Unit of competency Outline

Date retreived
22/07/2026 7:05 AM AWST

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Interpret and assess contracts

Interpret and assess contracts

Unit of competency
National Code
PSPREV404A
State Code
WJ084
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
3.00
Current Release Date
01/11/2012
State Implementation and Classification
Approved Date
07/07/2014
Field of Education
090901 - Business And Commercial Law
Original Release Date
07/07/2014
Nominal Hours
15
Description
This unit covers the interpretation and assessment of contracts to determine their legal effect, identifying the parties involved and the responsibilities of those parties in order to make decisions regarding liability or compliance.In practice, interpreting and assessing contracts overlaps with other generalist or specialist work activities, such as acting ethically; applying statute law; undertaking legislative decision making; dealing with legal entities, relationships and property; assessing applications for grants, subsidies or rebates; and delivering client service. Co-assessment with units of competency addressing these other activities could be considered.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Identify key features of contracts
  • 1.1 Contracts are analysed and parties involved in each contract are identified.
  • 1.2 Legal nature and elements of contracts, terms and obligations are identified in accordance with contract law.
  • 1.3 Conditions, warranties and contingencies identified in the contract are differentiated.
  • 1.4 Circumstances and consequences of terminating contracts are identified.
  • 1.5 If contractual rights have been assigned, assignment is confirmed as valid in accordance with applicable legal principles.
2. Assess contracts for eligibility and liability
  • 2.1 Contracts are analysed in accordance with criteria using a legislative decision making process.
  • 2.2 Eligibility or liability of contracts is confirmed or denied in accordance with applicable statute law and case law.
  • 2.3 Decisions are made and notified to customers in accordance with organisational policy and procedures.
The range statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The range statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics in the Performance criteria is explained here.
Elements of a contract include:
parameters of agreement
consideration
intention to create legal relations
impartiality
Conditions are:
important contractual terms in a contract where a breach deprives the innocent party of substantially the whole intended benefit from the contract, and allows the party to terminate the contract and sue for damages
Warranties are:
less important terms in a contract where a breach will not deprive the innocent party of substantially the whole intended benefit from the contract, and will only entitle the innocent party to sue for damages
Contingencies are:
obligations that are conditional upon the happening of a prescribed event
The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the unit descriptor, performance criteria, The range statement and the Assessment Guidelines for the Public Sector Training Package.
Units to be assessed together
Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include:
PSPETHC401A Uphold and support the values and principles of public service
PSPREV401A Identify and apply statute law
PSPREV402A Undertake legislative decision making
PSPREV403A Manage information on legal entities, relationships and property
PSPREV405A Assess applications for grants, subsidies and rebates
PSPGOV402B Deliver and monitor service to clients
Overview of evidence requirements
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:
knowledge requirements of this unit
skill requirements of this unit
application of employability skills as they relate to this unit
The assessment environment should not disadvantage the candidate and where the person has a disability the principle of reasonable adjustment should be applied during assessment.
Resources required to carry out assessment
These resources include:
legislative decision making process
government legislation, regulations, rulings, Commissioner's practices and other applicable case law relating to contracts
organisational procedures and protocols relating to interpretation and assessment of contracts
scenarios and case studies to capture the range of situations likely to be encountered when interpreting and assessing contracts
access to relevant systems
Where and how to assess evidence
Valid assessment of this unit requires:
a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when interpreting and assessing contracts, including coping with difficulties, irregularities and breakdowns in routine
interpretation and assessment of contracts in a range of three or more contexts or occasions, over time
Assessment methods should reflect but not exceed workplace demands, such as literacy, and the needs of individuals who might be disadvantaged.
Assessment methods suitable for valid and reliable assessment of this unit must use authenticated evidence from the workplace and/or training courses and may include a combination of two or more of:
workplace projects
simulation or role plays
case studies and scenarios
portfolios
The assessment environment should not disadvantage the candidate and where the person has a disability the principle of reasonable adjustment should be applied during assessment.
For consistency of assessment
Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments.
Replaced By
State Code National Code Title Type
AWT64 PSPREV004 Interpret and assess contracts Unit of competency
State Code National Code Title Type
J297 PSP42112 Certificate IV in Government (Revenue Administration) Qualification