Business Law Assignment: Offer, Invitation, Business Mediums

This business law assignment solution addresses three key areas. Part 1 examines the difference between an offer and an invitation to treat, supported by relevant case law. Part 2 advises Claire and Ric on two suitable business mediums, namely a partnership firm and a private company limited by shares, highlighting the advantages and disadvantages of each for their consultancy business. Part 3 analyzes a case study concerning Josephine and her employees, focusing on the implications of their working conditions under current health and safety legislation. The assignment provides a comprehensive overview of contract law, business structures, and workplace safety, offering valuable insights for students of business law.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................................3
PART 1.........................................................................................................................................................3
Discuss, with reference to key cases, the difference between an offer and an invitation to treat..........3
PART 2.........................................................................................................................................................5
Advise Claire and Ric on two suitable business mediums highlighting the advantages and
disadvantages of each.............................................................................................................................5
PART 3.........................................................................................................................................................8
Advise Josephine as to the implications of these working conditions for her employees under the
current health and safety legislation.......................................................................................................8
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
Law is necessary for each sector where different guidelines are formed for different
sectors. Although, law is of several types but at the same time it is necessary that it must be
followed without creating problems to the guidelines formed by government. Talking about
business manager, they have the responsibility to take any of the decision on the basis of
corporate law and different law which falls under the category of business law. Any of the failure
by manager directly impacts upon the performance of a company due to which huge problem can
be raised.
In this particular assignment, answers will be presented in three parts where in first part
focus will be upon difference between offer and an invitation to treat. In the same manner, in
second part advices related to business medium will be presented along with its pros and cons. In
third part, one of the case studies will be discussed which will relate with current health and
safety legislation.
PART 1
Discuss, with reference to key cases, the difference between an offer and an invitation to treat.
In present scenario, it is necessary for any of the organization that they should be able to
work according to contract formed between the parties because it helps to support that how any
of the work needs to be done. But there are different key terms and condition which must be
understood before entering into the contract. Below, there is a detail description about contract
law along with major difference between offer and an invitation to treat.
Contract Law: It is the law which has a huge important because it provides proper
guidance that how any of the work needs to be done. In order to make any of the contract legal,
there is a requirement to follow proper guidelines which includes offer and acceptance along
with acceptance. Not only this, but there is an additional requirement which says that whenever
any of the party or entity enter into the contract, they must be able to ensure that contracted party
is not of unsound mind or minor because in both of this condition, contract will not be valid

(Dodd, 2017). Failure to perform the terms and condition will allow to raise the point of breach
of contract where innocent party gets the right to defaulter.
Offer: It is explained as the expression of willingness to contract on certain terms and
condition where there is a intention to make contract as binding at the time of performing it. It is
the primary phase in any of the contract where first party try their best to convince another party
to enter into the contract for performing specific task. The one who has to accept terms and
condition are just needed to ensure that whether they are satisfied with the terms and condition or
not. It is crucial that offer should include fundamental terms of the agreement where it means
that any of the further negotiation is not possible in any of the circumstances. In addition, it is
said that offer can of conditional but once it is accepted it cannot be revoked without obtaining
the permission.
Invitation to treat: It is defined as the types of condition which only try to invites the
party to make a valid offer where it is never binding in nature. For example: There are
contractors which are allowed to bid on the job, by analyzing the proper situation and cost which
may incur during the time of performing job (Rosenbloom, 2018). Although, it is not similar to
offer but once biding is started offer are presented where acceptance should be shown by the
party in order to accomplish the goals and target on specific time period.
Difference between offer and invitation to treat:
Offer Invitation to Treat
It is statement of terms and condition which
client try to provide to contractor without
advertising it to any of the place.
This are the part of contract which is only
possible when advertisement is shown
through different channel on which contractor
try to show at what terms and condition
contract can be formed.
It is generally a small process which requires
less time because of the procedure that needs
to be followed.
It is quite lengthy process because lots of
criteria are needed to be fulfilled such as
advertising on different platform and
explaining the necessary terms and and
condition.
It is made to specific person or the entity. This is made for large number of people at a

