Business Law Case Study: Contract, Negligence, and Business Mediums

This case study examines key aspects of business law, including contract law, negligence, and the identification of various business mediums. The analysis begins with defining a contract and outlining the requirements for a valid agreement, focusing on the scenario where Ringo and Paul are involved. It assesses Ringo's potential liability for payment. The case also addresses the criteria Jerry needs to satisfy when pursuing an action for negligence against George. Furthermore, the study identifies and discusses the business mediums available to Ringo, John, and Yoko. Finally, it highlights the importance of determining the employment status of workers within an organization. The case study provides a comprehensive overview of legal concepts and their practical application in business contexts.

Case study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1. A) Definition of contract and identification of the requirements for entering into valid
contract .......................................................................................................................................3
1. B) Determining whether Ringo is liable for making payment to Paul ...................................5
2. Addressing the criteria which Jerry need to satisfy in an action for negligence ...................5
3. Identification of business mediums available to Ringo and His friends John and Yoko .....7
4. Significance of identification of employment status of workers being being recruited by
organisation.................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business laws is the type of legislation which governs the way an organisation will be
established as well as managed. It is the type of norm which regulates the business activities of
firms. In context of legislative system in England and Wales , there are number of legislations
which are required to be followed by the enterprises these are contract law, employment law,
company law etc. It is very much essential for companies to follow all these legislation in order
to run their business in systematic manner. The contract legislation in legislative system of
England and Wales governs as well as regulates the way valid agreement can be formed by
parties. It also provides certain remedies which can be used by parties in relation to breach of
contract act.
The report have focus on identification of requirements for forming valid contract. In
context of given case scenario , study emphasizes on determining whether Ringo would be
responsible for payment to Paul.
MAIN BODY
1. A) Definition of contract and identification of the requirements for entering into valid
contract .
In relation to the contract law in legislative system of England and Wales governs the
contractual or commercial relationship between parties. It highlights the duties as well as
responsibilities of parties in relation to fulfilment of the terms and conditions in agreement. In
context of contract law in legislative system of the England and Wales, contract is basically a
promise made by the parties which enables courts to make judgement. According to the contract
law in England and Wales, contract is basically a official agreement. Contract legislation states
that contract could be written or oral using formal or informal terms (Pargendler, 2018.). It is
very much essential for parties to enter into a valid and legally binding contract, as it will help
them in getting the remedies in case of breach of any of the term in agreement by other parties.
Entering into a valid as welt as legally binding agreement is also very much important , as it
enables parties to get ensure that all the obligation as per the terms in the contract will be
fulfilled by other party. It also aid parties in preventing the losses in case other party fails to fulfil
their duties according to the agreement. The parties in given case scenario in order to enter into
a valid contract need to fulfil following requirements these are :

Offer : it is considered to be as one of the most important but basic requirement which are
needed to fulfil by parties if they intend to enter into a legally binding contract. According to
the contract law in England and Wales , one party need to make valid offer to other. In relation to
the t5erm offer in contract Law, the involvement of minimum two parties is very much essential.
In addition to this, both the parties must have capability to enter into a valid agreement. If offer
made by one party is accepted by other then contract is considered to be as valid. In relation to
the given case scenario, Paul has offered his farther help mowing the lawn at home in exchange
for 10GBP and the same has been accepted by Ringo (Farther of Paul), therefore, the contract
between both the parties is considered to be as legally valid.
Acceptance: The other crucial requirement which are required to be fulfilled by parties in
relation to entering into a valid contract. It is very much important for party making the offer to
have clear terms and conditions in agreement, as offer will be accepted by other party if they
are satisfied with the content in agreement. In context of given case scenario, offer made by
Paul has been successfully adopted by Ringo. As offer is accepted by other party it is
considered to be as valid agreement.
Considerations: It is considered to be as other requirement which are required to be consider by
other party in order to form valid contract. Consideration can be referred to as mutual consent
of parties to perform specific duties as well as responsibilities in relation to gain certain benefit.
It is very much essential for both the parties to have have mutual consent related to the terms
and conditions in agreement (Cann, 2018.). In context of given case scenario, both Paul and
Ringo has shown their mutual consent related to the condition in contract that Paul will assist
his farther and in exchange will get 10GBP. Subsequently, Paul mowed the lawn as promised.
Therefore, it is considered to be as valid agreement.
Intention to enter into a legal binding contract : as p0er this requirement of both the parties
need to have intention of entering into a legally binding contract or agreement. If one of the party
does not have intention to form legally enforceable contract then in such case contract is
considered to be as not valid. In context of given case study, there is contractual relationship
between farther and son that is Paul and Ringo , if in case farther passes away then his son
can have possession of the property which is left by his farther.
Certainty: Clear specification of the terms and condition is very much important. In relation to
given case scenario, A party that is Paul while making offer to his father need to clearly specify

