Advantages and Disadvantages of Business Mediums

The provided document is an analysis of the advantages and disadvantages of different business mediums such as sole proprietorship, partnership business, joint venture, and employment status. It also includes references to various books, journals, and online resources that provide further information on these topics. The assignment aims to understand the key characteristics of each business medium, their benefits, and drawbacks, and how they are related to employment law and contract law.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
1.(a) Explain term contract and elements of the valid contract...................................................3
(b) Would Ringo be liable to pay Paul on the basis of above facts............................................5
2. Criteria that Jerry need to satisfy in an action of negligence..................................................5
3. Identification of the main business mediums available to Ringo and his friends ................7
4. Analysing the significance of determining the current employment status of any workers
recruiting in company ................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In this case three aspects related to law was highlighted one was Ringo's son wants to
assist his father in managing garden and Ringo decided not to pay salary to the Paul as he thinks
that it is required that Paul should understand the house responsibility. So first case arises here is
to should Ringo pay to Paul or not which has been discussed in a study. Second case arises is
Ringo customer Jerry has suffered a damage to property due to the action of Ringo's Gardner
which is George. Therefore the next issue is whether Ringo is liable for damage or his Gardner is
liable for it. And what claim Jerry need to satisfy under such condition. The negligence law
arises in this which occur due to failure to exercise by any of the two party under certain
circumstances (Fulbrook, 2017). The criteria that jerry needs to satisfy has been highlighted in
the report. The last scenario which arises is what type of business medium can be used by Ringo
and his friends. The various medium which they can adapt has been discussed in detail in report
along with advantage and disadvantage of each business medium. At last the importance of
correct employment status of candidate which they recruit for their business has also been
discussed.
1.(a) Explain term contract and elements of the valid contract.
English contract law refers to the body that is responsible to regulate the contracts that
are formed in England and Wales. As per the law, the term Contract refers to the agreement that
forms when one party makes an offer and other person accepts the offer by communicating the
assent and agree to perform the terms and conditions of the offer (What is contract law?, 2019).
Further, there are various types of contracts such as valid, void, unenforceable, illegal, voidable
contracts etc. Generally, the agreement that are formed between the parties are enforceable in the
court. The terms of contract can be agreed through oral or written communication.
Requirements of a valid contract -
A valid contract is the agreement between two parties that is made orally or in writing to
offer product or service. All the essential elements should be present for a valid contract. Further,
both the parties should have an intent to perform the contract. The requirements of a valid
contract are as follows-
Offer and acceptance :

One of the most important requirement for a valid contract is offer from one party and
acceptance of the offer by another party. First step to create the contract is the willingness of the
person to enter into a contract on certain terms. An offer made by one person must be clear and
definite (Smits, ed., 2017).
Legal relationship :
Both the parties of the contract should have intentions to form lawful relationship
between them. It means that, contract should be enforceable by law.
Communication :
Offer should be communicated to another person because acceptance cannot be made
without communicating offer. Communication of offer is said to be completed when it comes to
the knowledge of other party.
Consideration :
It refers to something in return by one party to another. It is the reason behind entering
into a contract. It can also be defined as the amount paid by by one person to another.
Consideration should be real and lawful. Without lawful considerably, the exchange will be
considered as a gift.
Capacity :
Capacity refers to the competency of the parties to enter into the agreement. Contract is
said to be void ab- initio if, person of unsound mind is the party to contract. Therefore, if minor
or a lunatic is the party to contract, in that case the contract is considered as void. Further, both
the parties should be competent to enter into the contract then only, it will be considered as a
valid contract (Knapp, Crystal and Prince, 2019).
Legal purpose :
Another important element of a valid contract is that, parties to the contract should have
lawful intention behind entering into the agreement. Further, parties should have clear purpose of
creating a lawful relationship between them. If, objectives of the parties are not lawful in that
case, the contract would be considered as void.
Free consent :
Consent of the party is one of the crucial element to create a valid contract. If both the
parties have made mistakes, in that case the contract would be considered as void. Therefore,
consent of the parties should be free. Example – If, one party threatens another party to enter

