Law for Business Managers

Law for Business
Managers (LAW011-1)

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Contractual obligation............................................................................................................3
PART 2............................................................................................................................................5
Negligence misstatement........................................................................................................5
PART 3............................................................................................................................................9
Solomon v. Solomon..............................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law is considered as the body of legislations which regulates the functioning of
the business and is also called the branch of civil law as it deals with both laws of private and
public issue. It is the wide ambit which covers many different types of laws in order to cover the
area of business which includes the contract law, company, property, data protection Act,
intellectual property rights and many other (Albrecht, Eidenmüller, Lembach and Mussmann,
2018). Every business is engaged in the day to day transactions which involves the contract or
agreement between them that may be in oral or written form. The contract law regulates the
agreement between the parties so that the aggrieved can claim adequate remedy under it. This
report is divided into three parts of which first deals with contractual obligation, second deals
with negligent misstatement and the third deals with significance of Solomon v. Solomon case.
PART 1
Contractual obligation
Case scenario
Ronan is managing director of the firm Funky Top Limited which produces and designs
the clothes for teenagers. Currently he is managing the renovation of head office of company and
is getting very much annoyed with pile of old furniture and carpets which have been removed
from head office and dumped simply outside. Ronan have noticed that some landscapers are
working outside the commercial property so he ask them if they would remove the old furniture
and carpets and put them in skip by the end of day. If they would do this he will give £50 each to
all landscapers. They removed the old carpet and furniture by the end of day and placed them in
skip but Ronan refuses to give them the money (Peterson, 2018).
The contract law
The English contract Act is the legislation which regulates the valid contract between the
parties. A contract is an agreement which comprises of the promise to do or not to do something.
It must include the amount of consideration in it. In UK, the verbal contracts are also binding and
has same relevancy as that of the written contract. It must have the offer, acceptance,
consideration and intention to create the legal binding agreement. However, there are certain
circumstances when the verbal contracts are not applied such as property purchase or consumer

credit contracts, etc. There are mainly four essentials of the valid contract which are narrated
below- Offer- It is a promise to do or abstain from doing anything. It is the offeror who makes
the offer to the offeree. Acceptance- The offer needs to be accepted by the offeree and it must be communicated
clearly to the offeror. The acceptance can be communicated either through email, postal
or direct communication. Consideration- It is the value of something in monetary form and is an important element
in the valid contract.
 Intention to create legal relations- It is not the requirement of statutory law, rather is
evolved from the common law from the case of Balfour v. Balfour where the court held
that in case, there is a commercial contract, the court takes the presumption that the
parties are intended to the creation of legal relations and in case of Social or domestic
contract, the presumption is raised that parties do not intend to create the legal relations.
In context to the present case scenario, the elements of valid contract are fulfilled. The
offer is made by Ronan to landscapers and they have agreed to perform the contractual
obligation. Then the amount of consideration is also present which is £50 each to all landscapers.
Now that it is the commercial contract, there is also intention of parties to create the legal
relations (Light, 2019).
In current case study, Ronan have offered landscapers to do some task and they accepted
it. Now when Ronan is refusing to give them the amount of consideration, it is the breach of
contract. Under the English contract law, the contracts whether made in oral or written form are
binding on the parties and no party can refuse to perform its contractual obligation. Here when
Ronan is refusing to pay the amount of consideration, landscapers have right to move to court to
claim adequate remedy.
The contract law offers many wide range of remedies in case of breach of contract which
includes the following- The damages which is the remedy available for the breach of contract. It is awarded in
order to compensate innocent party. The main aim of this remedy is to bring the party in
the same position in which it would have been if the contract was performed.