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Exercise
1:
Complete this text, which has been adapted from the A & C Black Dictionary
of Law, with words or expressions from the box
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1. accepted
2. agreement
3. breach
4. consideration
5. contractual liability
6. damages
7. express
8. implied
9. intention
10. obligations
11. offer
12. reward
13. signed
14. stated
15. sue
16. terms
17. under seal
18. verbally
19. voided
20. writing
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A contract can be defined as
'an __________ between two or more parties to create legal __________ between
them'. Some contracts are made '__________': in other words, they are
__________ and sealed (stamped) by the parties involved. Most contracts are
made __________ or in __________. The essential elements of a contract are:
(a) that an __________ made by one party should be __________ by the other;
(b) __________ (the price in money, goods or some other __________, paid by
one party in exchange for another party agreeing to do something); (c) the __________
to create legal relations. The __________ of a contract may be __________
(clearly stated) or __________ (not clearly __________ in the contract, but
generally understood). A __________ of contract by one party of their
__________ entitles the other party to __________ for __________ or, in
some cases, to seek specific performance. In such circumstances, the contract
may be __________ (in other words, it becomes invalid).
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Exercise
2:
There are many different kinds of contract for different situations. Look at
the following paragraphs, and decide what kind of contract is being described
or talked about.
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1
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I went into the supermarket
and chose the items that I wanted. As soon as my basket was full, I headed
for the checkout.
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2
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My cousin Bob said he was
going to get rid of his computer and buy a new one. I said that I
needed a computer and suggested I bought his old one. Anyway, we agreed on
a price, I gave him a £50
deposit, and agreed to pay the balance in instalments over the next three
months. I'm going round to
collect the computer this evening.
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3
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The property is unfurnished,
and the rent is £650 pcm, which has to be paid monthly in arrears.
Electricity, gas and phone bills are extra. There's a communal garden and a
communal parking area, for
which I also have to pay a nominal maintenance fee. The landlord is
responsible for any repairs to the
property. I'm not allowed to sublet at any time. I've signed the lease for
18 months.
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4
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We're opening our own branch
in the town centre next week. The deal is fairly simple: we get the
right to use the company's name, their trademark, their trade names and
products, wear their uniforms
and use their stationery. They also provide our staff with all the
necessary training, give us invaluable
managerial assistance and provide advertising materials. In return, we have
to meet specific requirements, such as quality of service, maintaining good
customer relations, and following the company's standard procedures. Oh,
and buy all the products we sell from them, naturally.
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5
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The total amount you are
borrowing is £9,000 at an APR of 6.6%. Repaid in monthly instalments over 3
years, this gives you a monthly repayment figure of £275.46, totalling
£9,916.56. You have opted out of the repayment protection premium scheme.
If you wish to make an early settlement, the figure above will be
recalculated accordingly. As soon as you sign a form, your funds will be
released into your bank account. Please note that penalties will be applied
if you default on repayments.
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6
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This appointment is for a
period of two years, following a 4-week probationary period. Your remuneration
package includes an annual gross salary of £32,000. You are entitled to
sick pay and 6 weeks annual leave after you have been with us for 3 months.
Your hours of work are 9 to 5 Monday to Friday, although you may be asked
to work overtime during busy periods. The company has its own medical and pension
schemes which you may join.
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7
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The total cost is £2,870,
which is payable in full before the goods can be despatched. Alternatively,
we can arrange credit terms, which are interest-free for the first six
months. All goods are covered by the manufacturer's warranty, which is valid
for one year. If you are not happy with your merchandise, it can be returned
for an exchange or full refund (but please note that this is valid for 28
days only, and we will need to see your receipt or other proof of
purchase).
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8
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A group 7M people carrier is
£58 a day. This price includes unlimited mileage, fully comprehensive insurance,
collision damage waiver and loss damage waiver. The company has drop-off
points in most major cities, but will charge extra if you use a different
one from that where you picked up the vehicle. A refuelling service charge
will be applied if you do not replace the fuel you have used.
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Underline
or highlight the key words and expressions that helped you to identify the
subject of each paragraph.
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