Remedy for Specific Performance and Corporate Social Responsibility
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This essay covers the remedy for specific performance, limitations imposed by the court, relevant case laws, and the extent of corporations taking Corporate Social Responsibility seriously.
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INTRODUCTION Law is a legal framework which comprises of rules and regulations applicable over the individuals or a group of individuals of a society. It keeps a check over the conducts of people or a group of them. An organisation or an institution which comprises of people with same interest who works together to achieve a set of goals, performs certain activities which are supervised by the authorized group of individuals of the country. Law is diversified into many streams such as contract law which makes sure that a promise which is enforceable by law is completed while complying with the terms mentioned in the contract law(Bag, S., 2018).Promises or a set of promises which results into agreement including consideration for both the parties, which is enforceable by the law is known as contract. There are few essential elements to make a valid contract such as, the offer and acceptance, both the parties should be competent to contract, legal intention of the parties, free consent of them and there should be legal subject and consideration. In this essay we will cover the remedy for the specific performance, the limitations imposed by the court, the relevant case laws and elaborate the extent of the companies to take Corporate Social Responsibility. MAIN BODY Specific performanceis a remedy in the law of contract, where a court issues a decree to a particular party to perform a specific act in order to complete the performance of the act. The specific performance is taken into consideration when the monetary damages are inadequate to fix the harm caused to the plaintiff. It is a remedy which is available for the breach of contract. For example, if a party refuses to comply with the contractual obligations then the court can issue a decree which will compel the party to perform the said obligations rather than asking for the monetary compensation(Dahm, L.L., 2020).There are certain limitations of this act which says that when the damages are adequate the execution of specific performance is impossible becausetheexecutionoftheaboveperformanceonlytakesplacewhenthemonetary compensation is not enough to compensate the innocent party. The other limitation is, vitiating factors which holds the power to cripple or cease the enforceability of the contract such as misrepresentation, undue influence etc. If these factors influences the case then the specific performance can not be a remedy for it because these factors will invalidate the contract and will force the defendant to compensate the loss suffered by the innocent party with sufficient
compensation(Gong, and et. al., 2021).The performance of the act is completely dependant on the court's decision because the court agrees to a point after considering arguable points of both the parties, the decree can only be issued for the above act when the judge finds it as an appropriate remedy. The relevant case law in which a decree was issued by the courtfor the specific performance wasNutbrown V. Thornton(1805),in this case a contract was formed to purchase some machinery but the delivery of the machines was refused by the defendant in breach of contract. As the defendant was the only manufacturer for the type of machine which was needed by the plaintiff. So the court issued an order for the specific performance of the act as the damages would be inadequate to compensate for the loss. The next case for not issuing the specific performance of the act as a remedy is,Cohen V. Roche (1927)in this case the owner of a furniture shop entered into an agreement to purchase the chairs but later the delivery was refused. Due to breach of contract the court ordered the defendant to compensate the claimant sufficiently through the award of damages(Gürlek, M. and et. al., 2019).A decree was not issued in this case for the specific performance of the contract as the award of damages were sufficient to compensate the claimant. In context to both the case laws, the court issued an order for the specificperformanceofthecontractinthefirstcaseasthedifferentremedysuchas compensation for the loss on the basis of monetary terms was an inadequate remedy because the loss of the claimant can only be covered by the specific performance of the contract where the court issued an order to the defendant to deliver the machines to the claimant and comply with the agreed upon terms. On the other hand the next case law states that the award of damages was adequate compensation for the loss suffered by the claimant so the court terminated the contract due to its non- compliance and ordered the defendant to compensate for the loss suffered by the claimant and put him back to the position where the claimant was before the contract was formed or put him into the position where the innocent party would have been, after the completion of the contract. Corporate Social Responsibilityis the responsibility of a group of people working as an organisation for the impact of its decisions and activities being performed by them on the society and the environment through the transparent and ethical behaviour which plays a vital role in the sustainable development which includes the health and the welfare of the society(Hesselink, M.W., 2020).Under the laws of the United Kingdom , CSR is not a necessary activity for companies but it is a voluntary act that has no act of parliament and is just made for the social
