Law for Business Managers

This document provides an overview of business law and its importance in regulating business activities and contracts. It includes case studies on contract obligations, promissory estoppel, frustrated contracts, and occupier liability. The document discusses the rights and obligations of parties involved in contracts and the legal consequences of breaching contract terms. It also explores the concept of occupier liability and the duty of care owed by occupiers to visitors. The case studies illustrate the application of legal principles in real-life scenarios.

LAW FOR BUSINESS
MANAGERS

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
A).................................................................................................................................................3
B).................................................................................................................................................4
C).................................................................................................................................................5
PART 2............................................................................................................................................7
Issue: ..........................................................................................................................................7
Rules:...........................................................................................................................................7
Application: ................................................................................................................................8
Conclusion:.................................................................................................................................8
PART 3............................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law refers to the body of law which regulated and managed the overall business
activity and also guides the business to enter into the contract in fair condition. By imposing the
business law in respect of attaining smooth working of activities, it results in securing the interest
of the people through undertaking civil and criminal liabilities when any illegal activity
committed (Wright, 2017). Thus, the main reason of imposing the business law is that it results
in availing the conflict between the employer and employee and also secure the right of parties
who are planning to enter into the contract for longer term gain. This report carries the three case
study which reflect the role of business managers in respect of attaining the particular task or
securing the interest of people towards the business.
PART 1
A)
Issue: In this case study, the issues is raised regarding doing the accurate task which is assigned
by the Sergio. As Sergio promises to pay his son Alexander if he opts the career of the solicitor
instead of wasting time of becoming the chef. As the deal is offered as €5,000.
Rules: Under the companies act, 2006, if one party offers valuable thing to another party and the
another party accepts such offer, they both enter into the contract by signing the agreement
(Howarth, 2018). Thus, there are various condition under the contract act such as:
 Parties must be competent to enter into the contract
 Before signing any contract, one party offer valuable things to another party and another
party accepts such things.
 The contract must be entered on the bases of the some considerations amount.
 The terms and condition which is mentioned in contract must reflect the true and fair
conditions.
Thus, in respect of one of the elements of the contract which states that intention to create
legal relation must be legally bound between the parties (Ulfbeck, Andhov and Mitkidis, 2019).
As the contract is legally bound until it not affects the rights of the parties to enforce any of the
contract which is not valid.
As per the case study of the Jones V Padavatton [1969] 1 WLR 328 court of appeal, the
case states as they both enter into the agreement which is related to domestic contract and the

decision is raised regarding not clarity in any of the terms. As Jones want her daughter
(Padavatton) to gave up from job and do the study of the bar in England (Jones V Padavatton,
2017). Later Padavatton feels that the money which Jones is offering is not sufficient to manage
her life in better way and thus not accepts such offers. This results in facing contract which is
related to not legally bound to follow the terms in respect of enforcing the domestic agreement.
Application: By applying this case study relevant to the recent case which states that if the
person is not bound to enter into such contract which not fulfil, their needs than in such case they
are not bound to follow such contract (Hughes, Champion and Murdoch, 2015). Thus, in case of
Alexander, if he feels that he want to become the chef and not preferred to choose the field of
solicitors, than he had full liberty to break the promise. As such promise is affecting their rights
and also under the legal intention of obligation regarding enforcing the contract, if any of the
terms are not clearer than the plaintiff carries the right to break the promise.
Conclusion: From the above study, the case reflect that the promise which affects the right of the
person are violated in terms of contract. As one party not accepts the offers which is given by
another person, then such contract is void and also not legally supported by any of the laws. In
this case Alexander carries the rights to break the promise if such amount not enough to fulfil
their needs.
B)
Issue: In these aspects, the issues is examined regarding paying extra salary to Liam regarding
skipping his lunch when necessary for three months. To accomplishing such task the deal is
offered for €500 for three months.
Rules: Under the contract act, the one part which is related as promissory estoppel are examined
under the contract. As in this, the promise is made to the other parties in addition to the formal
consideration which is fixed in the contract and such contract is performed on some specific
situation (Bainbridge, 2017). Under the promissory estoppel it carries various types of elements
such as:
 Legal obligation which is set by the promissory is to be modified timely;
 Their must be clear or unambiguous promise which is to be performed during the
duration of the contract.
 When the changes occur during the position of time or the prices.
 As estoppel mainly imposed in respect of not going back which is set as their promise.

