Business Law Report

This report examines various aspects of business law, including sources of law, the role of government in lawmaking, and the impact of company, employment, and contract law on business operations. It explores legal solutions for business problems, such as liquidation, insolvency, and alternative dispute resolution (ADR). The report also provides a critical evaluation of the English legal system and its effectiveness in addressing current changes and developments.

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Sources of law and particular law that organization must comply with................................1
P2 Role of government in law designing and its application in justice court.............................2
M1 Effectiveness of legal system in terms of current changes and developments.....................5
D1 Critical evaluation of legal system and law..........................................................................5
TASK 2............................................................................................................................................6
P3 Impact of company, employment and contract law upon business.......................................6
M2 Examine the desired impact of regulations, legislation and standards.................................7
TASK 3............................................................................................................................................7
P4 Legal solution for business problems....................................................................................7
P5 Justification for using suitable legal solutions.......................................................................9
M3 Positive and negative impact of legal solutions to business issues....................................10
D2 Determine the use of suitable legal solution in compare with alternative legitimate advice
...................................................................................................................................................11
TASK 4..........................................................................................................................................11
P6 Recommend legal solution based on district country system..............................................11
M4 Effectiveness from suggestion............................................................................................12
D3 Pros and cons of recommendation......................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Business law consist of different norms, rules, acts, regulations and amendments which
mainly applied on the corporate world at the time of smoothly running of business. This will
support in different manner such as protecting innocent customers and exploitation on seller's
activities. The main motive of this legitimate authority is to develop that country where no
unlawful functions are conducted in order to maintain the harmony and peace in every place. The
assignment is mainly addressing different laws that is used by corporate organization while
organizing business activities in proper manner. The report is divided into four parts for
determining legal solutions which can be used by company to solve major issues and problems
that will occurs in an enterprise (Kariyawasam and Low, 2014). In addition to this, an effective
memo is designed for analysing the appropriate suggestion to required people. The main purpose
of this project is to understand various region of law that includes method of designing law,
regulations, norms and rules which directly impact on various acts developed by legal
authorities.
TASK 1
P1 Sources of law and particular law that organization must comply with
Law define the common rule of human behaviour in state. It applied to all country people
and states. The source of law are point of legislation, developing regulations and rules that help
in governing the specific region. Main source of governance in the UK is a common law,
administrative legislation, case law, etc. The main roles and responsibilities of the company is to
perform various activities by following all rules and legislation in better manner. English system
is the process of measurement system which can be used in various nations. It is the common law
legal system of England and Wales that comprising in criminal and civil law and its each branch
has separate court and procedures. The United Kingdom parliament formulate legal bodies which
are play an important role in reducing the illegitimate activities which occurs in the workplace
(Kraakman and Hansmann, 2017). Their main objective is to protect common public from
exploitative functions that can restraint their regular life different way. Along with this, it is
helpful for whole corporate world in several manner that includes protecting against violence by
implementing various legal laws at the marketplace, reducing child labour activities from
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workplace, law and regulations that are promoting various products in the society and
formulating the community by providing best opportunities.
Therefore, it can be examined that company need to consult with various sources while
making effective acts for people development and also going through specific procedures. There
are different methods of laws which are described as under:
Constitution – In every country, there are separate fundamental law that has to be
designed on the basis of specific terms and conditions for providing equal rights to the general
people. It is also called as constitution law of nation that is mainly divided into different sections
for evaluating a person's behaviour and needs (Macaulay, 2018). Along with this, it will assist in
examining the demand of people and fulfil according to the legal act. For example, there are
various general laws such as employment law, safety law which are designed by constitution
because they are necessary for common people living.
Case law – According to this source, it is evaluated that there are huge number of cases
that occurs in the workplace due to happening of issues and problems that can affect on people in
different manner. Therefore, it has been analysed that judgement of past cases help in dealing
with complicated case by providing right direction. The legal authorities are developed for
making suitable law which is based on some acts in order to overcome with issues or problems.
For example, as per making judgement of Aslam and Atif case, court judge are taking reference
from the previous cases before giving any decision because this will help in making appropriate
decision in easy way.
