Business Law: Types of Business, Invitation to Treat and Offer, Remedies for Shareholders against Directors

This report covers the advantages and disadvantages of different types of businesses, the concept of invitation to treat and offer, and remedies available to shareholders against directors. It includes relevant cases and legislation. The subject is business law and the course code is not mentioned. The college/university is not mentioned.

1Demonstrate the
following knowledge
and understanding
Demonstrate broad
knowledge and
understanding of key
areas of business law
2Demonstrate the fo

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explain different kinds of business, with its advantages and disadvantages.............................3
At what extent will, a display made in shop window will become an offer so as to sell rather
than managing invitation to treat.................................................................................................6
With general reference for cases and legislation, explain important remedies made available to
all shareholders against various directors of a company.............................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business legislation is the body of rules which provides the methods and the implications
through which the organisation can manage the effective business practises. For managing the
company it is important to frame and handle all the foundations through which the company is
being built. For establishing the company it is important to apply the legal rules and the
knowledge of law is way more important for all the professional areas. In order to manage the
commercial work and management their should be framed al the establishment through which
the applications of decisions can be made. The entrepreneur as they carry all the responsibilities
should manage and adapt all the important sectors and the segments which are needed to be
analysed so as to make the business easier and prominent (Ore, 2017). This report will cover the
advantages and disadvantages of different business organisation. It will also cover the contract
concept for invitation to treat and offer and further will also provide the remedies which are
available for the shareholders.
MAIN BODY
Explain different kinds of business, with its advantages and disadvantages.
In taking a initiative to start a new business requires so much of challenge and difficulties
through which the person have to deal. Along with the challenges the mostly important and the
initial question which raise in the mind of person is about the types or kind s of business, their
management, funding, operational skills, personal liability which will arise and all the procedural
and administrative work taken on record. In UK there are so many kinds of business which are
mentioned thereunder:
Sole Proprietorship
It is the simple form of organisational practise of business in which the sole owner or the
single individual is involved. It does not require so much of administration and also considers to
operate all the financial possibilities by their won (Jiang, and Yu, 2021). The decision making
authority and all the major responsibilities lies on the individual itself. The registration of all
such business are made through HMRC. It deals with all the major legal entity and also considers
to have unlimited liability as all the debts and the legal claims are taken by the owner itself.
Advantages

 The registration process of this is quiet simple and it only requires HMRC consideration.
It do not have any formalities lies in it.
 All the control lies on the owner and they manage all the decision by themselves which
are accountable for all.
Disadvantages This provides that all the unlimited liability are carried by the single owner and they have
to manage all the debts of the company along with that there is risk as the bank at times
do not get ready to lend money to any sole business.
Partnership
This considers to have the unincorporated entities of business in which two or more
person agrees to carry all the rights, debts, responsibilities, assets, decision together. All the
major encountered decisions lies to both the partners and they will have to agree bys mutually
taken the decision for their benefit. The profit and loss are being shared equally and all the ratio
which is being decided by them is considered to be the most important pay which is mutually
agreed (Mills and et. al., 2018.)
Advantages
 The capital contribution which is made by the company can be comparatively to all other
business can be more. As they manage to make their own saving to be used for funds.
 The work life balance can be managed easily as there is no individual single person has to
take up all the responsibility through which they can implement and manage the
decisions and work.
Disadvantages
 It will not carry any legal independent status and there will be a permanent dissolution
which can be observed on the conflict or death of any of the partners. They cannot
manage and make the autonomy decision making. Their are mostly the chances of conflicting situations and that can make the flexibility
and the approach of the company about difficult (Rundle-Thiele and et. al., 2019).
Limited liability Partnership
In all such LLP their can be seen two partners are being involved in order to manage all
the daily activities of the business and also to appoint all the members of the company. This

