Business Law and Ethics: Essential Elements of Contract, Remedies in Breach of Contract, and Rights of Parties

This report discusses essential elements of contract, remedies in breach of contract, and rights of parties in business law and ethics. It includes a case scenario where the parties have made a contract and the essential elements of the contract are discussed. The report also discusses the remedies available in case of breach of contract and the rights of parties in contract law. The subject is Business Law and Ethics, and the course code and college/university are not mentioned.

Business Law and
Ethics.

TABLE OF CONTENT
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Essential elements of contract.........................................................................................................3
Counter offer....................................................................................................................................4
Remedies in breach of contract........................................................................................................5
Rights of parties in contract law.......................................................................................................5
CONCLUSION....................................................................................................................................6
REFERENCES....................................................................................................................................6

INTRODUCTION
Business law is regulation of rules through which the organisation used to follow all the
important laws and legislation that are being imposed on all the companies. It is mainly a
civil law which is being practised in all the business transactions in order to maintain a safer
deal with the parties. It mainly covers IPR, contract law, employment law etc. Contract law is
an agreement with a legal transaction which is made between parties in order to maintain a
contract and also to avoid any kind of breach and dispute between the parties. This mainly
provides general remedies through which individuals can be protected from all the breach and
issues raised in contract (Merkin, 2019). This report will deal with a case scenario which
provides essential elements of contract and also the rights and remedies made in contract law.
MAIN BODY
Case Scenario 1
Contract law provides a legal enforceability between the parties in all the agreements
that are being made between two or more individuals in order to create a contract. This
mainly provides out important obligations and rights through which agreements can be
enforced in the parties with the help of law.
Essential elements of contract
Contract law Provide some important elements without which no contract can be made
between the parties they are like,
 Offer this is mainly a willingness to do an act or an invitation to treat that is being
given to another party by an individual in order to do a task to perform a specific
function in contract.
 Acceptance as this is mainly and assent which is being given by the party to another
party when an invitation of treat is being made an offer is been given to an individual.
This can be expressed or implied and it mainly impose a legal effect by providing a
communication for the offer which is made by the party (Knapp, Crystal, and Prince,
2019).
 Consideration is the value which is being assigned for an agreement that is being
fixed for the party and a promise which is being made between the party in order to
fulfil that contract certain value or amount is being fixed in terms of payment. There
cannot be any kind of contract being made without the consideration as it is important
for the parties to decide accurate value for the agreement that is being made.

 Legal obligation is an intention which is to be needed between the parties in order to
bind in an agreement (Zhou, 2020). This is mainly the intention which should be clear
as without any ill will or forceful consent parties will have to agree in order to come
in on contract with a clear intention and free will.
Counter offer
It is a response which is being given for the original offer that is being made by the
initial or one party, this is a common offer which is being used in various business
transactions and meetings by the parties as when an offer is being raised in front of one party
then another party on revert of that make a counter offer. It is also a kind of negotiation in the
business deals as a party generally used to counter offer for the consideration that is being
fixed between them (Dagan, 2019). It is conditional and counter offer is mainly a rejection of
all the original offers that were being made earlier by the parties as they were no Longer be
available for the parties to be accepted.
In the case of Hyde v. Wrench (1840), court held that, Once the counter offer is being
made there will no longer be any kind of binding contract that is being raised between the
party as it will revoke all initial offers and contracts that were being made earlier. This
mainly supersedes and revoke all the prior offers. Thus, Defendant was not being liable as the
contract and the original offer was no longer being available and the counter offer was being
made so there was no availability of binding contract between the existing parties. A counter
offer revokes all the initial dealings and offers and also focus on implementation of rights of
the parties (Kötz, 2017).
As from all above elements it can be seen that in this case scenario Avril Has offered
entire situation £750 and for which he has also given a quotation period of seven days and
Belinda has not accepted that offer in the time period. Avril later on increase the amount with
£900 is not any kind of breach of contract, as Belinda agrees for the contract after the
expiration of Quotation period so she will have to agree on the new consideration that is
being fixed by Avril for £900. As once the counter offer is framed it will revoke all the prior
offers made between the parties and all the initial consideration will be remain ineffective.
Case Scenario 2
Remedies in breach of contract
 Damages which is basically compensation that is being provided by the court to the
injured party for all the laws that is being suffered by the party due to the breach of

