Business Law and Ethics: Contracts, Court System, Enron Fraud Scandal

BUSINESS LAW AND
ETHICS

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1 Define contract law and describes all blue prints of contract..................................................3
2. Explain court system in the relation to English legal system and advise parties about the
court actions to pursue................................................................................................................5
3. Advising Hillary as to whether binding contract are existing between herself and each of
the people....................................................................................................................................6
4. Explanation and discussion over the remedies available to parties........................................6
TASK 2............................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business laws or the commercial laws is body of the law which is related to the trade and the
banking, commerce, investments contracts, advertising and marketing, corporate structure and
incorporation, collections and finance. The business laws and ethics are different from one
another. Business takes actions which are legal but are not ethical. Business law talks about law
which is applicable towards the commerce components. Business laws direct commerce and
assure it towards pursuing existing strategies of the commercial world. Business ethics go
beyond legality. It describes about how business should be behaving for the obligations of the
business. Present report is based over business laws and ethics. It is divided into two projects
which is project one about the individual essay and project two as individual report on the Enron
corporation based over ethical corporate governance.
TASK 1
1 Define contract law and describes all blue prints of contract.
Contract could be defined as legal binding written or oral agreement that exchanges the
combination of different goods, services, property and money. It is the common misconception
that contracts could be made only in written form, as conduct or oral agreements could be as
credible in the contract formation. Contract is the legal document which bestows upon special
rights on party and the obligations which are introduced, agreed and defined over the parties of
contract. Contract law is enforceable by law. Contractual relations are created between the
individuals and contract therefore is civil law. Dominant source of the contract law is mainly
common law where previous decisions of courts form the part of current law.
Contract law provides effective framework for the contracting parties for resolving the
disputes and for regulating contractual obligations (Cherry, 2017). Law of the contract is self
regulatory where majority of the contracts does not require intervention. Courts does not make
considerations for whether contracts are fair or not, if they are agreed they are to be enforced.
Contract is the agreement that give rise to the obligations that are enforced or is recognised
by the law. There are mainly three essential for the creation of contract that are agreement,
contractual theories and the consideration. First requisite of the contract is that parties should
reach the agreement. Agreement is said to reached where offer is made by one party makes offer

that is accepted by the other party. Objective test is conducted by the parties to decide whether
the objective test has been reached or not.
The main elements for the formation of the contract are offer, acceptance, consideration,
contractual intention and form.
 Offer which provides specific details about what is provided in offer
 Acceptance that is agreement by other parties for the offer presented.
 Consideration or something of interests must be exchanged between two parties
 Capacity of parties in the terms of mental ability and mortgage
 Intent of the both parties must be for carrying out the promise
 Terms & conditions are legally enforceable are called object of contract.
Contract becomes enforceable when the parties agree over something, backing up promise with
something of value or the money, both parties are of sound mind and have the intention of
carrying out promise and the promise made for doing things is within law.
There are mainly two types of contract which are express contract and implied contract.
Express Contract
Express contracts are common type of contact in which all the elements are stated
specifically. It could be either oral or written agreement (Howells, 2017). Offer, acceptance as
well as consideration must be binding parties legally together. Parties should clearly understand
terms and conditions of the contract.
Implied contract
Every contract is not transparent as the express contract. Implied contract bind parties
together by mutual intentions based over facts and the circumstances and reasonable assumptions
from circumstances and the relation between parties. Implied contract for enforceable is required
to have below elements to be present
 Ambiguous offer & acceptance
 Mutual acceptance between parties for binding into contract
 Consideration.
Elements are determined mainly by behaviours of parties.
2. Explain court system in the relation to English legal system and advise parties about the court
actions to pursue
The court structure of the UK is quite complex. Court structure of UK is as follows