Thus, in this the clear and unambiguous promise is to be set which reflect the actual
situation which is occurring in business and also the promise which the owner maintained in
respect of fulfilling it in the future (Mason, 2016). The case study which is related to the
Woodhouse A.C. Israel cocoa Ltd V Nigerian Products marketing Co Ltd [1972] AC 741, as the
agreement is made regarding sale and purchase of the coffee beans and the agreement is settled
regarding the payment in the Nigerian pounds (Woodhouse A.C. Israel cocoa Ltd V Nigerian
Products marketing Co Ltd [1972] AC 741, 2019). The seller by mistakenly sell the products in
the Kenyan Shillings. During the accepting the promise, the prices of both the currency is same
and thus buyers accepts the delivery and invoice Without any objection. Thus, in this case the
issues is raised regarding decreasing of the pounds value which latter demanding the acceptance
of the Kenyan currency. The court judgment regarding not accepting the case as the buyer had
clear and unambiguous accepts the promise.
Application: In the case of the Sergio V Liam, his secretary, the clear and ambiguous promise is
made by the Sergio regarding giving extra payment in addition to the formal consideration
regarding not having lunch when necessary for the three months. As this is the clear promise
which is made by the owners regarding getting extra payment for skipping lunch (Dicey, 2017).
Similar to this case study which reflect that there is no breach in any of the terms and the party
accepts the promise as per their own capability and needs.
Conclusion: This study concludes that the promise is not imposed upon Liam to follow it, or
legally bound to work according to the set norms. It is the clear promise which is made by Sergio
and the condition is mentioned that if necessary Liam had to skip his lunch for three months. The
violation in terms occurs if Sergio not pay the set amount which is decided in respect of
performing extra work. In these aspects, the promise is made regarding skipping the lunch when
necessary as this promise is made for specific time period.
C)
Issue: The issues is raised regarding performing the special duty which is assigned by the local
newsagent in respect of delivering the newspaper in that area by 8 a.m. For one month and also
she manages to put the newspaper in the letterbox without tearing the letterbox.
Rules: As the contract is fulfilled if both the parties fulfil all the terms and condition in right
manner and also if there is breach in any of the terms, it can also be resolved as per the terms
mentioned in contract (Hjelmeng and Søreide, 2017). In respect of undertaking the matters

related to frustrated contract, it is examined that few things which is impossible to preform on
daily bases but the other parties forces them to get enter into the contract such contract is termed
to be the frustrated contract.
As per the case study of the Nicholl and Knight V Ashton, Elbridge & Co [1901] 2 KB
126, both the parties enter into the contract regarding transferring the cotton seed through ship
from Egypt to England (Frustation, 2019). As the cargo through which the goods are transferred
is familiar with the condition that goods not transferred within the stipulated time period. Thus,
in such case the frustrated contract is examined regarding not performing the contract within the
stipulated time period.
Application: By applying this case in the recent case it is stated that Natasha had normals
contract with the local newspaper in respect of delivering the services within the set stipulated
time limit. As the first condition which is mentioned by the newspaper is that the newspaper is to
be delivered by 8 a.m. for regular one month and the second things is that the newspaper must be
put in the letterbox without tearing (Deakin and Markesinis, 2019). This is considered to be one
of the types of the frustrated contract which is not necessary to be fulfilled within the set time
period. As this is set of promise which is made by the Sergio in relation to paying extra amount
as €10 which is delivery is made by 8 a.m. For one month. Thus, it results in affecting the terms
as nothing specific is mentioned in the contract and this is the additional contract which not
forcefully bound on Natasha to follow it.
Conclusion: Thus, from the above study, the matters reflect that this is such contract which is
made by Sergio with local newsagents in respect of delivering the newspaper by 8 am and also
the newspaper must be put in the letterbox without tearing. In such manner, this is the frustrated
contract as such condition is not fulfilled on regular bases and also if the newspaper is to be put
on letterbox without tearing, there are chances of destroying the paper and it can be unreadable.
Thus, through this manner, the contract are imposed which not carry any liability in respect of
fulfil it as per the stated terms and condition. In such way, the promise is not binding upon the
Natasha to fulfil it.

