.

UNIVERSIDAD GERARDO BARRIOS

FOREIGN LANGUAGE DEPARTMENT

SCHOOL OF ARTS AND SCIENCES

BACHELOR'S DEGREE IN ENGLISH - A2LIP02

ACTIVITY:

LEGAL ENGLISH MATERIAL

PROFESSOR'S NAME:

LIC. WILLIAM REMBERTO AMAYA GÓMEZ

SUBJECT:

TECHNICAL ENGLISH APPLIED TO LAW (LEGAL ENGLISH)

STUDENTS' NAMES:

DÍAZ GARCÍA, DARLYN JOHANNA (USLI008506)

MARAVILLA VÁSQUEZ, KATHY ORQUÍDEA (USLI029316)

VÁSQUEZ VIGIL, JOSÉ EMILIO (USLI060616)

DATE:

SUNDAY, SEPTEMBER 27th, 2020

 Before you begin: Essential words

The words in this exercise are used a lot in the legal profession, and appear at various stages throughout this
book, so it is important you understand what they mean before you do any of the other exercises. Match the
definitions on the left with the words on the right. Note that (a) there are more words than definitions, and (b)
many of the words on the right can have more than one meaning, but only one of those meanings is in the
column on the left. Note that many of the words and accompanying expressions in this exercise (and in the
following exercises on business law) are not exclusive to business law, but may also be applied to other legal
and general areas.

1. Money claimed by someone as compensation for harm done. DAMAGES

2. To send someone to prison or to a court. COMMIT
3. An adjective referring to a judge or to the law. JUDICIAL
4. Not guilty of a crime. INNOCENT
5. Any act which is not legal. OFFENCE
6. A person who has studied law and can act for people on legal business. LAWYER
7. A disagreement or argument between parties. DISPUTE
8. A specialist court outside the judicial system which examines special problems. TRIBUNAL
9. A set of arguments or facts put forward by one side in a legal proceeding. CASE
10. An official who presides over a court. JUDGE
11. To make an allegation in legal proceedings. PLEAD
12. Someone who is accused of a crime in a criminal case. DEFENDANT
13. A person who makes a claim against someone in a civil court. CLAIMANT
14. An agreement reached after an argument. SETTLEMENT
15. To hold someone legally so as to charge them with a crime. ARREST
16. A case which is being heard by a committee, tribunal or court of law. HEARING
17. To find that someone is guilty of a crime. CONVICT
18. Failure to carry out the terms of an agreement. BREACH
19. To bring someone to court to answer a criminal charge. PROSECUTE
20. To ask a high law court to change its decision or sentence. APPEAL
21. To say that someone has committed a crime. ACCUSE
22. Having the legal ability to force someone to do something. BINDING
23. An adjective referring to the rights and duties of private persons or organizations. CIVIL
24. The arguments used when fighting a case. DEFENCE
25. A legal agreement between two or more parties. CONTRACT
26. An adjective referring to crime. CRIMINAL
27. A group of 12 citizens who decide whether or not someone is guilty in a trial. JURY
28. A written or spoken statement of facts which helps to prove or disprove something at a trial.
EVIDENCE
29. To order someone to pay money as a punishment. FINE
30. A court order telling someone to stop doing something, or not to do something. INJUNCTION

For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 Business
Unit 0000law 1: Key adjectives
Exercise 1: Look at these sentences and decide if the word in bold is being used correctly in the context of
the sentence (there is an explanation of the word that should be used in brackets at the end of the
sentence). If you think the word is wrong, look for the correct word. You will find this in one of the other
sentences.

1. When pieces of broken glass were found in some of its food products, the company was held
ACCOUNTABLE (responsible for what had happened)

2. When he was asked to explain his actions, he had no VALID explanations. (being acceptable
because it is true or relevant)

3. The sacked workers claimed unfair dismissal, and demanded a fair and IMPARTIAL hearing. (not
biased or prejudiced)

4. Goodwill is one of a company's INTANGIBLE assets, and as such it cannot be declared as part of
the company's capital. (difficult to value as it does not exist physically)

5. He was accused of trying to obtain a PECUNIARY advantage by getting involved in insider

dealing. (financial)

6. At the trial, the judge took the UNPRECEDENTED step of asking the claimant to remove his shirt. (not
having happened before)

