Law for Business Managers: Contracts, Negligence, and Business Forms

This report provides a comprehensive analysis of business law principles, focusing on contracts, negligence, and the selection of appropriate business mediums. It begins by defining contracts and outlining the necessary elements for a valid agreement, assessing Ringo's liability to Paul based on contract law. The report then explores negligence, detailing the criteria Jerry must satisfy to prove negligence, including duty of care, breach of duty, and loss or suffering. Furthermore, the assignment identifies various business mediums available to Ringo and his friends, such as partnerships and cooperative societies, while evaluating their advantages and disadvantages. The report also emphasizes the importance of correctly identifying the employment status of workers, offering a complete overview of key business law concepts.

Law for Business Managers

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. a) Meaning of contract and requirement for a valid contract..................................................3
b) Is Ringo be liable to pay Paul.................................................................................................4
3. Identification of main business mediums .............................................................................5
4. Important for Ringo, John and Yoko to identify the correct employment status of any
workers........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law are the laws which encompasses the laws which dictate how a business is
formed and operated. It includes all the laws which governs how to start or buy or manage or
close or sell a business. Business law also established the various rules which are to be followed
by the managers of the business. This essay is based on the case study on Law for business
managers, which involves a case related to a business issues which includes the various parties
involved in the contract during a business. This essay includes definition of contract and what are
the legal requirement for a valid contract to be formed and is Ringo liable to pay Paul his money.
Also, this essay includes the criteria that jerry would need to satisfy an action of negligence and
what are the main business mediums that are available to Ringo and his friends including
advantage and disadvantages.
1. a) Meaning of contract and requirement for a valid contract
Contract is the basically an agreement between two parties which are framed and also
validated as per England and Wales. Further, it is legally bind agreement which regulate the
duties as well as rights of the parties to the agreement. The contract is legally enforceable, as it
meet the requirement as well as approval of the law (Rustemeyer and et.al., 2019). Therefore, it
also involves the exchange of goods, money and promises and if, in that event, anyone will
breach the contract, then they are penalised as per the describe in the law. On the other side,
generally the contract form when one person makes an offer and on the other side, another
person accepts the same by communicating their acquiescence or may performing the offer terms
as well. In order to make the contract valid, it require seven key elements which are as mention:
Offer: It if the beginning of the contract and for that one party should have to propose an
arrangement that includes definite terms (7 element of valid contract, 2018). In the same way,
when the offer is communicated to other ones, they have a right to accept, reject or modified the
offer.
Acceptance: It is the second valid element in which the offer is accepted in written form
and another party accept the proposal.
Consideration: As per the law, it is one of the most important element that makes a
contract valid. For that the consideration is used which is something of value that both parties are

contracting to exchange (Fried, 2015). Generally, one party exchange money for property or any
other services and the same can be done by another.
Competence/ Capacity: As the contract is based upon the law but it is not necessary
that all contract are enforceable and at that time, the contract is rejected. That is why,
Competence is require which helps to let party know their ability to enter into a contract. For that
the party must be at least 18 year old and if they suffer from any mental illness, or did not
understand the term of contract, then they can cancel it (Joel-Edgar, Holme and Aramo-
Immonen, 2018).
Contractual Intension: Mutual consent is also necessary for make the contract valid and
as per the law, if the party agreed on the basis of frayed, due to any force. At that time, the
party's consent is consider involuntary and as a result, the contract is void.
Legality: It is another important element of a contract which states that the contract is
only enforceable, if all the activity in contract is legal such that there should not be any contract
with someone to commit conflict, murder. These all are consider under illegal activity (Deep,
Singh and Ahmad, 2016).
Writing: It state that not all the contracts are written but as per the England and Wales,
some contracts need in written form in order to make them enforceable. This is mostly used in
real estate and any promise to marry in which part sign and shows their consent.
b) Is Ringo be liable to pay Paul
Ringo is liable to pay Paul because when Paul offered his father by mowing the Lawn at
home, they have to pay 10GBP is exchange for it. Even his father accepted the same and as a
result, Paul also completed his work as described. But on the other hand, Ringo wants that his
son should learn some responsibilities, that is why, he refused to pay Paul. Therefore, as per the
law, there are some responsibilities of contractor such as, they are bind to pay the consideration
as decided, also contractor has to monitor the task assigned to their employee and lastly, they
have a right to claim the penalties if the task is not performed accordingly.
Therefore, these are the three main requirement in order to make the contract valid. In the
case of Ringo and Paul, they fulfil two requirement i.e. offer and acceptance, but on the other
side, they are not justify the third element that is Contractual Intension (Daniel and et.al., 2017).
Therefore, they both did not meet the third criteria, Ringo is not liable to pay any money to his
son Paul. On the contrary, Paul can claim on Ringo because it is his right and as a result, this

