Contractual Relationships and Remedies: A Business Law Report

This report delves into the realm of business law, specifically addressing the critical aspects of breach of contractual relationships and the available remedies. It begins with an introduction to business law and contract law, emphasizing the obligations and ethics involved in forming valid agreements. The main body of the report analyzes a scenario involving a consultancy firm, exploring the validity of a contract, breach, and the remedies available, such as damages, repudiation, and specific performance. The report also examines the impact of counteroffers and the doctrine of promissory estoppel on the outcome of the case. The report concludes by summarizing the significance of contract law in business and the importance of adhering to contractual obligations.

Breach of Contractual
Relationships and
Remedies

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business law deals with all the commercial matters. The law with all the public and
private corporate matters which helps in the growth and development of the company in the
mean time it has been major aspect that all the private and corporate law covers all the rules and
regulation for the company and they emphasis on the impact of the working of various modes. It
mainly covers contract law, employment law, IPR, bankruptcy etc. Contract law is an agreement
between the party for any legal obligation and there are certain duties and obligation which are
being made by the parties for entering in a valid contract(Waddock, 2019). Business ethics is a
branch which covers all the conduct and roles that are needed to be implemented in business as
all the parties should follow certain ethics when enters in a valid contract. This report deals with
breach of contractual relations and remedies.
MAIN BODY
Contract law covers all the rights and duties of the parties it merges as an agreement
between the party which is being enforceable by law. Contract law has certain obligations which
needs to be fulfilled in order to enter in a contract their must be an offer between the party and
for that offer it should have an agreement with that both the parties may have mutually discuss
some consideration for that work and at last the parties are to be bind in a legal obligation to do
that work. With that if their arises any breach in the contract then it has some remedies available
for the party like injunction, specific performance of contract etc.(Phuong and et. al., 2020).
Contract can also be ended with the termi8nation, expiration of its time period or with frustration
where the party can deny for doing certain work in order of any breach done by other.
In this case mentioned, Raymond runs a small consultancy firm and he is the only person
who handles that firm, as a sole proprietor, Samantha went to him to get a draft of business
account from him for which they had after discussion decided sum of £800 after the completion
of the work. After few days when Raymond completed his work he went to Samantha to get the
payment for the work done by him Samantha denies to give the payment and said she can't give
£800 instead of that she can only give £200 as a final payment, after a bitter argument Raymond
agreed for £200 as full and final payment. Later on, Raymond read in a newspaper that Samantha

paintings are sold in £20,000 and her business is running well so he decided to recover the
remaining amount of £600 from her.
There is a valid contract between Raymond and Samantha as there was an offer between
both the parties and here from Raymond and with that an acceptance from Samantha for that
offer made by him and a consideration of £800 was discussed and agreed by both the parties and
both of them were legally bind to do that means they are in a legal obligation to do a contract. So
their can be said that their contract is valid and they are under the legal obligation to fulfil it.
In contract law there are certain remedies which are given to the party in breach they are
Sue for damages in which if any of the party does any breach in the contract then the other party
can claim and sue for the damages from them, Repudiation it is also known as anticipatory
breach where if any breach occur from either of the party then the other person may deny from
doing that work, Restitutionary this considers monetary remedy in which the compensation will
be decided on the basis of profit earned by the defendant.(Hackett and et. al., 2017) Recession in
this case when a party refuse to fulfil certain obligation then the other party can also deny for that
work, Injunction where the part will be restrained to do any act or duty, Specific performance of
contract this is an equitable remedy which is being given by the court if any party does any
breach in this case Raymond will have specific performance of contract and damages.
If Samantha has paid £200 before three weeks then the situation will be changed as that
will be counted as a counter offer and then the offer made earlier of £800 will be revoked and the
contract will work under that new counter offer.(Slade and et. al., 2019) Basically, counter offer
means an offer which is being made while negotiation between the parties and once the counter
offer is made then all the prior offer will be revoked and the agreement will be deal on that new
offer. As in case Hyde v. Wrench, court held that once the counter offer is made then the earlier
offer will be revoked and the counter offer will be treated as the new an original offer and in this
case Raymond will decide that whether he wants to accept that or not and he will not accept as
due to low consideration.
In case where Raymond requests for £400 from Samantha this will be a new counter
offer from his side and all the prior offer of £800 at first and £200 for the second time will be
dismissed and the party will deal with this new counter offer and this counter offer will be then
made as a new offer and all the rest offers will be dismissed.(Casas, 2020). If Samantha denies

for that offer then Raymond can go for breach of contract against her as she has earlier accepted
offer of £800.
In the final scenario where Raymond wished to get £600 remaining balance from
Samantha as he has seen that she is earning well from her paintings and has made £20,000 from
her as Doctrine of promissory estoppel will be applied that means the promise which is being
setted out by the parties at the time of contract will be binding on both the parties even when
there is no formal consideration is being made in them. In case Central London Property Trust v.
High Tree House, it has been held that promise made between the parties will be binding for both
of them even when the promise is made for smaller payment or without consideration. In this
case Raymond will not be allowed to recover the remaining amount of £600 from Samantha as
he has already agreed on £200 as final payment and promissory estoppel will be applied on
it(Brockhoff, 2018).
CONCLUSION
It is concluded from the above report that law plays an important role in the business and
all the business and corporations will have to fulfil the obligations in order to be a member of
contract. Business law also coordinates in a specific way where they tries to make specific rules
for the companies and the parties. Moreover, contract law covers all the agreement between the
parties and those parties will be bound by certain obligations to do any contract, It also contains
certain remedies for breach of contractual relations in a contract which helps the party to work
with full faith and the court made certain discretionary powers which make it easy for them to
work in a coordinated way.

REFERENCES
Books and Journals
Brockhoff, K.K., 2018. A short note on Martin Luther’s idea of business ethics. Management &
Organizational History, 13(1), pp.54-64.
Casas, M.C., 2020. Contract through Online Intermediary Platforms. Cuadernos Derecho
Transnacional, 12, p.283.
Hackett and et. al., 2017. UK art therapy practice-based guidelines for children and adults with
learning disabilities. International Journal of Art Therapy, 22(2), pp.84-94.
Phuong and et. al., 2020. The impact of authentic leadership on employee creativity in Vietnam:
a mediating effect of psychological contract and moderating effects of subcultures. Asia
Pacific Business Review, pp.1-24.
Slade and et. al., 2019. Talking about contract cheating: facilitating a forum for collaborative
development of assessment practices to combat student dishonesty. International
Journal for Academic Development, 24(1), pp.21-34.
Waddock, S., 2019. Leadership ethics for a troubled world: Responsibility for the whole.
In Ethical business leadership in troubling times. Edward Elgar Publishing.