Business Law for Managers | Assignment Sample

Added on - 03 Dec 2019

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Business law formanagers
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness law is also termed as commercial law which includes rules, regulations orlegislation in relation to trade of goods or services. By taking into consideration the variousaspects of business law manager is able to deal with different business entities in an effectivemanner. In addition to this, it also provides assistance to the manager in performing businessactivities and functions within the area of company law. The present report will discuss theelements or theories of consideration. Besides this, it will also shed light on the case ofWilliams’s v Roffey 1990 which states the history of doctrine of consideration. Further, it willalso develop understanding about tort of negligence by taking into consideration the case ofCaparo v Dickman. This project report also depicts the duties of directors as per The CompaniesAct 2006. Along with it, it will also examine the fiduciary duties and its importance to preventthe business environment.MAIN BODYConsideration is one of the important elements for forming valid contract. Without theavailability of consideration a valid contract cannot be formed. Consideration is the promisemade by an individual to perform the desired act or to refrain the person who is legally bound toperform the act. Consideration can be present in the valid contract in the form of past, presentand future consideration. . In order to form a valid contract, consideration is required to have thevalue that is objectively determined. (Alcock, Bird and Gale, 2007). In case of bilateral contract,consideration is made in regard to the promise made by both the parties with mutualunderstanding. Similarly, in case of Unilateral contract promise is consideration for the promiseand performance is the consideration for the promise. Thus, in order to form a legally bindagreement; availability of consideration is necessary. Availability of the consideration in theagreements is not only necessary to form a legal agreement, it availability provides variousbenefits to each and every party in case of any fraud made by the opposite party (Ayres, 2012).Thus, availability of consideration results in enforcing the ability of agreement. Likewise nonavailability of consideration results in unenforced ability of the agreement.Various elements of the consideration that are required for the formation of the valid contractare as follows:-Consideration must not be illegal, immoral or opposed to any public policy.1
Consideration should be real not vague.Consideration can move from one person to anotherConsideration can be past, present and future(Bayern, 2015)Consideration can move at the desired of the promisor.Consideration should be legalConsideration should be something to which the promisor is legally bound to perform it.The main reason for the consideration is that the availability of the consideration in the contractaids the entities to form valid contract and at the same time availability of it helps the parties toeasily sue the defendant party (Benson, 2011). Availability of consideration also assists theinjury party to recover damages and loss of money suffered by him.Various case study related to the concept of consideration is as follows:-Williams v Roffey Bros [1990] 2 WLR 1153].According to the case the both the partyentered into the contract in order to build 27 flats. If the contract is not completed on time than inthat case the contract will be subject to liquidated damage. . The defendant (contractor) pays£20000 to the claimant in order to build the flats. After 6 months, claimant released that theagreed sum of money was less and in lieu of which he went to the defendant and defendantpromised to pay £575 extra per flat. But the defendant only paid £500 and then he stoppedpaying. In lieu of which contract claimant has stopped working. Thus, it was the mistake of theclaimant that he has not provided any consideration as he was under the contractual duty tocomplete the task. Therefore, after taking into consideration the contract law it can be concludedthat defendant is liable to make extra payment to the claimant as per the promise made by him.Lqampleigh v Braithwaite [1615] EWHC KB J17].According to the case, the claimanthas killed the person and was punished to be hanged. Defendant had told the claimant to requestthe king to forgive him for the crime made by him. The defendant told the claimant that ifclaimant is able to get pardon from the king than in that he will give him £100. After manyefforts claimant was able to get pardon from the king. But as per the promise made defendantrefused to pay him £100. Thus, this case indicates the situation of past consideration. . Thus,according to the concept of consideration in contract law the defendant is liable to pay £100 toclaimant.Doctrine of the consideration is one of the important doctrines within the common law ofthe contract. Without the availability of the doctrine of consideration, an agreement cannot be2
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