7. The company solicitor examined the contract very carefully, and eventually declared it
VOID. (not having any legal effect)

8. The documents produced were not considered relevant to the case and were therefore not
ADMISSIBLE (referring to evidence which a court will allow to be used)

9. The magazine was acquitted of libel when the jury returned a UNANIMOUS verdict of 'not guilty'.
(where everyone votes in the same way)

10. All shareholders are ELIGIBLE to vote at the Annual General Meeting. (able or allowed to do
something)

11. The judge accepted that Mr. Johnson could not go back to work in the same company because of
IRRECONCILABLE differences of opinion between him and the Directors. (very strong, so that it is not
possible for two sides to reach an agreement)

12. The rail company was accused of GROSS negligence by failing to ensure passengers' safety.
(serious)

13. Interest charges are tax DEDUCTIBLE so we haven't made as much as we had hoped. (able to be
removed)

14. After a terrible year, during which it lost almost £8 million, the company was declared
INSOLVENT. (not able to pay debts)

15. A company director has a FIDUCIARY duty to the company he works for and the people who work
there. (acting as trustee for someone else, or being in a position of trust)

For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
Exercise 2: In this exercise, the first part of each word is already in the sentence. Complete it with the second
part, which you will find in the box.
__atim __ditional __dulent __empt ___ended __erial __gious __inal __itual
__ndant __orate __pational __sible __tiable __tory __vent

1. Because of the recent phenomenon of the 'compensation culture', claims for OCCUPATIONAL
accidents have almost doubled in the last ten years. (referring to jobs and work)

2. So many complaints about the company's behavior were reported that a MANDATORY
injunction was imposed ordering them to cease trading. (Obligatory or necessary according to the
law or rules)

3. Some special savings accounts are popular with small businesses because the interest paid is EXEMPT

4. The terms of the contract are NEGOTIABLE up to the moment it is signed. (able to be changed
by discussion)

5. The claimant produced a VERBATIM transcript of the conversation he had had with the
defendant. (in the exact words)

6. On the claimant's application for summary judgement, the defendant was given UNCONDITIONAL
leave to defend himself. (with no conditions attached)

7. The company was accused of making a FRAUDULENT insurance claim by exaggerating the value
of the goods it had lost. (not honest, aiming to deceive people for financial gain)

8. Technically we can sue the company for breach of contract, although this is not really a FEASIBLE
option. (Possible or practical)

9. New legislation has made Clause 6b of the contract REDUNDANT. (no longer needed or valid)

10. HABITUAL breaches of safety regulations are being investigated by the Health and Safety
Officer. (doing something repeatedly)

11. When he bought the company, it was barely SOLVENT but he turned it into one of the
most successful organizations in the country. (having enough money to pay debts)

12. The lawsuit against the organization was dropped because there was not enough MATERIAL
evidence. (important or relevant)

13. We were expecting to receive a big fine, but in the event we were ordered to pay only NOMINAL
damages. (a very small amount)

14. The issues of CORPORATE responsibility at local, national and international levels have been receiving a
lot of coverage in the press. (referring to a company)

15. The contract is OPEN-ENDED although there is an initial probationary period. (with no fixed period,
or with some items not specified)

16. Be careful what you say: some companies are extremely LITIGIOUS. (very willing to bring a
lawsuit against someone to settle a disagreement)

3
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 Unit 0000law 2: Key nouns
Business
Look at the dictionary definitions below, decide what each one is describing, then write your answers in the
table on the next page. The first and last letters of each word have already been put into the table for you.

If you complete the table correctly, you will reveal a word in the shaded vertical strip that can
be used to complete the sentence in the box at the bottom of the next page.

1. A person who is appointed to deal with financial or other matters on behalf of another person.

2. A license to trade using a brand name and paying a royalty for it.

3. An official who investigates complaints by the public against government departments or other
large organizations (especially banks, travel companies, and electricity, gas, water and
telecommunications providers).

4. Somebody who gives a guarantee.

5. A failure to carry out the terms of an agreement, a contract, etc.

6. One of the main conditions of a contract, where one party agrees to what is proposed by the other
party. Also the act of signing a bill of exchange to show that you agree to pay for it.

