer and apply an example.
2.3 Assess and determine the rules governing acceptance and apply an example.
2.4 Distinguish between revocation, rejection and lapse of offer, and apply an example of each.
2.5 Evaluate the principles of revocation, rejection and lapse of offer.

Learning Outcome 3 - Analyse the presumption and assess rules relevant to the requirement that the parties have an intention to create legal relations.
Assessment criteria
3.1 Assess the application of the presumption concerning social and domestic agreements with reference to the types of agreements and exceptions to the general rule.
3.2 Analyse a relevant case study and apply the presumption and rules stated in 3.1.
3.3 Identify and determine the application of the presumption concerning commercial agreements with reference to types of agreements and exceptions to the general rule.
3.4 Analyse a relevant case study and apply the presumption and rules stated in 3.3.

Learning Outcome 4 - Analyse and assess the rules which govern the requirement that consideration must be present in simple contracts.
Assessment criteria
4.1 Define the legal principles governing consideration in relation to formal contracts.
4.2 Analyse the rules governing consideration.
4.3 Use case example analysis of the element of consideration.
4.4 Define the term promissory estoppel and examine its principal characteristics. Apply to a relevant example.

Learning Outcome 5 - Analyse and assess the nature and significance of the terms of a contract, the differences between representations and terms, the nature and significance of collateral contracts, the different types of contract and the nature and operation of exclusion clauses.
Assessment criteria
5.1 Specify the terms of a contract:
5.2 Define and distinguish between representation and terms, and examine the significance of that distinction.
5.3 Identify and detail the relevant factors in determination of representations and terms.
5.4 Define the nature, elements and effects of collateral contracts.
5.5 Assess the significance of the categories of express terms, and provide an example.
5.6 Assess and examine the significance of implied terms.
5.7 Assess the nature and application of exclusion clauses.

Learning Outcome 6 - Determine and analyse the legal principles relating to the position of persons who lack contractual capacity to enter into contracts, comparing contrasts and the rights and liabilities of persons with whom they contract.
Assessment criteria
6.1 Analyse the legal position of minors entering contracts.
6.2 Compare and contrast other categories of persons lacking full contractual capacity such as mental state, drunkenness and bankruptcy.
6.3 Compare the rights and liabilities of persons who enter into a contract with those who lack contractual capacity.
6.4 Analyse a relevant case study, examining and specifying the following information:
   • the legal positions of persons who lack contractual capacity as identified in 6.1 and 6.2
   • the rights and liabilities of persons who enter into contract.

Learning Outcome 7 - Distinguish between and assess the meaning and effects of consensual problems of contracts with reference to mistake, misrepresentation, duress, undue influence and unconscionability.
Assessment criteria
7.1 Define the term ‘consensual problems’. Discuss and distinguish between mistakes, misrepresentation, duress, undue influence and unconscionability.
7.2 Determine the nature, categories and consequences of mistake and the effects of mistake, and analyse with reference to common mistake, mutual mistake, unilateral mistake using differing case examples.
7.3 Outline the nature, categories and consequences of misrepresentation and the effect of legislation, analyse with reference to categories and consequences of misrepresentation and the effect of legislation.
7.4 Assess the nature, categories and consequences of duress, undue influence and unconscionability, and analyse, using specific examples.
7.5 Specify and evaluate the effects of consensual problems
7.6 Analyse and compare different case examples of consensual problems.

Learning Outcome 8 - Determine the circumstances where a contract may be illegal or void and assess the consequences.
Assessment criteria
8.1 Identify and demonstrate by example, the circumstances where a contract may be illegal or void, and discuss the consequences.
8.2 Determine the principles and consequences of contracts illegal by statute with reference to contracts illegal as formed and contracts illegal as performed.
8.3 Specify and evaluate the nature, categories and consequences of contracts illegal at common law. Include case example analysis and comparison.
8.4 Assess the nature and consequences of contracts void and/or prohibited under common law and statute with specific reference to categories of void contracts, contracts in restraint of trade and unjust consumer credit contracts.

Learning Outcome 9 - Determine the legal principles relating to privity of contract and assignment of contract.
Assessment criteria
9.1 Define and specify the legal principles relating to privity of contract and assignment of contract.
9.2 Outline the nature, parameters and consequences of the doctrine of privity of contract.
9.3 Specify the exceptions of privity of contract, and highlight with a relevant example.
9.4 Determine the correct procedure relating to assignment of contractual rights and obligations with reference to assignment by the parties and assignment by the operation of the law.

Learning Outcome 10 - Evaluate, analyse and specify the different circumstances and consequences that result in a contract being discharged.
Assessment criteria
10.1 Specify the procedures of discharge of contracts.
10.2 Demonstrate the consequences for the parties of discharge of contracts in the categories identified in 10.1.
10.3 Analyse with reference to specific examples or case studies, the procedures and consequences identified in 10.1 and 10.2

Learning Outcome 11 - Analyse the various remedies available when a contract is breached, and apply to a relevant case study.
Assessment criteria
11.1 Define the remedies available when a contract is breached and examine with a specific example.
11.2 Analyse and assess the nature and limitations of the remedies identified in 11.1.
11.3 Apply the remedies identified in 11.1 to a particular situation and relevant case study.
11.4 Analyse and compare a specific remedy to a relevant case study.

Overview of Assessment

Assessment methods have been designed to measure achievement of the requirements in a flexible manner over a range of assessment tasks,  and may include:

• Case study analysis
• Short answers questions
• Written assignment/reports
• Oral presentations
• Project/s

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met.