Business Law and Ethics: Contracts, Court System, and Remedies

This document discusses the concepts of business law and ethics, focusing on contracts, the court system, and available remedies. It includes case studies and explores the Enron scandal in relation to ethical corporate governance and the Sabance-Oxley Act of 2002.

Business Law and
Ethics

Table of Contents
PROJECT 1- INDIVIDUAL ESSAY...................................................................................................3
INTRODUCTION................................................................................................................................3
Contract law and its blue prints ......................................................................................................3
Court system in relation to English legal system and advise the parties above which court action
to pursue...........................................................................................................................................4
Advise Hilary as to whether binding as whether binding contract exist within herself and each of
following people i.e., Eleanor, Amy and Olivia..............................................................................5
Explain and discuss various remedies available to the parties........................................................5
CONCLUSION....................................................................................................................................7
PROJECT- 2 INDIVIDUAL REPORT................................................................................................8
INTRODUCTION................................................................................................................................8
Discuss this case in relation to ethical corporate governance and the Sabance-Oxley Act of 20028
CONCLUSION..................................................................................................................................11
REFERENCES...................................................................................................................................12
Books & Journal:................................................................................................................................12

PROJECT 1- INDIVIDUAL ESSAY
INTRODUCTION
In organisation, rules, regulations, law play important role in business. Business ethics and
laws are defined as study of area to which focus on govern the morals and principles of
organisations (Crane, 2019). By focusing on law and ethics, it is possible to increase the smooth
functioning of business. This report comprises of two projects 1 and 2 in which it includes
different case studies. In project 1, it includes contract law & blueprints, English Legal System,
advise related to given case study, different remedies. In project two, it comprises of individual
report in it focuses on ethical corporate governance & Sabance-Oxley Act of 2002 and discussion
of the case in terms of Corporate Governance and ethics.
Contract law and its blue prints
Government play important role in managing and maintaining the rules and regulation in
both professional and personal ways. Contract law is defined as a written agreement governing and
defining the legal promises binding both the parties. It is a critical procedure which is required to be
carried out with proper consideration. A contract is only established between the parties when there
is mutual understanding & coordination between them. Every country have different contract law
according to which they make their decisions. In this, it comprises of several elements which are
offer, acceptance, consideration and legality. By focusing on these elements, it is possible to
establish a legal contract. The first component is offer in which it specifies that to enter into a
contract it is important to make an offer to other person. If the offer is not made then, negotiation or
exchange process cannot be carried out properly (Mea, 2019). Then in second component is
acceptance which depicts the offer is accepted by an offeree. Third one is consideration in which it
shows the object, value etc. for which the contract has been established. It is essential to consider
this so that decisions making process is carried out in correct way. Then at last, is legality in which
it shows that to create a valid contract, it is important to follow statutory regulations. It is needed to
carry out this so that problems do not occur future period of time. All these components are required
to focused in correct way so that it become easy to form a legal contract law with following proper
legal considerations.
With different rules & statutory legislations it is difficult to form a contract because
everyone have different point of perspectives. Therefore, with deep level of understanding of all
government rules & regulation it is easy in formation of a contract. Moreover, it is also crucial to be
aware about them so that other process as well as procedures are carried out effectively. By
understanding these components, it is easy to carry out the all contracts decisions in most efficient

