Business and contract law Assignment

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1 Different sources of law and laws.....................................................................................3
P2 Role of government in law-making and how statutory and common law is applied in the
justice courts...........................................................................................................................5
TASK 2............................................................................................................................................6
P3 Company, employment and contract law has a potential impact upon business..............6
TASK 3............................................................................................................................................9
P4 Appropriate legal solutions for a range of business problems..........................................9
TASK 4..........................................................................................................................................11
P6 Recommend legal solutions............................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
INTRODUCTION
Laws are important part in organisation because it enhance performance and assist in
minimising fraudulent activities through implementing useful acts. Major reason behind

complying laws in business is to facilitate customers by the best serving so that buyers can live
life in more comfortable manner. In simple terms, business law establish rules and regulations
which must be implemented by every organisation (Bagley, 2010). It involves all the legislations
which involves how to start, buy, manage, close and sell any kind of business. As per given
scenario, assignment is segregated in four task which justify categorised case study through
applying most suitable law.
Below mention report is explaining basic nature of English legal system. Along with this,
potential impact of law on a business Adebonojo is described by using company, employment
and contract law. Moreover, some legal solutions are also given for several business problems
which is based upon alternative legal advice.
TASK 1
P1 Different sources of law and laws
English Legal system involves some major laws which is formed by European
Government. All these legislations are important to be implement so that fraudulent activities can
be minimised and controlled which was occurring in market-area. In general term, it can be said
that major motive of introducing such laws is to prevent innocent people from getting exploited
in market area. If there is no laws and rules given by government then several wrong practices
can be made in market place. All these give major impact in negative term to businessmen,
buyers and sellers. English legal system is divided in two different parts these are: Criminal and
civil laws. These two sections are different from each other in several aspects explanation of all
these is mention below:-
 Criminal Law :- It refers to the body of legislations which implement criminal acts.
Respective law is different from civil law because criminal legislation penalties includes
forfeiture of individual rights and imprisonment (Bodie, Kane and Marcus, 2014). One
more difference is that civil issues can be resolved and losses occur are related to money.
Apart from this there are several theories which reflect that why there is criminal law
system. Major theories includes: to reform the perpetrators, dissuade crime, provide
retribution for the act and to prevent further crime. Moreover, there are two types of
criminal laws: Misdemeanors and felonies. Thus, misdemeanor is the offense which
consider lower level of criminal offence like petty thefts, traffic rule breaks, minor

assaults. For such crime penalty is just one year or less than that. Whereas, on the other
hand, felony include serious offense like murder, rape, robbery, arson, dealing drugs and
several other.
 Civil Law :- It is body of rules which protect private right of citizens, offer legal
correction that may be wanted in dispute as well it includes all the areas of laws like torts,
contracts, family and property law (Crane andMatten, 2016). Main motive behind
introducing criminal laws is to solve disputes and provide compensation to the injured
person through some other acts or behaviours. One more purpose of the same is to forbid
unwanted behaviours and give punishment to the person who commit an act deemed
undesirable by society. For instance, issues related to corporate companies can come
under civil laws.
Hence, from above discussion it has been understood that both the laws are distinct from
each other but somewhere these are similar also because of objective to reduce fraudulent
practices from market-area through implementing distinct norms. Although, there are some main
origin of laws which play important role in international market-area. Some of them are given
below :-
 Case law :- there are several activities and misinterpretations which occur at community
place that may be the reason of problem for common people in living their life. For
minimising such issues legal bodies in coming up with some unique thoughts of
restrictions to impose some important acts on entire nation. For example, now-a-days rate
of female harassment is increasing and men's are becoming more which is harming life of
females. Thus, for such problems legal bodies are designing an laws and norms for
women's so that they can facilitating them with their better services and protect from
getting misused.
 Custom :- It is one of the oldest source of law because in ancient time, there are several
social relations which rise usage of customs and traditions. Thus, laws under this is used
for settle and decide issues within different people. Generally, social institution fnction
their work on the basis of various accepted customs.
 Constitution:- Parliament of nation framed proper rules and regulations for whole
society because of which few problems raised and member of general assembly get
implemented to enact law. It means, sometime leading rights of constitution are also

