Business law is very important aspect in order to survive business activities and functions in a proper and legal manner. UK government has been formulated some kind of legal rules and regulation which have to followed by every business organisation in order to make agreement valid. The government liability and regulation has formulated by civil law that assist in regulating the business contracts and agreement. In the context of business law, contract is an agreement which is enforceable by law. It is an agreement which made between two or more than two parties. Company's operation and brand name is highly affected by the UK governmental law and regulation. In this project reports , legal agreement and regulation has been addressed with respect of various scenario. This project report gives a depth knowledge and understanding about the law and legal obligation of the business enterprise. In addition to this, various elements of contract and nature of liability in negligence has also discussed in this report.
In the context of business law, all agreements are not a contract but all contract re an agreement. A legal agreement must possess all essential elements of valid contract and it is enforceable by law. According to the UK government in a valid contract all essential elements must included and parties who are involve in the contract must know the terms of valid contract. Following are some elements of valid contracts-
As per the UK government, when between two parties a legal contract are going to create then there must be a proper offer. It mean one party offers for develop a contract to another party. Offer is a proposal by one party which includes expression of terms and condition of contract. The person who develop offer is called as offerer and a person to whom the offer is being made is called offeree.
According to business law if one person offer another to caret a legal contract then there must requires a proper acceptance. It may be oral or written and must have includes legal terms and conditions. Offer is being followed buy only legal acceptance of other parties who accept the offer. The offer should be accepted unconditionally because if any additional condition added by offeree than contract being made as counter offer.
Intension to create legal relationship-
As per the UK government, in the legal contract, both party have intension to create legal relationship while they enter in to the valid contract. Further both parties make sure that they are not involves another outside pressure and influence.
Capacity to enter into contract
Another major important element of valid contract is capacity. There must have capacity of both parties to enter into contract. It means both parties should have ability to implies the legal rights assigned to form the valid contract. Further both parties have age of majority and in sound mind.
As per this state of valid contract, both parties have free consent to enter in to the contract. It means they are not caused by fraud, misrepresentation, coercion, undue influence and mistake (Isaksson and et.al., 2010). If the consent of both parties is not free the no valid contract comes into existence.
An invitation to treat
The concept of invitation of treat is that under which person offer certain things or services to another person in intension to entertain them. This type of contract is most often used when one party is selling and handling goods on behalf of another. As per the given case scenario, Williom wants to create contract by sell its shop so that he advertise his business in a specialist trade journal. So it can be said that William comes in to the invitation to treat.
As per the UK government, there are various types of contract and they are made for different intension. These contract are as follows-
Written and verbal contract
Written contract is a contract under which terms and conditions are written on paper (Bix, 2011). Further under this not only promise made on it but also serve as its proof that the promise to be made. Written contract is most safe and secure form of making contract because all terms and condition are made in written form and both parties put their signature on the contract documents. On the other hand verbal contract are generally made between both parties by use of words and expression of spoken word. Both parties agree upon the terms and condition by verbally and there are not any written prof of contract.
Unilateral and Bilateral contract
As per this types of contract, both parties has to fulfil their obligation at the time of the formation of contract. In other word it can be said that Unilateral contract involve an action undertaken by one person or group alone. On the other hand Bilateral contract is an general agreement which may happened in every person life in every day (Freedland and et.al., 2016). For example, service taken at beauty centre, order a meal at restaurant, receive treatment from doctor etc.
Valid , void and voidable contract
Void contract is that which is not enforceable by law and that have not any legal rights and obligation. On the other hand the contract which is totally enforceable by law is known as valid contract. Further, a voidable contract is that which is framed in compliance with the legal enactment prevailing.
As per the given scenario, William is offer for sale his shop so that he advertise his business in a specialist trade journal for 144000. By this statement in the scenario, it can be said that William have capacity to enter into the contract because he has his shop or property of business. Further he advertises his business in a specialist journal so it can be said that he have intension to create a legal and valid contract withsomeone (Kreitner, 2011) On the other hand under this case, the element of free consent is also included because there has not any type of fraud, misrepresentation and any undue influence over the parties that is William and Richard who are involved in the contract. An interested buyer, Richard wrote to William offering him 108000 for the ship. The conversation between William and Richard are in the written form so it can be said that there was a written contract between them. On the other hand in the case of William and Danial, Willam wrote a letter for sale his car for 4,500 so it can be said that William have also intension to create a legal contract with some one and he have capacity for create contract. In the second case there is also written agreement between the parties.
Generally terms are defined as the set of rules and regulation charged on the contract by the legal bodies, government or any other authorities. Parties who are involved in the contract are liable to followed theterm which have made by the government. They are bound only by term , not by other statements made in pre contract talk (Braga, 2011). The term are directly impact on the entire process of contract and it define how the contract is being survival between parties. In order to maintain the interest and consent between both parties and avoid the situation of negligence, fraud and misrepresentation's, the term of contract is very helpful. There are various terms of contract which are as follows-
This types of term expressed in the written and oral words between the parties. This term can be implemented between the parties by mutual consent and by discussion (Warren, 2012). Further, the parties who are involved in the contract then they supposed to express their contract by either word or written form. In addition to this under this term of contract the entire information about the contract like condition, warranty and innominate term are included.
This types of contract is made by the third parties like government or any other legal authorities. Under this contract parties involved are able to follow the rules and regulation which has made by third party which is not member of contract.