7. The notifiable offence of telling lies when you have made an oath to say what is true in court.

8. Somebody who has committed a civil wrong to somebody, entitling the victim to claim damages.

9. A payment made by a person or company to cover the cost of damage or hardship which he / she /
it has caused.

10. An attempt by a third party to make the two sides in an argument agrees.

11. A document in which a company acknowledges it owes a debt and gives the company's assets as
security.

12. The closing of a company and the selling of its assets.

13. Money claimed by a claimant from a defendant because of harm or damage done, or money
awarded by a court to a claimant as a result of harm suffered by the claimant (Clue: this word has
already appeared elsewhere in this exercise).

14. The legal responsibility for paying someone for loss or damage incurred.

15. A failure to give proper care to something, especially a duty or responsibility, with the result that a
person or property is harmed.

16. The good reputation of a business and its contacts with its customers (for example, the name of
the product it sells or its popular appeal to customers).

17. A court order telling a person or a company to stop doing something, or telling them not to do it
in the first place.

4
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
.

Unit 0000

1 N O M I N E E

2 F R A N C H I S E

3 O M B U D S M A N

4 G U A R A N T O R

5 B R E A C H

6 A C C E P T A N C E

7 P E R J U R Y

8 T O R T F E A S O R

9 C O M P E N S A T I O N

10 M E D I A T I O N

11 D E B E N T U R E

12 L I Q U I D A T I O N

13 D A M A G E S

14 L I A B I L I T Y

15 N E G L I G E N C E

16 G O O D W I L L

17 I N J U N C T I O N

Use the word in the shaded vertical strip to complete this paragraph.

The company promised us that they would send us the goods by March 31st, but since then
we have discovered that they knew they couldn't get them to us until the end of May. We
lost a lot of money as a result, so we are going to sue them for MISREPRESENTATION.

Familiarize yourself with the words in this exercise by using them in some of your own
sentences. Don't forget to record any new words and expressions you learn (there is a
vocabulary record sheet on page 64 which you can photocopy as many times as you like
and use to build your own vocabulary 'bank').

5
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 Unit 0000law 3: Key verbs
Business
Complete the crossword on page 8 by rearranging the jumbled letters in bold in the
sentences below and writing the words and expressions in the appropriate space on the
crossword grid. An explanation of each verb is in brackets at the end of each sentence. Be
careful, as many of the words will need to change their form (for example, to the past simple
or past perfect) to fit correctly in the sentence and into the crossword.

Across:
3. The airlines will INDEMNIFY passengers for lost luggage to the value of £500. (to pay for loss
or damage suffered)

4. The company UNDERTAKES to provide quality service at a competitive cost. (to promise to
do something)

10. The tribunal will ADJUDICATE the claim and award damages where necessary. (to give a judgement
between two parties)

12. In order to raise enough money for its new venture, the company decided to LIQUIDATE some of its
assets. (to sell assets or stock to raise cash)

14. All of our employees are ENTITLED to four weeks' holiday a year. (to have or give someone the
right to do something)

15. A neutral party was called in to MEDIATE between the manager and his staff. (to try to make two
sides in an argument come to an agreement)

17. The contract is still being DRAFTED, but we expect it to be ready for signing early next week. (to
make a first rough plan of a document such as a contract)

19. A lot of people were unhappy when he was APPOINTED to the post of Managing Director. (to
choose someone for a job)

20. We must allow sufficient time to ELAPSE before we make a claim. (of time: to pass)

21. The company has been accused of trying to DEFRAUD customers. (to trick someone so as to obtain
money or goods illegally)

26. The paper has no right to DISCLOSE the details of our agreement. (to tell details)

28. A court injunction has BANNED the company from trading in the area. (to forbid something, or
make it illegal)

29. Because a new company has taken over, the contract has been INVALIDATED. (to make something
no longer valid)

31. In view of the inconvenience we have caused, we are willing to WAIVE all payments due. (to say
that something is not necessary)

32. The local authority GRANTED the company an interest-free loan to start up the new factory. (to
agree to give someone something, or to allow someone to do something)

6
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
.