PART 2
Issue:
In this case study, the issue is raised regrading facing injuries during visiting banks for
personal use. As Samantha went to local bank, Extortionate PLC for applying the loan in respect
of starting the new business start up. After the work is accomplished, Samantha feels down from
the stairs and the results arises in respect of facing injuries in her hands and wrist. After few days
spend, one of the friends of the Samantha messaged her that she is not the only one who faces
such injury at bank premises, as lot more customer also occurs the same issues, and they filed
complaint against the Extortionate PLC to get compensation for the damages incurred.
Rules:
Under the law of Torts Act, the occupier liability is imposed which are regulated and
controlled under the Occupier's Liability Act, 1957. As under this act, they carry the liability in
respect of securing the right of person which are working under the company or also the person
to whom they are dealing business (Wood, 2018). Thus, in such act various elements are to be
fulfilled such as:
 Duty of care: As occupiers duty is to be inspected the places on timely bases so that they
protect the rights of the person before attaining any harmful activities.
 Breach: In case of breach committed by any such activity by the owners than they are
liable to pay compensation to the person for the losses incurred (Rodgers, 2017).
 Causation: In this case the causation or damages examined relating to actual losses
incurred. As owners is liable to pay damages for the actual losses which is suffered by the
person in respect of facing any injury.
But there is an exception to these rules that the children claims cannot be demanded by
the adults in respect of negligent occurs from their own side only (Monaghan, 2015). Also the
warning is to be given regarding not visiting to any such places and the person visited to such
places, then in such case the liability is not to be opposed against the occupier's in respect of any
losses incurred.
As per the case study of the Wheat V Lacon [1966] AC 552, this case states that the
Wheat and his family planned for the holidays in the Golfer's arms in great Yarmouth. Her
husband died due to falling from stairs and this resulting in hitting his head (Wheat V Lacon Co

Ltd, 2019). Thus, the suit is filled against the Occupiers, Lacon regarding paying compensation
for the losses incurred.
Application:
By applying this case in the present case scenario, the impact and issues are the same and
thus the liability of the occupiers are also identified. This states that the occupiers carry the duty
in respect of securing the right of the person who are visiting to their bank for attaining the work.
As in this case, the Extortionate PLC carries the duty in respect of protecting the person who
visited to their banks (James and Thomas, 2019). As the issues is not raised by the single person
as every person are affecting through this activity. Thus, if Samantha files the compliant
regarding facing injuries through this procedure, it is the duty of the Extortionate PLC to recover
the losses which is actually occurred by the applicants. Thus, the damages are recovered
regarding the actual injuries and losses which is occurred by the people through such procedure.
Conclusion:
Thus, from the above study, the matters which are concluded that under the law of torts it
carries various elements which is to be undertaken before examining the damages or losses
which is incurred to the defendants. The major aspects which is to be carried under the law of
torts is relating to the duty of care. As it is the duty of the occupier and owners to protect the
right of the employer and person who are visiting to their work premises for accomplishing the
task. Thus, if they face any of the injures, than it is the liability of the occupier to provide
compensation for the losses incurred. In this present case, the Extortionate PLC carry the right of
rectifying the stairs after facing so much of issues regarding getting injuries through using such
stairs. Thus, Samantha also carry the rights in respect of getting compensation for the actual
losses incurred.
PART 3
Issue: The issues is raised regrading undertaking the matters related to company as they may be
considered to be the legal entity or artificial person.
Rules: Under the companies act, 2006 it carries various rights and responsibilities which is to be
undertaken by the owner of the company in respect of dealing in certain task or activity to retain
in business for longer time period (Whincop, Keyes and Posner, 2018). Thus, corporation refers
to the group of the companies who act as the separate legal entity and bound to work according

to the set norms. They enjoy various rights and responsibilities which is governed under the laws
as:
 They carry the rights to enter into the contract
 They can sue any of the person in respect of not performing the rights in right manner.
 Corporation carries the right in respect of hiring the employees to attain the task as per
the given guidelines (Smith, 2015).
 They carry the liabilities to pay taxes in respect of dealing in any such activity to retain
in business.
As corporation are considered to be company but company cannot be considered as
corporation. As they are the legal entity which carried business in form of sole proprietorship,
partnership, limited liability company or any other corporation (Muhammad, 2016). Thus,
corporation is the artificial person that carry the right to take the same action as undertaking in
respect of group of individuals.
In case of Salomon v A Salomon & Co Ltd, Mr Salomon deals in preparing leather shoes
in a larger business and further his sons wanted to join the business and runs the business as the
partner in the firms. After verifying the interest of the son in the business, Mr. Salomon turned
the business into the limited company and purchased the business in excessive prices for its
values (Salomon v A Salomon & Co Ltd [1897] AC 22, 2019). After having reclining in prices of
the boots, the business fails and thus Salomon had to pay the money to the creditors regarding
not managing the business activities. As they claimed that business is the separate legal entity,
and he is not liable for any such losses.
Application: The judgment which is relevant to this case study, stated that corporation is
considered to be the artificial person in respect of performing their duties under following
aspects such as:
Rights: As if the corporation are treated as artificial person, they can enter into any contract but
not carry the rights in respect of group activity such as marrying with group, or vote in all similar
directions or running business by everyone (Wan, 2016). They carry the rights in respect of
treating every person to be the part of the business.
Responsibility: Corporation are responsible in respect of taking care of the individual action and
applying them to get better results.