Executives – The higher bodies of authorized team are also known as executives like
president and other government officers who involves MPs, MLA and so on. Apart from this,
corporate executive is considered as origin of law because they are liable for formulate any
beneficial legal bodies. In addition to this, final approval of legislation is provided by them and
officers are determined for getting their permission for acquiring maximum opinions or views
regarding particular area (Means, 2014). For example, if there is any major argument held
against certain current topic such as harassment so executive are right is to make a law regarding
such crimes as per the demand of common people.
Primary legislation – It is the common term which is used for describing the main laws
which passed by the legislative bodies of the United kingdom. This is also known as statutes and
it is the legislation which enacted by Parliament.
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Secondary legislation – It is also called as delegated legislation in which all the forms of
legal laws are not Acts of Parliament. This is similar with the administrative law in the United
States. Secondary legislation includes regulations, directives and decisions by councils or
commissions. It is made by bodies under the authority of parliament and they take the form by
laws, statutory technique and order of council.
EU law – It is a system of law which is specific to the 28 members of the European
union. The decision to join with EU define that in some instances, united kingdom passed the
power or authority to the Europe for develop a laws in some defined areas. EU is essential
because it make sure about large number of population should be treated in equal manner.
Superiority of Parliament – In every country, parliament is the supreme law developing
body which make regulations, rules, norms, etc. for the welfare of people. It is the supreme law
as parliament is sovereign, so legal law is passed by parliament which is superior with all other
sources of law.
P2 Role of government in law designing and its application in justice court
In every nation, government will play an essential role in developing legislation and their
execution are useful for community, people and business organization. The member of
parliament's main duty is to develop various laws and legislation because parliament has ability
that can be used by members for protect their country from various criminal activities.
Parliament is the main body of the legislative bodies in the UK. As per the scenario, the client try
to understand English legal system and need to acquire depth information or knowledge about
legal system. House of Lords and House of Commons are formulated parliament effectively. At
the time of making legislation or policies, firstly they need to take permission of member of
parliament before presenting proposal in front of assembly. Law making is the procedure of
legislation which develop legal rules for providing accurate direction for smoothly running of
business operations and its functions (Posner, 2014). It can make modification according to the
situation occurs in given time period. Along with this, there are different steps which is required
to follow for formulating legal law by taking views of member of parliament. These steps are
described as follows:
Problems arises on agenda of authority – UK government is elected by the country
people. In this, there are different issues which describe the agenda of authority so it is important
for them is to highlighted with the help of member of parliament as well as House of Lords. It
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assist in solving major problems that are associated with legal system. The House of Lords and
parliament perform their duties and roles along with objective of developing law for taking
support of government.
Opinions regarding eliminating issues – In this, the role and responsibilities of hose of
lords and parliament is to provide appropriate solution of related issues of bills that are proposed
by authority.
Reference of concerned individual – This includes collecting required advise and
opinions of different experts which help them in evaluating issues and carry out effective
solution for designing a bill (Robson, 2015). This includes providence of two papers that
includes:
Green paper – It define as pro-forma of bill which is proposed by government bodies. It
involves various rules and regulations that is made by authority. This type of bill is present in
front of parliament which main aim is to getting consent of assembly members. They have right
to present their opinions and views regarding bills and this may required suggested changes for
making law in more successful way.
White paper – This is the document that consist accurate data and information along
with necessary solution given by government as per providing right direction from experts and
professionals.
Cabinet minister takes proposal forward – This step includes selecting best bill of
proposal. For sanction such bill, it is necessary to vote in favour of majority people of legislative
assembly. After passing of bill, it further passed in committee that are fully authorised for
making draft of law (Rutledge, 2014).
Proposals are develop into bills – After that, they are taking approval from cabinet
regarding bill, the minister have power to make a guideline so they can easily executing under
the bill. For this, they are appoint lawyers and experts for carry out essential principle from the
passed proposals as per the providence of authorities and it also provide into detailed legal laws.
Parliament consider and scrutinizes bills – This includes a procedure of scrutiny and
consider the member of parliament and house of lord.
Parliamentary stages- It involves various steps which need to be followed by the
parliament members.
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First reading – In this, the described principle of bill are reading and distribute such
copies to all the members of parliament.
