Business Law Case Study: Contract Law and Breach of Contract

This case study analyzes a business law scenario involving Ciara, Tom, and Los Property Repairs Ltd. The case revolves around contract law principles, including offer, acceptance, and breach of contract. Ciara advertised her property, leading to an agreement with Tom, which was later modified due to a roof leak. Ciara then contracted Los Property Repairs for repairs, but a dispute arose over additional costs and payment refusal. The analysis explores the legal implications of these actions, referencing relevant case law such as Partridge v Crittenden and Hyde v Wrench. The assignment provides legal advice to both Los Property Repairs and Ciara, suggesting mediation and arbitration as suitable methods for resolving the disputes. It emphasizes the importance of contract law in business transactions and the consequences of breaching contractual agreements, highlighting the rights and obligations of each party involved. The document concludes with a discussion on the application of business law principles and the need for adherence to contractual terms to avoid disputes.

Business Law

The give case scenario has the relation with offer, acceptance where three different
parties where involved and they are Ciara, Tom and Los Property Repairs Ltd. Ciara is the first
party to sell her property at the amount of £400,000 and for that she had posted the
advertisement. Secondly, Tom contact with Ciara to purchase the propery but he found that roof
top has a leakage and wants Ciara to repair it. They both signed the new agreement on the price
£380,000. £200000 was paid in the beginning and it was decided that remaining money will be
paid off in next two months. The form of offer which was made within the case is completely
similar with of the landmark case which is Partridge v Crittenden 1 (1968).
Now, Ciara had done the contract with Los Property Repairs Ltd to repair the wall at the
price of £5000. But, after certain period of time Los Property informed that they will require
additional equipment to fix the wall as it is much and more weaker then expected. For new
machines, company was asking for additional £5000 on which Ciara agreed. At the time of doing
payment Ciara refused to pay any amount and even Tom denied to buy property and seeking for
refund which he gave to Ciara.
Contract law: It is the law which explains about the legal relationship between two or
more then two parties whenever they enters into the contract. It is done just for the purpose of
completing any of the specific transactions within the given time period. Whenever any of the
person enters into the contract then it is necessary for them to make sure that they are not going
to breach it in any of the condition and if they does so then legal actions can be taken1. Contract
law is mainly required in the situation where company and consumers uses the contract law at
the time of buying and selling goods, whenever they license products or any of the specific
activity. Also, contract law is required for maintaining the employer and employee relations. The
main benefit of contract law is that it allows to conduct any of the transactions to happen in
smoother manner. In addition, it make sure that party is clear about the terms and condition for
which they are going to do any of the transactions. Any of the contract can be formed in two
ways either written contract, verbal contract or both. To make any of the contract legal, there are
certain elements which is needed to be followed and that has been explained below:
 Offer: Whenever any of the party enters into the contract then it is necessary that first
party must give the offer to second party. Then, it is the choice of second party that
whether they want to go for further proceeding or not. In this given case, offer was made
1 (Burns, Mullet and Bryant, 2016)

by the first party where counter offer was done which is related with the case that took
place between Hyde v Wrench 5 (1840).
 Acceptance: To make any of the contract complete, it is necessary that party must agree
on the terms and condition which is has been offered by the first party. The acceptance
should be done on the grounds that second party have not changed any of the terms and
condition and if both party have different terms and condition then contract will not be
counted as valid contract2.
 Consideration: Once, both of the party accept the terms and condition then it is
necessary that something should be given in return. For example: if there is the contract
between two parties related to employment law then one party will have to give money
and another one is required to work for them to accomplish the goals of an organisation.
Re McArdle (1951) Ch 669, is one of the landmark case which discusses that in any of
the situation past consideration will not be consideration in any of the contract.
 Mutual intention to enter into an agreement: Whenever any of the party wants to enter
into the contract then it is necessary to terms and condition of agreement should be
bounded to contract law. Also, there must be the intention of both the party to enter into
the contract because it is not allowed that one party is agreeing on the terms and
condition and another wants do not want to enter into it. In short, contract should be valid
and legal as per the guidelines given under contract law.
These are some of the rules and regulations which is needed to be considered by any of
the party while trying to enter into the contract so that agreed terms can be completed within the
specific time period.
Breach of Contract: It is the condition where any one of the party breach the term and
condition of agreement. In this condition, innocent party gets the opportunity to file the case
against the defaulter party3. It comes under the civil wrong where court has to interfere to sort
out the problem. This can occur in the situation where work is not completed on time, one fails to
do, or even didn't conducted as per the requirement of agreement. Whenever any of this situation
occurs then court has the option to declare its decision that defaulter must compensate for the
time which innocent party has to suffer. Also, it is necessary to understand that situation of
2 (How do you form a contract, 2018)
3 (Cuniberti, 2016)