Legal matters: If corporation deal in any such contract which is illegal as the other parties carry
the rights to sue the corporation or the corporation also carry the right to sue the other party for
such illegal activity (Roach, 2016).
Taxes: They mainly enjoy the taxes rates as usually corporation are charged less taxes in respect
of individuals.
Conclusion: Thus, it is examined that being as the artificial person helps them in managing the
overall activity but also had to work according to the set norms which is guided by the
government. It carries to be main feature which manage the integrity of the corporation in better
way by assigning the task and duties to be accomplished in right manner.
CONCLUSION
From the above study, it is concluded that business laws refers to the process of laws
which governs the overall activity which to be managed by the manager and owner of the
company towards the employer to retain this interest in business for longer way. It also carried
the matters relating to undertaking the duty of care in respect of dealing in any activity which
affects the right of the person. Thus, at last corporation is considered to be the artificial person
which undertakes various elements to fulfil their needs and working in right manner.

REFERENCES
Books and Journals
Bainbridge, S. M., 2017. Corporate Directors in the United Kingdom. Wm. & Mary L. Rev.
Online. 59. p.65.
Deakin, S. and Markesinis, B., 2019. Markesinis and Deakin's Tort law. Oxford University
Press, USA.
Dicey, A. V., 2017. Lectures on the relation between law and public opinion in England during
the nineteenth century. Routledge.
Hjelmeng, E. and Søreide, T., 2017. Bribes, crimes and law enforcement. European Business
Law Review. 28(1). pp.19-40.
Howarth, D., 2018. The Place of Tort Law in the Public Transport System: The Case of the
British Railway. Journal of European Tort Law. 9(2). pp.191-225.
Hughes, W., Champion, R. and Murdoch, J., 2015. Construction contracts: law and
management. Routledge.
James, N. and Thomas, T., 2019. Business law. John Wiley & Sons.
Mason, J., 2016. Construction law: from beginner to practitioner. Routledge.
Monaghan, C., 2015. Beginning Business Law. Routledge.
Muhammad, P. M., 2016. Book Review: Corporate Social Responsibility, Private Law and
Global Supply Chains by Andreas Rühmkorf. International Social Science Review. 92(1).
Roach, L., 2016. Card and James' Business Law. Oxford University Press.
Rodgers, L., 2017. Race Discrimination and Migrant Domestic Workers: A Legal Loophole: Lisa
Rodgers, Lecturer in Law, University of Leicester, United Kingdom. International
Labor Rights Case Law. 3(1). pp.116-120.
Smith, P., 2015. Labour under the law: a new law of combination, and master and servant, in
21st‐century Britain?. Industrial Relations Journal. 46(5-6). pp.345-364.
Ulfbeck, V., Andhov, A. and Mitkidis, K. eds., 2019. Law and Responsible Supply Chain
Management: Contract and Tort Interplay and Overlap. Routledge.
Wan, W. Y., 2016. The illegality defence in corporate law claims against directors and
officers. Hong Kong LJ. 46. p.225.
Whincop, M. J., Keyes, M. and Posner, R. A., 2018. Policy and Pragmatism in the Conflict of
Laws. Routledge.
Wood, S., 2018. UK airport operators’ liability for corporate manslaughter as a result of
terrorism: Will security management systems provide protection for the sector?. Journal of
Airport Management. 12(4). pp.412-420.
Wright, D., 2017. Law for Project Managers. Routledge.
Online
Frustation. 2019. Online. Available through:
<https://www.studocu.com/en/document/university-of-east-london/contract-law/lecture-
notes/frustration/3754021/view>.
Jones V Padavatton. 2017. Online. Available through:
<https://www.casemine.com/judgement/uk/5a8ff87960d03e7f57ec112c>.
Salomon v A Salomon & Co Ltd [1897] AC 22. 2019. Online. Available through:
<https://lawcasesummaries.com/knowledge-base/salomon-v-a-salomon-co-ltd-1897-ac-
22/>.

Wheat V Lacon Co Ltd. 2019. Online. Available through:
<https://www.lawteacher.net/cases/wheat-v-e-lacon.php>.
Woodhouse A.C. Israel cocoa Ltd V Nigerian Products marketing Co Ltd [1972] AC 741. 2019.
Online. Available through: <https://swarb.co.uk/woodhouse-ac-israel-cocoa-ltd-sa-v-
nigerian-produce-marketing-co-ltd-hl-1972/>.