responsibility of the companies. Few examples of Corporate Social Responsibility in action are reducing carbon footprints, improving labour policies, commencement of NGOs, charity etc. TherearefourmaindivisionsofCorporatesocialresponsibilityactivitiesandtheyare environment, people, procurement and community(Muttakin, and et. al., 2018).CSR helps the society as well as the brand image of the companies. It is the great way to raise the morale in the workplace.TheCorporateSocialResponsibilityisundertakenbytheorganisationsvery seriously till every extent which helps in the sustainable development of the society and the environment by conducting such activities which makes sure that the development is ensured through every aspect. Every organisation sets a goal to benefit the society in a certain way for example Tesla is an auto mobile company which purely deals in electric cars which benefits the society through less fuel consumption. The company coco-cola which deals in beverages has huge focus on sustainability and has made many efforts for the development of the society which focuses on the health of the people and reducing the wastage of plastic bottles which are used as the secondary packaging by the company. Keeping in mind the growing health concern of the people and the issue regarding disposal of the plastic bottles or cans, Coco-cola has introduced diet coke which attracts a huge interest of people with health concerns and has enforced the aim of collecting and recycling every bottle while making their packaging 100% recyclable. The aim of the company by approx 2030 is, reducing their carbon footprints by 25%. The United Kingdom's companies claims to spend five to ten percent of their turnover on social and environmental measures. Nowadays the companies are more inclined towards charities, starting more NGOs and starting new campaigns for the benefit and upliftment of the society. Starbucks is the leading example for Corporate Social Responsibility as it benefits the society by its famous campaign which is the Ethos water fund(Pan, X., and et. al., 2021).As Starbucks supports Ethos Water in a campaign whose prime aim is to bring clean water to 1 billion people around the world. This fund is a part of the Starbucks foundation and a percent of the sale of the Ethos Water goes in the campaign as funding. The company has been investing in local communities for over 20 years around the world and the strong focus of the company is on creating job and training opportunities for the people for the welfare of the people of the county. Through the above mentioned examples of the companies who are playing a vital role by considering the Corporate Social Responsibility, it is clearly stated that the welfare of the society is kept in mind while managing the operations of the corporation(Schroeder, J.L., 2020).The efforts made for the
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upliftment of the society and its sustainable development always results in increment of intangible assets of the business organisation which is Goodwill of the company. CONCLUSION In context to the above essay, the points concluded in the essay is the definition of specific performance with its limitation. The case laws covering the situation when specific performance is enforced by the court and the vice-versa of it. Furthermore, this essay has also explained what is Corporate Social Responsibility and some of its examples while discussing the extent of the corporations taking Corporate Social Responsibility seriously. At the end, the companies taking appropriate initiative for the welfare of the societies while focusing on the sustainable development for the people of the country and the environment are also discussed in the following essay.
REFERENCES Bag,S.,2018.ConcludingNotes.InEconomicAnalysisofContractLaw(pp.191-198). Palgrave Macmillan, Cham. Dahm, L.L., 2020. Ethics in Contract Drafting: Should We Fix What's Broken or Start over and Create Something Better?.S. Tex. L. Rev.,61, p.1. Gong, and et. al., 2021. Punishment by securities regulators, corporate social responsibility and the cost of debt.Journal of Business Ethics,171(2), pp.337-356. Gürlek, M. and et. al., 2019. Corporate social responsibility and work engagement: Evidence from the hotel industry.Tourism Management Perspectives,31, pp.195-208. Hesselink, M.W., 2020. The right to justification of contract.Ratio juris,33(2), pp.196-222. Muttakin, and et. al., 2018. Corporate political connection and corporate social responsibility disclosures: A neo-pluralist hypothesis and empirical evidence.Accounting, Auditing & Accountability Journal. Pan, X., and et. al., 2021. Corporate social responsibility and eco‐innovation: The triple bottom lineperspective.CorporateSocialResponsibilityandEnvironmental Management,28(1), pp.214-228. Schroeder, J.L., 2020. Sense, Sensibility and Smart Contracts: A View From a Contract Lawyer.UCCL Rev.,49, p.251.
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