Condition is a term under which parties have to follow that term of contract. This condition is determined at the time of contract and parties who are involve in the contract has to follow that condition. If any party breaks the rules and regulation and not follow the rules and regulation over the contract then aggrieved party can sue for damage and the contract can be determined at its option.
As per the given case scenario, A renowned singer and dancer Katherine has signed a contract to perform as an opera singer for 3 month for the royal opera house. But unfortunately she become ill five day before the opening night and was not able to perform for the first four night as per the contract. The Royal opera house replaced Katherine . So that Katherine has sued against the royal opera house. In such case it has been ascertained that there was expressed contract made between the Katherine and royal opera house because Katherine has signed upon the document of contract (Sumner and Williams, 2010).
According to the terms of expressed contract the contract can made by ether written and oral word so Katherine has made expressed contract with opera house. Katherine can sue to against the opera house according to expressed contract.
As per the scenario, Katherine agreed by contract to perform as an opera singer for another company .She again ill and missed 6 days of rehearsals. The employer sacked her and replaced her with another singer. As per this statement, Katherine has agreed by a contract so it can be said that there was an implied contract between them.
As per the given case scenario, the claimant was a farmer who had a tendency on the defendant field. Before the field was due to be harvested the tenancy was terminated. The claimant then submitted a bill to the defendant for the work and cost of seed spent ion the field as was customary in farming tenancies. The defendant refused to pay stating there was nothing in tenancy agreement that such compensation was payable. As per the scenario it has been founded that there has implied contract because there was not any kind of written and oral contract but if that party terminate the tenancy contract before the termination date then they are liable to pay the bill to claimant.
As per the case Lan apples to the accountant for referencing relating to Luke's financial situation. Luck is a tenant of Lan house. The accountant mark has confused that luck with another client and does not bother to check the file properly. He replies that lan that luck is excellent client with high income. But lucks bank was continuously over drafted and had been in serious debt with various bank (Rush and Ottley, 2010). Along with different elements of tort of negligence is also applied in the scenario that is he breaches their duty by not performing it properly. He has not taken carte of their duty while reviewing the file of John before recommending him to lan. Various elements of negligence are as follow-
Duty of care
As per this element of negligence, if a person is found from any harm or damage by another person negligence then victim have legal right to take action against that particular one on ground of negligence.
Remote of damage
If a victim person is able to show they have caused a physical or financial loss due to negligence of another one then they are expected to increase reimbursement.
Negligence is defined asd the aspect in which individual is unable to perform their activities with proper care that ultimately result in aging injury to the other party (Negligence. 2015). The nature of liability in negligence is come into force through referring the case of Donoghue v/s Stevenson 1932. Along with there case there was certain principles or condition that will successfully p[rove the negligence. These principle are as follows-
Duty of care
According to this concept, the party who injured has right to get remedies from the party who negligence the care of him or his assets (Murfin, 2012).
Breach of duty
This is for that person who terminate his duty. In the case of Donoghue v/s Stevenson 1932., the beer manufacturer has terminate its duty by not checking the beer while packaging the beer.
As per the given case scenario Jon is a local newspaper agent and contrary to express prohibition from his employer ABC Ltd engaged a 14 year old boy to help him deliver newspaper. Jon has not supposed to hire teenager boy and company is aware about this arrangement but not taken any action (Giliker, 2010). As a result Jons careless driving the boy was injured so it can be said that this is a case of negligence. The provision of vicarious liability clearly states that jon and his company are to be hold by wrong cations. Along with this company ABC is responsible to pay the remedies and expenses for the damages or injury of 14 year boy. On the other hand the situation when employee perform the wrong action and it was not in the employment period then in situation business can not held vicarious liable for the wrong activities.
The act of vicarious liability is a kind authority and obligation for decreasing the damages caused to party by the negligences actions or functions of other party. In other word it can be said that vicarious liability is part of action under which one person is responsible to pay the remedies and expenses in order to recover the damage of another parties. As per the given case scenario Jon is a local newspaper agent and contrary to express prohibition from his employer ABC Ltd engaged a 14 year old boy to help him deliver newspaper (Cross and Miller, 2011). Jon has not supposed to hire teenager boy and company is aware about this arrangement but not taken any action. As a result Jons careless driving the boy was injured so it can be said that this is a case of negligence. Company is responsible to pay the expenses of damages and injured of teenager boy. Various principles of vicarious liability are as follows-
- A per the principles of vicarious liability, every company is responsible to pay the remedies of damages or injured if his employees are involved in the injuries.
- Each and every action of employees should control by the employers. Organisation is responsible to for any illegal activities and actions of workers.
Occupiers liability refers to the duty owned by land owners to the those who come onto their land. However the duty imposed on the land owner can extend beyond simple land ownership and in some instance, the landowners may transfer the duty to others , hence the term occupier rather than owner (Blum 2007). In other word it can be said that occupier liability is perhaps a distinct form of negligence in that there must be a duty of care and breach of duty causing damages.
Business law is very important aspect in order to make business legally fair and take all valid action for progress and objective. All contract are agreement bit all agreement are not contract. A contract which is enforceable by law is known as a legal contract. From this project report it has been ascertained that there are various elements of valid contract which assist in becoming the business activities and action valid and escape from illegal activities. Further it has also concluded that in order to successfully formulate the valid contract several elements needs to be considered by the parties that mainly included offer and acceptance, competence of parties, free consents etc.