Business Law Case Study: Elixir Gardens and Legal Issues

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Law for Business Managers
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Contents
Law for Business Managers.............................................................................................................1
Introduction......................................................................................................................................2
1.......................................................................................................................................................3
(a) Under the law of England and Wales, what is a contract and what are the requirements for
a valid contract to be formed?.....................................................................................................3
b) Is Ringo liable to pay Paul on the basis of the facts given above?..........................................4
2.......................................................................................................................................................6
In light of the facts above, discuss the criteria that Jerry (as the claimant) would need to satisfy
in an action for negligence...........................................................................................................6
3.......................................................................................................................................................7
Identify the main business mediums available to Ringo and his friends John and Yoko and the
advantages and disadvantages of each of these mediums...........................................................7
4.......................................................................................................................................................9
Discuss why it is important for Ringo, John and Yoko to identify the correct employment
status of any workers that they recruit for their business............................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
The term business law is one of the most important laws that help the business organisation to
manage their operations and work according to the required laws that are framed by the
government of the country. there are various legal requirements that the business organisation
working in the country needs to fulfil so as to maximise their performance and achieve the
objective of working according to current legal requirements. it is seen that the government of
the country has made private, public and various other law that is applicable to the business
organisations that are working in the country. there are various other elements that are included
in the business law through which it achieves the motive of regulating the business organisations.
Some of these includes the company law, employment law, contract act etc. this report is about
the issues that are faced by Ringo and the solution would be provided to them so that they are
able to solve the issue that has occurred between the partners and his son.
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1.
(a) Under the law of England and Wales, what is a contract and what are the requirements for a
valid contract to be formed?
Contract law is one of the most important and prominent laws that helps the business
organisation as well as the individuals to form the legal contract that can be bounded by the
court. The law helps in providing the information through which they are able to regulate the
contracts that are framed by the government of the country. the contract is considered to be
formed when there is an agreement that has been entered between the two parties to the contract.
Here this is seen that one person must give the offer to the other person and the other person
must accept the offer as it is given in its initial form (Beck & Paton, 2018). For the purpose of
making the contract enforceable by law the parties to the contract must have the legal obligation
to make it legal. This is seen that it is the implied condition of the law where if the contract is
made between the parties to the contract then it is important to fulfil the terms of the contract and
no party can breach the contract that is formed between them. hence for the formation of the
contract the contract law provides various elements that are supposed to be followed by the
parties so as to make it legal. Some of them include the following:
 One of the parties to the contract which is known as offeror must provide the offer to the
offeree.
 The acceptance must be given by offeree on the terms that are given by offeror and these
terms must be agreed as these are given initially.
 There must be a consideration in the contract and this must move at the desire of the
promisor or the offeror to the contract.
 After this, the intention of making the contract legal must be there so that the contract has
the legal obligation to perform.
This is seen that for the purpose of formation of the valid ad legal contract this is important that
all the condition of the contract must be fulfilled by the parties to the contract so that they are not
liable for the breach of the contracts. Hence this can be said that the contracts are a legal
agreement that is entered into between the parties to the contract (Bowley, 2019). This is seen
that the contract can be in form of written or in the oral form and it is also seen that for the
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purpose of making it legal this is not required that it must be in written form. The contracts are
considered to be legal is these are made in oral sense. The parties to the contract are considered
to be free so as to decide the terms of the contract and accept them consensually. This is known
as the freedom to decide the terms of the contract as given by the law in the country. Contracts in
country are considered to be civil in nature and hence if there is breach done for the contract
terms than here penalty for the breach would be implemented for the same. This is seen that
Common law in the country is considered to be the law that has provided the space for the
contract law in the country (Johnston, et. al., 2018).
Hence this is important for the parties to the contract to follow the terms which are specified in
the contract law of the country.
b) Is Ringo liable to pay Paul on the basis of the facts given above?
This is seen that every person in the country has to follow the contract law that is specified by
the government of the country so as to make it legally binding. Hence to analyse the cause and
effect of the case a further analysis has been done. this includes,
Issue
Here, in this case, it is seen that Ringo is an entrepreneur who is doing the business in the
industry of gardening and is running a business with the name Elixir gardens. The business is in
the structure of sole trader where it is seen that he himself controls and operates the business.
This is seen that his son named Paul has come to home from the university on the occasion of the
weekend holiday. The offer has been given by the father that if the lawn is mowed by him then
he would be paid with 10GBP for the work that is done by him. This is seen that offer was
accepted for decided consideration by Paul. This was seen that contract was performed as this
was decided by them. while after the completion of the contract this is seen that Ringo refused to
pay the consideration to Paul. Hence the issue here is this that Paul wants to sue Ringo for the
consideration that was decided in the contract.
