Business Law: Sources, Procedure, Company, Employment, Contract, Legal Formation, Managing and Funding of Organizations

This report defines various sources of law such as, legislation, common law, etc. It also explains the process of making laws and the purpose of statutory and common law. Further, it also explains the concept of company law, contact and employment law briefly. It also covers the legal formation of various organizations.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................3
P-1. Define several sources of law..............................................................................................3
P-2. Properly explain procedure of creating law and define purpose of statutory and common
law in court rooms.......................................................................................................................4
P-3. Explain company, employment and contract law in brief...................................................5
P-4. Legal formation of different organisations..........................................................................5
P-5. Explain managing and funding of different organisations..................................................6
P-6 Recommended suggestions towards case laws mentioned below........................................7
Conclusion.....................................................................................................................................10
References:.....................................................................................................................................10
INTRODUCTION
Laws are made for maintaining law and order in the country. It prohibits the unlawful activities
and make sure that each and every individual abide by the statutes that are being drafted by the
parliament or legislative authority of the state(MacFarlane, 2021). There are numerous laws that
have been made in United Kingdom that regulates the functioning of the business organization.

Business laws provides certain guidelines which are required to be followed by the business
units all over the country. And if in case any organization fails to abide by these set norms they
have to face the legal consequences for the same(Bocharov, et.al, 2019). This report defines
various sources of law such as, legislation, common law, etc. It also explains the process of
making laws and the purpose of statutory and common law. Further, it also explains the concept
of company law, contact and employment law briefly. It also covers the legal formation of
various organizations.
MAIN BODY
P-1. Define several sources of law
Although the law in United Kingdom split geographically, it is governed by four sources of law,
which are categorised according to the topics eat source address is:
Legislation: its role as the engine for electing, amending and repealing laws means that it
possesses a variety of functions and powers that, in the end, will work with statutory provisions
and operational processes. It is one of the highest bodies in the nation and coordinate with all
branches of the legal system. Primary legislation and delegated legislation of the two categories
in which legislation is split. Aside from the European Union, it’s serve as the top lawmaking
body. Updated legislation has legal bodies that have control over the legislature(Dnes and
Garoupa, 2022).
Common law: this division is crucial to the creation of law since it applies the legal process to
stab list by earlier decisions. If necessary, Parliamentary action will produce a broad viewpoint.
This common law existed in the past before the well-known judicial system was created. The
king was the highest ranking official in the kings government, and whatever laws he issued
became enforceable throughout the entire real deal(Dobbs and Stefan, 2021). Common laws are
very well in the air among the most frequently observed laws; they set each legislation apart and
occasionally allow for the passage of truly exceptional laws and opinions in Parliament.
European Union: The European Union was founded to serve the requirements of its members
which became clear after world war second. Despite the fact that this union was designed to
prevent conflict, people started acting more civilised. This is made up of 28 nations, and as a
result, each of these nations dominates its global market. Given that the majority of developed

nations are part of this union, it also benefits market dominance globally. Additionally, the idea
was to foster peace and put an end to battles between all nations.
European convention of human rights: The only objective of the European convention and
human rights is to promote and maintain world peace. The main reason for holding this
convention is to improve everyone’s quality of life and foster progressive nations. This
association specifically looks out for the effective incorporation of human rights legislation and
practises inside commercial organisations and various other sectors. Human rights or one thing
that require careful diplomacy, and as society changes, there are always fresh modifications to be
made (Khan, et.al, 2019).
P-2. Properly explain procedure of creating law and define purpose of statutory and common law
in court rooms.
Statutory law: this is the law that the United Kingdom‘s legislation has produced in written
form. The fundamental tenets of it is that judges apply it, that they utilise its language, and that it
operates in the justice court. It is usually employed in its most basic form because it cannot be
justified for financial end.
Procedure of application in justice court: This technique and we describe using an old case from
1836 called R versus Harris, in which the accused which the victim‘s nose and it was stated in
the statute that stab, cute, or injure another person is a crying but not biting. The accused was
released and more charges were brought against him as a result of this. This example illustrates
the laws literal meaning, and the term can only be used in that sense; it cannot be altered in any
way to achieve the desired result(Glazer, 2021).
Common law: In the simplest terms, this law can be described as a decision is made in court for
unique situations are instances that could only be put into practice in litigation. It began in the
early Middle Ages of Kingscote, where the rulings of the king or turn into loss. Using this idea,
occasionally, remarkable rulings from supreme benches are approved by legislation and put into
effect in acts of Parliament.
Procedure of application in justice court: Application procedure in a court of law: using this law
in court rooms is quite common and simple to defile. These presidents setting cases are cited in
the case law and are offered a support for the current case(Jan, 2020). There are numerous
related case laws to be to 1 m in order to benefit from them in their own case law and update the