in the contract that he requires 10GBP in exchange of assistance that he will provide to his
farther in business. It is very much important for Paul to be more clear about the time period
and type of help he can render to his farther in business.
Capacity: According to the contract law 1950 , an individual belonging to the age of 18 or
above can enter into a contract. Person belonging to age of below 18 years of age has not
capacity to enter i8nto the agreement as per contract act. In addition to this, people suffering
from mental illness can not enter into contract.
1. B) Determining whether Ringo is liable for making payment to Paul
As per the contract law in legislative system of England and Wales, in context of valid
contract it is very much crucial for both the parties in contract to fulfil their responsibilities. If
parties fails to fulfil their duties as per the terms and conditions in agreement then it is
considered to be as the breach of contract. In such case , party failed to preform their tasks
according to terms and condition in agreement need to compensate for losses suffered by other
party. In context of given case scenario, as both the parties has promised each other that they
will fulfil their part of obligation (Knapp, Crystal and Prince, 2019). In addition to this, Paul has
fulfilled his promised by mowing the lawn now it is very much essential for Ringo to make
payment to Paul. If in case the Ringo, denies from making the payment , as it is valid contract
then in such situation his son Paul can file law suit against his farther. In addition to this, Paul
can demand for compensation for the losses suffered by him due to non fulfilment of
responsibility by his farther Ringo.
2. Addressing the criteria which Jerry need to satisfy in an action for negligence
Negligence can be referred to as failure to perform duties as per the terms and conditions
in contract. In case of failure to fulfil obligation ion context of valid contract , parties might
have to face legal issues or other consequences. Both contract act as well as tort of negligence
are part of civil law in legislative system of England and Wales. If one parties fail to perform
their duties as well as responsibilities as per terms and condition in agreement. A tort is basically
a civil breach committed against other in which parties which has suffered losses can file law suit
and can demand for compensation (Cotterrell, 2018. ). It is the tort law in UK legislative system
which assist parties in determining whether an individual should be held responsible for losses
or injury suffered by other party. The different elements of Tort law are duty, breach of duties,

injury and causation. An individual can demand for compensation only if there is breach of duty.
The various types of tort are negligence, intentional torts and strict or product liability.
Lack of concern or sense of responsibility leads to to tort of negligence. If a plaintiff
accuses defendant it is considered to be as intentional tort. In context of given case scenario,
George landscapes the garden of a long-standing customer of Ringo, called Jerry. There are lots
of trees beside the Jerry’s conservatory which are blocking the sunlight into it. George decides to
chop down the trees in the garden but is rushing to finish the job so that he can leave by 5pm. He
forgets to measure the estimated fall of the trees and one falls on the conservatory, causing
extensive damage to the customer’s roof. In addition to this, George i8s denying to take the
responsibility of damages suffered by Jerry. As the damages is caused by George due to
negligence (Tort, negligence and nuisance claims—overview. 2019.). According to the tort law
in UK legislative system , it is very much crucial for defendant that is George to provide proper
justification for the actions which he has taken in order to excuse from responsibility.
According to Tort law, There are certain elements which are needed for proving that defendant
has acted negligently. As per the legislation , negligence can only be claimed by an individual
who have suffered damages or loses due to negligence of other person or party. According to tort
law, the plaintiff can demand for the compensation by providing the evidence of losses suffered
by an individual due to negligence of other person. In context of given case scenario, George
forgets to to measure the estimated fall of the trees and one falls on the conservatory, causing
extensive damage to roof of the Jerry house, in such situation By showing the evidence,m Jerry
can claim compensation from George (Medway, Roper and Gillooly, 2018.). If in case George
denies from paying the compensation then in such situation Jerry can file law suit against
George. Where a applicant establishes that they have, as a matter of fact, suffered loss as a
consequence of the defendant’s breach of duty, the courts are unwilling to provide a full
indemnity to the claimant for the losses suffered. In context of given case scenario, it is required
by Jerry to produce evidence in order to demonstrate that he has to suffer losses due to breach
of duty by the defendant, as this tactics will assist them in making claim for the damages. The
test of foreseeability is conducted for determining whether the risk of damage is foreseeable.
According to the the tort law in Legislative system of UK, An injunction can be granted
in context of all types of tortuous conduct.

