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Essay Unit 21 - Aspects of contract and business law betc level 3
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This document is a bundle of aspects within Unit 21 which includes P6,P7,P8, M2 &M3
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P6In this essay I will be explaining precedence and doctrine which I will then explain the terms
ratio decidendi and obiter dictum.
Law is a set of rules created by state
institutions which make laws through
the authority of the state. The consist
of sanctions which are recognised by
the state and enforced by the state
which are authorised bodies. The law
is set in place to help disagreements
and to help put criminals in prison.
There are some important characters
of law-making and the enforcement of the law which are:
➔ Only specific institutions can make law
➔ Institutions must receive the authority of the state in order to enable it
➔ Sanctions exist for breaking the law
➔ Those who give state authority to impose sanctions must complete it
If there is no law (Act) a judge is able to create their own laws which is called common law.
Judges will always follow what a judge has created and its called precedence. Therefore,
this is why judges in higher courts (appeal courts) are able to change the rules, as their view
on what the laws should be can override the view of the judge in the lower courts.
Ratio decidendi
This is the central rule that stems from judgement and is also the part where precedence is
formed. An example of precedence is when judges have realised the fact that a contract
cannot be forced upon someone and silence cannot constitute an acceptance.
Obiter Dicta
This is the extension of the rule. An example of obiter dicta is the case Donoghue V
Stevenson 1932. This case is about a young lady named Mrs Donoghue who had a drink
bought for her and had discovered that she is able to see a snail inside her drink and
allegedly had consumed some. The decomposed snail had caused her alleged shock and
severe gastro-enteritis. This case has laid fundamental principles of the modern law of
negligence, establishing general principles of the duty care. Unfortunately, she was not able
to claim through breach or warranty of a contract, as she wasn't the direct customer as her
friend purchased the ginger beer.
The ratio decidendi will be the fact that she didn't purchase the ginger beer.
P7
, · A description of the processes when Parliament makes legislation, for this
purpose the process begins in the House of Commons
[Cambridge Dictionary] states that a legislation is a law or set of laws suggested by a
government and made official by a parliament. A legislation is passed by parliament which is
also known as primary legislation. Acts overrule judicial precedent. Also, acts are identified
by the title, if it has ‘Act’ in it it is a primary legislation.
Within an act you would expect to see:
➔ The definition
➔ Punishment and resolution
➔ Amendments and repeals (Data protect Act 1998 & 2018)
Act are created each parliamentary session (usually between November - November) the
government lays down its legislative agenda. This is done through the Queen’s speech, on
the opening days of parliament. In addition, the Queen will announce what legislation, also
known as bills will be debated in the house.
When the Queen is ready to give a speech an individual named black rod will knock on the
door of the house of commons to summon MP’s for the Queen speech. [BBC]
The Black Rod is responsible for controlling access to and maintaining order within the
House of Lords and its precincts, as well as for ceremonial events within those precincts.
The position of the block rod originates in the House of Lords of the Parliament which may
prevent people from going to the House of Lords.
Progress of the bill
The bill starts in the House of Lords and they will begin the first reading. The second hearing
will be next as well as the committee stage which is the stage where opportunity for change
in regards to the wording is available or for new clauses to be added. The fourth stage is the
report stage in which the House of Lords reviews the amended form of the bill.
The bill is then passed onto the House of Commons which has MP’s only and they complete
a first reading and second reading, entering the committee stage in which opportunity for
change is possible, as previously stated. This later goes onto the report stage and lastly, the
third reading and then a bill is created which will then become an act and legislation.
P8
Explanation of the rules of statutory interpretation (P8)
Statutory interpretation is the process in which courts interpret and apply legislation.
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