desired outcomes of judgement if a case involves the same facts, topic a disagreement between
two parties.
P-3. Explain company, employment and contract law in brief.
Company law: it was established in 2006 and other name company act with the aim of
compiling all information about the business organisation in order to appropriately organise it in
a legal framework invite it to this act. This at essentially covers all acts that a documented in any
company organisation, and it also specifies ways and remedies in the event that a dispute occurs
at work (Williams, 2022). It gives the United Kingdom a set of laws that or extensive in scope
and alters nearly every legal process pertaining to commercial enterprises. Basically it provides
the code of conduct for the company's formation and the manner in which it is required to be
function. It is important because in order to run the company in an appropriate manner there are
certain guidelines that are issued by the aforementioned statute. Otherwise there would be no
uniformity in the companies and the owners will carry the business activities according to their
comfort. Nowadays, corporate crimes are also increasing and in order to control the same certain
law is required.
Employment law: this sets down the expectations of both employers and employees with regard
to one another. All participants in this commercial agreement form of legislation are required to
abide by a basic set of terms and conditions while at work that must be observed by everyone,
and anyone who attempts to do so or files a loophole will be subject to fines and penalties. It
safeguards against unfair treatment of both businesses and implies on any grounds. It also helps
on maintaining balance between the employer and the employee. As, it is essential that there
must be a healthy relation between the two parties(Sachindrani and Samayawardena, 2018). The
employer must not perform any kind of unlawful acts against the employees, such as,
discrimination among them on the basis of caste, religion, gender, race, etc. They should pay
their salaries or wages on time. They must consider them as valuable assets of the company.
They should not take the employees for granted. Female employees must be treated equally than
that of male employees.
Contract law: it refers to a relationship between the parties where in both parties willingly
consented to the specified terms, creating a legally binding framework. It is the legal framework
that is applied to them and the requirement that includes the sale of commodities, rules governing
the exchange of goods and services, and a commanding position over the two parties in the

selection(Akhtar, 2020). An obligation is additionally imposed. It regulates and controls both
parties interpretations, as well as the relationship and legality of the contract. It comprises of
common daily commercial transactions such as the sales of goods, rules governing of exchange
of goods and services, and command rules for both sides. There are certain terms and conditions
that are required to followed by the parties of the contract(Kim, Rabelo and Goebel, 2019). They
are not allowed to violate any conditions of the contract. And if in any case, either of the parties
breach the terms of the contract then the contact will become void or voidable on the part of the
aggrieved party. The aggrieved party can sue the breaching party in the court of law.
P-4. Legal formation of different organisations.
Sole Proprietorship: A sole proprietor ship is a business that is run by a single person who
handles all of the responsibilities and duties. There is no separation between the owner and the
company in this corporate organisation. In this case, one can hire people to share duties but do
not share control of the organisation(Hardman and RamírezSantos, 2022). A sole proprietorship
requires no legalisation but is not particularly simple to set up. In most cases, it is not even
necessary to be legally registered; if one so desires, one can register a corporation at a nearby
registration office and begin a business.
Partnership: in this kind of organisation, one individual will share the obligation and duties
with another this type of organisation was created by a contractual agreement that was modelled
after a formal contract between two parties. This agreement will specify how the parties will
divide the task, liabilities and profit margins in this type of business to parties agree on a set of
terms and circumstances under which they will both profit financially. The process is listed
below must be followed by any partnership firm in order to effectively create a partnership
legally:
 create a contract that is agreed upon by all parties and get it legalise.
 File a registration form with the local registered office.
 Create stakeholders to establish the company.
Limited liability partnership: this type of business is founded on the basis of a contract
agreement with the ratios in predetermined terms and conditions. The main distinction in this
organisation is that none of the partners are jointly responsible for the company‘s debt and
creditors(Scott-Patel, 2019). In this case, the company is very much a separate legal entity and
does not require any of the members to assume any obligation regarding the phone is dead. It is

