Law for Business Managers: Contract Act, Companies Act, and Foss v Harbottle

Law for Business Managers

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART-1............................................................................................................................................3
PART-2............................................................................................................................................5
PART-3 ...........................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business law is the section of the code that mainly deals in protecting the rights and
liberties , maintaining orders and resolving the disputed that arise between the parties to the
contract. Every states has its own rules and regulations for every business organisation and it is
the responsibility of the business organisation to comply with the laws and regulation that is
applicable to their business. Business law is helpful in resolving the compensation related issues
as a result of employer violating the terms and condition of the employment contract. On the
other hand it also safeguards the rights of the shareholders(Graw, and et.al., 2019). Business law
also includes the rights and privileges of the employees, their workplace safety and the
minimum amount of wages to be paid the the workers. It is duty of the employer to ensure
protection and security of the employees working within the company. The report includes the
case studies associated with the contract act, companies act etc.
MAIN BODY
PART-1
The issue is related to the contract act of UK and defines whether there exist any
contractual relations among the parties in the given case study. It also states that whether the
party i.e. Beauty and Health Ltd . Company is liable to pay compensation to the defendant.
The present case study is regarding the contract act of UK. It is also referred to as English
contract law which binds the parties into the agreement. In order to enter into the contract, all the
essential elements should be fulfilled i.e. there should be two parties to the contract , legal
obligation, offer by one party and acceptance by other and the acceptance should be
communicated to the offerer(Rahman, 2018). The most important component of the contract is
the consideration which makes the contract valid and enforceable by the court of law. As per the
contract of law it estates that in order to legally binding the party into the contract there be an
offer made by the party i.e. it shows the willingness of the party to enter into the agreement in
order to receive the consent of the other party. If the contract act does not complete the desired
requirements then it is not considered as the valid contract. As per the current case study , there
exist no legal contract between the parties that binds the party under the contract of law. From

the present case study was analysed that in order to sue the party it is required to enter into the
contract i.e. offer and acceptance should be there but no such condition was fulfilled as no
contract was created between Beauty and Health Ltd and Karen which binds the party in the
contract(Twigg-Flesner, 2022). On the other hand there was no such communication of offer or
acceptance among the parties resulting in formation of contract so thus Karen has no right to sue
the company of the terms and conditions of the contract.
On the other hand it is observed that there was no offer made by the party and
acceptance of the other and neither communication of this was occurred. On the other hand it
was general offer that is made to all the public(Clifford, and Paterson, 2020). It has been
observed that there was no contract between both the parties that is no offer was given by the
company to the plaintiff. From the above analysis it can be said that in order to execute a valid
contract it should fulfil all the requirements of the valid contract act which was not present in the
present case study. On the other hand the contract act of UK also defines the terms of breach of
contract which states that when party does not deliver their part of performance or violate the
certain terms and conditions of the contract act.
The contract defines various provisions regarding the breach of contract but in the
present case study , plaintiff(Karen) is not entitled to sue the company for the breach of contract
as no contract exist between the parties to the contract(Boles, 2020). The party is only entitled
to to do where a valid contract exist between the parties. Apart from this in order to claim for the
damages due to the breach of nay terms of the contract , the non- breaching party should have
sufficient causation or proof on order to claim for the damages by the defendant (company).
Unless and until there exist valid contract among the parties , plaintiff is not liable for the
compensation form the plaintiff.
AS per the given case study it can observed that in order to execute a valid contract there
must be offer and acceptance which is not present in the given case study. Furthermore, no
communication was done between the parties hence no contract took place. In order to conclude
this it can be said that Karen has no right to sue the manufacturer for the breach of the contract as
it this case study does not fulfil the essential requirements in order to bring claim against the
company for the loss suffered by the party(Karen)(Graziano, 2019). Apart from this the company
can recover the compensation for the damage to the reputation of the company from the party if