Business Law Analysis Report

Running head: BUSINESS LAW ANALYSIS REPORT
Business Law Analysis Report
Name of the Student
Name of the University
Author note

1BUSINESS LAW ANALYSIS REPORT
Introduction
There are various legal issues, which a business may be subjected to when it has
started to carry out its operations. This issue needs to be addressed in an appropriate manner
by the business owners so that they are no subjected to legal sanctions. These issues are
primarily related to the law of contracts, business, intellectual property, negligence and
employments matters. The purpose of this paper is to analyze such issues in the light to for
scenarios, which Joseph has been subjected to. The paper does so using the IRAC
methodology, which involves identifying the key issue and the law to apply it on the facts
and derive a conclusion. The paper also highlights some general points for business such as a
contract being in writing will help prove the terms in the court even where oral contracts are
enforceable.
Scenario one
Issue
The issue in this scenario is related to contract law. Specifically the concern is that
whether a legally binding contract exists between Joseph and his cousin.
Rule
For the formation of valid contract there are specifically five elements, which are
mandatorily required. These include offer, acceptance, consideration, intention and capacity.
The offer is element, which initiates the formation of a contract. This is a statement which
signifies that a person is willing to start a legal relationship based on the terms of the offer
(McKendrick 2014). The offer in itself does not create a contract and is required to be
accepted by a person who is willing to follow its terms.

2BUSINESS LAW ANALYSIS REPORT
An acceptance is to be made with free consent and without any type of contract vitiating
factors being present such as Misrepresentation, duress, undue influence or coercion. The
acceptance takes place when the party signifies willingness to be bound by the offer terms. In
the case of Harvey V Facey [1893] a precedent was set which stated that acceptance has to be
Unequivocal. In the case of Hyde V Wrench [1840] a precedent was set which stated that
acceptance has to be communicated. However, there are some exceptions to this rule such as
the postal rule and unilateral acceptance.
A consideration is anything of value, which is provided in return of a promise to do or
abstaining from doing something (Cartwright 2016). A consideration must be present for the
formation of a valid contract. Without it, the agreement is not enforceable at law as per the
case of Chappel & Co. Ltd v Nestle Co. Ltd. [1960] AC 87
Intention means the wish of a person to bind him legally to the terms of the agreement. there
is a general rule at common law that agreements which is of a commercial nature have
intention as per the case of Stilk V Myrick [1809] and agreements entered domestically and
socially do not have intention as per the case of Stevenson V McLean [1880]. However, there
is scope for such presumptions to be rebutted (Stone and Devenney 2017).
Capacity refers to the age and metal state of a person or any legal restrictions, which are on a
person from entering into a contract.
Application
Joseph has outsourced the production of the croissconenut to his cousin. This can be
considered as a valid offer, which is required to initiate a contract. It has also been provided
that the offer was accepted by Alfred. Alfred had agreed on the terms of supplying all the
required baked goods on a daily basis for Joseph’s small bakery. Thereafter, Joseph wanted to