Rule
This is seen that according to the contract act, this is important that for the formation of the
contract there must be mutual consent and obligation for the performance of the contract. This is
considered that consideration is one of the elements of the contract which is required for the
purpose of formation of the contract (O'Brien, et. al., 2018). This is seen that If the parties to the
contract breach the terms of the contract then the other party can sue another party for the
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completion of the contract or for penalty. This is seen that if the breach of the terms of the
contract is done then penalty may be imposed for the same and the other party can sue the
breaching party in the court. As the communal and social agreement is not considered to be
bounded by the contractual relationships. But this is seen that these agreements are considered to
bound only that agreement which is social agreement where the duty to care exist.
Application
Therefore, in the present case, this is seen that there is a breach of condition for the payment that
is made by the parties to the contract. Here this is seen that Ringo is refusing to make the
payment to Paul for the completion of the contract (Peterson, 2018). As Ringo is not paying and
fulfilling the terms of the contract and hence this is considered that Paul is having the right to go
to the court for the purpose of demanding the consideration that was decided among them. the
court can provide the remedy where Ringo has to pay the amount to Paul and also penalty can be
imposed on Ringo.
Conclusion
Therefore, this can be considered that Ringo is liable to pay the amount to Paul as the contract
that is entered between them is not social contract agreement. So, in this case Paul can go to
court for the purpose of getting consideration that has been decided between them.
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2.
In light of the facts above, discuss the criteria that Jerry (as the claimant) would need to satisfy in
an action for negligence
The term negligence is born and defined in the tort law where the definition and conditions for
the negligence are defined. This is considered that here is the defendant is required to prove that
he has not done any wrong and was not negligent at the time of completion of the contract. This
is seen that there must be loss to the party to the contract which is due to the negligence that is
performed by them. It is important that the loss here must not be raised for the purpose of
defence against actions that are done by the defendant. The law of tort is considered to be the
civil law and it considered that it contains several remedies which are provided by the law
against the defendant’s action (Rosenbloom, 2018).
As per the condition of the issue, this is seen that in the case of Donoghue VS Stevenson, it was
decided that determination of the duty of care was to be considered for the purpose of making the
defendant liable for negligence. This is seen that there is the duty to take care of the people who
are closely related to the terms of the contracts. It is seen that there is various alternative test that
is taken for the purpose of identifying the duty of the care which existed at the time of
completion of the contract. Here this is seen that if misstatement is made for the purpose of
identifying the negligence then there must exist economic loss to the claimant.
So, this is specified as per the law of negligence that the duty of the party is to perform the
contract without having negligence. It can be said that both the party to the contract has the
obligation to perform the duty with due care (Singer, 2018).
The issue that raised here includes that George was considered to be in some hurry while
chopping the trees. Hence throughout the process, he forgets to measure the length of the trees
that were chopped and due to the negligence of him one tree falls on the conservatory due to
which Jerry had to face huge loss. Hence, in this case, this can be considered that Jerry has to be
indemnified by George for the loss that has been caused to him due to the negligence of George.
So, this is seen that court would give the decision in favour of Jerry and he would be indemnified
for this purpose. this can be seen from the famous case of Bolam Vs Frien where the court laid
down the procedure so as to assess the negligence that is done for the professionally skilled
individuals.
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3.
Identify the main business mediums available to Ringo and his friends John and Yoko and the
advantages and disadvantages of each of these mediums.
It is seen that there are various business models that are specified by the law in the country. For
Ringo and his associates, this can be seen that they are having the various options that are
available to them so as to form the business organisation that suits them best. This is seen that
under the business law the government of the country has identified various types of organisation
that are available for the people so as to do the business in the best possible manner (Stiegler, et.
al., 2018). Hence some sort of business organisation that are identified are classified as under:
 Corporations: It is one of the most important forms of business organisation that are
considered to be of large scale. This form of business organisation helps in the owners of
the business to maximise their performance and grab the maximum opportunity for the
growth of the business. Here this business organisation has the profit of using the more
funds as compared to another form of business organisation as this is seen that it can use
the share capital, debentures, bonds and another form of source of funds for the operation
for the business. This is seen that here for the purpose of registering the company at least
two members are required which would be considered to be the director of the company.
Here this is seen that MOA and the AOA are required to be formulated for the purpose of
making and registering the company. these documents are required to be submitted to
ASX for the purpose of getting registered. Here there are various sub-business forms
which include the private company, public company and the government company. There
are various advantages and disadvantages that are related to the corporations which
includes,
o Advantages:
 Easy expansion of business to the outer market
 The company is having perpetual succession and cannot be
dissolved easily.
 The funds are available to them in the form of debentures, shares,
bank loans and various other forms.
o Disadvantages:
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 Diluted ownership of the business
 For the purpose of taking any decision, the company has to call for
the meetings.
