Business Law: Analysis of Contract, Employment, and Company Cases

This case study delves into various aspects of business law, examining three distinct cases. The first case explores an employment contract dispute, analyzing whether an employee can claim forgone wages and commission. The second case focuses on a breach of contract involving a servic...Read More

Business law

TABLE OF CONTENT
 Introduction
 Case 1
 Case 2
 Case 3
 References

Overview of contract law , employment law and company
law
Contract law : It is an agreement between two parties to perform an contract
binding on both side. For example, contract for sale of goods and services. Case
law of Harvey v/s facey
Employment law : It is law that regulate the relationship between the employer and
employees. For example , case law of City of York council v/s B J grosset
Company law It it is a law that govern the companies as per the companies act,
2006. for example, case law of barron v/spotter

Case 1
Salient features of case
 Gordon is a salesman of Orange computers ltd.
 Company asked him to forgo salary due to financial crises and he got agreed upon
it.
 When company began to grow, Gordon asked to provide him salary and
commission as per employment contract and claiming past forgone salary as well.
 Both employer and employee were of legal age
 The manager of the company has reduced the company's income
 Mr . Fred offered Gordan that if it forgo wages and get the commission for the
time being.
Issue:
Whether, Gordon can obtain wages?

Conti…
Application
 All the above laws and case study is applicable over the present scenario.
 In the present case, Gordon and his employer made an employment contract
which contains a clause that Gordon will get a sum of 10000 and
commission for job.
Solution
Option 1 : if contract is legal to meet Gordan minimum wage than it is required
to be a binding contract and company is liable to pay minimum wages to the
Gordan
Option 2 : If contract is illegal company is not guarantee to pay minimum wage to
Gordan than company will be liable to pay salary for 2015, 2016 and 2017.

CONTINUE
Conclusion
From the above rules, case study and applying them on the present case
scenario, it can be concluded that, as there is an employment contract between
Gordon and Orange computer Ltd., to provide a sum of 10000 along with
commission to Gordon.
Sine there is valid agreement between Mr fred and Mr Gordan, the existing contact
is a binding contract unless the new terms are mutually agreed and a new
contract is being signed between the parties

Case 2
Salient features of case:
 Janet decided to make a contract with virgin media to purchase and install
internet package including phone lines.
 Virgin media installed internet on time but made delay in installing phone
lines.
 Company is asking payment for the whole period including phone bill.
 Janet is denying to pay phone bill in context to the delayed time period.
Issue:
 What is the legal position of Virgin media
Law:
 Contract: A contract is an agreement between two parties. For exchanging
goods or services with each other.

Conti…
Application:
 The above laws and case study is applicable over the present scenario.
 As per which the Virgin media have breached the contractual term.
 In this regard, as per provisions of remedy against breach of contract, Jenet
have right to claim remedy against Virgin media.
Conclusion
 From the analysis of above mentioned law, case study and applying it over
the present case scenario, it can be concluded that Virgin media is a defaulter
party in this case. According to the case, the Virgin media is liable to delay in
providing assistance to janet. So, janet can claim compensation for the the
delay

Case 3
Salient features of case:
 Blackhorse limited provides security guards to various businesses.
 Some large customers failed to pay debt to company which resulted in cash
reduction.
 Company's creditors asked for payment or to windup company and pay
debts.
Issue:
 what are the different options for avoiding winding up
Law
 Insolvency: It is the situation in which a company fails to pay its debts.
Further, there is no scope to get the funds for their payments in near future.
 Compulsory winding up: A winding up is said to be compulsory, in case the
court orders the company to do so.

Conti…
Case law:
 in n Stonegate Securities Ltd v Gregory case, the company fails to pay the
debts of Gregory.
 Gregory appealed into the court for ordering the company for winding up
procedure.
 In this case the court held in favour of stonegate security Ltd. As the amount
of disputed.
Application:
 From the application of above laws and case study in the present case
scenario, it can analyse that, as the Blackhorse limited does not have ability to
pay its debts, due to losing its customers, the government may order the
company for compulsory winding up.

Continue..
Option available if winding up petition against the company
 Repay the debt
 Make and informal agreement
 Required an adjournment
 Place company into voluntary liquidation

References
 Brown & Anor v Neon Management Services Ltd & Anor (Rev 1)
[2018] EWHC 2137 (QB). [Online]. Available through
<https://www.employmentcasesupdate.co.uk/site.aspx?i=ed37361>.
 STONEGATE SECURITIES LTD V GREGORY: CA 1980. [Online].
Available through <https://swarb.co.uk/stonegate-securities-ltd-v-
gregory-ca-1980/>.

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