Second reading – In this stage, discussion among MPs about the rules which are
mentioned under the bill and complete with conducting voting in favour or against of proposed
bill. Then the bill is passed through house of lords to other stages if bill is making any
controversies.
Committee stage- In this step, required alteration are suggested by commission after
presenting the bill. House of lords are taking participation in these stages which give vote for
proposed modifications.
Report stage- In this, united alterations are communicated with all the member of
parliament and it provide an ideas and opinions to them for any further changes which are
develop proposed bill better.
Third reading- It is the last step in which bill are passing after some discussion and
debate conduct as per the principles of bills and finally voted.
England statutory comprise Parliament Act which is one of the most authorized
regulation. Both statutory and common law are implemented on justice authorities. These are
described as under:
Common law – The legislation involves with making new decisions that are developed
by justice court. Along with this, decisions are formulated in the form of judicial representative
and appellate courts. It is based on principle and custom of community that can be used by court
while giving case decision in various situations (Vagts and et. al., 2015). Such decisions set a
preceding which can be applied for the future cases in same manner.
Statutory law – This is the formal authority of legal system that involves written law.
Along with this, it is that law which is created by authority for smooth running of legislative
procedures. This law is also known as administrative and regulative laws which are passed by
executive agencies, common law and is developed by prior court judgement. On the other hand,
this legal law allow judges for making decision as per the review of previous cases in suitable
manner.
There are various types of government agencies which has major rights to issue the
statutory legislation. Basically, court judge decisions are mainly depend upon statutory and
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common law. In this, judges will incorporated case preceding and written statue while issuing
ruling.
How statutory and common law is applied in the justice courts:
Parliament develop the laws but it is the roles and duty of court for interpreting the
parliament. They have to measure creation and discretion power in this manner where they
interpret the legislation. In the case law, Judicial precedent refers to the procedure in which
judges are follow past cases for making decisions. Doctrine of precedent is mainly concerned
with decision related to the earlier cases which applied in the subsequent cases. Most of the cases
are similar facts which are treated as same by the judges while making decisions. The decision
made in the higher court level so this can carry out higher weight for bound the courts but still
supreme court decision are most binding. It will help in providing uniformity and predictability
in the law. On the other hand, judicial decision is the form of legal opinion and ideas written by
court judges or judicial panel assist in resolving major conflicts and disputes that help in making
appropriate decision.
Classification of courts:
Criminal and civil courts – In this, criminal determine innocence or guilty as per the
criminal law and it dispense punishment accordingly. Civil mainly deal in solving major disputes
between individuals and giving appropriate remedies.
Trial and Appellate courts – Trial court is also known as district courts and in this cases
only affect the people who involved in the case. On the other hand, federal appellate courts also
called as courts of appeals and cases can be appealed to the supreme court.
Superior and Inferior courts – A superior court is comparative to the court with the
limited jurisdiction that is confined to civil cases which involves monetary amount of specific
period. The superior court can hear the request from lower assembly. The inferior court is the
court of limited jurisdiction which should be appear in the face of their proceedings.
Civil courts – Hierarchy
 Supreme court
 Court of Appeal (Civil)
 High court
Criminal courts – Hierarchy
 Supreme court
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 Court of Appeal (Criminal)
 Queen's Bench (High court)
 Crown court
 Magistrates court
Court are developing various legal laws, rules and regulations for the need of common
people. They are make legislation for managing and maintaining whole country systems in the
proper manner. After that, they provide effective remedies to the not guilty people and sanction
are penalties or other means of enforcement which can be used for giving incentives for
obedience with the law along with major rules and regulations. In the criminal sanctions, they
can take form of serious punishment which includes corporal, capital finance, severe fines
imprisonment. It can be seen that parliament is the supreme law which develop body in the
country. This is the ultimate law as a parliament of sovereign so legislation passed by parliament
is superior than the other sources of law.
M1 Effectiveness of legal system in terms of current changes and developments
Legal system is effective in which they need to make proper changes and development of
nation. In this, court judges does not bias and conduct fair proceeding that involves identifying
prevailing value of society and common rights of a person. Along with this, it will play an
important role in their current development and make changes in their legal rules or regulations,
beliefs and norms that are adopted and is used by different business concern for developing
healthy and friendly surroundings (Vagts and et. al., 2015). In this, legislation is useful for
making appropriate modifications in the nation' development and increasing rate of growth.