into the contract in that case, contract cannot be considered as free and it will not be a valid
contract.
Certainty of the performance :
The agreement entered into by both the parties should be certain. Further, the contract
should not be such that it it is impossible to perform. Moreover, terms and conditions of the
contract should not be such that they cannot be enforced. Those agreements in which the terms
are not certain then contract will be considered as void (Kabiri, Parsapour and GHadimi, 2018).
(b) Would Ringo be liable to pay Paul on the basis of above facts.
In the given case study, Paul who is the son of Ringo has given an offer of mowing the
lawn at home in the exchange of 10 GBP. Ringo has accepted the offer of Paul. Further, Paul has
mowed the lawn as promised. Further, the father of Paul thought that there is need to learn more
responsibility by Paul. Therefore, Ringo has refused to pay 10GBP to Paul.
Under the contract between Paul and Ringo all the essential elements of a valid contract has been
presented that is offer has made by one party that is Paul to another person Ringo and the
purpose of contract is also legal. Further, consent of Ringo is free. There is also consideration of
10 GBP between both the parties. Therefore, contract between Ringo and Paul is said to be valid
(Andrews, 2016).
Paul has performed the terms of the contract that is mowing the lawn for a consideration.
Whereas, Ringo has failed to fulfil the performance. Therefore, it is breach of contract and
innocent party has right to terminate the contract and Ringo will be discharged from further
performance. Paul may also claim the damages from another party that is Ringo.
2. Criteria that Jerry need to satisfy in an action of negligence
Negligence can be defined as failure to exercise ethical rule and appropriate practice in
certain circumstances. Whenever anyone provide advice or services to others than they enters in
an duty of care. As per this law both parties will advice or provide service to each other and will
behave professionally but if anyone fails than they are culpable for professional negligence. Or
in simple words it can be defined as a negligence which is caused by one party to other it can be
physical injury, psychiatric illness, economic loss and harm to property. As in this case where
Jerry who is the customer of Ringo has suffered a loss due to the damage which has been caused
by George the Ringo's Gardner. Therefore here the case of negligence arises. The following
action

Duty of care: Duty is an obligation of one party to other. A individual owe duty of care to
another person to whom they provide service, in order to ensure loss due to unreasonable harm.
If duty of care is breached by any party then they need to compensate to the victim for any type
of loss (Mitchell and et.al., 2017). As in this case the George has cause damage to the property of
Jerry while working under Ringo. Therefore here Jerry can claim for the damage caused to his
property. However in this case it should be noted that the Ringo is not the defendant but George
is the defendant as he has not perform his duty towards Ringo. Therefore Ringo can claim
George for this damage.
As per Lord Atkin's who has established neighbour principle and individual duty that an
individual should take care of their actions so as to not cause harm to any proximity around
them. As in this case George has caused harm to customer’s roof.
Breach of duty: Once the duty is of care is determined between two parties than the client or
plaintiff must represent that how the defendant has breached contract. It is not only required that
plaintiff that defendant owed a duty but they also need to present the proof the defendant has
breach the duty (Dyer, 2018).
However in this case it is required that Jerry prove that defendant which is George has
breach the contract. Therefore it is required by the jury to analyse that whether defendant has
exercised reasonable care or not. As in this case it can be seen that George has breached the
contract as he has not measured the estimated fall of trees and one has fall on conservatory of
Jerry which has cause damage to Jerry's roof top.
Causation: It is necessary to represent that injury has been caused due to defendant action which
is George in this case as he has cause damage to Jerry's property. Basically there are two type of
causation which are proximate cause and cause in fact.
Proximate cause: It determines the scope of defendant's responsibility in negligence case. A
defendant in a case is only responsible for those damage that defendant have foreseen through
their actions while if defendant cause any damage which is outside the scope of risk that
defendant could have foreseen than plaintiff cannot prove that defendant action is proximate
cause of damage (Nelson, 2018).
In the following case Jerry can prove proximate cause by showing that defendant which
is George may have foreseen the harm.
Loss suffered:

