Assignment 3 Instructions

This assignment should be done after studying Units6 and 7 andcompleting the quizzes for those Units. It is worth 10% of the final course mark.

Part A Mini Essay (50%):

Describe the literal approach to contractual interpretation and explain how it may cause problems. Provide an example to illustrate your point. How might other approaches overcome this difficulty? Describe and explain them in the business context.

Marking Rubric

Marking Criteria

Comments

Mark

Identifies and explains the literal approach to interpretation of contracts and other business documents

/10

Observes a problem that may be caused for business people by using this approach and gives an example that illustrates what a reasonable observer would consider to be a seriously problematic result from application of the literal approach

/10

Identifies and explains three other rules or principles used to interpret documents in business transactions with examples illustrating how and why they can be applied

/30

Total

/50

Part B Mini Essay (50%):

"Reliance damages cannot be used to escape the consequences of a bad bargain."

Explain the meaning of that statement in the context of business contracts. Explain the justification for that legal principle. Provide an example that illustrates your explanations.

Marking Rubric

Marking Criteria

Comments

Mark

Explains the meaning of reliance damages and compares them to other types of damage awards. Gives the rationale for this form of compensation

/10

Identifies a rule concerning the amount of reliance damages which may be awarded

/10

Explains how the rule mentioned above is applied in practice when calculating reliance damages

/10

Based on the previous discussion explains why "Reliance damages cannot be used to escape the consequences of a bad bargain." Gives a hypothetical or real example illustrating that when the principles identified are applied the result is that reliance damages cannot be used to escape the consequences of a bad bargain.