D1 Critical evaluation of legal system and law
As per the above described sources of law and role of government in making appropriate
decision which is equally accompanying with each other. This law can be enforceable in this
case which can be passed by house of lords. The common law has power to protect a person
from such type of dishonourable matters. It can be seen that most of the cases does not resolve in
case so they need to solved it by using accurate legal policies and strategies. An individual need
to follows all the legal terms and conditions which are made by authorities in order to protect
their dignity.
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TASK 2
P3 Impact of company, employment and contract law upon business
The corporate world require to follow various important legal laws which help in
managing probabilities of unlawful activities. Therefore, contract, employment and company law
has mainly impact on business operations and its functions in different manner which are
described as under:
Employment law – There are various acts, rules, regulations and norms that can be used
by firm for protecting their employees rights and responsibilities. For instance, under the
employment law each worker has entitled with certain terms and conditions that includes equal
remuneration act, equality among all staff member, equal pay act and so more. Along with this,
before appointed a candidate by organization they require to design an effective policies and
plans for the betterment of staff (Allen, 2017). This will help in promoting retention of
employees at workplace and it maintain the optimistic relation among workers and top
management. It can be analysed that employment law affect every business concern because
company directors require to design their firm plans and policies as per the demand and
requirement. As per this case study, Chukwuyedi has right to go anywhere and also talk to
anyone, Adebonojo does not force him what to do as a owner. Chukwuyedi belongs to Lagos
area and he has personal life so he can survive with his own choice and talk to anyone.
Adebonojo does not force Chukwuyedi is to serve or treat anyone who belong to Lagos area. By
this, he refuses and resign the job due to lack of freedom in the organisation.
In this section, Adebonojo does not provide equal right to the Chukwuyedi but he forced
him to not talk with the Nigeria people because they are not deal with him in proper manner. As
per the Equality Act, 2010 they need to prohibit the racial discrimination in the work place.
According to this situation, Adebonojo has no right to said with Chukwuyedi who are belongs to
the same village where their manager are go and does not treat good. Chukwuyedi need to know
that when someone treat him badly because they complaint about discrimination to the higher
authority.
According to past case of “James v Eastleigh BC [1999]” in which the council provide
free swimming services or facilities for the old age pensioners. The qualifying age was 65 for
men and 60 for women. Due to 61 age, Mr James would receive the same free swimming
facilities as his wife. As per this case, they are divided the category of people who are under the
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age of 65. On the other hand, “Weathersfield v Sargent [1999]” in this Mrs Sargent get a job at a
Weathersfield for hire a car company. She told that firm which has special policy regarding
coloured or Asian people and she was horrified by this policy and resigned. In this, they are
claimed constructive unfair dismissal for race discrimination. Along with this, constructive
dismissal occurs when employee resign as per this resultant manager developing hostile work
surroundings. In the case study of Chukwuyedi, he need to claim constructive dismissal and have
a claim under the Equality Act, 2010.
Contract law – In this, agreement means a formal contract between two parties on the
basis of legal terms and conditions. There are different types of contracts which are incurred at
the workplace such as signing of new project with competitors, appointing new workers,
businessperson and various other things in which company are get involved in contract.
Therefore, it is required for company is to determine different components of agreement that
includes offer and acceptance, absence of minor, contract among both parties and required terms
and conditions (Baporikar, 2015). If there is lack of such elements, so firm can determined this
as a legal issues and it occurs chance of fraudulent activities for future time period. Thus,
contract law assist company for acquiring free from various issues that maintain the formal
relation with the third party. According to the case scenario, Adebonojo has introduced a new
export and import department in West Africa where he sells £200 per container. Bob offer him to
purchase 7 container at the rate of £1400 and he accept the offer. But Bob breach the contract
due to delay in delivery of products in given time period.
As per the Consumer Rights Act 2015, the goods should be satisfactory in quality. In
order to ascertain the goods are a satisfactory quality that includes description of goods, price,
appearance, safety and durability. The delivery of goods refers to providing possession of
commodity to the consumer in which they does not refer to the situation where products are
dispatched to the consumer. Such rules and regulations replace the default requirement under the
Sales of Goods Act for delivering goods at affordable time.
