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serves the claim on the company or other provider. Assuming the company responds within the specified time limit, there
will be a preliminary hearing. Later, there will be a main hearing where hopefully the judge will decide in your favour
Contracts 1 (pages 13 – 14)
Exercise 1. Here is the complete text:
A contract can be defined as 'an agreement between two or more parties to create legal obligations between them'.
Some contracts are made 'under seal': in other words, they are signed and sealed (stamped) by the parties involved). Most
contracts are made verbally or in writing. The essential elements of a contract are: (a) that an offer made by one party
should be accepted by the other; (b) consideration (the price in money, goods or some other reward, paid by one party in
exchange for another party agreeing to do something); (c) the intention to create legal relations. The terms of a contract
may be express (clearly stated) or implied (not clearly stated in the contract, but generally understood). A breach of
contract by one party of their contractual liability entitles the other party to sue for damages or, in some cases, to seek
specific performance. In such circumstances, the contract may be voided (in other words, it becomes invalid).
Exercise 2:
1. an unspoken implied or understood contract between a shop and a customer (yes, it is a contract!) 2. a verbal contract
Unit 0000
67
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).


that has gone through the offeracceptance and consideration stages. 3. a tenancy (agreement) (pcm per calendar
month) 4. franchise agreement (between a franchiser – the people who license a franchise – and a franchisee – the
people who run the franchise) 5. loan agreement (APR annual percentage rate; the interest that has to be paid)
6. employment contract (full-time) 7. terms and conditions of sale (purchase agreement) 8. car hire agreement
Contracts 2 (pages 15 – 16)
1. 1. part = parties 2. False. A contract which is binding must be followed exactly, unless both parties agree on a novation
(= a transaction in which a new contract is agreed) 3. obey and honour
2. 1. terminator = termination 2. True 3. obligated / required
3. 1. un-negotiable = non-negotiable 2. True (it might be possible to amend some of the details, or make amendments)
3. oral / spoken
4. 1. in beach of = in breach of 2. abide by (in paragraph 1) 3. False (they breached one part, or clause) 4. A
consideration
5. 1. period of notification = period of notice 2. agreement 3. No, it is part of a fixed-term (in his case, 18 months)
contract 4. True (in other words, if either party cancels the contract early, they will still have to honour the terms of the
contract for 3 months, unless there was less than 3 months to run on the contract)
6. 1. anointment = appointment 2. False (they amalgamated, or joined with, Berryhill Books) 3. False (he cannot buy
more than 50% of the company's shares – a controlling interest – otherwise he will be able to decide how the company is
run) 4. None (he can have no professional dealings with third parties, i.e. companies other than AKL Publishing)
Corporate responsibility 1: The environment (page 17)
Here is the completed text:
A company should ensure that its actions do not damage local and global ecosystems. It needs to reduce its use of natural

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