time where different people can show their
interest within the advertisement.
Harvey v Facey [1893] AC 552 Privy Council, is one of the landmark case which
discusses about the offer. Here in this case, Harvey sent the offer to Facey on telegram regarding
to sale Bumper Hall pen at a lower price. This particular offer shows that it has been made to
only specific person where this terms and condition will not be applicable to any of the person in
any of the circumstances. Carlill v Carbolic Smoke Ball co [1893] 1 QB 256 is also among the
popular case where offer was made. Later on, it was found that company was unable to perform
their part of work as they didn’t work according to the offer which they had made due to which
Carlill took legal action (Allen, Kraakman and Subramanian, 2016).
Fisher v Bell [1961] 1 QB 394, Pharmaceutical Society of Great Britain v
Boots [1953] 1 QB 401 are the two different which discusses about invitation to treat. Here,
parties try to influence number of people to perform any of the work within the help of
advertisement. Both of this case simply shows that in any of the invitation to treat can form
contract where contractor try to show their involvement within the case (Gielnik, Zacher and
Schmitt, 2017).
In short, both offer and invitation to treat are different from each other which try to show
that how any of the acceptance can be shown within the contract. Although, process is quite
different but ultimate goal is to form legal contract which must be followed by the once party
show their interest within the contract.
PART 2
Advise Claire and Ric on two suitable business mediums highlighting the advantages and
disadvantages of each.
It is never easy for any of the person or a group of persons to start a business organization
because there are lots of legal responsibility which needs to be fulfilled. It is necessary to
understand that detail knowledge should be there that which types of business can deliver what
types of advantage to the investor. As Claire and Ric are the only two investors in the business,
they must be able to determine that which form of business can be easy for them to perform

business activity. Below, there is a detail description about different types of business
organization which can be favorable for Claire and Ric.
Partnership Firm: It is defined as the business organization where there is a requirement
of minimum two person to conduct business activity. These types of organization has number of
benefits because very less number of legal formalities are there which needs to be followed by
the entity. Also, whenever there are more then two persons in the business organization, it means
that decision making process becomes easy and even chances of failure reduces automatically in
it. Partnership is also of two types I.e., General Partnership and Limited Partnership. Talking
about general partnership, all of the partners are liable for the debt of a company according to the
profit percentage in the firm. But on the other side, while talking about Limited Partnership,
these types of partnership is quite beneficial for partners because only one partner has to become
general partners in it where other has to no responsibility for the debt of a company (Agarwal,
2018). It is necessary to ensure that in these types of partnership only general partner will have
the right to take any of the decision. At the time of formation of any of the partnership there are
certain form and documents which needs to be fulfilled and those documents are HM Revenue
and Custom. Secondly, it is said that there is a requirement of Partnership deed which explains
about all of the necessary guidelines which should be followed while conducting the business.
There are different advantages and disadvantages of partnership firm which has been listed
below:
Advantage:
 Partnership firm always requires less paper work which easily attracts investors to
perform business activity.
 Different types of tax benefits are provided to investor which gives opportunity to
generate higher level of income with small investment.
Disadvantage:
 Although entity is formed but still this type of organization do not gets any of the legal
right to sue and be sued on its own name (Peterson, 2018).
 It becomes difficult job to raise fund from the market for any of the partnership firm.

Private Company Limited by Share: It is the types of business organization which is
formed with the help of legal guidelines of Company Act, 2006. It is never an easy task to
operate any of the private company because lots of legal documents which must be completed.
Here, proper team is needs to conduct different types of activity which is never an easy task for
any of the person. In addition, it is not those form of business which can be operated with the
help of small amount of investment as huge amount of fund is needed to perform any of the
business activity in it. There is a huge role of Article of Association and Memorandum of
Association in business because each of the decision are based on it and it must be followed in
any of the circumstances else huge penalty can be imposed easily. In order to commence any of
the Private company limited by share, it is necessary for the investor to ensure that they are able
to select the name of an entity, including its address. Secondly, there is a requirement of director
and shareholder who can take responsibility to perform any of the task (Goshen and Squire,
2017). Also, Article of Association and Memorandum of Association should be prepared which
can support to conduct the business. All of this document is needed to conduct the business so
that goals and target can be accomplished easily. Finally, documents are required to be deposited
within Companies House. Some of the pros and cons has been mentioned below:
Pros
 Legal rights are always given to this form of business where they can sue and be sued on
the name of entity.
 Roles and responsibility of each member can be easily distributed in it which is the most
favorable part in this form of business organization (Johnston, Segrestin and Hatchuel,
2018).
Cons
 There is lengthy procedure which needs to be followed which creates issues in some of
the circumstances for the entity.
 Failure in fulfilling the duty may create issue as there are huge penalty which can be
imposed upon the organization.
After analyzing all of the situation from the above discussion, it can be concluded that Claire
and Ric must go for conducting partnership firm because they are just conducting the