According to section 28(3), there is an agreed time period where contract is to be treated
as certain terms which should be follow by trader for delivery of goods. In this case, Bob provide
offer to the Adebonojo but he is delay in delivery of product after 30 days so this will treated as
breach of contract. This situation directly impact on business growth and development in
effective manner.
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As per the section of 25 (6), if trader fails in delivering the goods in given time or 30 days
so there are various things happen such as: If products required for the consumer so they need to
agreeing the trader before buying goods or it was apparent from the circumstances, either trader
refuses the delivery of products. Second is consumer may specify the further delivery of products
that should be appropriate for taken into account. Either consumer may treat the contract at the
end or receive the refund money. On the other hand, if consumer specifies the second period and
trader fails in delivery of goods for the second time so they may treat this contract as end or
receive the funds. Bob is the trader who offer other party to provide less price product in good
quality so he are agree on purchasing such type of goods but he fails in delivery of commodities
which create issue among them. As per this case, Bob does not delivery the goods at the time so
Adebonojo can breach the agreement or receive the funds capital. Because he promise to deliver
specific goods within 30 days but does not able to provide same at given time period. It can lead
towards end up the agreement or contract due to this situation.
Under the Sales of Goods Act 1979, all products should be satisfactory in quality, fit for
purpose and as described. There are various following standards are under:
 Satisfactory quality – In this, products must not be damaged or faulty when they are
receiving to their customers. Bob require to deliver quality based products to the
Adebonojo at affordable rate.
 Fit for purpose – The commodity should be fit to purpose so they are supply products
and its purpose are developed for knowing to the seller before they agreed for purchasing
the goods. The main purpose of Adebonojo is to accept Bob offer because he is providing
less price good in same quality.
 As described – The commodity or products should be match with any description which
are given at the time of purchase.
The previous case of “Abouzaid v Mothercare (UK) Limited” in which late delivery of
goods issue is occurs which very unreasonable. In the case of Adebonojo accept the product offer
from Bob but he is unable for delivering a goods and services in given time period. On the other
hand, if they are not supplied goods so seller require to return the money of product.
Company law – The legal bodies has enacted with number of laws for corporate world
that includes corporation act 2003, that help in smoothly running of business with follow all
terms and conditions set by European law. For example, while beginning any business an
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enterprise require to follow relevant registration procedures which assist in elimination issues.
Company act 2006 refers different things such as maintaining the roles of directors, provide
rights to shareholders and also change the burden of management that can carried out by
organisation (Beatty, Samuelson and Abril, 2018). As per the case, Adebonojo has operating and
regulating freighting cargo business which headquarter is located in UK and for expand their
business they decide to develop new brand in the shipment industry.
Adebonojo need to take such steps which assist in establishing an organisation under the
companies act 2006. Before taking these steps they need to bear all issues and restrictions in the
mind while creating and naming their company. Because this will directly impact on business if
they are not follow such registration steps in proper manner. Adebonojo need to have their own
separate legal personality so they are liable for firm debts and liabilities. Firstly, they require to
register the company under the Companies Act, 2006. after that they need to fill all document
related to business operation. There are various documents which must be completed such as:
 Memorandum of association (S8) - Adebonojo require to subscribe their name on the
memorandum.
 Application for registration S9(2) – It states that firm general details and information
includes its proposed name. Address of registration and described it is private company.
 Article of association S9(5)(b) – It involves company rules and regulation which is not
essential if Adebonojo decide to use the article model.
 Statement of capital and initial shareholdings S9(4 and (10) – It states the firm share
capital and shareholdings. There are various small companies which have minimum share
capital for example, as per this case, Adebonojo have small amount of share capital for
running the business.
 Statement of proposed officers S9(4)(c) and 12 – This is estimated that Adebonojo is
the first director of the firm so their name, address and consent to act must be involved.
 Statement of compliance S13 - Adebonojo state that all the registration document to be
completed and register must be taken this data as a evidence or proof.