generally have limited liability which is being made between all, it focus on earning profit and is
mostly being adapted by profession like accountancy and law.
Advantages
 Their can be made protection to the partners regarding their assets which are made for the
personal liability and management.
 It manages to frame the legal business practise in which it promotes the lease in property,
rent, buy and all the areas which are accountable in the business practises.
Disadvantages
 All the financial accounts are disclosed in companies house as this is an important part of
the company and no privacy is being laid in all. The partners carry personal income and it generally have the legal entity through which
the tax is being managed accordingly(Curran, 2021).
Companies
This is a separate legal entity which considers to have perpetual succession through
which all the corporations, it is privately managed and considers all the working of the business.
It considers to have all the management and the corporations through which the company is
implemented by the directors and shareholders. All the profit which are made by them are used
for the corporation and it creates a finance through which the limited shares are are guaranteed.
This are generally of two types which are public company and private company. All the equity
and debts are considered to be the capital through which the ownership is managed.
Advantage
 In all the companies their will not be any kind of personal liability which is being
analysed, and the shares are also being framed in the shares in extent of business
activities (Duren, 2020).
 It considers to have the common seal ans their own perpetual identity.
Disadvantages
 It is a complex process and involves a lot of formalities as well as cost for incorporating,
this provides the formalities and all the cost process.
 It considers the public disclosures through which they manage the financial accounts
through which the companies house analyse all the management.

Abdul and his friend Anna Maria are willing to start a new bossiness event management
and promotions. They can eventually apply the limited liability partnership LLP. That will make
them to work according to all the legal entity and work and this al;so make them to undergo the
Limited liability partnership act 2000. they can through LLP can draft all the agreements fro the
general rights and duties.
At what extent will, a display made in shop window will become an offer so as to sell rather
than managing invitation to treat.
In order to make the contractual agreements their is important to focus on the offer and
acceptance through which all the terms can be fulfilled. In order to enter in a valid contract it is
important to make a offer and the other party will have to accept it. The other two important
elements which are made in the contract are consideration and the legal intention to enter in it.
For all the offer it is mainly being seen that the offeror is ready to frame an intention through
which they are going to work. The intentions are important to enter in a contract. In Harvey v.
Facey, their has been seen that the defendant provided a telegram to Facey in order top sell the
bumper pen on its lowest price. The court held that no contract is being made between the parties
as they have no evidence that their was legal intention of Facey to sell that pen and their was no
binding as the agreement was not been made. So no contract was framed. Contract law carries
the rights and the abilities in which all the rules and the essential requirements are needed to be
fulfilled and that will only be managed with the general advancement and the contractual terms
and manner. This frames the management and the legislation which are applied in all the
invitation that are being imposed on all the stated work and their offering. As consideration.
Acceptance, offer and legal intention are the important areas for fulfilling the terms and
conditions of the work (Cărăuşu and et. al., 2018).
Their is major difference between the offer and invitation to treat are like offer is one of
the most essential element of contract and it creates a binding impact on the party. This is the
first and the foremost essential element. While the invitation to treat is comprised of an offer
which is made in order to manage all the contractual terms. For example, when any goods are
displayed on the shop to be sold these are required to be made as an invitation to treat and it will
not be an offer till the time the consumer comes to the seller in order to buy that shoes. As in
case of, Fisher v. Bell, the defendant has flick the knife from the shop window which has the
price tag on it. Their has been seen that the criminal offense is been made by him as the knife

was flick on sale. Court held that, conviction will not be treated as valid as their was display
which is made as an invitation to treat. And this will not be termed as offer. Their is being
applied the literal rule of interpretation (Schuilenburg, and Peeters, 2020).
In Lefkowitz v. Great Minneapolis Surplus Store, their was advertisement made by the
defendant in newspaper twice in which he provided that their was a sale of fur coats and also for
stoles in which he was selling it for $1.00. their came a men in order to purchase that coat for
which the seller denies and said that their was offer made only for women. Court held that as this
was not being mentioned earlier and the defendant cannot make any arbitrary decisions by their
own. House has not mentioned the rules earlier and they were not allowed to impose any such
kinds of interpretations. As in that offer their has been given the price which was fixed for the
garments and the first come first serve practices. The advertisement made has definite and clear
verbal interactions which can not be changed. So their will not be nay kind of new rule or
negotiation can be applied(Buur and et. al., 2019).
In another case of, Pharmaceutical Society of Great Britain v Boots Cash, their has been
introduced a self service system as the boots were on the shelf we here the customers were
allowed to take the boots pf their choice and will have to pick it up till the cash counter for which
the shopkeeper will take the adequate price and will make them to allow for the purchase. The
plaintiff has questioned the legality. Court held that all the items which were put on the shelf are
the invitation to treat and as soon as they bring it to the customer so as to buy the product it will
be the offer made by the person to purchase it. This totally depend on the shopkeeper that
whether they want to accept it or not. So their has been made that all such offers are invitation to
treat and it will be considered to be the offer when accepted by the seller.
From all the above statements and cases it can be analysed that all the newspapers use to
make offers with the general advertisements and their will not be left any kind of negotiations
between any rooms. Other then this all the items which are displayed on the window of the shelf
creates an invitation to treat and that can only be accepted when it seems that the product which
is made are for the customers and it is made so that the person who wants it can offer to buy it.

