Business Law

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

BUSINESS LAW1
Introduction
In the given case scenario, the five brown brother created a company named “the
Grumpy Grande Pty Ltd” which included in its constitution that the company specialises in
delivering premium coffee for sports and corporate events and included the five brothers as
the only directors and shareholders. It was also mentioned in the constitution that the brothers
could only sell their shares with the permission of the other brothers and that too only
internally to the existing directors. The decisions of the company was to be made by majority
vote only. Tim, the youngest brother found certain discrepancies in the conduct of the other
four brothers as he found out that they were selling out assets of the company by way of the
majority vote. Tim heard one of his brother talking over phone regarding Tim walking out of
the company when they would restraint him to sell out his shares. In this circumstances, Tim
is available with certain equitable as well as statutory remedies under the law of contract,
which could get him out of such adverse situation.
When there is a breach of contract, the aggrieved party is available with certain
remedies under the law of contract. Remedies can be of two type: legal or statutory remedies
and equitable remedies which help they aggrieved party recover monetary compensation
from the breaching party. However, legal or statutory remedies are mainly granted for
recovering damages while the equitable remedy is granted when the monetary damages are
not sufficient to recover the loss sustained by the aggrieved party.
Equitable Remedies
Equitable remedies are a type of remedies under the law of contract that can be
enforced by an aggrieved party to a contract when there is a breach. Equitable remedy is
granted when the monetary damages are not sufficient to recover the loss or injury sustained
by the aggrieved party. Often the legal damages are not available for certain cases and thus

BUSINESS LAW2
the court becomes bound to issue equitable remedy to the aggrieved party. There are three
significant equitable remedy available under the law of contract:
1. Specific performance
It is a type of order or decree of the court which directs the breaching party to
perform the contract so breached to the optimum standard which was agreed by way
of the agreement. This includes the breaching party to do what he had promised to do
while signing the agreement with the other party. The court orders the breaching party
to execute the contract in the way that would be specified by the court. However, such
order is issued by the court only when the court does not issue damages to the
aggrieved party due to either unavailability of it or where is important to get the work
done for certain specific reason.
2. Injunction
For several reasons, the court orders injunction for directing a party who has
breached a contract to refrain from doing something. It so happens that the court finds
certain obstacles in the way of the contract to be completed by the concerned party
and therefore it needs to be stopped from being executed.
3. Rescission of contract
In case there are contract that have turned old due to non-performance over a
long period of time, the parties to the contract may decide among them to cancel or
rescind the contract as remedy to discharge it. However, in this regard, a new contract
may be written replacing the old contract
4. Reformation of contract
At certain times, the parties to a contract decides to reform a contract by
rewriting it. Such reformation of the contract reflects the intention of the parties to the