become a main cause for amending any useful acts (DiMatteo, 2010). Beside this,
England constitution is seen as unwritten and known as common law.
Moreover, there are several other sources also which is identified at marketplace like:
memorandum of association, article of association and so on. All these sources of law are
playing their important role in market-area for establishing peaceful environment.
P2 Role of government in law-making and how statutory and common law is applied in the
justice courts
Government play important role in making laws and rules at societal place in order to
regulate exploitative activities for managing things in more better manner. Along with it,
government member of general assembly are also engaged in whole process of law making and
they are mandatory for passing any kind of acts. For the entire activity single agenda get raised in
parliament is that which afterwards become a bill and reading of bill was done overall. In that,
there are six stages through which a law is successfully framed and enacted. Thus, necessary
reading stages description is mentioned below :-
 First Reading – In this stage, bill is read first time to the general assembly and the entire
process of reading act as notification or initiation of the proposed bill (Eren and et. al.,
2012) . Whole procedure is done through the person who is standing up to read the bill.
 Second Reading – At this stage of reading, further discussion or debates on respective
bill take place which was discussed in first reading. All these discussion decide whether
this bill should progress or not and will analyse through voting process. Major motive of
discussion and voting is that everyone have their own thoughts as well ideas which assist
in taking decision related to bill whether to implement or not.
 Committee Stage – In the stage of committee, several people of government bodies will
sit for analysing and scrutinize in order to gain in-depth knowledge about the bill. Person
who are related to this stage play important role in this phase. Specialist analyse the entire
agenda which is required for converting the bill into act. Group of special people includes
police department and solicitors.
 Report Stage – It is the stage in which analysed thing or data will reported back to the
house (Foss and Knudsen, 2013). At this time, proper amendments take place with proper
debating procedure.

 Third Reading – It is the phase where bill are re-proposed to the general assembly for
further discussion, debate or for voting also which is related to the acceptance or
declining of particular bill.
 Last Stage – This stage is also known as Royal assent and it is needed for making an bill
to an act. Apart from it, in last stage, queen give her consent related to the bill before it
become an law. She has the power to accept and deny the allowance to pass a bill as a
law which depends on their concern. Then after, bill is then act of parliament and then
become law.
TASK 2
P3 Company, employment and contract law has a potential impact upon business
To,
The Adebonojo
Date- 16th July, 2018
As per the given case study of Adebonojo, he was engaged in expanding their business
in different marketplace for generating more and more revenue by satisfying need and wants of
different customers. Thus, for managing activities of every outlet, there is requirement of
employees and they started hiring process. One of their new employee i.e. Chukwuyedi arrived
recently. Although, company have to focus on framing proper plan for smooth running of
business in proper way. Employees are important part of business because all the activities are
managed by them (Grundfest, 2010). Thus, as per employees law company is involved in
offering best services to their workers. Generally, there are several employees law which is
designed by legal bodies for development of personnels as well their needs and wants which
can be satisfied. Below mention are some laws which is related to the company, employment
and contract laws as well their impact on Adebonojo business :-
According to situation first of company law – there are some laws related to
company's day to day working which must be followed by every organisation when they are
expanding their business in other nation or also for the same country. Association must be
registered under company Act. Along with this, there are several features which form an
unique enterprise. Following given below are characteristics of an company :- Separate legal entity – Under company law, every association have its separate legal

entity compare to its members. In the eyes of legislation company and its employees
both have their separate legal entity because it have their own name and seals, assets
and liabilities (Johnson, 2013). Apart from this, freighting and cargo company of
Adebonojo can own property, borrowing money, having bank accounts, employing
people as well can enter into contract. Capability to sue and being sued – These benefits can be utilised by enterprise only
when they are registered under Company act. Association of Adebonojo can sue or be
sued by their own name which is separate from its owner's name. One share one votes – Every organisation have some principles of voting which
means everyone have one share one vote. For example: if an person have their 5 shares
in business then, he/she have 5 votes in company.
 Common Seal – Organisations are artificial person which don't have its physical
presence. Thus, it act through its board of director for carrying their daily basis activity
and also for coming into agreement.
From- Legal adviser
To,
The Adebonojo
Date- 16th July, 2018
According to the first situation of Employment act :- There are several laws which is given
by government bodies for the welfare of employees in the organisation. All acts are related to
employment implement in the company in proper manner. Their will be several advantages of
employment act such as job satisfaction to workers, productivity will increase and so on
(Kinicki and Kreitner, 2012). Below mentioned are some laws related to the employment are
mention below :-
 Health and safety act – As per this act, company have to create secure and safe
working environment for each and every staff member for encouraging personnel
towards pre determined targets. Along with this enterprise of Adebonojo can impose
effectual schemes like proper setted equipments, medical facilities and first aid kits for
control accidents etc.
 Equal remuneration Act – Remuneration is the motivational and encouragement tool