extremely independent and does not have an impact on its owners when winding up. Below is a
list of the legal steps to create an LLP:
 File paperwork with the company home.
 Create a directors list, and recruit a secretary.
 Sell at least a portion of your publicly traded shares.
 Establish company procedures and hire employees.
 Execute the business with a predetermined share of responsibilities.
P-5. Explain managing and funding of different organisations.
Basis of: Sole proprietorship Partnership LLP
Management It is very easy to deal
with such businesses
because it does not
involve any registration.
It is upon the sole trader
to get the business
registered otherwise it is
not required (Milman,
2019). Sole owner has
the overall responsibility
of the company where
the individual has to
perform each and every
duty on its own. The
person takes the
decisions regarding the
firm, there is no
intervention of any third
party. The individual is
liable to pay the taxes
In order to establish a
partnership firm, the
parties need to enter
into an agreement of a
partnership(Yilmazteki
n, 2019). It contains all
terms and conditions
that are obligatory on
the partners to follow.
It involves proper
registration of the firm.
The partners are
equally liable profits
and losses arise out of
business corporations.
As the name suggests
itself, the members of a
company have limited
liability which means
that they hold liability
but to a limited extent
and not more than that.
The best example of
this is when a LLP
winds up, the partners
are not responsible to
pay the debts(Bartman
and De Groot, 2021).
They are not personally
liable to pay any loan
amount or debt or taxes
related to the company.
As, LLP holds a
separate legal identity
other than its members.

and debts.
Funding  Personal savings
 Bank loans
 Personal loans.
 Shares and
Debentures of
the company.
 Investments by
all the partners.
 Personal loans.
 Loan from
bank.
 Selling shares
in stock market.
 Loan from other
financial
institution.
P-6 Recommended suggestions towards case laws mentioned below.
The court system is the oldest method of resolving a disagreement between the parties. In
addition, the UK government introduced the alternative dispute resolution process under the
Civil Procedure Rules of 1986 so that the parties might have their cases resolved quickly. These
options save both time and money, and the parties can reach an agreement without going to
court. The following sections describe various forms of alternative conflict resolution for the
case scenarios:
Case 1
Scenario:
Gordon works as a salesperson for Orange Computers Ltd. His employment contract calls for an
annual salary of £10000 plus a 9% commission on sales, or an average of £11000 per year for the
previous three years. Due to increased competition, the company suffered in 2015, therefore Fred
asked Gordon if he would accept only commission rather than his pay for the years 2015 to 2017.
The contract amendment was approved by Gordon. The economy started to grow in 2016 and
businesses started to turn a profit. Gordon wanted to request his 2015–2017 pay at this time.
Legal point:
The legal question in this issue is whether Gordon is entitled to the earnings for the years 2015,
2016, and 2017.
legal solution:
Negotiation is the suggested course of action in the given case scenario from a legal standpoint.
It entails naming an impartial third party as the mediator who seeks an agreeable resolution