manner. Thus, deep level of critical analysis of blueprints as well as laws assist in carrying out
process in better way. With given case study, it is crucial to choose correct court of action so that all
decisions are adopted in a proper way.
Court system in relation to English legal system and advise the parties above which court action to
pursue.
In every country, legal system are of different types according to which they make
decisions. Legal system are defined as procedures which comprises of several elements like
common law, civil law and judiciary law. All these elements leads to legal system which governs
different forms of laws & guidelines. It is important to have a proper knowledge about such
components so that correct form of court are being chosen by parties. In terms of given case study,
disputes were between offeree & person who is offered (Hilary). This is necessary to be aware
about these court actions so that correct option is selected for the occurred situations.
The court system & English Legal system are related to each as they both depicts the
formation or principles related to contracts and assist in solving issues. English Legal System are
necessary to be established so that every procedures are carried out in legal way. In UK English
Legal System is based upon several laws & it is of two types public and private. Further legal
system includes legislation, common law & the judiciary. In legislation, it states and deals with
parliament of UK. In common law, it focuses on legal system of England and Wales. This common
law between these two regions mostly focuses on criminal cases. Further one is the Judiciary, which
shows it focuses on two courts one is civil & criminal which is explained below-
Civil Proceedings- This civil proceedings focuses on solving of problems between parties
premises. It commonly focuses on civil concepts which are solved under civil proceedings. It also
includes many courts who focuses on these concepts they are supreme court, magistrates court etc.
(Mea, 2019).
Criminal Proceedings- In this, it focuses on criminal cases or illegal activities which arises
between parties. Under this, courts are being selected with proper consideration so that disputes are
solved in proper manner (Smits, 2017).
Thus, the stated paragraph shows that it is essential to choose courts so in relevance with
given case study they can choose legislation & supreme court for solving of their disputes. It will
help in getting the better results for occurred situations. Furthermore, it is crucial for parties to
understand and go through every legal system so that everything is carried out properly.
Advise Hilary as to whether binding as whether binding contract exist within herself and each of
following people i.e., Eleanor, Amy and Olivia.

Case 1- In context with given case study, it is seen that Hilary invited an offer to Eleanor.
The offer was then rejected by Eleanor which shows the cease of contract at that time. With view
point of Partridge V Carttinden, it says that to form valid contract it is necessary that both parties
are needed to be interested to exchange something or value. Thus, with reference of case study 1
both parties are not interested which does violates the guidelines of formation. It is advisable to
them that binding doesn't not exist between both parties.
Case 2- In case study 2, it shows posting rule which reflects that it is crucial to examine
that to make an offer, first there is need to establish an effective communication. By proper
communicating with each other, offer is being discussed & then acceptance is made. In relevance
with given case study, acceptance was not revoked by Amy because she already accepted the offer
& posted it. As it can be understood by Entores vs Far miles east corporation judgement. In
relevance with Amy she herself wanted to revoke contract & fax was reached before post so
contract become void.
Case study 3- In this, Hilary has accepted the offer as invitation. This case is being carried
out between Hilary & Olivia. This case depicts that offer was made by Olivia but was rejected by
Hilary. It reflects that there were no acceptance of offer by Hilary which shows that contract has
been not formed. Also, there were no legal promises or binding between them which doesn't leads
to contract.
The above stated paragraph shows that in both three given cases there is no chance of
establishment of a legal contract as the conditions violates legal terms of system. Therefore, advise
has been made to them regarding their actual consideration of formation of contracts.
Explain and discuss various remedies available to the parties
From examining the case study, it has been seen that it is essential to identify the remedies
solution for a problem. It is necessary to be aware about such solutions so that correct options are
adopted. Therefore, several remedies have been advised which can be used by parties which are
compensation & specific performance. Compensation refers to solution which being provided by
court when there is cancellation or break of contract by any cause (POOLE, 2019). Or in other
words, when there breach of the same, compensation is given to party as a compensate. Then
further is specific performance in which it is solution which it is being given when there is no
chance to compensate and court forces & guides them to fulfil their premises by any how. Through
this performance it is easy to maintain healthy relationship amongst the people. With these available
remedies it is easy for both parties to get rid of the problem (Savelyev, 2017).
Therefore, it is necessary for parties to choose the most appropriate remedy which have
been discussed so that all issues are resolved within a period of time. Furthermore, it is easier to

make decisions to increase the validity of same which is helpful in future period of time. The
explained solutions are needed to be considered by Eleanor, Hilary & Amy so that disputes
between them are solved. The provided solutions are present for court before final declaration of
final judgements.