With general reference for cases and legislation, explain important remedies made available to
all shareholders against various directors of a company.
As per Companies Act of 2013, the shareholders are the one who invest the money in
business and manages the operations of the company so that the general areas of the business is
farmed as well as maintained and advantages by it are brought which is gained by the amount of
investment made in private and public companies. The shareholders are the members of the
company and holds the special place in the business by implementing general working/. The
main role of the shareholder is to invest in the company as they hold and manage the shares of
the company, decisions as well as important regions by which the management is done(Bian,
and Deng, 2017).
The directors are important personnel of the company as they are the owners as well as
representatives of the shareholders who are elected by them. They have some major roles and
responsibilities to play in the organization in context to the management of the company. The
directors may be claimed only when they are made any of the personal gain from business or
when there has been any breach of the duty by the director. Normally, the directors do not have
any kind of rights in order to take action against the shareholders but there are some of the
conditions wherein it can take the action against the shareholders. There are some of the
remedies which are available to the shareholders against the directors which are illustrated
below- When the shareholders are seeming to be the dissatisfied one, they can take the action
against the directors for which the company may manage and take claim by which the
management as well as the adjourned decisions can be taken (Wong, and et. al., , 2021). Derivative claims: The claim may be made against the director by the shareholder in
every case when there has been any personal liability of director in respect of any issue
which has incurred between them. The remedy in such case is that the shareholder may
maintain or manage the general merger of company and director has to accept it in case
there is any fault. Dismissal: when it is identified that any breached has been done by the director and the
company as well as the director is being involved in such breach of the duty then the
shareholders has the remedy against it which involves managing to remove the director

by taking help of the ordinary resolution. The notice period is served to the directors as
the employment law rights can not be taken and their will have to be fulfilled all the
statue and the cultural depiction and rights made under it. Excusing Liabilities: In all those cases when the essential measures are taken an that also
to mange and implement the general work it is being seen that all those areas are
considered. And shareholders will exempt them from the liabilities. This is mainly being
framed in all the part of good faith and actions(Befu,2021).
 Ratification by Shareholder: It is considered when the breach is made by the director or
any of the party then the shareholder carries a right through which they can ratify all the
decisions which were being made by the directors with the help of voting that are made
within that time period. This is made for the benefit of the company and its management.
Thus, there is been seen that there are major important remedies given to the shareholders
in order to make the profits and also to maintain the growth and establishment. In case where
North Holdings Ltd. v. Southern Tropics Ltd,court has observed that their has been given the
rights to the shareholders in which they manage all the breach and the determined areas through
which directors and their working is managed. Court held that all the value of the business will
be unfair on any illegal activity.
Irvine & Ors v. Irvine & Anor, privy council held that minority shareholders rights are
considered to be validated by the implications. And there is been seen that all the legal rights and
the shareholders duties are considered to be managed and imposed with the nature and the
working.
CONCLUSION
It is concluded from the above report that, business managers are important person who
try to manage and hold all the decision making and also regulating the directions and
management of the company. It provides the methods in which the company can be managed and
also of various types they are like, sole proprietorship, partnership,Limited liability partners and
many more. The sole traders are the person who handle all the business by themself and creates
and manage various rights. Some advantages are like all the decision making is being given to
the owner and the disadvantages are like it considers to have unlimited liability. Further it is also

analysed that contract consider essential elements in which offer and invitation to treat helps in
framing the terms and agreements. Shareholders have the rights which can be used we=when the
remedies are taken in record and their will be seen that derivative claims, exclusive liabilities and
other ratification and many more. They can also manage and take important decisions like to take
actions against the directors of the company for any kind of breach.

REFERENCES
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