Down:
1. The plan has to be RATIFIED by the board before it can be put into operation. (to approve
officially something that has already been decided)

2. After he was accused of insider dealing, his firm was BLACKLISTED by the government. (to put
goods, people or a company on a list of those that you will not deal with)

5. Penalties will be applied if you DEFAULT on your repayments. (to fail to carry out the terms of
a contract, especially to fail to pay back a debt)

6. When the company was unable to repay the loan, the bank FORECLOSED on its premises. (to take
possession of a property because the owner cannot repay money he / she has borrowed using the
property as security)

7. The case might last longer than we expected, because the defendant is DISPUTING the claim. (to
argue against something; to say that something is not correct)

8. The judge AWARDED compensatory damages to the claimant. (to decide the amount of money to
be given to someone)

9. The company assured us it would do all the work itself, but it SUBCONTRACTED part of the job to a local
firm. (to agree with a company that they will do all or part of the work for a project)

11. The court was unable to decide whether the patent had been INFRINGED. (to make a product in
the same way as another product which has been patented, and not pay royalties)

13. The document has been CERTIFIED as a true copy. (to make an official declaration in writing)

16. Non-profit organizations will be EXEMPTED from tax. (to free someone from having to pay tax)

18. The court ordered the company to be WOUND UP (2 words). (to put a company into liquidation)

19. The claimant ALLEGED that the article was an infringement of his copyright. (to state, usually in
giving evidence, that something has happened or is true)

22. The company did not ABIDE BY (2 words) the terms of the agreement. (to accept a rule or follow a
custom)

23. On liquidation, the firm's property was VESTED in the bank. (to transfer to someone the
legal ownership and possession of land or a right)

24. We are CLAIMING £5,000 as compensation from our suppliers. (to ask for money)

25. Mr and Mrs Douglas' solicitor advised them to SEEK an injunction against the magazine in the High
Court. (to ask for or try to do something)

27. Workers are allowed to STRIKE in protest against bad working conditions. (to stop working because
there is no agreement with management)

30. The company owns several apartments, which it LETS to private tenants. (to allow someone to use
a building in return for money)

7
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
.

01 02
R B
A L
T A
I C
03
I N D E M N I F Y K
I L
04 05
U N D E R T A K E S I
06
F E D S
07 08 09
O D A F S T
10 11
R I W A D J U D I C A T E
E S A U B N D
C P R L C F
12 13
L I Q U I D A T E O R C
14
O T E E N T I T L E D
S I D T N R
E N R G T
15 16
D G M E D I AA T E I
X C D F
17
D R A F T E D T I
M E E
18
P D W D
19
A P P O I N T E D I
L E N
20 21 22
E L A P S E D E F R A U D
23
E B U V
G I P E
24 25
E C S D S
26 27
D I S C L O S E E T
28
T A E B A N N E D
R I K Y D
I M
29 30
K I N V A L I D A T E D
31
W A I V E N E
32
G R A N T E D
S
8
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
.

Unit 0000
Business law 4: Key expressions
Complete definitions 1 – 30 with the first part of an appropriate expression from the first box, and the second
part from the second box.

articles… burden… compulsory… confidential… data… employers'… employment…

force… freezing… fundamental… grievance… intellectual… joint…(x2) limited…
memorandum…(x2) obligation… out… power… pre-emption… terms… trade…
unfair… unliquidated… unprofessional… vicarious… winding… without… wrongful…

1. An official power giving someone the right to act on someone else's behalf in legal matters is called
POWER OF ATTORNEY.

2. The protecting of information about individuals stored in a computer from being copied or used
wrongly is called DATA PROTECTION.

3. WITHOUT PREJUDICE is a phrase spoken or written in a letter when attempting to negotiate a

settlement which means that the negotiations cannot be referred to in court or relied upon by
the other party if discussions fail.

4. A JOINT VENTURE is a business partnership where two or more companies join together as partners
for a limited period.

5. FORCE MAJEURE is an expression of French origin that is used for something which happens which is
out of control of the parties who have signed a contract (for example, a war or a storm), and is also
known as an act of God.

6. A GRIEVANCE PROCEDURE refers to the various steps an employee takes if he/she wants to complain
about his / her employers.

7. ARTICLES OF ASSOCIATION are the contents of a document which regulate the way in which a
company's affairs (such as the appointment of directors or the rights of shareholders) are managed.