contract made by another party. These are the substantial damages which are being
provided to all the injured party for all the actual loss that is being suffered to them as
the court used to identify the type of loss which is being made to the party (Morariu,
2020).
 Specific performance of contract is an equitable remedy which is being provided by
the court when it is being seen that damages are not an adequate remedy. In all such
cases the court used to compel the party who has made the breach to cover all the
terms and clause in the contract in order to maintain equitable and fair deal. It mainly
provides a remedy in order to avoid all the unfair and unjust activities in the
agreements.
 Recession is a kind of remedy given by the court where they used to order party to
turn up the situation and also to bring the other party in an actual position with suffer
the loss to be in their original form as they were earlier (Kovac, 2018). Court can also
terminate the contract that is being made in between the parties in order to make the
parties to come in and earlier position.
 Injunction is the restraining power and action that is being used by court in order to
avoid a breach of contract. Injunction can be permanent and temporary and it used to
prohibit the defendant to do any breach in the agreement that is being made between
them, it is an equitable remedy which provides restraining order for all the actions that
can led out to breach between the parties (Council, 2017).
Darwash can go to the court and apply for the damages that was being suffered to him
by the actions of Charlie. As it is the adequate remedy for all the losses that has been suffered
due to the parties act.
Rights of parties in contract law
 Right to file suit is mainly an important right which provides that any party can go to
the court on breach of contract that was being made and not fulfilled between them
and they had suffered loss by such acts.
 Timely consideration is a right where party should get the value or the payment that
is being fixed between them at the time of agreement. As both the parties have right to
get their work to be performed at a particular time period which is being fixed and a
payment for that work should be given to the other party.

 Right to exclusive ownership is an important right which is been given to the parties
where the parties used to get exclusive ownership when they enter in agreement that is
being made between them (Thomas, 2020).
 Right to disclosure of facts is an important right where both the parties should get all
the information that is being related to their agreement and the parties should disclose
all the relevant facts that used to be considered important in their contract. No party
will be allowed to hide any relevant or subsequent information at the time of
agreement.
 Right to monetary payment is an exclusive right which is being given to the parties to
gain the payment for all the services and products that has been given by them by
performing the actual duty in the contract as it is mainly the fixed monetary payment
between them.
Darwash can go to the court as Charlie has not disclosed all the material facts that are
being linked with their contract. As Darwash was unaware About the fact that Charlie has no
knowledge of electrical fittings as he was not an electrical contractor. This mainly affected
the business of Darwash and he suffered major loss due to the non-disclosure of the material
facts. So he can go to the court for subsequent remedy of damages that should be given to
him for all the loss that has been suffered (Lambert, 2017).
CONCLUSION
From this report it can be concluded that, contract law frames agreement between the
parties and also provide essential elements like consideration, offer, legal obligation to do so
and acceptance without which a contract cannot be framed. Counter offer is mainly
revocation of initial offers which were being made between the parties at the time of
agreement. Furthermore, it is also analysed that specific performance of contract, injunction
etc. other remedies given in contract. And the parties have some important rights at the time
of contracts they are like right to disclosure of facts, timely consideration and many more.
REFERENCES
Merkin, R., 2019. Colinvaux's Law of Insurance (Vol. 12). Sweet & Maxwell Ltd.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2019. Problems in Contract Law: cases and materials.
Aspen Publishers.
Dagan, H., 2019. The value of choice and the justice of contract. Jurisprudence, 10(3), pp.422-433.
Kötz, H., 2017. European contract law. Oxford University Press.
Kovac, M., 2018. Frustration of purpose and the French Contract Law reform: The challenge to the
international commercial attractiveness of English law?. Maastricht journal of European
and comparative law, 25(3), pp.288-309.

Thomas, D.R., 2020. Time charterparty hire: issues relating to contractual remedies for default and
off-hire clauses (pp. 115-150). Informa Law from Routledge.
Lambert, N., 2017. The Constitutional Aspect of Canadian Contract Law. In The Constitutional
Dimension of Contract Law (pp. 269-288). Springer, Cham.
Council, C., 2017. We, the undersigned, recognize the negative impacts of smoking and support
policies which move smokers towards less harmful alternatives. At the same time, we
remain dedicated to preserving individual property rights, freedom of contract and equal
treatment for citizens under the law. City.
Zhou, L., 2020. China Resources Bank of Zhuhai Co., Ltd. v. Jiangxi Electric Power Fuel Co., Ltd.
and Third Party Guangzhou Dayou Coal Sales Co., Ltd.(Dispute over Factoring Contract)—
Debtor’s Assumption of Liability in Dispute over Factoring Contract. In Selected Cases
from the Supreme People’s Court of the People’s Republic of China (pp. 205-210).
Springer, Singapore.
Morariu, I., 2020. Interference of institutions of contract law with the procedure of
insolvency of individuals, regulated by Law no. 151/2015. Conferința
Internațională de Drept, Studii Europene și Relații Internaționale, 8(VIII), pp.580-
587.