Naming of company:
When naming the firm Adebonojo should be advised in the following manner:
 As a private company, organisation's name must be end with “limited” or 'Ltd' under the
Companies act 2006.
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 Secondly, firm must not be registered if its name would be represent an offense or be
offensive.
 Adebonojo company name must not be same with the other existing organisation.
 For avoid this issue, they require to check the register companies under the companies
house websites.
 Once firm is registered, then there are various responsibilities such as annual accounts
and annual report should be filled at Companies House.
M2 Examine the desired impact of regulations, legislation and standards
Under the business law, there are various legal rules and norms which are developed by
authorities to comply with an organization for smoothly running of business operations in the
large competitive market. Regulations involves clear standards and instructions that are framed
by legal bodies. This type of laws are directly effect on the presence of the company and it
directly impact on their current position at the market place and also it will comply with required
legislation and laws. Along with this, it is required for firm is to ensure that all major issues and
problems are occurs after converting small business into public ltd.
TASK 3
P4 Legal solution for business problems
A legal principle is the framework which set rules, regulations, norms and procedures in
the law. The legal system is comprise with norms and legislation which develop for dealing
with different issues that occurs in the firm. The legal principle is the concept or value which
provide guidance for evaluation or behaviour. As per the case study, Akbar Abdi are making
contract with Dean Rizvi Ltd for developing new computer program in DVD format. John
White who design the program but unfortunately he falls ill due to working on it. As per the
law, it is the right of John is to acquire accurate portion of amount for designing a program from
Dean Rizvi Ltd.
Liquidation – It define as the effective procedure which is simulated through creditors
of shareholder for gathering specific order from higher authority of court. In simple words,
when any business is going towards the winding situation so this is determined as liquidation.
This particular process is executed in the case of firm which is not able to operate their business
in better manner (Besley, 2015). They are getting appropriate amount of capital from previous
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year. It is required to determined various ways in which company select liquidation procedure.
Some of them are discussed as under:
Voluntary liquidation – In this process, it is not necessary for business is to charge any
petition in any courtyard for shutting down the occupational activities. They only require to
request for cancelling of registration that occurs along with the company name. The board
member of organisation are calling for a meeting after that they decide to winding up of
business.
Compulsory liquidation – In this case, company is declared insolvent which is also
known as facts and figures which help in smoothly running of business. It means that they able
to issue amount to their creditors. Creditor has power to file petition in the court while close the
business of particular firm. In the case of liquidation procedure, the main purpose is to sell
assets and repay all the amount to their creditors and shareholders. In every financial institution,
lender are taking vital decision for measuring the total amount so they can earn amount by sale
of assets (Boles, 2014). According to this case, bank are the major creditor which is owned
around £4,50,000 of the Dean Rizvi Ltd and their premises valued at £4,00,000. In this, all the
creditors are consult with each other at the time of winding up procedure. Dean Rizvi main aim
is to sell the program for improving their financial condition or solution in proper manner.
As per the described case study, it can be analysed that Dean Rizvi Ltd has collecting
capital through different sources or methods. In this, creditor is one of the person who invested
maximum amount for developing business operations properly. After the completion of
procedure, they are capable for generating huge amount of capital which considered as profit.
Dean Rizvi developing new computer program in the DVD format and its design is made by
John White. But unfortunately he falls ill and does not continue the work. The company main
purpose is to sell the program for improving its financial condition in proper manner. After
completion of liquidation process, the firm require to develop valuable search in the context of
Dean Rizvi Ltd which are able for meet with defined roles and responsibilities in better manner
for getting final solution.
Insolvency Act 1986 – According to the section 45C it is considered as one of the
essential act of parliament which can be used as legal base for finding all types of issues that are
complying with personal and corporate world (Brown, 2015). It is considered as legal terms
which can describe specific condition of debtors for pay their amount. There are various ways
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which deal in insolvency situations that are described as under:
Sell company assets – It is important for firm is to analyse their whole capital, whether
they are paid amount by selling its premises. As per the case study, Dean Rizvi Ltd company
are continuously going down as per the result, they are winding due to huge credit amount on
business and for this he sell premises which valued is £4,00,000. it is the best option for sell out
all assets to pay debts.
