CXC Principles of Business Exam guide: Section 4: Legal Aspects of Business

CXC CSEC Principles of Business Exam guide: Section 4: Legal Aspects of Business

CXC CSEC Principles of Business Exam Guide

Profile 1: Organizational Principles

Section 4: Legal Aspects of Business


The students should be able to:


Explain the concept of contract;

Definition and concept of a contract.

2. Describe the characteristics of a simple contract;

Offer and acceptance, competence of parties, intention to create legal relations, consideration.


Differentiate between a simple contract and a specialty contract;

special contracts including mortages, sale of land and insurance


Determine the validity of various contracts;

Use of case studies to determine the validity of contracts.

5. Distinguish between offer and invitation to treat or bargain;

Concepts of offer and invitation to treat.


Explain the conditions under which offer and acceptance are communicated;

Concepts of offer and acceptance.


Outline ways by which contracts may be terminated or discharged;

Definitions of discharge, types of discharge methods of discharge.


Explain why documentation is necessary in business transactions;

The importance of record-keeping in a business, including its value in satisfying requirements for taxation and auditing


Prepare business documents for various purposes;

preparation of various business documents including pro forma invoices, purchase requisitions, statements of accounts and stock cards.


Interpret information on transport documents;

Transport documents including import license, bill of lading, and airway bills.


Identify instruments of payment;

Instruments of payment including cheque, money order, bank draft, debit card, credit card and telegraphic money transfer.

Interpret information on various instruments of payment;

Interpretation and significance of information on instruments of payment.


Explain the use of documentary credit;

The concept of documentary credit,


Distinguish between insurance and assurance;

The concepts of insurance and assurance. .

Evaluate the principles upon which insurance is based;

The concept of pooling of risks.


Explain the various types of insurance policies;

Types of insurance policies: life and business insurance.

17. Explain how insurance facilitates trade. The value of insurance coverage in lowering the risks associated with business


Dilisia Carr (not verified) 3 December 2019 - 3:41am

This is an in depth detailed lesson and I learned a lot from it. Thank You. I'm a form 5 student about sit exams in May/June 2020.

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