breach will not occur if terms and condition of the contact has been altered and after that one
party denied to complete it on specific time period.
Advises that can be given in the above case
Advise to Los Property Repairs and Ciara: The case is very clear between both the
parties that they had formed the contract where one party will perform their duty another will
have to give the payment 4. By looking at the case, it can be easily determined that the default is
of Ciara because she was the one who agreed to pay additional £5000 for competing the work in
the time period of one month. The agreement which they had done in this case was written as
well as verbal contract. It is completed one of the case where condition of breach of contract
occurs due to which it is necessary that both the party should try that how they can resolve the
problem. The best possible solution which is available in front of them to overcome the problem
is Mediation method of resolving the problem.
Mediation: It is one of the process which will be effective for the party to solve the
problem in short period of time. The main motive in this process is that to give fair advises to
party so that they can sort out the problem which they are facing in current period of time. In this
process, the mediator will be appointed who will listen to the points of disputed party and try to
advise that how fair solution can be taken out5. In this case, the major work of mediator will be
give advise to Ciara that she had agreed on the terms to bring on the new machine for completing
the work on time which means it is her obligation to pay the complete amount to Los Property
Repairs.
Advise to Tom and Ciara: The case is not that simple in this situation because Ciara has
reduce the amount of money to sell the house to Tom just because it was leaking from rooftop.
But, he denied to accept the house once it was repaired and problem where sorted out which
means it becomes the obligation of Tom to pay the damages to Ciara or he must purchase that
house by paying the additional amount of money. Looking at the situation case can be sorted out
with the help of Arbitration process.
Arbitration: It is the process which is used for resolving the civil wrong cases without
involving the proceeding of court. Here, panel will decide that what are the main issues between
4 (Lowrey, 2015)
5 (Png, 2017)

the parties and according to that problem will be solved 6. The most probable decision which can
be declared by the panel is that Tom must purchase the property else it is necessary that damages
must be paid off to Ciara.
From the above file, it can be concluded that business law is one of the most important
law which helps an individual to learn different sort of knowledge through which an individual
can easily decide what is right and what is wrong. Contract law helps to complete any of the deal
in smoother manner within the specific time period. No one has the right to breach the terms and
condition of contract law else it will fall under the category of breach of contract where defaulter
will have to compensate the innocent party. In the similar way, Tom has not stood in the terms
and condition which was made by him earlier and it will be important that case is of civil nature
where problems can be dealt with alternative ways.
6 (Acemoglu and Jackson, 2017)

REFERENCES
Books & Journals
Acemoglu, D. and Jackson, M. O., 2017. Social norms and the enforcement of laws. Journal of
the European Economic Association. 15(2). pp.245-295.
Burns, L. D., Mullet, K. K. and Bryant, N. O., 2016. The business of fashion: Designing,
manufacturing, and marketing. Bloomsbury Publishing USA.
Cuniberti, G., 2016. The Laws of Asian International Business Transactions. Pac. Rim L. &
Pol'y J.25. p.35.
Lowrey, K. M., 2015. State laws addressing youth sports-related traumatic brain injury and the
future of concussion law and policy. J. Bus. & Tech. L.. 10. p.61.
Png, I. P., 2017. Law and innovation: evidence from state trade secrets laws. Review of
Economics and statistics. 99(1). pp.167-179.
Online
How do you form a contract. 2018. [Online]. Available Through:
<https://legalcareerpath.com/what-is-contract-law/>