8. A section in a company's (number 7 above) which requires any shares offered for sale to be first
offered to existing shareholders is known as a PRE-EMPTION CLAUSE.

9. When a company is put into liquidation, this is often known as WINDING UP.

10. The legal responsibility of an employer when employees are subject to accidents due to negligence on the
part of an employer is called EMPLOYERS' LIABILITY.

11. The legal responsibility of one person for the actions of another person, especially the responsibility
of an employer for acts committed by an employee in the course of work, is called VICARIOUS
LIABILITY.

12. A LIMITED LIABILITY company is a company where each shareholder is responsible for paying
the company's debts only to the face value of the shares he / she owns.

9
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
13. A MEMORANDUM OF ASSOCIATION is a legal document setting up a limited company and
giving details of its aims, capital structure, and registered office.

14. A MEMORANDUM OF SATISFACTION is a document showing that a company has repaid a

mortgage or charge.

15. A situation where two or more parties share a single legal responsibility, and each party is
also liable for the whole claim, is called JOINT AND SEVERAL liability.

16. When a dispute between two parties is settled before it gets to court, it is known as
an OUT OF COURT settlement.

17. When an overseas company (or an individual) cannot access its assets because a court
order prevents it from doing so, this is known as a FREEZING INJUNCTION.

18. UNLIQUIDATED DAMAGES are compensatory payments which are not for a fixed
amount of money but are awarded by a court as a matter of discretion depending on
the case.

19. The duty to prove that something which has been alleged in court is true is known as the
BURDEN OF PROOF.

20. Behavior which is not suitable for a professional person and goes against the code of
practice of a profession is called UNPROFESSIONAL CONDUCT.

21. Facts which are secret and must not be passed on to other people are called CONFIDENTIAL
INFORMATION.

22. A body responsible for hearing work-related complaints as specified by statute is called an
EMPLOYMENT TRIBUNAL.

23. An OBLIGATION OF CONFIDENTIALITY is a legally-binding rule that is imposed on

the recipient of private or secret information which states that the recipient
should not pass the information on to someone else.

24. The name, design or other feature which identifies a commercial product, has been
registered by the maker and cannot be used by other makers is called a 'registered
TRADE MARK'.

25. INTELLECTUAL PROPERTY is something such as a copyright, patent or design which

someone has created or produced that no-one else can legally copy, use or sell.

26. The conditions which have to be carried out as part of a contract, or arrangements
which have to be made before a contract is valid, are called TERMS AND
CONDITIONS.

27. The removal of someone from a job for a reason that cannot be justified, and which
is in breach of contract, is called WRONGFUL DISMISSAL.

28. UNFAIR COMPETITION is an attempt by one company to do better than another

company by using methods such as importing foreign products at very low prices or
by wrongly criticizing a competitor's products.

29. A failure to carry out an essential or basic term of a contract is known as a FUNDAMENTAL
BREACH.

30. COMPULSORY LIQUIDATION is when a court orders a company to close and its assets to be sold.
 Unitrights
Consumer 0000
Many countries have legislation in place to protect the rights of consumers. In Britain, they
are protected by laws such as the Sale of Goods Act, the Supply of Goods and Services Act,
the Distance Selling Regulations, the Consumer Protection Act and the Consumer Credit Act.

Exercise 1: Here is a summary of some of the key points from these laws, and some other
information which consumers might find useful. Complete the paragraphs with words and
expressions from the box.

1. accurate description 2. as described 3. cooling-off period 4. credit card fraud

5. credit voucher 6. defective 7. delivery arrangements 8. fit for purpose
9. give a refund 10. guarantee or warranty 11. opt out of 12. proof of purchase
13. receipt 14. responsibilities and liabilities 15. satisfactory quality
16. unsolicited mail 17. unsolicited telemarketing 18. wear and tear
19. within a reasonable time 20. written confirmation

Providers of goods and services (including credit providers and hire companies) all have RESPONSIBILITIES
AND LIABILITIES towards the customer who is aimed at protecting the customer and his / her rights.

When you buy goods, they must be of SATISFACTORY QUALITY: the condition they are in should match your
expectations based on the price you paid. They should also be 'AS DESCRIBED' (in other words, they must
match the description made by the provider and / or the manufacturer), and they must be 'FIT FOR
PURPOSE' (they should do what you expect them to do).