Take an another job – It is vital for firm owner is to manage work and get additional
job for earning maximum amount of capital.
Positive aspects – In this case, creditor has acquiring great chance for earning their
invested amount with the help of filing petition against organisation (Cleaveland, Dutcher and
Epps, 2015).
Negative aspects – In dean Rizvi Ltd, they are close to winding up their business
operations and its functions for paying amount to their creditors.
John White designed the program but due to its illness he is not able to continue this job any
more. The status of John as a creditor is that he has incurred costs and expenses of 22,000 euro
from the Dean Rizvi Ltd for their design. In this case, there is issue related to priority of
contract in which firstly they need to distribute amount to the John who prepared the program.
But due to illness of John, they are transfer all roles to the Dean Rizvi who introduce the
program in the market.
Privity of contract involves general rule, third parties and harsh rule. The doctrine of partial
performance is the execution of part of agreement. As a common rule, partial implementation of
divisible contract can be determined as acceptable but indivisible contract should be executed in
full for payment. The partial performance may provide relief in which contractual duty or role is
accepted by innocent party. John is not able to continue with making the program but he is
liable for gaining desired payment. John need to use Doctrine partial performance in which a
person whose idea but does not perform remaining activity at the continue basis. If Dean Rizvi
refuse to pay money for their design so he claim for work done on quantum meruit basis.
As per the case study, Dean Rizvi is the liquidator who and owner of the firm which collect
debts. She perform function for collecting all company assets and distribute such as per the
priority of paid amount under the Insolvency Act, 1986. the common order of priority of
payment are as under:
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 Secured creditors with fixed charge (donald bank)
 Expenses of liquidation
 Preferential creditors
 Secured creditors with floating charge
 Unsecured/ordinary creditors
 Deferred creditors
 Members
Secured creditor are getting benefit with the fixed charge such as Donald bank who are in
strong position and their security is sufficient for satisfying their debts which is not required in
the liquidation. Donald bank need to realise the security that is cover the 200000 euro debt and
it is prove in the liquidation for the remaining 50000 euro.
P5 Justification for using suitable legal solutions
It is vital for most of the organisation which support in developing planning between the
business so they can easily deal with various types of problems which affects internal division
of the firm. It can be analysed that all the business are acquiring accurate results that are liable
for the development of resources in better manner.
Law of contract- It is one of the reliable agreement which is develop among two parties
to perform their services in proper manner. This can be observed that every contract is
determined as agreement, parties require to have intention for lawfully bound. As per the law,
company require to provide adequate amount of John for the designing of program.
Injunction – If a party is failed to combined with an injunction for dealing with
criminal or civil situation which are providing best possible outcome. Dean Rizvi need to
provide all debt amount to the Rbank by selling its premises (Devine and et. al., 2017). There
are various kinds of injunction are mentioned under:
Preliminary injunction- It define as that type of benefits which will provided to the
parties on trail basis.
Temporary restraining order- It is limited in scope and time. This can be used
according to the court orders for solving specific case and whether they grant any preliminary
injunction.
Permanent injunction- It can be analysed as one of the essential aspects which has
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been taken account as valuable part of any agreement.
M3 Positive and negative impact of legal solutions to business issues
Impact of rules Legislations Standards
The rules and norms are
formulated by company.
Such are developed with the
parliament and country
authorities.
Such are formulated by
committee members.
It directly impact on long term
investment of the firm.
When company does not
follow legal laws then
government can file the
penalties.
This provide data and
information are affect on
business case of sustainability
standards.
Conduct accurate changes on
FLSA Exemption Revisions.
It affect on customers,
competitors, customers,
employment, environment and
so on.
Such things are not legally
bounded on parties.
D2 Determine the use of suitable legal solution in compare with alternative legitimate advice
English legal system is systematic legislating that is expand from external national
territories. Along with this, legislation is law which is formulated through legislature. The main
objective of this legal system is to develop positive surroundings and free from exploitation in
the corrupted society. Every nation has separate legislation which is different from each other. In
UK, legislation are developed with the help of parliament.
