Business Law: Chiclets Plc, Delta Delivery Limited, and Joe's Injury

This report examines a business law scenario involving Chiclets Plc, a fast-food restaurant chain, and Delta Delivery Limited (DL), their food delivery service. The report analyzes the legality of a contract between the two companies, focusing on DL's breach of contract due to a computer system failure ...Read More

Business law

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..............................................................................................................................1
Q 1. Advise the legality, if the term is found to be unlawful what further action must Chiclets
Plc take.........................................................................................................................................1
Q 2. Advise Joe on whether he can successfully claim for the injury. Consider any defences
DL Ltd may raise.........................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business law encompasses of all laws which dictate how to form & run a business. It
involves all compliances which are govern how to start, buy, manage and sell the business. It
formulates the rules which are needed to be follow so that a person can effectively carry its
business and operations. To fulfil the requirements of law it is needed to follow the compliances
and rules. To better understand this concept Chiclets Plc has been chosen which is a fast food
restaurant. In this report, there are following topics are covered such as: terms of contract which
seeks to avoid liability if the term found to be unlawful. Apart from this it also discuss about
claim for injury and breach of contract.
MAIN BODY
Q 1. Advise the legality, if the term is found to be unlawful what further action must Chiclets Plc
take
Legality can be defined as an act, agreement or contract which is consistent with law.
This term denotes the requirement of law or any obligation which is imposed by law. A contract
is an agreement which is enforceable by law. It is important that at-least two parties should be
involve while making the agreement. It is required that it must be written. To make a valid
contract there are six elements which are needed to be consider such as:
Offer and acceptance: A contact is made when one party accept the proposal of other
party. It is essential that offer should be clear and definite and proper information is needed to be
provide. All information is required to be provide to the offeree. When a proposal is accepted
than it becomes an agreement. So it is important that both parties of contract should be agree on
same thing (Pillay, 2017).
Intention to create legal relationship: It is required that contract must create a legal
relationship between both of parties which are involved in contract.
Capacity of contract: It is required that a person who is involve in contract, it should be
of sound mind and possess all information associated with contract. Generally a minor person
can not make contract until and unless the acceptance has given by his parents.
Free consent: In the business law a valid contact is prepare when free consent has given
by the parties.
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Lawful object : To make a valid contract it is required that object should be lawful and if
it against the public policy than it becomes void. A valid contract can not be made if the
objectives are illegal.
Lawful consideration: In contract some consideration is required and it should be lawful
& real.
Certainty & possibility of performance : The agreement made in contract is required to
be certain and possibility of events and performance should be certain so that valid contract can
be made.
As per the scenario, Chiclets Plc is running a chain of restaurants and searching for a
company which can deliver the food products and eventually it entered into an agreement with
Delta Delivery Limited But after few months the computer system of DL has breakdown as a
result for 10 days food not delivered so that organisation have to close 200 restaurants out of 900
restaurants. From this Chiclets Plc have to bear damages. So from the above case it has been
concluded that It is the responsibility of DL to deliver the food with in stipulated time frame. If
computer system was not working than it is the liability of Delta Delivery Limited to inform the
company about the issue that it can not deliver the food products with in stipulated time or as per
the requirement. Otherwise DL can call IT expert who can look the matter and fix the issue and
repair the computer system. So that food can be deliver according to the necessity. But DL does
not do this as a result negative consequences have to bear by CL and its 200 restaurants has been
closed. According to the agreement it is the duty of Delta Delivery Limited to deliver the food as
per the requirement and it should not be delay (Kimble, 2012).
So it has been analysed that DL has breach the contract because it does not perform its
task as per the requirement. Breach of contract arises when the a party can not perform as per the
agreement and does not fulfil its obligations as per the terms and condition. The situation of
breach of contract can be arises when a party fails to perform according to the necessity or
agreement. If other party is performing as per the requirement than it can claim for the remedy.
The same situation has arises between DL and CL because there was an agreement takes place
between Chiclets Plc & Delta Delivery Limited. According to the agreement DL have to deliver
the food products of the company as per the specific requirement. But it said that due to the
breakdown in computer system the products does not deliver for ten days. In that situation Delta
Delivery Limited does not inform to Chiclets Plc that it can not deliver the food but it do not
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provide the information to the company. So it is the situation of breach of contract because one
party fails to perform the terms and conditions of agreement where as CL is performing is duties
effectively and properly. So for the damages DL is liable and it is not legality of contract. The
term is unlawful because if two parties have entered into an agreement than it is the
responsibility of both parties to fulfil the conditions of agreement otherwise contract will become
void. In this case Chiclets Plc have right to take further action which can be to take compensation
from DL for the damages and it can also file the suit in the court that Delta Delivery Limited
does not fulfil the requirement of contract so company is liable to take monetary compensation