It is required that plaintiff should prove legally recognized harm in negligence case usually in the
form of any kind of physical injury or property loss. If the plaintiff or a person has suffered no
loss then the plaintiff claim will not be successful even if the other party or professional is
negligent. As long as professional warned you about potential risk they cannot be held
responsible. This statement does not true right in this case as Ringo or his gardner George does
not have informed any such warning to the Jerry.
Jerry has suffered loss due to George negligence. Therefore, Jerry can ask for
compensatory damage, means he can ask for payment toward the loss suffered (Epstein, 2018).
Compensatory damage is categorised as special damage which are economic loses due to
earning, medical expenses, general damage and property damage. As Jerry has suffered from an
tangible loss which has occurred to his property which can be calculated by difference in current
market value and after the incident or by the actual value of property.
Jerry can ask for monetary award against loss to property.
3. Identification of the main business mediums available to Ringo and his friends
According to the given case scenario, it has been analysed that Ringo want to expand his
business, therefore he has decided to employees two of his friends that is John and Yoko. Such
decision has been taken by Ringo so that he could get assistance in relation to the managing the
managerial responsibilities. But Ringo wants him to share the business ownership with them
Ringo and his friends is searching for such business medium where they can share equal
ownership. The different types of business medium where Ringo and his friends can share
business ownership are :
Partnership business: Partnership can be defined as the business arrangements where two or
more parties shows their mutual consent to make their significant contribution in
accomplishment of common objectives. In context of partnership business, there could be two or
more more parties. In context of given case scenario, Ringo and his friends before opting for
partnership business mediums need to develop the understanding that they all have to share profit
, risk and losses (Pargendler, 2018). The partnership act in UK governs as well as regulates the
activities performed by partnership business. Before selecting to establish the Partnership
business, Ringo and his friends need to consider that they will requite to pay tax on the profit of
there share in business. They also need to determine which type of partnership business to be
established for instance, limited partnership, limited liability partnership etc. As according to

the given case scenario, Ringo and his friends wants to share equal ownership then they can opt
for General partnership.
Advantages :
In context of given case scenario, Ringo and his friends by establishing the partnership
business scan limit risks. The main benefit of establishing the partnership business is that there
are less regulatory requirement are to be fulfilled (Beale, Fauvarque-Cosson, Rutgers And et.al.,
2019.). The business operations , structure as well as size can be easily changed through mutual
agreement between partners. According to the Partnership act in UK, registration of partnership
firm is not compulsory. Acers to larger resources is considered to be as other biggest advantage
of partnership business. In addition to this, partnership business is well managed all partners , as
they all take interest as well participate in routine business operations.
Disadvantage :
Lack of prompt decisions is considered to be as one of the biggest drawback which can
have adverse effect on business. One biggest drawback is that partnership business does not
haver legal status.
Joint venture : It is a type of business which is created as well as managed by two or more
persons. By establishing the joint venture business both Ringo as well as his friends can have
shared ownership (Cann, 2018.). One of the benefit which Ringo and his friends can gain by
choosing Joint venture as a business medium is that they could have access to new market. In
addition to this, the business risk will also be distributed among the shareholders.
Pros :
 One of the biggest advantage of joint venture business sis that firms gets an opportunity
to increase capacity as well as gain expertise.
 More resources can be easily accessed .
 It enables flexibility. This statement means that joint venture business could have limited
life span. It might limit the committent as well as business exposure.
Cons:
 There is imbalance between level of expertise.
 Poor integration as well as cooperation between owners due to the difference in culture
and management style which could lead to the poor administration of business.
 Complex tax arrangements.