consultancy business where huge investment is not required. Also, there are only two investor
which means they do not have any proper team who can handle different activity due to which it
is necessary for them to depend upon partnership firm which can be helpful for them in attaining
the targets on specific time. In addition, there are different types of tax benefits which partners
can obtain from partnership firm.
PART 3
Advise Josephine as to the implications of these working conditions for her employees under the
current health and safety legislation.
Case Study: Josephine is the founder and Director of “Best Body Ltd”, a successful
company which produces locally sourced vegan food, drinks and snacks. There are currently 20
employees working at the factory where the Best Body goods are produced and packaged.
Several negative comments have been made to Josephine, by employees, about the conditions of
the factory. These have included exposed wires, leaking machines which make the factory floor
particularly slippery, a lack of fire extinguishers in the building, a faulty fire exit door which
does not open, and a lack of any written Health and Safety Policy.
Advises
In present scenario, performing any of the business activity is not an easy task because
there are lots of criteria which must be fulfilled. It is necessary for any of the employer or the
management of the company to ensure that they are able to provide proper facilities to their
employees so that goals can be accomplished within the given time period. As case is connected
with employer and the employees so employment law will be applicable which has been
discussed below in detail:
Employment Law: It is simply the law which has a huge importance for any of the
organization because there are lots of criteria which should be fulfilled according to it. Here,
relation of employer and employee is discussed and how any of the employer needs to fulfil their
responsibility and how any of the employee should complete their task which has been assigned
to them. Although, all of those terms and condition will be applicable but there is also provision
that employer and employee can include some of the other guidelines as well which can support

them in performing in effective manner (Alexander, 2019). If laws and regulation are not
followed then it will fall under the category of breach of contract.
Health and Safety at Work Regulations 1999: It is the law that has a huge importance
for any of the business organization because it guides the management that how any of the work
needs to be performed so that goals and target can be accomplished. Here, major responsibility is
of management for ensure that all of the safety measure and proper working environment has
been provided to the employees so that they can work effectively. If any of the organization fails
to meet out this particular terms and condition then there are different types of penalties can be
imposed. So, it is necessary for any of the organization to ensure that they are able to provide
proper working environment to employees, Safe working condition and many more. Nowadays,
it is necessary for any of the entity to make sure that they have included proper fire extinguish so
that if any of the fire related matter can be deal.
After analyzing both of the above-mentioned law and policies it can be easily seen that
Josephine as a director is not able to perform her part of work as per the requirement. According
to the law and policy it is mandatory that safe working environment should have been provided
by her to each of the employee working within the premises of a company. It was found that
electric wire has been not managed properly which means that there is a huge chance of
occurrence of accident. Even the floor which employee needs to work is slippery which means
that employee might fall and injure themselves at the time of performing within the company
(Hansmann and Kraakman, 2017). Even emergency exit door is not working which simply
shows that there is high risk within the company to work. So, it can be simply advised to
Josephine that she should follow law and regulation which has been formed by the constitutional
body because huge penalty can be imposed which can simply create future problem in
performing any of the business activity. In order to conduct business in a safe manner, proper
working condition must be provided along with fire extinguisher should be placed within the
factory. Even machine which is leaking should be fixed, including the electric wire should be
fixed so that employee can perform their part of work in a desire manner.
CONCLUSION
From the above discussion it can be concluded that manager in any of the entity has a
huge role because they are the one who takes most of the decision within the organization.

Whenever any of the entity perform business activity there are number of situation where
contract needs to be formed and in that particular situation offer and invitation to treat has a huge
importance. It is said that both are different but ultimately helps to form the contract. There are
different types of business activity but it always depends upon investor that which form of
business they would like to perform for conducting business activity. At the same time,
employment law has a huge importance within the entity because it guides that how any of the
organization needs to perform their business activity. It includes working condition where
employer do not have to suffer in any of the circumstances.
REFERENCES
Books & Journals
Dodd, E. M., 2017. For Whom are Corporate Managers Trustees?. In Corporate Governance
(pp. 29-47). Gower.
Rosenbloom, D. H., 2018. Administrative law for public managers. Routledge.
Allen, W. T., Kraakman, R. and Subramanian, G., 2016. Commentaries and Cases on the Law of
Business Organizations: 2016-2017 Statutory Supplement. Wolters Kluwer Law &
Business.
Gielnik, M. M., Zacher, H. and Schmitt, A., 2017. How small business managers’ age and focus
on opportunities affect business growth: a mediated moderation growth model. Journal
of Small Business Management, 55(3), pp.460-483.
Agarwal, A. K., 2018. Business law for managers: Kaleidoscopic tales.
Peterson, E., 2018. Empowering Business Policy & Strategy through Improved Collaboration
between Managers and in-House Counsel. Atl. LJ, 20, p.225.
Goshen, Z. and Squire, R., 2017. Principal Costs: A New Theory for Corporate Law and
Governance. Colum. L. Rev., 117, p.767.
Johnston, A., Segrestin, B. and Hatchuel, A., 2018, July. The Separation of Directors and
Managers: A Historical Examination of the Legal Status of Managers. In Academy of
Management Proceedings (Vol. 2018, No. 1, p. 12831). Briarcliff Manor, NY 10510:
Academy of Management.
Alexander, E. A., 2019. Whither our future global managers? The moderating effect of
organization context on ethical intent in international business.
Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law. In Corporate
governance (pp. 49-78). Gower.