Business Law and Ethics

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BUSINESS LAW AND
ETHICS

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TABLE OF CONTENTS
1. INTRODUCTION...........................................................03
2. MAIN BODY
(i) Discuss the Blue Prints of the Valid Contract..............................03
(ii) Discuss the Court System of UK and Advise Parties Which Court They Can
Approach...........................................................................05
(iii) Advise Hilary Whether a Contract Exist Between Her and Others That are
Eleanor, Amy and Olivia.........................................................05
(iv) Discuss Various Remedies Available to Them...............................06
3. CONCLUSION................................................................06
4. REFERENCES.................................................................07

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INTRODUCTION
The legislature in United Kingdom has passed various laws which a business need to
follow. These laws are enacted by the Parliament of United Kingdom in order to ensure that any
business should not carry on their business activities in an illegal and unethical manner. It is a
fact that every business has formed for the motive of gaining profit but it is the duty of all the
business organization to follow the principles of ethics while doing their business transactions.
To keep checks and balances upon the business organization the one major law which is widely
used in the business is Law of Contracts. Every transaction which took place in a business
organization is done by forming a contract. If any dispute arises between the contracting parties,
the party who has suffered the loss due to the breach of the contract becomes entitled to claim for
compensation. While awarding the compensation the court will determine the validity of the
agreement and will see whether all the essentials of a valid contract are present or not.
In this essay, it will be discussed that what all are the essentials to form a valid contract
and what remedies are available to the contracting parties on the breach of the contract. Three
case based problems will also be discussed by determining the validity of the contract.
MAIN BODY
Discuss the Blue Prints of the Valid Contract
A contract is a piece of document which is done for a specific purpose and which
determines the Rights and Obligations of the contracting parties. A valid piece of contract is a
“Legally Binding Document” which means the breach of a valid contract will raise the Cause
of Action. If one of the parties who has entered into the contract, breaches it, the party who has
breach the contract becomes liable to provide compensation to the other party who has suffered
the loss due to the breach of contract(Allen and Kraakman, 2016).
The contract can be formed between two or more people which indicates that a single
person cannot form a contract with himself. It is also necessary that the loss caused to the breach
must be direct and no compensation will be provided for the losses which are indirect or
incidental in nature. While awarding the compensation to the sufferer the court will examine
whether a valid contract was existing between the parties or not. For this purpose, the court will