Company and Commercial Law: Financial Compensation, Negligent Misrepresentation, and Legal Risks

Running head: COMPANY AND COMMERCIAL LAW
Company and Commercial Law
Name of the Student
Name of the University
Author Note

1COMPANY AND COMMERCIAL LAW
Table of Contents
Part 1................................................................................................................................................2
Financial compensation under Contract......................................................................................2
Issue.........................................................................................................................................2
Rule..........................................................................................................................................2
Application..............................................................................................................................2
Conclusion...............................................................................................................................3
Part 2................................................................................................................................................3
Financial assistance under tort of negligent misrepresentation...................................................3
Issue.........................................................................................................................................3
Rule..........................................................................................................................................3
Application..............................................................................................................................4
Conclusion...............................................................................................................................4
Part 3................................................................................................................................................5
Legal risks arising out of the non-performance of duty..............................................................5

2COMPANY AND COMMERCIAL LAW
Part 1
Financial compensation under Contract
Issue
To provide financial compensation or assistance to the aggrieved party for breach of
contract by Lloyd Right Pty Ltd, the contracting party.
Rule
When a party to the contract fails to perform as the terms of the contract, it amounts to
breach of such contract and in such situation, the aggrieved party may claim for damages or pray
to the court to quash the contract. In a contractual agreement, the terms are either express or
implied. The parties to a contract are bound by the express terms of the contract. In Pym v.
Campbell, it was held that the parties to the contract must know the importance of the expressed
terms of the agreement. In Hopkins v Tanqueray, it was observed that the parties the contract
must verify the terms of the agreement before entering into the contract and once such contract is
signed, it becomes enforceable on non-performance. In Oscar Chess v Williams, it has been
discuss that the express terms must expressly lay down the special skills of the parties that adds
up to the value of the contract. In Breen v Williams, it was held that special contractual
relationships would comprise of special duties on the party of the party responsibility to carry out
duties under reasonable care. The professionals have the implied warranty to carry out their duty
of care in such a way that it benefits the contracting party. However, in case of non-performance,
the party suffering the loss is eligible to claim damages under the common law of contract. such
damages would be payable depending on the amount or intensity of loss incurred by the
contracting party. Nevertheless, the defendant would still have several defenses to prove
innocence.
Application
In the given case study, James had told the manager of Lloyd Right Pty Ltd to arrange for
100 seating options in the restaurant along with the responsibility to get the permit of the place