Business Law

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
In this case, the company formed by the five brown brothers to sell premium coffee
for corporate and sport events called ‘The Grumpy Grande Pty Ltd’ had in its constitution
that the brothers shall be the only directors and the shareholders of the company. It also stated
that the shareholders would be liable to take permission from each other while selling their
shares and such selling of shares will only be allowed within the shareholders and to no one
outside the company. Another crucial provision that was contained in the corporation was
that a majority vote was to be gathered for taking up any form of major decisions pertaining
to the company. After a few months of business operation, the youngest brother out of the
five, Tim started facing certain difficulties and issues in the company regarding the conduct
of his brothers as directors. He could also see that the company assets were being sold out
under the shadow of majority vote and that his opinion was not taken into consideration. He
even heard his eldest brother saying that he and his other brothers are anticipating his
resignation when he would be restrained from selling out his shares elsewhere. Therefore, in
such a hostile situation, Tim is available with certain rights in accordance to the English law
of contract which needs to be discussed below.
An aggrieved party is given certain remedies in case of breach of contract under the
law of contract, whether it is the common law or a statute. Such remedies help the aggrieved
party to obtain relief or compensation for the loss or injury that he has sustained by such
breach (Beale et al 2018). Under the law of contract, there are two types of remedies:
Statutory remedies and Equitable remedies. These remedies strive to reinstate the condition
of the aggrieved party which would not have arisen, had there been no breach of contract.
These remedies either pays the aggrieved a compensation in terms of money or ensures the
performance of the contract that has been breached by the breaching party (Beale et al 2018).

2BUSINESS LAW
Statutory Remedy
Under the law of contract, the statutory remedies award monetary compensation or
damages to the aggrieved party who has sustained certain loss or injury from a breach of
contract. These are called ‘statutory’ as these are the most common remedies that are
awarded to the aggrieved parties and they often find their mention in a statute. They are
awarded when one of the parties has breached his part of the contract thereby causing injury
or loss to the other (Hunter 2017). In such cases, the court finds it easier to console the
aggrieved party by awarding a monetary compensation which seems like a better relief for the
situation. The following statutory remedies are the most common one:
1. Liquidated Damages
It is such kind of a monetary compensation which is awarded only when it is
mentioned in the contractual agreement. The contractual agreement must be such that it
should mention that damages must be paid to the aggrieved party in case of liquidation of the
contract (Beale et al 2018). Thus, it is known as the liquidated damages. However, payment
of such liquidated damages cannot be held as a penalty imposed upon the breaching party as
it was pre-decided and mentioned in the contract; the amount of liquidated damages to be
paid was also measured and mentioned in it. In case of non-payment of the damages, the
aggrieved party is entitled to sue the breaching party for recovering the liquidated damages
(McKendrick 2014).
2. Damages
In cases where no provision of liquidated damages are mentioned in the contractual
agreement, the aggrieved party may sue the breaching party for recovering the compensation
for the injury or loss that he has sustained by such breach of contract. It comes as a form of
penalty or punishment that the court awards when one of the parties breaches his part of the
contract. However, in most cases, it becomes difficult for the court to measure the gravity or