Business Law: Cases and Relevant Laws

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

1BUSINESS LAW
Problem 1
Issue: Whether a contract between family members is enforceable or not is the issue in the
present case.
Relevant law: Both in Balfour v Balfour and Cohen v Cohen, it was held that non-commercial
disputes include domestic, social or family disputes cases. Other principles of contract other than
intention, for example, estoppels cannot be established in cases of family relations. In Jones v
Padavatton, [1969] 2 All ER 616, it was held that relationships between family are based on trust
and affection and not with the intention to create legal relations. A different view was taken in
the case of Hole v Hole 2016 ABCA 34 where the Judge said that in cases of an intention to
create legal relations, a contract will exist.
Application: Applying the principles of Hole V Hole, the intention of Charlie and Ali was to
create a legal relation and therefore the agreement they entered into was legal as they had the
intention to create legal relations. In contract law, the most important thing to establish is
“intention” and in family context. The basic legal requirement to be bound by contract is
impeded in cases of contract law. Charlie and Ali, in the present case have used their solicitors to
enter into a written contract agreeing that Charlie will not open another flower shop. Therefore,
the valid elements of contract are present.
Conclusion: Charlie and Ali has entered into a written contract and had the intention to create
legal relations, therefore, there has been a breach of contract by Charlie.

2BUSINESS LAW
Problem 2
Issue: Whether the contract between Nick and the police department enforceable and had there
been a breach of contract.
Relevant Rule/Law: A police officer or a public servant has a duty of care to extend protection
to the general public. This does not entail a contract because a police has a duty to protect
people. In cases where consideration is involved, there comes the element of contractual
relations. Glasbrook v Glamorgan CC (1925), it was held that whenever consideration is given in
addition to a public officer discharging his duty, an agreement becomes enforceable and
therefore anything done in contravention to the terms of the agreement will deem it breach of
contract.
Application: In the present case, Nick is organizing a student party and has asked the police
sergeant to provide him with protection from “drug addicts” and outsiders. The police stated that
he will keep a patrol car but Nick stated that he wanted a car stationed outside throughout the
night and paid an amount of $1000 as consideration. Therefore, this can be termed as a valid
contract because Nick has paid an amount to make the contract enforceable. Therefore, the police
has a duty of care but when consideration is paid, it turns into an enforceable contract.
Conclusion: The agreement between Nick and the Police is an enforceable contract and Nick, by
not paying the money has breached the contract.