between the parties. This solution's primary goal is to provide a win-win outcome for both
parties. Until the parties sign the agreement, the negotiator's decision is not final.
Legal justification:
Gordon is advised to pursue this course of action because negotiation results in a speedier
resolution that allows the parties to quickly resolve their dispute. Additionally, bargaining
supports win-win scenarios for both parties, enabling Gordon and the business to reach a
mutually agreeable conclusion.
Effectiveness of the legal solution:
Gordon and business are able to agree on the wages from earlier years through bargaining. This
will enable them to find a compromise that works for both parties. Negotiation will aid in
reaching an agreeable resolution in this case because the employment contract variation was
carried out with the permission of both parties.
Case2
Scenario:
Janet made the decision to call Virgin Media to arrange for the installation and purchase of an
internet package, which will cost £35 per month and include the rental of 11 pounds per month
for phone lines. The engineer arrived the following day to install the internet but was unable to
locate the phone point and advised that he return after speaking with the supervisor. Janet waited
for the engineer, who never arrived, and then complained to the company. After three weeks, the
phone was installed, and Janet received an invoice for the entire package, including the phone
line for the entire month.
Legal point:
Despite the fact that the phone was installed after three weeks, the fundamental question in this
case is whether Janet is still required to pay the full month's rental.
Legal response:
The suggested course of action in this situation is mediation since it entails the selection of an
impartial mediator who acts as a go-between for the parties. Although the parties are not bound
by its ruling, it will aid in quickly resolving the disagreement.
Legal justification:
Since the issue will be resolved internally, this option is advised since it will assist the business
preserve its reputation. Janet will receive a prompt resolution to the lawsuit. Due to Virgin

Media's failure to provide Janet with acceptable service, mediation will enable both parties
comprehend each other's viewpoints while maintaining the confidentiality of the situation.
Effectiveness of the legal remedy:
Virgin Media is not allowed to charge rent for the month that Janet didn't use the phone because
they broke the terms of their service. They will be able to resolve the conflict internally with the
help of mediation, which will also help to preserve the company's good name. Virgin Media has
violated the contract in this case by failing to carry out their contractual duties.
Case3
Scenario:
Black Horse Ltd. is a security firm with 50 staff members. Its four biggest clients are in default
on their payments, leaving it with a bad debt of almost £100000. The company was unable to pay
its debts, and one creditor filed a petition to wind up the business. The court must now decide
whether or not to issue a winding-up order.
Legal Point:
The question is whether creditors have the right to request the winding up of Black Horse
Company as a last option. And perhaps declaring bankruptcy is the last option left for creditors?
Legal solution:
Arbitration is suggested as a legal remedy in this situation. It entails selecting an impartial
arbitrator who, after hearing the relevant facts and documentary evidence, will provide a decision
that is legally binding on the parties. The key advantage of this is that the parties can choose the
arbitrator, the arbitration location, and the arbitration time. The client has the option of choosing
conciliation. It also entails selecting a neutral third party to mediate disputes who will review all
relevant information and render a settlement judgement. Once the parties sign the settlement
agreement, it is legally binding. In this case, the parties are free to alter the settlement agreement
as they see fit. And once it's signed, it becomes legally binding.
Legal justification: This course of action is advised so that the parties can settle their conflict
amicably. Since arbitration has the same legal standing and legal force as a court, it can help
parties resolve disputes quickly and obtain a legally enforceable ruling.
Effectiveness of the legal remedy:
Arbitration can assist in providing the creditors with evidence that the corporation is not to blame
for the lack of payment because a significant portion of their funds were unexpectedly converted

into bad debts. Therefore, arbitration will aid in bringing about a legally binding conclusion
between the parties.
Conclusion
This report offers an overview of how to critically analyse business law and its numerous
branches. This includes numerous dispute resolution options and a flawless representation of the
proper workings. The case laws discussed here will offer conclusive and concise remedies to a
number of problems that occur in commercial organisations. It also emphasises the significance
of having robust company law acts and legislation, such as those offered by the UK government,
through which companies have a solid foundation on which to operate in their nation. The
common law and statutory law in the English legal system are equally relevant, but the statutory
law cannot be contested in any court. There are numerous types of business structures, including
sole proprietorships, partnerships, corporations, and companies. Each is run and supported in
accordance with its particular structure.
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