BAF-5-BLA Business and Company Law Assignment: Contract Law Analysis

This assignment explores key aspects of business and company law, focusing on the English legal system and contract law principles. It differentiates between common law and equity, explaining their roles in legal decision-making. The assignment delves into contract law, clarifying the postal rule and its exceptions, and the circumstances under which partial payment constitutes valid consideration. A case study analyzes offer and acceptance between parties, outlining the necessary elements for contract establishment. It defines and explains the impact of ‘term’ and ‘representation’ in contracts, along with available remedies for breach of contract, including monetary damages. The assignment provides a comprehensive understanding of contract law and its practical application within the business context, supporting students with detailed analysis and relevant case studies.

Business & Company Law

Table of Contents
INTRODUCTION...........................................................................................................................4
QUESTION ONE............................................................................................................................4
In relation to English legal system, explain the difference between Common law and Equity.. 4
With reference to contract law, explain the postal rule and the exception(s) to it.......................5
With reference to contract law, explain the circumstances under which paying the creditor
with an amount less than he/ she claim can constitute a good consideration..............................6
QUESTION TWO...........................................................................................................................6
In the context of contract law, analyse the discussions between Alia and Shujad as to whether
there has been an offer and acceptance........................................................................................6
In the context of contract law, outline and discuss the other two elements, which were not
discussed in Question 2(a), required for a contract to be established using the relationship
between Benjamin and Shujad as an example.............................................................................6
In the context of contract law, explain the meanings and effect of ‘term’ and ‘representations’
respectively..................................................................................................................................7
Set out and discuss the remedies that are available to an injured party for a breach of contract.8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law is determined as a branch of law and regulations which governs the department
of commercial sector. There are multiple sub branches such as Company law, Intellectual
property law and many more. In current scenario, these laws are important as it doesn’t give
opportunity to conduct fraudulent activity and if any one does then, law with the help of policies
can easily identify about it. In context of the file, it has been categorised into two parts where
first part will explain about the English Legal System and difference between some of the law
and policies. Along with this, basic information relation to contract law will be discussed. On the
other side, second question will have the case study and on that particular basic relevant law and
policies will play the major role.
QUESTION ONE
In relation to English legal system, explain the difference between Common law and Equity.
English legal system is one of the advanced legal system where all of the actions are
taken only after analysing different factors. In order to make any of the decision related to law
and policies, they have two different representatives who has to overview all of the points in
detail i.e., House of Common and House of Lords. Both of this parliament body, overview every
single points so that chances of errors can be removed from the law (Bayern and et. al., 2017).
English Legal system has authorised number body to commences law so that burden from
specific law making branch can be reduced. It will also allow to form better form of law which
can be result oriented. Also, burden from central law making body i.e., Houses of Parliament can
be removed. Out of number of law making bodies, below there is the discussion about Common
law and Equity law on the basis of difference between.
Common Law Equity Law
The rule of common law is very simple where
judges in UK gets the power to form rules and
regulation for declaring the result (Stout and
et. al., 2016).
The law of Equity simply explains that there
are some of the situation where court has to
mitigate the harshness of the common law and
is not able to make new law for declaring the
decision.
In case of common law, it deal with plaintiff Equity law has the power to act only in the

where they could bring their case in the form
of action which can be recognised by the
common law.
situation of conscience.
It is the typically referred as law where
decision are always based on court ruling.
Here, it is branch of law which is supplement
to the strict statutory where harsh decision can
be declared (Turner, 2018).
With reference to contract law, explain the postal rule and the exception(s) to it
Contract law are those form of agreement which allows to create legal relation between
two parties for the certain time period. Whenever they enter in the contract, it becomes essential
for them to complete all of the basic requirement so that condition of breach of contract will not
be applicable. There are certain guidelines of contract law which is to be accomplished for
making any of the agreement successful. Talking about Postal rule, it is one of the most
controversial section with the law of contract where certain problem is created on a regular basis.
Firstly, this rule says that long distance communication can create issues related to the time as
well as types of contract during its formation. The main purpose of introducing this particular
concept was to ensure that offeror and offeree. This particular concept was introduced from one
of the landmark case between Adam v Lindsell, 1818. It is said that acceptance to the offer will
be assumed valid in that respective situation where direct communication can be done with
offeror. Also, there are number of exception to this particular clause which has been mentioned
below:
 The condition where letter of acceptance has been not posted properly then postal rule
will not be applicable.
 It is not applicable in that respective condition where post has not been the usual method
of doing communication (Law of Contract- Exceptions to the 'Postal Rule', 2010).
 If express terms are excluded from the letter, then postal rule will not be applied.
 Situation where manifest inconvenience or absurdity will be produced.