All goods must carry a GUARANTEE OR WARRANTY in case they go wrong or do not meet your
expectations.

If you need to return goods to a shop or other supplier, you should do so WITHIN A REASONABLE TIME:
many shops and suppliers specify their own limit, usually 28 days, and can refuse to do anything if there is
evidence of unreasonable WEAR AND TEAR (signs that the goods have been used more than is normal or for
a purpose for which they were not designed).

If you take goods back to a shop, they are entitled to ask for PROOF OF PURCHASE, such as a RECEIPT, a
credit card slip, etc, that shows you actually bought the goods from them.

Many shops may refuse (illegally, if the product you have bought is faulty or DEFECTIVE) to GIVE A REFUND,
and instead of returning your money will offer you a CREDIT VOUCHER to use in that shop at a later date.

Where goods or services are ordered on the Internet, on-line shops should offer their customers a COOLING-
OFF PERIOD after they have ordered them, in case the customer decides to suddenly cancel their order.

On-line shops should give the customer an ACCURATE DESCRIPTION of the goods being sold, and clearly
state the price, DELIVERY ARRANGEMENTS and options (how and when the customer can expect to receive
their goods, whether there is an extra charge for postage, etc).

On-line shops should also protect customers against CREDIT CARD FRAUD, and should allow customers to
OPT OUT OF receiving further information and UNSOLICITED TELEMARKETING, UNSOLICITED MAIL or
unsolicited email. They should also send the customer WRITTEN CONFIRMATION of their order (often in the
form of an email sent after the order has been placed).

11
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 Exercise 2: Instructions as above.

1. claim for compensation 2. claim form 3. County Court 4. in your favour

5. issue the proceedings 6. make a claim 7. poor workmanship 8. preliminary hearing
9. reasonable care and skill 10. reasonable charge 11. received satisfaction
12. serves the claim 13. Small Claims 14. specified period

If a service is being provided (for example, a mobile phone contract), and there is a SPECIFIED PERIOD for the
contract, this must be clearly stated by the provider.

If you buy faulty goods with a credit card, and those goods cost over £100, you have an equal CLAIM FOR
COMPENSATION against the seller of the goods and the credit card company.

Where a service such as the repair of a car is being provided, it should be done with REASONABLE CARE AND
SKILL (an unsatisfactory standard of work or general POOR WORKMANSHIP should not be accepted by the
customer) for a REASONABLE CHARGE (the customer should not have to pay an excessive amount of money)
and within a reasonable time.

If you need to make a claim against a shop, company or other provider, because you have not received
satisfaction from that shop, company, etc. you can do so through the COUNTY COURT. For claims of less than
£5,000, the SMALL CLAIMS procedure should be useful.

The process is very simple: after completing a CLAIM FORM, you ask the court to ISSUE THE PROCEEDINGS.
The court then 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.

12
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 Unit 0000
Contracts 1
Exercise 1:
Complete this text, which has been adapted from the A & C Black Dictionary of Law, with
words or expressions from the box.

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

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:
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.

1. I went into the supermarket and chose the items that I wanted. As soon as my basket was full, I
headed for the checkout. A CONTRACT

2. 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. VERBAL CONTRACT

3. 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. A TENANCY
(AGREEMENT)

4. We're opening our own branch in the town center 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. FRANCHISE AGREEMENT

13
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 5. 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, totaling £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. LOAN
AGREEMENT

6. 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. EMPLOYMENT CONTRACT

7. The total cost is £2,870, which is payable in full before the goods can be dispatched. 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). TERMS AND CONDITIONS OF SALE

8. 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
refueling service charge will be applied if you do not replace the fuel you have used. CAR HIRE
AGREEMENT

14
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 Unit 0000
Contracts 2
Look at paragraphs 1 – 6 in the boxes, and answer the questions that follow them. Some of
the words and expressions appeared in Contracts 1 on pages 13 and 14.

1.
This contract is binding, and we expect all the PARTIES involved (both clients and suppliers) to abide by
the terms and conditions stated in sections 3a – 37g on pages 1 – 17.

