Business Law and Ethics

This essay explores the concepts of business law and ethics, focusing on breach of contract and remedies. It provides advice for handling contract disputes and discusses the legal positions in different scenarios. The study material and assignments cover various aspects of business law and ethics.

Business Law and Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
PART1(Breach of Contractual Relationships and Remedies).........................................................3
Advise Raymond on possible remedies available to him............................................................3
Would your answer be any different if Samantha had paid Raymond the £200 three weeks
earlier than the debt was actually due, and Raymond had agreed to this?..................................4
What would be the legal position if Raymond had requested a £400 payment from Samantha
as full and final settlement?.........................................................................................................5
What advice do you have for Samantha?....................................................................................5
CONCLUSION ...............................................................................................................................6
REFRENCES ..................................................................................................................................7

INTRODUCTION
Business laws are considered to be those laws that helps in establishment of an business
organization as per the laws set by an country for it. These laws helps in providing framework
that makes an organizations achieve its goals and objectives while following legal procedure
embedded within law. Ethics are those rules and regulations which helps an organization to
make its business environment better in terms of discipline and order within it. Scope of both
laws is wider as they cover important aspects regarding business within an organization. Nature
is dynamic as it makes business environment to be more healthy with improvement within it that
makes employees more efficient in there working within an organization. In this essay contract
law is to be explained in relation to breach of contract and remedies regarding it. An case
scenario has been given with relevant questions required to be answered.
TASK
PART1(Breach of Contractual Relationships and Remedies)
Case Scenario: Raymond work as an part-time basis for a firm of accountants in its
taxation department and also runs a small consultancy business. As he is the sole proprietor for it
and specialising in personal taxation advice. He entered in a contract with Samantha a struggling
artists and agreed to prepare some draft to be covered in last three years for sum of £800.
Raymond completed work and then Samantha told him that she could only pay £200 that was
stated as full settlement of debt. Now Samantha's paintings began to be sold at very high price
and Raymond read in newspaper that her latest work has been sold for £20,000. Now he wishes
to claim the remaining balance of £600 from Samantha.
Following questions required to be answered regarding above scenario:
Advise Raymond on possible remedies available to him.
Contract laws are the laws that has been formed between two parties or individual in
order to make sure financial transactions are done smoothly. These laws has its basis over an
agreement formed between parties (Mann–Whitney, 2020). In contract law most commonly done
wrong is breach of contract which takes place when parties have violated any condition
mentioned in a contract between two parties. Such kind of wrong is based upon nature of breach
and various remedies in relation to this is been given under contract laws. Remedies means those

activities mentioned in contract law to provide claim and compensation for it. As per contract
laws various remedies given under contract law and that is given as follows:
Damages: This is one of the most common and appropriate remedy available within
contract law over breach of contract. In this reward is provided in the form of money and award
is given through compensation only when breach is proved against party committed it.
According to damage the main purpose is to place party to whom injury is done over position
that has taken place through contract and is been formed (Mahmood, 2020).
Repudiation: It is that kind of remedy which is given for that kind of breach given under
certain condition only. As per this involvement upon bringing end to contract is done.
Rescission equitable: Such remedies is given by the judges upon the direction that has
been stated by them while passing judgement. Recession is to make sure that place within parties
for making pre-contractual position that is presented when contract is revelled. Recession is
made available as it helps in gaining result through vitiating of factors.
Specific performance: As per this equitable remedy is made available through direction
upon judging. In this order made by the court is require by one party to perform all obligations
related to contract that has not been performed within it. As per this different types of contract is
to be performed and parties are required to be upon the obligation existing within contract. This
is given as per limited circumstances. If an court is required over giving specific performance
then damages is required to be prove with adequate remedy and contract is required to bne made
over equity within contract (Köseoglu, Yildiz and Ciftci, 2018).
As per the above scenario it can be observed that £200 has been paid as full debt
settlement and cheque is been accepted by Raymond as full and final settlement. So, in this
scenario no remedy can work as the contract of £200 as full payment is accepted by Raymond. If
payment of £200 would not have been made then breach of contract would have accrued for that
any kind of remedy would have used to get claim against the breach made.
Would your answer be any different if Samantha had paid Raymond the £200 three weeks earlier
than the debt was actually due, and Raymond had agreed to this?
If Samantha would have paid Raymond £200 three weeks earlier and if he would have
agreed over it. Then in such condition the situation would become null void as the paid money
accepted would have been considered to be a breach of contract and remedy in the form of
damage couldn't have been claimed for it and would have been considered under law of torts.