for employees. Thus, company have to offer best opportunity to their staff members for
encouraging them to achieve pre-determined goals and objectives (Sweet v Parsley
(1969, HL). Moreover, through this, equal treatment should be given to employees and
also help in maintaining peaceful working environment.
 Equality act – This is an act which legally protect people from discrimination in an
organisation. Because every individual person working in enterprise have equal rights
and there are various legislation which assist in covering Equality act such as: Disability
Discrimination act 1995, Sex Discrimination Act 1975 and Race relation act 1976.
From- Legal adviser
To,
The Adebonojo
Date- 16th July, 2018
According to the third situation of contract law – Agreement between two parties in legal
boundaries are known as contract law. There are some elements which is an agreement
determinant to be legally enforceable: offer and acceptance, mutual assent and so on. In
business, contract is generally related to exchange of property, money, goods and services.
Elements of legal bounded contract are mentioned as below :-
 Offer and acceptance – For doing contract, there is requirement of two or more than 2
persons; one for offer and another to accept the offer (Ye and et. al., 2011). These can
be related to exchange of commodity in terms of value.
 Mutuality – In contract, there is a requirement of mutuality, that both the parties must
be willing and have intention to convert their obligations under contract. Without
mutual intent of both partners contract cannot be bound.
Due to late delivery of container, Bob get dissatisfied and as per the agreement, container was
not same according to the given information. Thus, it should be kept in mind as per the mention
date in contract products should be delivered on time.
From- Legal adviser

TASK 3
P4 Appropriate legal solutions for a range of business problems
Date- 16th July, 2018
As per the given scenario Akbar Abdi is young entrepreneur of Abs company and he made
contract with Dean Rizvi to create computer program for them in the format of DVD.
Conditions in contract mention that Akbar Abdi will get payment on final completion. But
suddenly he fall ill and cannot continue their contract but half of the designed was framed. The
same deign was sell by Razvi for improving their financial situation.
Dean Rizvi have to pay £22,000 to Johan as per the legal rules because they are using
that design and sell it for raising their financial condition. This is the main reason because of
that Rizvi have to make payment if he didn't use that in that situation there is no requirement of
making payment. Moreover, because of some reasons business of Dean Rizvi LTD struggle a
lot and after sometimes it go down dramatically. Thus, winding up order was made on 30th June
2017 and following a creditor’s petition which was presented to the court on 7th July 2017.
although, dissolution process of business is mention below :- Close the Business As Required
by Your Business Articles – Their is requirement of submitting business document in LTD
company at the time of winding-up. Because in that all the information related to capital, assets
and so on is mention. Moreover, it should be submitted to the liquidators who come for
liquidation process (Pepper v Hart (1993, HL).
 File with the State – All the Limited companies who filed with the state at the time of
beginning of business must file dissolution paper with state. file with the state is
important because there are several stakeholders and creditors in business so that owner
of business can place notice that Rizvi LTD cannot incur any further business debt.
 Notify the IRS and State and Local Tax Agencies – when company is ending it is
liable for taxes for the past and current year. At the time of dissolution it should be kept
in mind that owner of business must have to file quarterly or annually taxes and capital
gain and liquidation forms. Taxes involves at the time of liquidation are income, sales
tax which has been collected and payroll taxes.
 Cancel Business Licenses - In order to terminate the business license Dean Rizvi Ltd
needed to file the paperwork to local agencies and local, state and federal tax agencies.

This will restrict others to use the name and license of the firm that can be make owner
defaulter to fill the penalties (Smith v Hughes (1960).
 Notification to Creditors - It is important to give a notice to the creditors that Dean
Rizvi Ltd is going to wind up the business and there services will no longer to remain to
run the business. It is essential to inform the lenders, insurers, suppliers, vendors, and
service providers so that they can breach the contract between them. Corporation are
required to inform creditors about - the company is going to be dissolved or intend to
dissolve, mailing address to send claims, deadlines to submit the claims. There are
certain states which are required to dissolve a company to place the information in
newspaper which announces that the firm is closing. In this way, the public and creditors
would be able to know about the firm's condition and they can also able to take action to
regarding their investments.
 Settle Creditor Claims - If Once the debtors gets claim from the creditors, then they
need to inspect the claims and they also have the authority to accept and reject the
proposed claim. If the creditors are come out with the woodwork then they need to claim
a portion of pot and there are limited credits then the owners need to judicial about the
claims with consideration that which one should to accept. There are some lawful ethics
which can b e regulates the authorities to govern to identify the reject and accept the
claims. For an instance, there is a valid claim to the Dean Rizvi Ltd, then the next step is
to pay in full or work out a compromise with the creditors.
 Collect Money Owed to the Business - A business does not has any obligation to tell
that Dean Rizvi is going to shut in order to claim the money form others. Because that is
much harder to collect the money for a business which is no longer.
 Inform Other Stakeholders About the Closure - It is important for the business to
inform the landlords and others who are in lease contract so that they can process
further (Royal College of Nursing v DHSS (1981, HL).
 Sell and Distribute Your Assets - After the settlement of the claims and creditors, the
tangible and intangible assets will be sold out or distribution of these assets remain
proportion to the stakeholders.
 Meet with a Business Attorney Before You Dissolve Your Business - The right
attorney is important to terminate the business which is also required to start the