1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it.
2. True or false: a contract which is binding is flexible and can be changed at any time. FALSE
3. Two of these words / expressions could replace abide by. Which ones?
(A) choose (B) agree with (C) OBEY (D) change (E) HONOUR

2.
On TERMINATION of this contract, the company will be obliged to return any unused materials to the
supplier within 28 days, unless provision has been made for a temporary extension. If any of the rules
of the contract are broken, all materials must be returned immediately.

1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it.
2. True or false: provision has a similar meaning to arrangement. TRUE
3. Rearrange these letters to make two words which have a similar meaning to obliged:
OBLIGATED / REQUIRED

3.
The contract was originally verbal, but we've finally managed to get the company to give us something
on paper. They say that this contract is NON-NEGOTIABLE, but maybe we can persuade them to
amend some of the details before we sign on the dotted line.

1. One of the underlined words / expressions in the above paragraph is wrong. Identify and correct it.
2. True or false: the speaker thinks that it might be possible for small changes to be made to the
contract before she signs it. TRUE
3. Rearrange the letters in bold to make words which have the same or a similar meaning to verbal in
this situation. ORAL / SPOKEN

4.
Swill pot Airline Catering Ltd were sued by Pan-Globe Airways when they were found to be IN BREACH
OF their contract, specifically that they had failed to comply with clause 27B, which stated that their
food should be "fit for human consumption".

1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it.
2. Find a word or expression in paragraphs 1 – 3 above which has a similar meaning to comply with
in paragraph 4. ABIDE BY (IN PARAGRAPH 1)
3. True or false: Pan-Globe Airways are unhappy with Swill pot Airline Catering because they
have breached all of their contractual terms. FALSE

15
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 4. Both Swill pot Airline Catering Ltd and Pan-Globe Airways signed the contract. In legal terms, would
we describe the arrangement between the two companies as an offer, an acceptance or a
consideration? A CONSIDERATION

5.
Withers Interiors Ltd has entered into an agreement with Sophos Construction to act as sole
providers of quality interior fittings commencing 15 August this year. This is to run for 18 months,
with a 3 month PERIOD OF NOTICE in the event of cancellation by either side.

1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it.
2. Which word in the paragraph is the closest in meaning to the noun contract? AGREEMENT
3. Is this an example of part of an open-ended contract? NO, IT IS PART OF A FIXED-TERM
CONTRACT
4. True or false: if either Withers Interiors Ltd or Sophos Construction want to end the contract, they
must tell the other company 3 months before they do it. FALSE

6.
This contract recognizes the APPOINTMENT of Mr. Alan Wiley as non-executive Director to the board
of AKL Publishing following the company's amalgamation with Berryhill Books. While Mr. Wiley may
continue to buy shares in the company, he may not acquire a controlling interest, and he may have
no professional dealings with any third parties during this period.

1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it.
2. True or false: AKL publishing recently separated from Berryhill Books. FALSE
3. True or false: Mr. Wiley can buy as many shares as he likes in the company. FALSE
4. In addition to sitting on the board of AKL Publishing, how many other companies can Mr. Wiley
work for? NONE (HE CAN HAVE NO PROFESSIONAL DEALINGS WITH THIRD PARTIES, I.E.
COMPANIES OTHER THAN AKL PUBLISHING)

16
For reference see Dictionary of Law 4th edition (A & C Black 0-7475-6636-4).
 EVICT

APPROVE

WITHHOLD
EARN

BRIBE

RESCIND

ADJOURN
EMPLOY

TESTIFY

ISSUE
OBLIGATE

DISMISS
RECOMMEND

ARBITRATE
 1. LAW

2. COURT

3. JURY

4. TAX

5. SENTENCE
 NEGOTIATE TERMS

RETURNED A VERDICT
ENTER THE MARKET
EVADE TAXES
HEARD THE CASE

CROSS EXAMINING THE WITNESS

COMMIT THE CRIME
DECLARE AN INTEREST

CHARGE A FEE
 STOLEN
BURGLAR
TO PICK (SOMEONE'S) POCKET
TO MUG
HOUSEBREAKING
SHOPLIFTER
KLEPTOMANIA
THIEF
TO HOLD UP (A PLACE)
STOLEN PROPERTY
INNOCENT
COMPANIES
PROSECUTE
GOVERNMENT
MINISTER
TREASURY
SECRETARY