This can be justified with the help of case law that is Addis v Gramophone in this case the
claimant was employed as manager by defendant. Further breach of contract would have
occurred in dispensed of his services and replaced him with new manager. Also claimant had
brought action against breach of contract in which claim was made over level of damage should
have reflected circumstances in which he was dismissed over damage and his reputation with
ability to find suitable employment. In this court held that contract law seeks parties in a potion
that would have been made in hand of the contract to be performed. Then court held that limited
wages an loss of commission during the contractual agreement should be agreed over notice
period. There is no right to exemplary damages upon reputation in contract claims. This is
actioned in law of tort (Karpavithra and Karvittal, 2017).
What would be the legal position if Raymond had requested a £400 payment from Samantha as
full and final settlement?
As per this condition Head of damages would have been used that means an amount that
can be claimed over reflecting various losses. In this loss of bargain, reliance loss, discomfort or
disappointment, inconvenience from future perspective. Under this Reliance loss is to be applied
in this situation that says that where there is difficulty over position the claimant would have
been made possible for recovery of expenses which incurred in relation to contract. Relevant
case law regarding this is Anglia Television v Reed in this case claimant Anglia Television has
made Oliver Reed to play as lead role within a television play. Reed pulled out Anglia no
replacement would be found. Then abandoned over play should be incurred through expenses
amounting £2,750. In this case court held that damages generally seeking to be put over parties
in position that would be having contract to be performed by the parties that is elected for
claiming reliance by recovering expenses within an abortive transaction. This is the reason
Anglia was able to recover expenses form the defendant (Gallego‐Alvarez and et. al., 2020).
What advice do you have for Samantha?
The advice that would be useful for Samantha is the she should form a new contract that
is going to make the earlier contract null void which result into making payment of £200 more
valid. This situation is known as counter contract as per which an offer through making various
terms differing from existing contract. It also impacts affect upon destroying original offer that is
no longer over offer to be accepted. In this relevant case law is Hyde v Wrench in this defendant
has been offering selling of farm to claim for £1,000. The claimant offered £950 that is defendant

and refuse. In this claimant is sought and claimant has brought an action for specific performance
. It was held by court that contract has been counter offer that has made destroy about offer so
that is no longer open to offree accepted (Brenkert, 2019).
This situation help Samantha by making original contract null and her payment of two
hundred euro becomes valid.
CONCLUSION
From the above essay it can be concluded that contract laws helps in providing validity to
both business laws and ethical laws. Further in this essay various remedies has been explained
over breach of contract. Then in the end counter offer has been discussed in the form of advice
given to Samantha.

REFRENCES
Books and journals
Brenkert, G.G., 2019. Mind the gap! The challenges and limits of (Global) business
ethics. Journal of Business Ethics. 155(4). pp.917-930.
Gallego‐Alvarez, I and et. al., 2020. An analysis of business ethics in the cultural contexts of
different religions. Business Ethics: A European Review.
Karpavithra, S. and Karvittal, S., 2017. The Role of Indian Ethics and Values. International
Journal of Engineering and Management Research (IJEMR). 7(2). pp.560-569.
Köseoglu, M.A., Yildiz, M. and Ciftci, T., 2018. Authorship trends and collaboration patterns in
business ethics literature. Business Ethics: A European Review. 27(2). pp.164-177.
Mahmood, K.S., 2020. Need for legal reform to regulate business ethics.
Mann–Whitney, U., 2020. Research on Professional Responsibility and Ethics in
Accounting. Auditing. 112. p.114.
Paul, P., 2019. A gap analysis of teaching marketing ethics: Desired versus current state. Journal
of Education for Business. 94(7). pp.460-470.
Sewu, P.L.S., 2019. Good Faith as a Key Principle of Business Ethics to Franchise Agreement
and Development in Indonesia. Journal of Legal, Ethical and Regulatory Issues. 22(1).
pp.1-7.
Surdam, D.G., 2020. Medieval Business Ethics. In Business Ethics from Antiquity to the 19th
Century (pp. 181-203). Palgrave Macmillan, Cham.