business.
As per the given information of Dean Rizvi LTD Rbank, is owned at £450,000 and it
has fixed charges but now freehold premises is valued at £400,000. thus, owner of the company
have to pay £450,000 to the bank because amount taken by him is that. Apart from this if their
any other creditors then also they should be paid my Dean Rizvi.
P5 Provide justifications for the use of appropriate legal solutionsDate- 16th July, 2018
According to the given case study, above mention dissolution process is prefect for the
business and mode of payment to creditors also. As Dean Rizvi is using design made by John, in
such condition, Rizvi have to make payment of £22,000 to the John. If he would not have used
it then their will be no requirement of paying as well English legal system also says that in
contract if a person is utilising any goods or services agent which they have to do payment in
monetary form. So, payment made by the Rizvi is correct in the legal eyes and also in ethical
form.
On the other hand, another situation is of firm dissolution when its time for liquidation it
is important to make payment first to the creditors. Rizvi LTD have to pay £450,000 to RBank
because amount taken by them is it. Current valuation of their premises don't mean anything
they have to pay amount which is taken. Apart from this, firstly John will be paid after
dissolution then after it Rbank.
TASK 4
P6 Recommend legal solutions
To,
The Adebonojo
Date- 16th July, 2018
Subject- “Method of resolving conflicting situations of AAD fashion Ltd. And Craig Couture”
According to given case study, AAD fashion ltd. has failed in fulfilling the demand of
consumers due to which they might face a conflicting situation. As per the contract fashion ltd.
failed in delivering garment on 20th February, 2017 that is a first attempt and later on second

date was a 28th march 2017 that is also not completed. As a result, company have lost this
contract which worth £300,000. Thus, Craig couture has file a case against the organization as
they get failed in fulfilling the terms and conditions of contract (Alternative dispute resolution
(ADR). 2017). It shows that both the parties are getting involved in a conflicting situation which
is not easy to resolve easily because of high range of complexity. In fact, according to given
case study fashion ltd. is a culprit as they are not able to complete their assignment because of
which other party is facing a major problem. Hence, as per the legal norms ADR is going to
adopted for this problem as this method is highly appropriate for clearing issues between two
parties. Basically, this method is classified into three parts which is discussed as follows: -
Negotiation- According to this element, two members whomsoever are involved in a
conflict needs to come closer with each other for clearing their doubts and issues in an
appropriate way. However, this tool is suitable for small companies that are not having that
much funds to hire a legal member. In fact, it aids in safeguarding the time period also as there
is absence of presenting any third party. Mainly, negotiation is very useful method for
resolving issues clearly without involving any other person. Thus, this approach is also one of
the suitable option for Craig Couture.
Mediation- It means an association needs to transfer the responsibility of solving issue
to any of the experience or authorize parties of a company (Fisher v Bell (1961). Basically, in
this method, there is an involvement of third person who is skilled or have ability to resolve
problems faced by organization.
Arbitration- As per this tool, company need to hire legal member or any professional
for clearing issues in best manner by understanding each or every aspect in deeply. In this
method, company is going to hire best professional whomsoever is having best experience in
their job role knowing how to resolve complex conflicting situations in a defined time frame.
However, two type of arbitration are identified such as; ad hoc and institutional which is
further explained-
Ad hoc arbitration Institutional
In this procedure rules, regulations and
administration is designed by some specific
association such as; ICC, LCIA, DIAC or
As per this tool, every association is having
their own set of norms which offer an effective
framework to the arbitration as well as having

DIFC . their own way of administrating to guide the
entire procedure.
More fastest and cheaper as compare with
others.
Expensive method and slower than other due
to the presence of various rules and
regulations.
Throughout the analysis, it has been understood that Craig Couture needs to follow ad
hoc arbitration method for resolving conflicting situations which is incurred at workplace
because it is more cheaper than other one (Adler v George (1964). along with this, it aids an
association for overcoming conflicting situations that might emerges between Craig Couture
and fashion ltd.
From- Legal adviser

CONCLUSION
From the above assignment it has been concluded that, law is playing important role in
business environment and assist in overcoming with several fraudulent activities. Along with
this, also assist in company to do their work in correct in path. Government of United Kingdom
follow the English Law that consist of criminal and civil law. Moreover, different cases are given
in it related to business law which highlight employment, contract and company laws. Moreover,
business law assist in minimising fraud practices which take place in cooperate world.

REFERENCES
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Online
Alternative dispute resolution (ADR). 2017. Available through
<https://www.citizensadvice.org.uk/consumer/alternative-dispute-resolution/settling-
out-of-court/>.
Alix Adams Books
Pepper v Hart (1993, HL)
Fisher v Bell (1961)
Adler v George (1964)
Smith v Hughes (1960)
Royal College of Nursing v DHSS (1981, HL)
Sweet v Parsley (1969, HL)