This unit applies to individuals who apply knowledge of a range of principles in assessing contractual issues. Its application in the workplace will be determined by the job role of the individual and the legislation, rules, regulations and codes of practice relevant to different jurisdictions.

ELEMENT

PERFORMANCE CRITERIA

1. Determine the nature and meaning of contract

1.1. Access sources of legal information on the nature and meaning of contract

1.2. Distinguish between common law and legislation in contract

1.3. Assess the significance of contracts and contract law in business, and document the outcomes of this assessment

2. Determine the principles of contract law

2.1. Define legal principles governing simple contracts

2.2. Identify and document key elements of a simple contract matter

3. Enhance professional practice through application of relevant principles of contract law

3.1. Assess a legal matter involving contractual issues by applying principles of contract law

3.2. Analyse and evaluate the key issues

3.3. Review analysis with designated person

4. Distinguish between a contract being discharged or breached

4.1. Specify procedures for the discharge of contracts

4.2. List available remedies for breach of contract

4.3. Apply procedures for discharge of contracts to workplace legal matter

4.4. Apply identified remedies to a relevant workplace legal matter

Required skills

literacy skills to read and interpret written material

research and data collection skills to identify:

characteristics, similarities and differences of Australian institutions

types of proceedings and trial procedures

analytical skills to investigate and compare legal institutions and assess simple legal matters related to contract

Required knowledge

commonly used legal terminology, institutions and main features of the Australian legal system

methods used to identify appropriate information about sources of Australian law

nature, aims and rationale of contracts, including agreements, intention to create legal relations, consideration, and capacity to contract

remedies for breach of contract

illegal and void contracts

privacy of contract and assignment of contract

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

demonstrate knowledge of the principles of contract law

apply the principles of contract law

demonstrate knowledge of the steps for the discharge of a contract

demonstrate knowledge of remedies for breach of contract.

Context of and specific resources for assessment

Assessment must ensure access to:

legislation and regulations relevant to contract law

texts and background sources of information on contract law in Australia

case studies involving a range of legal matters relevant to contract law

personnel with expert knowledge of contract law.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios in a range of contractual contexts

tests of knowledge of relevant legislation, rules, regulations and research sources

direct questioning combined with portfolios of evidence

review of authenticated documents from the workplace.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Sources of legal information may include:

court library

online information services and websites

organisation's library

precedent bank

specialist texts.

Contracts may include:

commercial and business contracts

contract for services rendered

employment contracts

sale of property.

Designated persons may include:

barrister

legal practice manager

legal practitioner

supervisor.

Unit sector

Administration - legal administration

This unit contains employability skills.