Introduction to Business Contracts and the Law

INTRODUCTION TO
BUSINESS CONTRACTS
AND THE LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
QUESTION 1..................................................................................................................................2
Legal validity of the statement....................................................................................................2
QUESTION 2..................................................................................................................................4
Scenario A...................................................................................................................................4
Scenario B....................................................................................................................................5
Scenario C....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
REFERENCE CASE LAWS...........................................................................................................8
1

INTRODUCTION
Business contracts and Contract Law governs all the aspects that are associated with the
formulation, execution and fulfilment of contracts entered between two or more parties
(Akhoundi, 2021). In this report, validity of the statement regarding entitlement of a party to
claim for all losses in case of breach of contract will be evaluated. Also, different scenarios
presenting Adam’s problems will be solved and presented in this report.
MAIN BODY
QUESTION 1
Legal validity of the statement
In UK, Contract Law is followed and to constitute a valid contract it's should fulfil the
essential elements of the valid contract, should have contractual obligation and presence of the
consideration. The general rule of law states that both the parties to contract is bound by the
terms and conditions mentioned in the agreement and should perform their part of performance.
It is also stated that it is mandatory for the party to pay for the damages caused to the other party
due to the non-performance which resulted in the loss to the aggrieved party. There are laws
made to provide remedies to the aggrieved party (Smits, 2017).
When two parties enter the contract, they are entitled to perform their part of the terms of
the contract and non-compliance of the terms of the contract results in breach of contract by the
party who did not perform their part. It is said to be breach of contract when one party in the
agreement fails to perform their part of promise according to the terms and conditions of the
agreement. It is also considered a legal cause of actions and also civil wrong in which the terms
of the agreement are not followed or complied with the contract. Breach of contract involves the
defective performance when the party has partly performed their part but not the standard part,
when the party do not perform within the time period or according to the terms of the contract
(Courtney, 2019).
The legal issues regarding the breach of contract is that the plaintiff claiming for the
damages should establish that there was a contract existing between the plaintiff and the
defendant and the person against whom the damages is claimed has failed to perform the part of
the performance in accordance with the terms of the contract (Pargendler, 2018). The main
elements to claim for the breach: there should be existence of the contract, party seeking
recovery has done their part of performance (plaintiff), non-performance by the other party
2