CONCLUSION
After a brief analysis of above project 1, it has been seen that it is important to understand
the concept of law so that decisions are taken in proper manner. So, in this discussions have been
made about contract law, English Legal System, advise to parties & remedies available. By studying
case studies, it is seen that it is crucial to be aware about such laws as well as regulations so that
better results are achieved. In UK, the concept of law is wider and broader which requires detailed
analysis at depth. This case study suggests three different point of view according to which
decisions related to courts are made.

PROJECT- 2 INDIVIDUAL REPORT
INTRODUCTION
In this project 2, it also focuses on business law as well as ethics which assures that
everything is carried out with properly following legal principle and guidelines. Through this, it is
easy to be preventive for future occurring problems. This report is based upon Enron company
&will focus on Fraud Scandal in which Sabane-Oxley Act 2002 is discussed.
Discuss this case in relation to ethical corporate governance and the Sabance-Oxley Act of 2002
Enron corporation case scenario- In 2001 at the ending of the year, it examined that
Enron's firm financial condition was reported sustained through institutional systematic in which
there were existence of major frauds which were identified & liked to accounting.
Ethical corporate governance- It refers to process of enterprise to deal with there own
issues focusing on how those can be administered & regulated on regular business days.(Morgan,
2019). Ethics as well as corporate governance both are essential to be focused by businesses & firm
so that everything is done in correct way. By properly following ethical corporate governance, it is
easy to make decisions regarding the problems faced by public or private. Moreover, ethical
corporate governance has critical importance in development of organisational goals & objectives.
It is duty of manager to make ensure that every functions, operations & activity is being carried out
in ethical ways. By doing this, it is possible to avoid issues which arises in business.
Ethics play important in developing and increasing of sustainability of business for longer
period of time. Moreover, it is also seen with help of corporate governance decisions are taken with
most efficient manner.
Sabane-Oxley Act of 2002- From examining of states case study, it has been seen that
investors wish to invest in commercial activities so that they are able to attain better results. But
with there are many other businesses who deals in fraud data as well as other activities & this has
widen issues in market for business sector. It is necessary to be aware about such frauds so that firm
can run their business operations smoothly. According to this act, also known as the SOX Act of
2002 and Corporate Responsibility Act of 2002, it mandated strict reforms to existing securities
regulations & imposed tough new penalties on lawbreakers. This law has developed & regulated
new laws mainly concerning with accountants, auditors, corporate officers etc. who are engaged in
record keeping work or requirements (Martin, 2019).
This law is essential as it protects the businesses to be prevented from companies who do
frauds related to data or information. By focusing on this act, it will help enterprises in accessing
the right party to do business. In relevance with Enron's corporation, it is important for them to
focus on this act because the given firm has deal with big scandals which are related to corporate

sector, fraudulent accounting systems. In given case, financial statements & report which was
presented by entity was wrong and false. Due to this, it created a negative impact stakeholders as
well as shareholders. Furthermore, because of this wrong data firm suffers loss of around 74 billion.
Also, after this whole situation it was considered under bankrupt & fraud lists of enterprises. Main
impact was on employee because many of them loss there jobs in such big scandals. It was also
listed under top 10 scandal businesses firm. It created a negative effect on their goodwill at larger
scale. The subordinates working firms didn't even received the salary. Punishment of 24 ears in jail
was given to defaulters by court.
Discussion of the case in terms of Corporate Governance and ethics
In organisational sector, it is essential to focus on corporate governance & ethics so that
company is able to carry out their activities in most efficient way. It is not easy to understand this
concept as it requires deep level understanding of legal, laws & regulations. The legal department
of Enron's is required to be active so that changing polices or procedures are examined properly
which also leads to solution of a problem. In view pointy of given company, they generate profit &
raise funds from investors. Also, they do it by presenting false credentials which is to be considered
as unethical. Further, corporate governance presence will help firm to deliver and present a right
with true credentials. With deep analysis and review of information which is ready to present is
needed to be review by superiors so that any unethical credential or activity will be analysed
effectively. Moreover, from specified situations it is analysed the the occurred events causes a
problems for business sector majorly (Malik, 2018). Then, to manage ethical values in their
corporate sector they need to manage their staff & employees in such a way that they do not get
suffered from such scandals. It has been stated that, scandal was wide in nature that business firm
was not able to conduct business activities in future once it will providing that entity was not ethical
in relation of performing business activities.
Discussion of the case in terms of Sabane-Oxley Act, 2002.
After a big scandal of Enron enterprise, this act of Sabane-Oxley, 2002 was adopted. This
act states that it is crucial for entity to provide true & reliable information so that everything in
company goes in right way. But in case of given firm, they were unable to maintain them properly.
Further, it is crucial that appropriate audit has to be done but at same time it was founded that Enron
Corporation was not working according to guidelines of law & lack of audit result in creating big
scandal by management. Main rationale in relation of maintaining accounting statements is to make
sure that stakeholder can determine situation of company by that they will able to take decision that
company is appropriate for investment or not (Wilson, 2019). Thus, it is necessary for an business
firm to make fair accounting standards because in future wrong statements will result in negative
impact on working of business firm. The principles of law has defined the roles and responsibility