ACQUITTAL
FORENSIC
DECISION
INDICTMENT
OPINION
PERFORMANCE
EXAMPLE
SELECTION
CONSIDER
EMBEZZLED
DIRECTOR
DEPARTMENT
CORRUPTION
INSIDER

DISAPPROVED
INCORRECT
RECOMMEND
EMPLOYEES
ILLEGAL IMMORAL IRRECONCILABLE UNCONFIRMED
ILLEGITIMATE IMMOVABLE INCAPABLE IRRECOVERABLE UNINSURED
IMPERFECT INCOMPETENT IRREGULAR UNJUST
IMPROPER INCORRECT IRRELEVANT UNLAWFUL
INDEPENDENT UNPROFESSIONAL
INSANE UNRELIABLE
INSOLVENT
INVALID

INCORRECT
UNRELIABLE
IMPROPER
IMPERFECT
IRRELEVANT
UNCONFIRMED
ILLEGAL
INSOLVENT
INVALID

IRRECOVERABLE
INDEPENDENT
.

R E F E R L A C C E P T
E A O I C U E
G C O U R T Q T O R T
I S H I U S
S I G G D I V I D E D
T I M E A B E T A
R I A N F J U R Y
A L E G A T E E S U
T H E R E N A D U L T
I R D G O
O P P O S E A S S E S S
N O R N S T E P
I F I R S T E R
N E U A A
S T A T E N O T G U I L T Y

refer registration

accept facsimile
court
tort rough

divided litigant
time

abet acquit
jury
legatees cut
there per se
adult
defendant
day
oppose
age
assess judges
no error
no
lose
step
first point
state steal
not guilty pray
fee

run
.

P R O C E D U R E S
P R I N C I P A L
E Q U I T A B L E

I N T E N T I O N
T E M P O R A R Y
A P P O I N T M E N T
T A X A T I O N
M O R T G A G E
D E F E R R E D
P R E C E D E N T
F R I V O L O U S
O C C U P A N C Y
C O R P O R A T E
E T I Q U E T T E
.
.

EXEMPLARY

LIABLE
JOINT

OUT-OF-COURT

CONCURRENT

FLAGRANT
BANKRUPT
OVERDUE
CIVIL
EXEMPT
HOSTILE

INTENTIONAL

CONSECUTIVE

GERMANE
ANY OTHER BUSINESS
CASH ON DELIVERY

DISTRICT ATTORNEY

ERRORS AND OMISSIONS EXCEPTED

FOR EXAMPLE (FROM LATIN EXEMPLI GRATIA)

FREE ON BOARD

FEDERAL BUREAU OF INVESTIGATION

FOREIGN OFFICE

GRIEVOUS BODILY HARM

GROSS NATIONAL PRODUCT

IDENTITY

INCORPORATED
I OWE YOU

JUSTICE OF THE PEACE

LETTER OF CREDIT

MEMBER OF THE EUROPEAN PARLIAMENT

USED TO SHOW THAT A LETTER HAS BEEN SIGNED ON BEHALF OF SOMEONE ELSE (FROM LATIN
PER PROCURATIONEM)

PUBLIC LIMITED COMPANY

PROPORTIONAL REPRESENTATION

QUEEN'S COUNSEL

RECEIVED
VERSUS

VALUE ADDED TAX

 LANDLORD / TENANT IMPRISON / RELEASE
ACQUIT / CONVICT CONFESS / DENY DEFENCE / PROSECUTION

BRING FORWARD / DEFER BORROW / LEND CANCEL / CONFIRM

DEFENDANT / PLAINTIFF CIVIL / CRIMINAL ACCIDENTAL / DELIBERATE

CONVICT
DEFER
DEFENDANT
TENANT

CONFESS
BORROW
CIVIL

RELEASE
DEFENCE

CANCEL

DELIBERATE
TREASON
PIRACY
BURGLARY
BLACKMAIL
EXTORTION

FRAUD
BIGAMY
ASSASSINATION
MURDER

MANSLAUGHTER

FORGERY
BRIBERY
SLANDER
ARSON
ROBBERY

THEFT
SMUGGLING
PERJURY
ESPIONAGE
EMBEZZLEMENT
LIBEL