4. Analysing the significance of determining the current employment status of any workers
recruiting in company
Employment status is considered to be as one of the biggest issue in present times. As
there has been disputes between employees as well as employer related to the working
arrangements. It is now become very much crucial for employer to develop the understanding
about the employment status , as this tactics will assist them in determining the rights of an
individual. In addition to this, developing the understanding about the employment status will
also support employer in identifying their obligations towards employees, workers or self
employed. There are basically three categories of employment these are employees, these are
basically those individual who have taken contract of services, whether express or implied.
According to the employment contract, It is the duty of employer that they should inform
employees about the payment, working hours and conditions of employment. Other type of
employment is workers, they also work for organisation but only for limited time period. As per
the employment law in UK, employer have limited right of control where as well as when work
is performed by workers (Cotterrell, 2018.). In relation to self- employed, These people
establish as well as run 5their own business. These people provide resources as well as
equipments to other companies.
It is very much crucial for owner of company to develop the understanding about the
employment status, as it will provide them an ease in allocating the roles as well as
responsibilities to an individual. In addition to this, by developing the understanding about
employment status business owner will able to determine the salary or wages they need to pay
an individual for performing work (Employment Status – Why do I need to know the difference?,
2019.). It is important for business owner to have knowledge about employment status as it is
the factors which could have significant effect or influence on their entitlement to p[articular
employment rights. The development of understanding about employment status by business
owner or employer is very much essential as this tactic will assist them in eliminating the legal
obligations. In addition to this, if employer have the knowledge about the employment status
then in context of legal obligation they can easily make claim that an individual is Self employer
or worker. In simple words, by developing the understanding about the employment status, the
employer avoid costly tribunal claims.

CONCLUSION
The above Report has outlined the term contract as an agreement between two parties.
Further, it has described that there are various requirements for considering a contract as a valid
contract. It includes offer and acceptance, legal objective, lawful consideration etc. For a valid
contract, there Moreover, it has concluded that there is a valid contract between Paul and Ringo
due to existence of all elements of a valid contract. The above Report has also explained the
conditions that are required to fulfil so that, claimant can take action on another party. Party
should satisfy the conditions as given under contract law, duty of care and negligence act etc.
There are various mediums for conducting business, partnership business requires two or more
parties. It helps to limit risks of partners. Joint venture helps to access to new market. One of
the major disadvantage of joint venture is poor integration between parties. All the business
mediums have advantage as well as disadvantage. It is the duty of employer to provide
information to employees regarding working hours, payment etc. It is also important to have
understanding of employment status because it helps the employer to allocate the
responsibilities, to determine salary and wages of the workers.

REFERENCES
Books and Journals:
Andrews, N., 2016. Sources and General Principles of English Contract Law. In Arbitration and
Contract Law (pp. 165-175). Springer, Cham.
Beale, H., Fauvarque-Cosson, B., Rutgers, J. And et.al., 2019. Cases, materials and text on
contract law. Bloomsbury Publishing.
Cann, S., 2018. Administrative law. Routledge.
Cotterrell, R., 2018. The development of capitalism and the formalisation of contract law.
In Law, state and society (pp. 54-69). Routledge.
Dyer, C., 2018. Law on gross negligence manslaughter is flawed, says leading medical lawyer.
Epstein, R.A., 2018. A Common Law for the First Amendment. Harv. JL & Pub. Pol'y, 41. p.1.
Fulbrook, J., 2017. Outdoor activities, negligence and the law. Routledge.
Hurwitz, B., 2018. Clinical Guidelines and the Law: Negligence, Discretion, and Judgement.
CRC Press.
Kabiri, H., Parsapour, M.B. and GHadimi, E., 2018. Examination of rejection of performance of
contract by promisee in Iranian law, imamiah jurisprudence emphasis on european
contract law and CISG. Comparative Law Researches. 21(4). pp.57-82.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2019. Problems in Contract Law: cases and
materials. Aspen Publishers.
Mitchell, C. and et.al., 2017. Exploring the potential duty of care in clinical genomics under UK
law. Medical law international, 17(3). pp.158-182.
Nelson, T., 2018. Negligence, Negligent Misstatements and Leaky Buildings: Southland Indoor
Leisure Centre Charitable Trust v. Invercargill City Council. Auckland UL Rev., 24.
p.294.
Pargendler, M., 2018. The role of the state in contract law: The common-civil law divide. Yale J.
Int'l L., 43, p.143.
Smits, J.M. ed., 2017. Contract law: a comparative introduction. Edward Elgar Publishing.
ONLINE:
What is contract law?. 2019. [Online] Available through:
<https://hirealawyer.findlaw.com/choosing-the-right-lawyer/contracts-law.html>

Employment Status – Why do I need to know the difference?. 2019.[ONLINE]. Available
through:<https://www.bytestart.co.uk/employment-status-know-different-types.html>.