 Partnership: This is the form of business organisation where there are two or more than
two owners of the business which are considered to be the partners of the firm. Here the
objective of this business organisation is to maximise the profits that are shared by them.
in this type of business for the purpose of formation of the business, the partnership deed
is required to be submitted to the registrar of the firms. Here this is seen that the capital of
the firm is contributed in the share that is prescribed in the partnership deed by the
partners. This is seen that this type of business organisation is considered to be simple in
formation. Here this is seen that there are various advantages and disadvantages that are
related to the partnership business.
o Advantages:
 This is seen that here the shared management is done for the
purpose of making a decision.
 The firm is having the advantage of a higher amount of funds
o Disadvantages:
 The firm is not having perpetual succession.
 The profit is shared among the partners globally.
 Sole trader: this is the form of business organisation where there is a single owner of the
business and it is considered that he would be liable for the operation of the business.
This is seen that here in this case the owner of the business contributes the amount for the
capital of the business. This type of business is considered to be the simplest for the
formation. This is seen that there are various advantage and disadvantage that are related
to this form of business. These include,
o Advantages:
 Easy in formation
 Control over the business affairs
o Disadvantages:
 Lack of capital contribution
 Less scope for expansion
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4.
Discuss why it is important for Ringo, John and Yoko to identify the correct employment status
of any workers that they recruit for their business.
This is seen here that Ringo, John and Yoko are considering to run the business and hence for
this it is important for them to identify the employment status ad the correctness of the business
while recruiting the workers for the company. it is seen that here the recruitment process helps in
determining the employment status of the employees who had already worked in any other
organisation as this is important so as to maximise the performance of the company. This is seen
that it is important for every business organisation to identify the employment status of the
employees (Walker, et. al., 2019). The companies must do the routine check so that they are able
to find the employment status of the employees and the behaviour of the employee in their
previous job. The casual employees of the company are considered to be the workers who work
without any of the accountability towards the work that is done by them. it is important for the
company to check the fiduciary track record of the employees that they are considering hiring so
that the status of the employee can be checked. This is seen that here the employee's previous
track record should be checked as this is seen that the employee may be associated with any
unwanted or any unlawful activities which are considered to be criminal and are liable for
penalty.
Hence this is important for the employer that they should make the contract with the employees
before hiring them and this is called as the employment contract. This is considered to be the
written contract where the employee consent for the terms and conditions that are specified by
them. This helps in solving the dispute that is faced by the employees and the employer while in
the employment (Watts, et. al., 2018).
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Conclusion
Through the report above this can be identified that there are various types of business law that
helps in resolving the issues that are given in the case above. This is seen that through this
assignment the employment, as well as the contract law objectives, are learnt. Also, various
forms of business structure are studied through this assignment. this helps in contributing to
better understanding of the provisions that are specified by the law in the country.
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References
 Beck, J., & Paton, G. (2018). Corporate law: The Royal Commission: Corporate culture
spotlight: Where is all this heading?. Governance Directions, 70(6), 351.
 Bowley, R. (2019). Enabling law students to understand business concepts: reflections on
developing a business case study for corporate law. The Law Teacher, 1-25.
 Johnston, A., Segrestin, B., & Hatchuel, A. (2018, July). The Separation of Directors and
Managers: A Historical Examination of the Legal Status of Managers. In Academy of
Management Proceedings (Vol. 2018, No. 1, p. 12831). Briarcliff Manor, NY 10510:
Academy of Management.
 O'Brien, L., Ramsay, I., & Ali, P. (2018). The hidden dimension of business bankruptcy
in Australia. Australian Business Law Review, 46(5), 291-306.
 Peterson, E. (2018). Empowering Business Policy & Strategy through Improved
Collaboration between Managers and In-House Counsel. Atl. LJ, 20, 225.
 Rosenbloom, D. H. (2018). Administrative law for public managers. Routledge.
 Singer, A. (2018). vorheriger Artikel Dynamics for Integrative Social Contracts Theor...
nächster Artikel Duty and Boycotts: A Kantian Analysis. Journal of Business
Ethics, 17(2016).
 Stiegler, T., Singer, K., Wiesener, A. U., & Bussian, A. (2018). Management
Participation Programmes for German Target Companies—Current Developments of
Fiscal Treatment in Germany.
 Walker, H., Easteal, P., Ballard, A., & Blake, K. (2019). Lost in translation: Gaps
between law and practice in customer-perpetrated sexual harassment. Alternative Law
Journal, 1037969X18803211.
 Watts, L., Schoder, M., & Hodgson, D. (2018). The experiences of human service
managers in contexts of change and uncertainty. Australian Social Work, 71(3), 306-318.
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