of every accountant within the company. Even responsibility of every auditor in company has
redefined but, auditor of company didn’t perform their duty as they didn’t try to show accurate
picture of entity. If similar form of problem will occur against then auditor of the company will
have to deal with number of problem as they will be also held liable for the default (Wilson, 2019).
Furthermore, scandal was wide in nature that business firm was not able to conduct business
activities in future once it will providing that entity was not ethical in relation of performing
business activities. Therefore, terms and condition that create numerous problems for various
stakeholders was breach (Aguda, 2018).

CONCLUSION
After a brief analysis of above report, it has been concluded that ethical corporate
governance is integrated part of business. It is important for entities to focus on these two so that
corrects decisions making process is carried out. By properly examining of given case study it is
also analysed that fraud in business have deep impact on goodwill & other stakeholders. To protect
data Sabane-Oxley Act, 2002 have been discussed in brief. Through this, firm is able to provide
true information t both pubic & private sector.

REFERENCES
Books & Journal:
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globalization. Oxford University Press, USA.
Mea, 2019. Human dignity-centered business ethics: A conceptual framework for business
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Smits, 2017.Contract law: a comparative introduction. Edward Elgar Publishing.
POOLE, 2019.Contract Law Concentrate: Law Revision and Study Guide. Oxford University
Press.
Savelyev, 2017. Contract law 2.0:‘Smart’contracts as the beginning of the end of classic contract
law.Information & Communications Technology Law,26(2), pp.116-134.
Morgan, 2019. Contract remedies as default rules. In Research Handbook on Remedies in Private
Law. Edward Elgar Publishing.
Martin, 2019. Perceptions of Contract Remedies.Tul. L. Rev.,94, p.961.
Malik, 2018. Remedies for Breach of Contract: An Appraisal of the Contract Act, 1872 of
Pakistan.Journal of the Research Society of Pakistan,55(2).
Wilson, 2019.English Legal System: Question & Answer. Pearson UK.
Aguda, 2018. The Legal Regulation of Receivables Financing: The UK and International
Perspectives.The Gravitas Review of Business & Property Law,9(3), pp.50-67.
Abatecola, 2019. Prioritizing Short-Termism in Behavioural Strategy: Lessons from Enron–20

Years On.International Journal of Business and Management,14(4), pp.60-71.
Kabeyi, M.J.B., 2019. Corporate Governance in Manufacturing and Management with Analysis of
Governance Failures at Enron and Volkswagen Corporations.American Journal of
Operations Management and Information Systems,4(4), pp.109-123.
Dempsey, 2017.Evolutions in Corporate Governance: towards an ethical framework for business
conduct. Routledge.
Nwanji, 2019. Assessment of the Effectiveness of Ethical Corporate Governance in Corporate
Decision-Making: A Grounded Theory Approach.Archives of Business Research,7(1),
pp.147-168.
Tham, 2017. SOX compliance with OEE, enterprise modeling and temporal-ABC.Intelligent
Automation & Soft Computing, pp.1-9.