TASK 4
P6 Recommend legal solution based on district country system
Legal system is divided into three forms such as England and Wales, Scotland and
Northern Ireland. It define as the legal system management by the court of England and Wales
that are operating in both criminal and civil matters. This is the procedures for enforcing the
legal laws and there are various rights or responsibilities for managed in better manner.
Breach of contract is occurs when the agreement is not kept because on party does not
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fulfil all the legal obligations as per the terms and conditions. There is a conflict among AAD
fashion Ltd and Craig couture due to delay in delivery of products (Halliday and Shaffer,
2015). Therefore, firm require to execute ADR method for analysing all problems in better way.
There are three tools which are described as follows:
Mediation- It define as the element in which mediator help in solving various issues and
problems to transfer the message from one person to another.
Negotiation- This is the method in which both parties are settle disputes and agreement
is reached while avoiding conflicts.
Arbitration- Legal member or any professional individual require to appoint for
resolving occurring issues in proper way.
As per the case study, Craig & Sadie couture need to adopt arbitration method because it
will help in managing and reducing chances of issues. It is one of the major reason which assist
in implementing such method for maintaining decorum of corporation and also solve major
problems in effective manner. Both the parties are going towards arbitration for solving their
disputes due to delay in delivery of garments in given time period.
Alternative dispute resolution is the process for setting conflicts without litigation that includes
arbitration mediation and negotiation. It is the procedure which are usually less in cost and more
expeditious. Arbitration involves two or more parties who are faced with disputes that does not
resolve themselves, agree that some private individual can solve it for and for arbitration make
appropriate decision. Basically, arbitration provide opportunities to the other parties for settle
all their disputes using this method as result binding and enforceable. It is an agreement among
the parties which submit to arbitration all disputes which occurs and that may arise in legal
relationship. The arbitration contract should be writing. The requirement of an arbitration
contract must be in written which met by electronic communication if information still
accessed. Along with this, arbitration clause is a written agreement between contracting parties
which resolve all disputes. This type of clause is often contain within the major contract and it
may be concluded as separate agreement. There are various issues arises where underlying
contract involved the arbitration is considered as valid.
International Commercial Arbitration Agreement – It is a agreement which refer a present or
future legal conflicts to the arbitration. These contracts are divided into types such as refer an
existing disputes to the arbitration and such disputes are occurs in the future.
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Difference between institutional and ad hoc arbitration:
Institutional arbitration- It define as one of the specialised institution intervenes and
take role of managing the arbitration procedures. Every institution has set personal rules and
regulations which provide appropriate structure for the arbitration. The contract between two
parties will consist of arbitration clause that will appoint a particular institution as a arbitration
executive.
Ad hoc Arbitration- It refer as one which is not managed by an institution such as ICC,
LCIA, DIAC and DIFC. This method proceeding the potential for make flexible, cheaper and
faster than institution proceedings (Harner and Rhee, 2014). The absence of administrative fees
provides excellent incentives for using ad hoc process.
Subject Institutional Ad hoc
Administrative function Carry out all management
operations and functions.
There are no administration of
institution involved.
Fees and expenses Ensure arbitrator are appointed
and fees or expenses paid in
advance.
All the parties does not pay
fees and income of
management institution at the
cheap rate.
M4 Effectiveness from suggestion
As per the described case, Craig & Sadie couture need to adopt arbitration procedure so
that they can examine its matter and reach with appropriate solution. This decision is totally
reliable and free from any consent among both parties. Arbitration method is one of the effective
way for solving such type of issues by appointing third party. Arbitrator is liable for negotiating
the matters.
D3 Pros and cons of recommendation
The main advantage of using ADR procedure is more appropriate for both parties so they
does not have to go for any court hearing. The company adopt arbitration method for solving
various issues or problems (Devine and et. al., 2017). The major disadvantage is that they are not
satisfied with the decision which are developed by third party.
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CONCLUSION
From the above described report, it can be analysed that various information regarding
business legal regulations and rules. It is very important for company is to dealing with different
issues which directly impact on profitability position of the firm. They require to have proper
knowledge about different sources of law and role of authority for developing law. There are
various implication which mainly deal with several issues during expansion process. ADR help
in identifying major issues which occurs within an organisation.
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What is Business Law?. 2018. [Online]. Available through: <http://legalcareerpath.com/what-is-
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