for the unlawful act (Cheeseman, 2012).
So it has been analysed that DL is responsible for the food delivery but it fails to do that
as a result CL have to bear the losses and it have to close 200 restaurants out of 900 restaurants.
As a result its sales and profits has been reduced which can also affect the business operations of
company. In that case Chiclets Plc can take further actions and demand for the compensation and
if DL deny from it than CL can file a suit in the court about the whole issue so that favourable
decision can come.
Q 2. Advise Joe on whether he can successfully claim for the injury. Consider any defences DL
Ltd may raise
Back injuries are very common in workplaces which happens due the incorrect way of
lifting an item or carrying weights more than certain capacity. Many organisation provide ways
to lift heavier items using some tools and are even provided guidance on safety and health
matters. As per the UK jurisdiction in order to claim for personal injury few factors are needed to
be considered. Compensation for back injury ranges from 6000 to 2000 pound. There are few
points which employer should kept in mind in case of accidents the superior or the person in
charge should immediately report to management. Medical treatment along with adequate
amount of rest should be given to victim. Business enterprises should made effective policies and
procedures on manual handling so that risk associated with such matters can be prevented. It is
important to note down injuries in accident book. Training regarding manual training should be
given to every employee of DL Ltd as this is valuable feature that can help the workers in
safeguarding them from severe accidents. There were few mistakes on the part of Delta Delivery
Limited as well. Even though the company reasonable standards were not being followed by the
company management is still stand on their claim for not providing compensation to Joe.
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Advice given to Joe on successfully claiming
 It is lawful, if workers suffers from back injury due to lifting extra weights they can claim
compensation thus Joe too can ask for financial help from company under medical
grounds.
 Employees can even recover their income and expenses which are caused because of
accidents. If Joe has suffered from any cost it is advised to recover lost amount by
claiming.
 Joe should ask for medical treatment for example rehabilitation therapies for the back
injury. This is also one of appropriate claim that provides help in quick recovery of
person.
Looking at the case of delta delivery, Joe who was packer of company can not
successfully claim for his injury as the company clearly advised over a certain matters such as
not to manually load items. Instead of this suggestion Joe manually lifted heavy weight which
led to the serious back injury thus due to negligence on the part of injured person it is not
possible to acquire compensation (Ashcroft and Patterson, 2016).
Defences which can be raised by DL Ltd:-
 As back injuries compensation depend on the type of injury, the concerned company can
say their defence that as spinal chord accidents are common and the injured person has
already been suffering from pre existing injury.
 The defendant may also defend themselves by stating all the terms and conditions written
in the agreement and both the parties have agreed to follow them.
 They can also claim that the day workers joined company an induction was made to make
them aware about the health and safety. Management of Delta Delivery Limited
effectively took the responsibility of employees well being.
 DL Ltd can also claim that it was restricted to overload lorry even after that Joe ignored it
and lifted number of boxes out in the road which was the cause of severe back injury.
 The company in their defence can list all the policies and procedures that they have
established in order to deal with such situations. And how these guidelines were avoided
by Joe led to an accident.
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It can be concluded from the above case that it requires attention both on the part of
employer and employee to understand their rights and responsibilities. This can help company to
avoid government intervention and saving themselves from the legal actions. So it has been
advise to Joe that it can not claim for the injury. As Chiclets Plc has instruct that packers have
been advised not to manually load items over a certain weight without a fork lift truck. So Delta
Delivery Limited can not raise the defence (Allen and Kraakman, 2016).
CONCLUSION
As from the above report, it has been concluded that it is required for the parties who
entered into an agreement they have to follow the terms and conditions of business law. The
company is responsible to follow the guidelines of contract so that it can become valid. If a party
breach the agreement than it have bear the consequences or it have to pay the compensation to
other party. It is the responsibility of organisation to conduct lawful activities so that legality can
be exist otherwise contract can become void. At the work place injuries can arise so it is the duty
of company to provide healthy and safe working place to the employees so that chances of
injuries can be reduce. Organisation have to set specific standards which are needed to be follow
so avoid the injury.
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REFERENCES
Books & Journals
Allen, W. T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Ashcroft, J. D., Ashcroft, K. and Patterson, M., 2016. Cengage Advantage Books: Law for
Business. Cengage Learning.
Cheeseman, H. R., 2012. Contemporary business and online commerce law. Pearson Prentice
Hall.
Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and
postgraduate students. Macmillan International Higher Education.
Kimble, J., 2012. Writing for dollars, writing to please: The case for plain language in business,
government, and law. Durham, NC: Carolina Academic Press.
Luetge, C., 2013. Handbook of the philosophical foundations of business ethics. Springer.
Pillay, R. G., 2017. Adaeze Okoye, Legal approaches and corporate social responsibility:
towards a Llewellyn’s law-jobs approach. The Law Teacher.51(4). pp.525-527.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Schulz, M. and Wasmeier, O., 2012. The law of business organizations: A concise overview of
German corporate law. Springer Science & Business Media.
Terra, B. J. and Wattèl, P. J., 2012. European tax law (Vol. 896). Alphen aan den Rijn: Kluwer
law international.
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
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