3. Identification of business mediums available to Ringo and His friends John and Yoko
In context of given case scenario, the different types of business mediums available to
Ringo and his friends are :
Partnership business : It is a business medium where two or more people work together in
order to achieve common objectives. Partnership is a form of business which is owned as well as
managed by two or more persons. All partners shares profit earned by the company and makes
investment in order to expand business. Establishing a partnership business is considered to be
as best option in relation to expansion of business. It is the partnership act in UK which governs
the partnership between two or more person those who have shown their agreement in sharing
the business profits. According to the partnership act 1890, partnership is not a separate legal
entity. In addition to this, each partner is required to pay tax on their share of profit in business.
According to the Partnership act 1890, UK, every partner is agent of company
Advantages : The main advantages of partnership business is that it can be beneficial in terms of
eliminating the risks. In addition to this, other advantages is that less legal formalities are
required to be fulfilled in order to establish partnership business. It is not essential to register the
partnership business. The size and nature of business can be easily changed easily through
mutual consent between partners.
Disadvantages : Unlimited liability is considered to be as biggest drawback of partnership
business. In context of partnership business, partners are responsible for all the debts as well as
obligation of company. The other major disadvantage of partnership business, there are high
chances of conflicts between partners which can have negative effect on business performance
of organisation.
Cooperative society business: Such types of business is established by those people who have
intentions to work together in order to achieve common economic goals. Cooperative society is
basically a voluntary organisation which is establish with the objective of promoting economic
interest. Other type of main purpose of such form of business medium is to provide maximum
benefit to its members (Taylor and Taylor, 2019.). In context of the given case scenario, the
main purpose of Ringo and His friends John and Yoko is to earn high profit by expanding
business , they can form cooperative society. According to the cooperative society act UK, it is
very much essential to get business registered under state Cooperative societies act. According to
the legislation in England and Wales, an organisation has separate legal entity and can enter

into legal agreement with others. Such type of firm can sue other and can own properties in its
name. All the members make equal capital investment in order to establish cooperative business.
Huge investment is made by members with the intention of earning high rate of return (Beale,
Rutgers and Vogenauer, 2019.).
Advantages : Getting the cooperative business registered is very much simple and less legal
formalities are required for opening cooperative business. In addition to this, liability of
members in cooperative society is limited up to the amount of capital invested by them.
Disadvantages : Limited capital and high chances of corruption are considered to be as the
biggest drawback of establishing cooperative business.
4. Significance of identification of employment status of workers being being recruited by
organisation.
In context of given case scenario, it is very much essential for employer to address the
employment status of employees working in a firm. According to the employment law in UK,
employers are responsible is mainly responsible for the majority of employment rights if those
working for them are employees rather than self-employed. As a business owner or partner inn
an organisation , all three partners that is Ringo and his all three friends is required to develop
the understanding about employment status of workers as it will enables them in defining the
accurate duties of employees working in an enterprise. The understanding about the employment
status of workers will assist employer in making sure that all employees are being paid with
sufficient amount of salary which is very much essential in order to avoid legal obligations. In
addition to this, developing the understanding about employment status is very much crucial for
employer, as it will assist them in gaining the knowledge about the way employment status
can effect their claim to particular employment rights as mistakenly withholding an individual’s
rights could lead to costly employment tribunal claim. Developing the understanding about the
employment status will assist employer in developing or taking preventive measures for
eliminating the legal actions. It will help employer in retaining the control on the legal actions
taken by workers or employers against company (Employment status, 2019.). The knowledge
about the employment status will help an individual in exploring as well as capturing

employment benefit. Employment law in UK doest not provide rights to self employed as well as
part time workers.
CONCLUSION
It has been concluded from the above that by entering into a legally binding and valid
contract parties can maintain their commercial relationship. Other fact which has been
discovered from the study is that determining the employment status is very much essential for
employer in order to avoid claims which can have adverse effect on the financial perfortmance
of company.
The criteria which is required to be satisfied by Jerry in relation to action for negligence
has been highlighted in assignment. It has been suggested that parties need to take proper
precautions while forming agreement or contract as this tactics will help them in preventing
legal obligations.

REFERENCES
Books and journals:
Beale, H., Fauvarque-Cosson, B., Rutgers, J. and Vogenauer, S., 2019. Cases, materials and text
on contract law. Bloomsbury Publishing.
Cotterrell, R., 2018. The development of capitalism and the formalisation of contract law.
In Law, state and society (pp. 54-69). Routledge.
Pargendler, M., 2018. The role of the state in contract law: The common-civil law divide. Yale J.
Int'l L., 43, p.143.
Cann, S., 2018. Administrative law. Routledge.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2019. Problems in Contract Law: cases and
materials. Aspen Publishers.
Medway, D., Roper, S. and Gillooly, L., 2018. Contract cheating in UK higher education: A
covert investigation of essay mills. British Educational Research Journal. 44(3).pp.393-
418.
Taylor, R. and Taylor, D., 2019. Contract Law Directions. Oxford University Press, USA.
ONLINE:
Employment status.2019.[ONLINE]. Available
through:<https://www.cipd.co.uk/knowledge/fundamentals/emp-law/employees/status-
questions>.
Tort, negligence and nuisance claims—overview. 2019.[ONLINE]. Available
through:<https://www.lexisnexis.com/uk/lexispsl/disputeresolution/document/
393747/59PM-BBC1-F18B-72Y2-00000-00/
Tort__negligence_and_nuisance_claims_overview#>.