Business Law and Ethics: Essential Elements of a Contract

This report discusses the essential elements of a valid contract in business law and ethics. It includes a case scenario where Angharad offers a contract to Birdie and the subsequent negotiations. The report also covers the rights and responsibilities of parties in a contract.

Business law
and
Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Case Scenario..............................................................................................................................3
Explain contract .........................................................................................................................3
Essential conditions for a valid contract.....................................................................................4
Advice Angharad and Bridie on which contract(s), if any, have been formed in this
negotiation...................................................................................................................................5
Rights and responsibilities under such contracts........................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business law is the branch of law that deals with all the rules embodied in the
organisation. The business when being run by the corporation use to imply all the set of rules and
ethical norms(Teichmann, and Sergi, 2018). The main aim behind making the laws is to make
the functionality of the corporation in a proper way and making it usual to be followed by all the
company and aspect. It comprises of various laws like company act, contract act, IPR and many
more. All these contain the4 set of rules which covers the various areas of organisation. Business
ethics use to play the major role in implementing and setting out the morals and code of conduct
that is to be implemented by the organisation. This report will cover all the essential elements of
the contract.
MAIN BODY
Case Scenario
Angharad has a business of building, and for promoting it she advertised about the
business in the local print and also in the online media. By that advertisement Birdie contacted
Angharad to built a wall in her garden and also provided a plan description and drawing.
Angharad while getting that offer responded that she will take £500 for that work and also
answered that the offer will be remain open for 10 days and after that the quotation will be
closed. On that period of 10 days Birdie contacted to Angharad that she will not accept the offer.
But later on after some days she sent a e-mail to Angharad again that she is ready to accept the
quotation. For which Angharad responded that now the new quotation will be £600.
Explain contract
Contract law is an agreement being made between the parties and that is to be followed
by the law will amount to it. Their provides that contract law is being made between the parties
in order to frame and execute any agreement. All the contract will only being binding on the
person if it follows all the essential elements in the contract which implies that their should be an
offer, acceptance, consideration and legal obligation to do a contract ( Froese, 2019). All the
contract can variably being made only when parties are liable to contract. The contract can be
expressed part implied basically a contract has being frame in a written form and has to be made
in written manner that conducts the express contract. But in the implied contract when there are

some contracts that are not been written and are orally being framed. In a conditions of the
contract their has been provided various remedies that are available for the parties for the breach
of contract, that means that when any of the member in the party does any breach of contract
then it provides certain remedies in order to terminate that contract. The remedies will be like
paying compensation to the party or damages will be awarded to them( Fei, and Aun, 2019).
The termination of contract is also being happen when any of the party has mislead or has not
fulfil any conditions that are being required. Thus to be in a contract it has to be legal and valid
and all the essential conditions are needed to be fulfilled.
Essential conditions for a valid contract.
For framing a valid contract there are certain essential conditions that are to be fulfilled.
As the contract when comes in all the conditions then they will create a binding affect on both
the parties. And the contract will be enforceable by law it has to follow all the elements which
are mentioned below: Offer- This is the first element in which the parties will tend to come in a contract will
have to provide an offer. Which means that their should be a offer raised in the parties as
one party has made an offer to another. Acceptance- This element provides that when the offer is made by one party then the
other person will have to accept that for framing a contract. It means that their must be an
acceptance in the party for that prior offer. Consideration- There can not be frame any contract if they have not set any
consideration. It means that all the parties once the offer is made and accepted then that
parties will have to discuss the consideration on which the contract will be held. As
without consideration contract will not be applicable(Andrina, 2017)
 Intention for legal relation- For being in a contract it is important for both the parties
that their should be a legal relation in both the parties and they should have an intention
to be in a contract.
Thus for being in a contract it is important that all the essential conditions should be
fulfilled then only the contract will be binding on both the parties and will be made as legal
contract.

Advice Angharad and Bridie on which contract(s), if any, have been formed in this negotiation.
In this case as Angharad has made an offer of £500 to Birdie in order to make that wall of
the garden. And even added that this quotation will only last for 10 days. In that case Birdie has
said that she cant accept that offer and later on after sometime she mentioned that she is ready for
the offer. And on that case Angharad has made a statement that now the offer will be of £600.
Their lies in a case of Dickinson v. Dodds, that once the offer has been made in the party
and the offer is being revoked by the other party on the quotation time period that is mentioned
and communicated to the other party then that offer will be revoked.
In this case Birdie will not be liable for the new offer as she has revoked the offer prior
made by Angharad by not accepting it and it was due communicated to her, so once the offer is
being revoked then that offer will not be again valid(Dauvergne, 2018)
As Birdie has sent an e-mail to Angharad about accepting the offer to which she replied
that now the new value will be of £600 this will be treated as new offer. And if Birdie will accept
this offer then the contract will work according to that new condition not by the prior offer. And
the quotation will lie for that new offer if Birdie accepts that offer then their will be a contract
framed between them.
Rights and responsibilities under such contracts.
There are certain rights and the responsibility of the parties in the contract that is needed
to be fulfilled in order to frame an essential contract they are mentioned as:
Rights
 All the parties should get an authentic information about that contract.
 The parties considers a right that they should always deal in good faith and their should
not be other intention for framing a contract.
 All the parties when they enter in a contract then should get the timely consideration for
the work that has been given and also all the work should be made timely.
 The parties will always have the exclusive right of ownership.
 The parties have the rights that if their arises any breach in the contract then can file a suit
against that person.
 All the parties should clear their facts and statements as in order of getting the work done
their should not lie any of the problem in parties.
Responsibilities

 It is the duty of the parties that they should always act in good faith and should not follow
any other condition in their accord.
 Their lies a prime responsibility in the parties that all the product and services should be
given to the person from being it is contracted to give on time.( Dawson, Ginesti, and
Sciascia, 2020).
 All the facts have to be clear and their lies that all the material and the knowledge have to
be addressed.
 It is the most important duty of the parties that they should provide the consideration on
time and should not make any further problem.
CONCLUSION
It is concluded from the above report that Business law plays an important role in all the
organisation. Their has to be given that all the company have to follow the laws being regulated
for the company. Contract law provides a important role for the organisation for entering in a
contract it is important that all the essential elements have to be fulfilled. Their are certain rights
and responsibilities that are being framed for the contract. In order to frame any contract it is
important that once the prior condition being accepted if this has not been done then it will not
being fulfilled.

REFERENCES
Books and Journal
Andrina, S.D., 2017. Towards a Future Investment Treaty: Lessons from Indirect Expropriation
Cases due to Measures to Protect the Environmental and Public Health. European
Business Law Review, 28(2).
Dauvergne, P., 2018. Will Big Business Destroy Our Planet?. John Wiley & Sons.
Dawson, A., Ginesti, G. and Sciascia, S., 2020. Family-related antecedents of business legality:
An empirical investigation among Italian family owned SMEs. Journal of family
business strategy, 11(1), p.100284.
Fei, T.L.K. and Aun, L.K., 2019. The Impact of Human Resource Management Bundles on
Innovation in Malaysia. Journal of Applied Economics & Business Research, 9(1).
Froese, F.J. ed., 2019. Doing business in Korea. Routledge.
Teichmann, F.M. and Sergi, B.S., 2018. Compliance in Multinational Corporations: Business
Risks in Bribery, Money Laundering, Terrorism Financing and Sanctions. Emerald
Group Publishing.