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(Doc) Business Law Case Study - Assignment

   

Added on  2020-01-23

12 Pages4012 Words650 Views
BUSINESS LAW FORMANAGERS

Table of ContentsExecutive Summary .......................................................................................................................1Main body........................................................................................................................................1Conclusion.......................................................................................................................................8References........................................................................................................................................8

Executive SummaryBusiness law is the body of various laws that dictate how to perform and run business in alegal and ethical manner. It includes all the laws that indicate how to start a business, manage it,and close it and how to sell out its products. These laws apply to all person and business unitwho are engaged in commerce, merchandise, trade and sales. Business law is considered as thebranch of civil law and at the same time, it deals with both private law and public law. In thisreport, three statements are discussed with reference to the various case studies and business law.In this report, detail about the consideration will be studied. Similarly, at the same time liabilityin negligence and tort has also been interpreted. At last, company Act 2006 is taking intoconsideration in order to understand the detail about the role of directors and agents.Main body1) It is perfectly clear where the decision in Williams v Roffey (1990) is to be located in therecent history of the doctrine of consideration. The Court of Appeal has taken over the baton ofa ‘benefit-led’ theory of consideration.’Consideration is the essential element for the formation of a valid contract. It consists of apromise either to perform the desired act or to refrain the person from it which he is legallybound to perform it. Consideration in the contract may be in the form of executory, executed andpast. Consideration is required to have the value that can be objectively determined. Bilateralcontract is the contract by which both parties exchange their mutual promise. Thus, in this caseeach promise made is regarded as the sufficient consideration for the other (Augier and Teece,2009). Similarly, unilateral contract are the contract in which only one party is liable to exchangethe promise. Promise in lieu of the other person promise. Therefore, in this case, performance isconsideration for the promise and promise is the consideration for the performance. In order tolegally bind an agreement, availability of the consideration is necessary. Consideration is one ofthe critical paths for the formation of contract (Christensen, 2008). Consideration constitutes thebenefits that an individual receives at the time of the formation of contract. Availability of theconsideration in contract provides benefits to each and every party. But, availability of non-consideration in the agreement can result in unenforceable of the agreement.There are two common theories of consideration i.e. unilateral contract theory and bilateralcontract theory. On the other hand, various elements of consideration are discussed belowConsideration must move at the desired of the promisor1

Consideration many move from one person to anotherConsideration does not need to be adequate (Delmar and Wiklund, 2008).Consideration may be past, present and future.Consideration must be real not vague.Forbearance to sue.Consideration must be legal.Consideration should not be something that the promisor is already bound to perform it. Consideration must not be illegal, immoral or opposed to public policy.Case study related to considerationLqampleigh v Braithwaite [1615] EWHC KB J17. According to the following case study,defendant had killed a man and was punished to be hanged for murder. Defendant told theclaimant to do everything in order to obtain the pardon from the king. In lieu of which, defendanthad promised to pay him £100 if he is able to get pardon from the king (DeMitchell, 2006). Theclaimant made all this efforts and was able to get pardon from the king. But, in lieu of whichdefendant does not pay any money to him. Therefore, this is the case of past considerationbecause the promise to make payment came after the performance. Thus, according to theconsideration in the contract law defendant is obliged to pay £100 to claimant. Ward v Byham [1956] 1 WLR 496 Court of Appeal. According to the case, an unmarriedcouple live together with a child for five years. Father due to some reason turn out the mother outof the home and send the child to the neighbour and started paying £1 per week for themaintenance of the child. After some time, mother claimed for the child and she has got his childand father has started paying £1 to the mother instead of neighbours for the child maintenance.But after some time, when mother married to some other person, father stops paying her.Therefore, it is the case an existing public duty that will not amount to valid consideration and itwas held that mother is entitled for the payment Williams v Roffey Bros [1990] 2 WLR 1153. According to the case, defendant entered into thecontract for building 27 flats. The contract was subject to a liquidated damages clause if they didnot complete the contract on time. The defendant agreed to pay £20000 to the claimant. After 6months, claimant released that agreed price less than the actual price required. Thus in lieu ofwhich defendant agreed to pay £575 extra per flat. The defendant only paid £500 and then hestops paying. In regard of which, claimant stopped working. Thus, the claimant had not provided2

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