will forced Ringo to pay the money as per describe in the law. Therefore, this shows that if the
contract fulfil all the element, then it is stated ass legal contract.
2.Discuss the criteria that Jerry would need
to satisfy in an action for negligence.
Negligence is the situation in which due to the lack of care of a person results in such a
manner of getting hurt or property being damaged of someone. This can be the most common
types in personal injury which involves the claim of negligence. The areas can be difficult in
terms of law as it involves the legal analysis of the elements in negligence to have the particular
case understood in in Ringo
Essentials Of The Negligence
1.Duty Of Care
It is the legal responsibility if the person to have the avoidance of any behavior or the
omission which could reasonably been overseen as the cause of harm to others. It is the legal
obligation on a person required adherence to a standard in reasonable care ion course of of
performing any activity that can be result in harming of another person. As in case of the Ringo,
there were many trees in the Jerry conservatory which were blocking the light so due to the lack
of presence of mind of George he cut down the tree which at last falls in Jerry conservatory and
caused the extensive damage to the roofs of the customers.
2.Breach Of Duty To Care
It is another one of the most important condition which turned out to be liability in
negligence. It can also be term as the failure in satisfying the ethical, legal along with moral
obligation, specially in case when someone is demanding the satisfaction. In case of Ringo,
George fails to fulfill the moral and ethical responsibility in having the proper measurement of
the tree which ultimately turned to fall in Jerry conservatory and incur damage to the roof.
3.Loss Of Suffer
In the case of negligence , a plaintiff must prove the legal recognized harm which can be term in
the form of physical injury to the person or in term of damage in property (Mayss and Reed,
2018). There should be the evidence of the damages which can easily succeed in proof the
intention of injury to plaintiff. As in case of the Ringo, the damages which are caused to the roof

of the Jerry can be termed as the loss of suffer due to the negligence and breach of duty of
George.
Hence, Jerry can take the legal action against Ringo and his partners John and Yoko regarding
the act of the negligence and recurring the damage to the property of Jerry.
As in the case of Balfour v Balfour [1919] there was a pure social and domestic
agreement between the parties as there were no contact among the husband and wife regarding
the payment of money while working overseas. Both the parties were not legally bound to pay
the amount. Same as in the case of the Ringo, there were legal contract between Jerry and Ringo
partners about any loss or compensation. It was just a pure ethical and social understanding and
responsibilities among the neighbors.
3. Identification of main business mediums
As per the given case scenario, Ringo is planning to expand its business operations.
Ringo in order to expand business has taken decision to employ his two friends that is John and
Yoko for handling managerial responsibilities. But both of friends of Ringo wants to share equal
ownership in business, therefore, all three partners are searching for such businesses where there
could have equal amount of share in business. The different business options which Ringo and
his friends can opt for are :
Partnership : Such type of business are owned as well as managed by two or more persons.
Establishment as well as management of partnership is government by partnership act in UK. It
is basically particular type of legal relationship which is created by agreement between two or
more parties. Ringo and his friends in order to establish partnership firm will require to make
equal amount of investment in business (Beatty, Samuelson and Abril, 2018). As equal amount
of investment is made by all partners in business they all has a share in company profit as well as
losses. It is a type of business which can be establish by Ringo and his friends. Such type of
business has been suggested as it will enables all three parties to share ownership. There are
basically three type of partnership which can be formed by Ringo these are limited liability,
general partnership and limited partnership. It has been advised to Ringo and his friends that
they could enter into either general or limited liability partnership (Mayss and Reed, 2018). In
addition to this, other advantage which can be gained by Ringo and friends by forming
partnership business are :

One of the main advantage of partnership business is that it is easy to establish. In
addition to this, other benefit of partnership business is that only few requirements are need to
be fulfilled. In addition to this, the partnership business enables high flow of investment which
can be then utilised for expansion of business. There is less tax liability as compared to other
type of business.
The biggest disadvantage of general partnership business is that all the partners have
unlimited liability for the debts. In addition to this, other biggest drawback is that Partners
personal assets are unprotected.
Cooperative society business: It is basically a private company which is owned as well as
managed by its members. According to the law in UK, it is very much essential to have at least
five members in order to establish cooperative business. Such type of businesses are formed by
those people who have special requirements and willingness to work together. Collaboration is
considered to be as biggest advantage of cooperative business as it can be helpful in relation to
the further expansion of business.
The main disadvantage of cooperative business is that the lack of mutual interest can give
rise to conflicts between parties. Difficulty in decision making is the biggest disadvantage of
cooperative business.

