Unit 21 - Aspects of Contract and Business Law
D1 Evaluate the effectiveness of terms in a given situation
Case Study: Three (Hutchison 3G) UK Limited
Understand the meaning and effect of terms in a standard form contract
BTEC Level 3 Extended Diploma in Business
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d1 evaluate the effectiveness of terms in a given situation
understand the meaning and effect of terms
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Unit 21 - Aspects of Contract and Business Law
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Abdulalah Al-Jobore
Unit 21 - Aspects of Contract and Business Law
D1
D1 Evaluate the effectiveness of terms in a given situation
In this task, I will be evaluating the effectiveness of terms within a given contract; the contract I will
be evaluating and looking at is Three Mobile SIM contract. The evaluation of terms will include the
strengths and weaknesses of terms for both parties of the contract (standard from contract).
When forming a standard form contract, there are a various contract terms and duties that must be
included and consider by the parties involved, as they are essential part of contract. These terms and
duties will identify the specifics tasks which will be required by each party in order completed the
job (to be a binding contract). Both parties (in this case: Three and its customer) will have follow
these terms and conditions. The most critical terms that are used in Three contract are these ones
which are related to the seller’s (Three) delivery of goods and service, and the buyer’s (customer)
payment of the goods and service that will be delivered. In addition, other critical terms within this
standard form contract are these with regard to the quality of goods, which include description,
fitness and the satisfactory or the goods or service provided. Alongside with all these terms, there
are some terms, which could be very important when selling, and supplying goods and services.
These are terms relating to title (ownership) and exclusion clauses which explain how both parties
limit, avoid or exclude duties and responsibilities on the contract.
In Three Mobile SIM contract, there are two main terms that have to be followed by both parties:
express terms and implied terms. Express terms are these terms (statements) that have been made
verbally or in written which are specifically mentioned and agreed by both parties. The parties use
these terms to form the binding contract, as these terms will show the intent of forming the
fundamental part of the contract. This type of term can be either conditions or warranties. In the
other hand, implied terms are these of the contract, which are not necessarily set out in writing or
have been agreed verbally by both parties, however they are still part of the agreement between the
parties and they will be implied (introduced) into the contract by custom, statute and common law.
These express and implied terms have to be followed by both parties, as if they are not following
them, then the contract could not be formed and repudiated.
Effectiveness for customers
Strengths of the contract
Within the contract, in the payment section (the first box on the top in page 1 of the contract), the
customers are liable to receive a £5.00 Direct Debit discount off their monthly payment. Therefore, if
the customer is using their direct debit as their payment method to pay the monthly charges then
then will receive a £5.00 discount off. This will benefits the customer because they will pay less
money on their monthly payment charge, as if they will not choose to pay by direct debit method
then their price will automatically increase by %5.00 each month which mean in this case, the
contract price will increase from £27 to £32 every month.
One of the implied terms which was not formally written in the contract is the customers services
terms, where the customer advisers will always have to use the Standard English Phonetic Alphabet
when pronouncing the letters of registration details, which therefore help customer to avoid the
misunderstand of the conversation. In addition, when the customer is calling the customers service
for enquiry, the details confirmation will be doubled check, which is good for the customer. This is
because it will ensure that their account’s details are secured and nobody can access it except them,
it is also for safety reasons.
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