Contract Law and Ethics: Essential Elements, Rights, and Remedies

BUSINESS LAW AND
ETHICS

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK ..............................................................................................................................................2
CASE SCENARIO 1...................................................................................................................2
CASE SCENARIO 2...................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Organisations, companies and business are bound by a contract like a simple statement of
terms which includes promises, obligations between the parties bound by the agreement. The
contract law of UK regulates legally binding agreements in England and Wales. English contract
law is a promise enforceable by law. Contracts happen between the parties in exchange for
something of value and it ensures that the interests of parties are protected legally. The cases of
Avril, Belinda and Charlie, Darwash come under this statute law(Austen-Baker, 2017). This
report will explain in detail about Contract, its essential elements and conditions which are
needed for the contract to be formed, about the rights and responsibilities under the contract and
the remedies for breach of contract.
TASK
CASE SCENARIO 1
Contract is an agreement between two parties. The agreement in contract gives rise to
obligations which are enforced or recognised by law. In a contract between the two parties, one
party makes the offer and the other party accepts it. It has a lawful objective which the parties try
and achieve by the contract and it tries to develop an understanding which governs their business
relationship(Carrick, 2019). An understanding of the contract law is essential for the smooth
running of a business.
Conditions and elements for framing a contract are Offer, Acceptance, Consideration
and Intention. A contract begins with an offer wherein one party is the offeror who proposes the
terms of an agreement and the other party is offeree. An offer is an expression of willingness to
enter into a contract on specific terms with the intent that it is to be valid and binding once
accepted and recognized by the party to whom it is addressed (Ceil, 2018).
When an offer is accepted by a party it becomes a contract/agreement. Acceptance is an
expression of assent to the terms of a contract. For an acceptance to have a legal effect it must be
communicated to the offeror.
The second element Consideration is important for a contract to be binding.
Consideration is “something of value” which makes a promise enforceable. Consideration for a
promise must be give in return for the promise.