With reference to contract law, explain the circumstances under which paying the creditor with
an amount less than he/ she claim can constitute a good consideration.
As per the contract law, it is essential to understand that terms and condition of law must be
fulfilled in any of the condition. At the time of entering the contract, the amount which has been
selected should be paid for making the contract as valid (Hannigan, 2017). Once the contract is
made, there is option to convert the terms and condition as it will be counted as null and void.
But, there are some of the condition where part payment to the creditors will be counted as valid
but in from of consideration person must be able to give some goods which can be converted into
the form of money. Even the second condition is applicable where payment of debt has been
provided at different form, time or even place.
QUESTION TWO
In the context of contract law, analyse the discussions between Alia and Shujad as to whether
there has been an offer and acceptance.
After having the detail analysis on the case, it can be easily said that there is the contract
between Alia and Shujad. The main purpose of entering into the contract was to make a deal
related to painting. The first offer in the contract was made by Alia to pay £450,000, for the first
time where counter offer was made by Shujad that he is comfortable to sell the painting at the
price £500,000. Here, another offer was made by Alia to buy painting at the price of £480000.
Here, Shujad was not sure whether he will sell or not so he decided to take time for thinking.
Later on painting was sold to other person Benjamin at the price of £490000. In this particular
situation, offer was made by Alia that she will buy the same painting at £500000 if he will buy
the painting back from Benjamin and sell to her (Ghadas and Aziz, 2019). Here, acceptance was
shown from the side of Shujad. In short, there was the contract between Alia and Shujad where
one party had made offer were acceptance was shown by other in return of consideration.
In the context of contract law, outline and discuss the other two elements, which were not
discussed in Question 2(a), required for a contract to be established using the relationship
between Benjamin and Shujad as an example.
Looking at the first answer where it was discussed that there was a valid contract but in
order to make a contract valid in above condition, there are some of the some of the elements
which is needed to be fulfilled. Firstly, it was one of those contract which was directly related

with Benjamin because if he would have not agreed to cancel the contract then there would not
have been the option to make contract valid between Alia and Shujad. It means that contract will
become valid in that particular situation where Benjamin will be ready to sell the painting back
to Shujad. While talking about other elements which is necessary to understand that amount was
already paid by Benjamin to Lowry who has prepared the painting (Ho, 2017). As Shujad must
take the approval from Lowry that whether she is willing or not to pay the money to Banjamin
for the purpose of earning additional amount of money. In short, this are the two additional terms
which is also essential in this particular situation and it must be considered for making the
contract successful between Shujad and Alia.
In the context of contract law, explain the meanings and effect of ‘term’ and ‘representations’
respectively.
Contract law has a wider concept where various guidelines are needed to be followed in
order to make any of the contract as valid. If in any of the situation, the terms of contract are not
performed as per the guidelines then in that respective condition legal actions can be taken easily
upon the defaulter. In context of Contract law ‘Term’ can be defined as the provision which
plays the essential role in the part of forming the valid contract. It is said that each of the term
add on the obligations which are needed to be performed in any of the circumstances by the
agreed parties. Here, terms can be classified into two different forms as condition or warranty
and Innominate term. In condition or warranty, it is said that breach of a condition will give the
opportunity to the innocent party to end the contract or to terminate it with immediate effect
(Ford and et. al., 2016). On the other side, innominate term, the innocent party gets the right to
claim for the damages. Talking about the effect of ‘term’, it simply allows the innocent party to
recover the damages from which they have to suffer just because of the steps which were taken
by the defaulter party.
Representation is simply explained as the statement of facts which allows the party to
think about the contract where they are willing to enter into it or not. This are those situations
which are required to be made before preparing legal documentation of contract. Here, past facts
as well as existing circumstances must be included (Varottil, 2018). Here, contract will be void if
false information has been provided and even it gives the opportunity to that particular party who
is found to be innocent in the case.