4. Important for Ringo, John and Yoko to identify the correct employment status of any workers
It is important for Ringo, Yoko and John to identify the correct employment status of any
worker which they recruit for their business because there are three types of employment status
that they should know of. Employment status can be divided in three categories which are
employee, worker and self-employed and all three of them have not been used correct and they
are unaware of the difference which they should know while recruiting for their business.
Employee status: Employee can be referred as an individual who works or entered in to or have
worked under the contract of employment. So, before recruiting any employment for their
business John, Ringo and Yoko should have signed employment contract which can be done by
expressly agreed whether written or orally or can be implied by the nature of the relationship
(Stam and et.al., 2016). With the help of employment contract John, Yoko and Ringo will also
become aware of right of employees. As they recruited another landscape gardener namely
George to work for them but there lack of employment contract which was not signed among
them and this resulted in causing an extensive damage to the customer's roof. By identifying the
correct employee status there would be unfair dismissal and this will make the employer to be
obliged to provide the work which is to be accepted by employee. Also, it is important that
employer needed to have some control over the way of carrying out the work by the employee
(Zivin and et.al., 2016). But in the case Ringo, John and Yoko they had no control on George's
work, and he was given no guidance related to chopping of trees like the length and working
hours were also net set by them. So, by signing the employment contract was really important for
them where all terms and conditions of employment would have been mentioned.
Worker Status: It is sometimes seen half-way between employee and self-employed status and
it is important for John, Ringo and Yoko to identify the correct status of a worker because
worker is an individual who performs a work for another party which can be under the contract
of employment or under any other contract. By identifying the workers status, it will help them
to take work personality as a part of contact. This will also help them to know the type of worker
to be recruited for the job and will also make them familiar with the rights of workers. This will
help them to set the minimum wages, minimum holidays for the worker recruited for the
particular job (Cadden and Arnett, 2015). This will also help John, Yoko and Ringo to identify
what the minimum working hours to be set for the worker which should not exceed more than 48
hours a week. By identifying workers status will also result in protection against the unlawful

discrimination and setting of the minimum lengths of rest breaks during the working hours. This
will allow them minimise the conflict that would arise between the employer and worker after
recruitment which is essential for employer and for the worker as well. Also, by identifying the
worker status will help in developing a proper working contract by setting a proper working
conditions and terms. This could made a work of George much better and would not have rushed
to cut down the trees as working would have been already decided, and he could have managed
his work accordingly.
Self-employed status: Identifying the self-employed status can also prove to be important for
Ringo, Yoko and John as self-employed people do not have same employment rights as there is
for worker and employee. It is also important to understand for them a self-employed person can
be both self-employed and employee at same time (Taponen and et.al., 2018). It is also important
to beware of the various rights which are entitled for the self-employed person this will make
recruitment easy for them. Like a self-employed person are not entitled for receiving a holiday
pay and what are the responsibilities that are set out within the contract with the self-employed
person.
So, it can be said that for Ringo, John and Yoko it is really important to identify the
correct employment status of any type of worker which they recruit for their business as it could
make their business operation easy. This will also allow them to formulate the terms and
conditions for various types of recruitment for workers in their business.
CONCLUSION
It can be concluded that there are various requirements in order to form valid contract it is
important that it should have all the seven key essential elements to make a contract valid in the
court of law. Also, there involves a proper criteria which is needed to satisfy the action for
negligence. This essay also concludes that the main business medium which is available to Ringo
and his friends was partnership and co-operative society. Also, it is very important for Ringo,
John and Yoko to identify the correct employment status for recruiting any worker for their
business.

REFERENCES
Books and Journals:
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Business law and the legal environment.
Cengage Learning.
Mayss, A. and Reed, A., 2018. European Business Litigation. Routledge.
Rustemeyer, T., and et.al., 2019. Mechanisms of allergic contact dermatitis. Kanerva’s
Occupational Dermatology, pp.1-41.
Fried, C., 2015. Contract as promise: A theory of contractual obligation. Oxford University
Press, USA.
Joel-Edgar, S., Holme, I. and Aramo-Immonen, H., 2018. The questioning lens as research tool:
the social shaping of network visualisation boundaries in the case of the UK junior
doctors’ contract dispute. Information, Communication & Society, pp.1-18.
Deep, S., Singh, D. and Ahmad, S. A., 2016. A review of contract awards to lowest bidder in
Indian construction projects via case based approach. Open Journal of Business and
Management.5(1). pp.159-168.
Daniel, E. I. and et.al., 2017. The relationship between the last planner® system and
collaborative planning practice in UK construction. Engineering, Construction and
Architectural Management.24(3). pp.407-425.
Stam, K and et.al., 2016. Employment status and subjective well-being: the role of the social
norm to work. Work, employment and society. 30(2). pp.309-333.
Zivin, K and et.al., 2016. Employment status, employment functioning, and barriers to
employment among VA primary care patients. Journal of Affective Disorders. 193. pp.194-
202.
Cadden, M. and Arnett, P., 2015. Factors associated with employment status in individuals with
multiple sclerosis. International journal of MS care. 17(6). pp.284-291.
Taponen, S and et.al., 2018. Employment status and changes in working career in relation to
asthma: a cross-sectional survey. Journal of Occupational Medicine and Toxicology. 13(1).
p.8.
Online
7 element of valid contract. 2018. [online]. Available through:
<https://www.sapling.com/11368503/7-required-elements-enforceable-contract> .