Business Law and Ethics: Understanding Contracts, Rights, and Responsibilities

Business Law and
Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Case scenario 1............................................................................................................................3
Case scenario 2............................................................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business ethics and laws are two different concepts wherein the ethics are applied to
every aspect of the business conduct and is also relevant to the individual and organization's
conduct. These are originated mainly from the legal system, individuals or organizational
statements. It is the values, norms or practices which may be ethical or unethical that guide the
businesses to function appropriately. On other side, the business law is a set of regulations and
rules which mandates the organizations to follow so that there is smooth functioning of it. It
protects the rights of every person associated with it which includes employees, investors, etc.
(Koven and Perez, 2021) This essay shall deal with law of contract wherein concept of contract,
its conditions, rights and responsibilities shall be covered in two different scenarios.
MAIN BODY
Case scenario 1
The contract can be defined as a document which consist of the terms and conditions of the
parties together with their mutual obligations. It is being made enforceable under law. It can be
binding on parties when it fulfils the essential requirement of the contract and in case there is
breach of it, the party can claim the appropriate remedy under law. (Karpavithra and Karvittal,
2017).
The contract consists of the essential requirements which are required to be present in it
in order to give it the status of binding. The first element is agreement between parties which
involves and offer as well as its acceptance by other party. When one party willingly makes
promise to do or not to do something it is an offer and when the other party is agreed to it, it
provide its acceptance to it. The acceptance must be communicated clearly to other party and
within the time period which is being stipulated in it. The other element is consideration which
involves the value of something that is paid on behalf of the promise which is required to be
fulfilled. Last element is legal intention wherein the court makes presumption in commercial
contract that parties have intention to create the legal relation while in the social or domestic
contract, a reverse presumption n is taken by court. (Lee, 2021).
When discussing in context to the above case scenario, there is no legal contract being
framed between the parties. Avril made the offer to Belinda by quoting the price of €750 to
which Belinda did not accept it so the contract did not form. The offer also consists of stipulation