Set out and discuss the remedies that are available to an injured party for a breach of contract.
Contract Law plays the crucial role in that particular stage were parties are willing to
enter into the contract. In any of the circumstances, it does not allow the party to breach its terms
and condition. Breach of contract can be defined as the state where any one of the party is unable
to sustain themselves as per the guidelines or terms which has been included within the contact
paper (Wong and et. al., 2017). Any of the valid contract where party has done default and due to
which contract was unable to complete, then in that respective condition, civil litigations can be
charged easily upon the defaulters. There are some of the remedies available for the innocent
party has been discussed below:
 Monetary Damages: It is that particular situation where the party who has been found
guilty can be made responsible for all of the losses which has incurred just because the
breach of contact. Here, innocent party is awards with the help of monetary damages
where all of the expenses which has incurred has to be paid by defaulter.
 Specific Performance: There are some of the situation where it is not possible for the
panel to declare the judgment that paying money will sort of the issue. So in this
situation, defaulter party is forced to complete the work as per the guidelines.
 Recession: It is the condition where non breaching party gets the right to be released
from the contract from the date of breach of contact. It is because the main cause of
failure of contract was from the side of defaulting party (Papadopoulos, 2019).
 Liquidation damages: It is the part of some of the contract where with mutual
understanding, parties decide to include liquidate damage clause (Remedies Available for
a Contract Breach. 2019). Here, this clause simply specify that non-breaching will
awarded with certain amount of money as an occurrence of breach of contact.
In the above case scenario, it can be easily seen that contract has been breached by Lowry
and Shujad. It is because they didn’t deliver the same painting which were shown within the art
exhibition. Here, either specific performance is required to be performed else it will be the
obligation to pay the damage amount to Alia.
CONCLUSION
From the above discussion, it can be easily concluded that business and company law are the
two essential laws which simply guides that how any of the work is required to be performed.

English Legal system is one of the well-established law where decision making and process of
making the law is difficult but still they are result oriented. It any of the contact, terms and
condition must be considered and in any of the condition, breach of contract should not occur. It
is because it can lots of issues for the defaulter party.
REFERENCES
Books & Journals
Bayern, S. and et. al., 2017. Company law and autonomous systems: a blueprint for lawyers,
entrepreneurs, and regulators. Hastings Sci. & Tech. LJ, 9, p.135.
Stout, L. A. and et. al., 2016. The modern corporation statement on company law.
Turner, J. D., 2018. The development of English company law before 1900. In Research
Handbook on the History of Corporate and Company Law. Edward Elgar Publishing.
Hannigan, B., 2017. Public interest in the regulation of the small private limited company–the
dwindling role of mandatory rules in English company law.
Ghadas, Z. A. A. and Aziz, H. A., 2019. ANALYSIS ON THE DOCTRINE OF LIMITED
LIABILITY UNDER COMPANY LAW AND SHARĪ ‘AH. Al-Shajarah: Journal of
the International Institute of Islamic Thought and Civilization (ISTAC), 24(2), pp.293-
310.
Ho, K. S., 2017. Revisiting the Legal Capital Regime in Modern Company Law. The Journal of
Comparative Law, 12(1), pp.1-21.
Ford, G. and et. al., 2016. Is there still hope?: company law. Without Prejudice, 16(11), pp.22-
23.
Wong, A. and et. al., 2017. Company law: An interactive approach.
Papadopoulos, T., 2019. The Importance of European Company Law for Intra-EU Investments
After Achmea. Business Law Review (Kluwer),(2019), 40, pp.7-9.
Varottil, U., 2018. Analysing the CSR spending requirements under Indian company law. In
Globalisation of Corporate Social Responsibility and its Impact on Corporate
Governance (pp. 231-253). Springer, Cham.
Online
Law of Contract- Exceptions to the 'Postal Rule'. 2010. [Online]. Available Through:
https://quizlet.com/105181056/law-of-contract-exceptions-to-the-postal-rule-flash-
cards/
Remedies Available for a Contract Breach. 2019. [Online]. Available Through: https://www.bc-
llp.com/what-are-the-remedies-available-for-a-contract-breach/