Business Law Report: Legal System, Business Structures, and Contracts

This report provides an overview of business law, exploring the legal system's role in law-making, its strengths, and weaknesses. It examines legislation, regulations, and standards relevant to businesses, and details different types of laws companies must follow, including employment and contract law. The report further classifies various business organizations such as sole proprietorships, partnerships, and companies, discussing their management and funding. Part 2 delves into contract law, employment law, and company law, analyzing legal points in case studies, proposing legal solutions, and offering advice to relevant parties. The report concludes by evaluating the effectiveness of recommendations and the appropriate use of legal solutions, offering a comprehensive understanding of business law principles and their practical application.

BUSINESS LAW

Contents
INTRODUCTION.................................................................................................................................3
PART 1..................................................................................................................................................3
1) Legal system and role of government in law making....................................................................3
2) Strength and weakness of the legal system....................................................................................3
3) Legislation, regulation and standards undertaken by business.......................................................4
4) Different laws to be followed by company....................................................................................4
5) Different types and classification of business organization...........................................................4
6) How different organizations are managed and funded...................................................................5
PART 2..................................................................................................................................................5
1) Overview of contract law, employment law and company law:....................................................5
2) Legal points on each case..............................................................................................................6
3) Appropriate legal solution to each of the issues............................................................................6
4) Advice and solution to the relevant parties....................................................................................6
5) Effectiveness of recommendation..................................................................................................7
6) Appropriate use of legal solutions.................................................................................................8
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Business law refers to the body of the law which is mainly imposed on the business
when they are dealing in certain type of transaction. The law are imposed in managing the
activities relating to civil and criminal crime and then accordingly the punishment is imposed.
Business deal in various activities such as buying or selling of goods or services or entering
into any contract with any of the person or also giving any property or business on lease or
franchising the business (Roach, 2016). Thus, various laws are designed in respect of
managing the business activities in right manner and also secure the right of the person who
are engaged with it. In this report, the matters which are covered is relating to identifying the
nature of the legal system and its potential impact of law on the business. It also includes the
matters relating to the formation of different types of business organization and also its
advantages and disadvantages in business. At last, the report ends up with the legal solution
which is undertaken to resolve the disputes in business.
PART 1
1) Legal system and role of government in law making
It mainly refers to the legal procedure or process which is undertaken in enforcing the
law. It mainly provides the right and responsibility to the citizen to secure their right in
attaining any task. It mainly carries with different sources of law such as in case of customs
law, it mainly runs from the ancient times. In case of case law which is also known as
common law, in which judges refers the decision by referring the previous judgment. Another
source is relating to the statutory law in which the parliament carry the right to enact any laws
and such laws are written in the constitution (Lehmann and Zetzsche, 2016). In case of
Europeans laws, these laws are mainly designed for the citizen of the UK country to protect
their interest.
The role of government in law making is stated by both the houses, firstly it is the
duty of the public authority to examine the needs of law making and then draft a bill to the
house of common. The bill then sent to the second reading in which the debate and
amendment is made. It further reaches to the committee stage in which detailed discussion is
undertaken. The bill further sent to the report stage in which the vote of the integrity of the
bill is determined (Siems, 2018). It further than transfer to the third reading in which the
House of Lords read the bill loud and then send back to house of common for further
changes. At last, the bill is signed by the royal ascent and then the bill is imposed in country.
Statutory law applied in business in respect of working under the norms mentioned in
the constitution. In case of common law, this is applied by referring the cases which is
previously mentioned in the existing case and then the working is undertaken.
2) Strength and weakness of the legal system
In respect of taking any action against any person, the strength which is undertaken in
legal system is relating to providing justice to parties whose rights are infringed. Similar the
weakness which is examined in this case is relating to taking long time to implement any
laws and also lot of political intervention is also raised in respect of not allowing any laws to
be implemented (Siems, 2016). The strategy also lies in respect of getting speedy disposal of
judgment while strategy is that it refers to the costly procedure.

3) Legislation, regulation and standards undertaken by business
In context of business, the legislation which they had to follow is relating to working
under the laws which is imposed for them such as Company act, contract act, employment
and labor laws and many more. The regulation which the business had to be aware about is
relating to controlling the activities which is undertaken by employer and employee in
business (Partington, 2019). The regulation are imposed in respect of controlling the wastages
in business or resolving disputes or wearing life safety equipment of working at hazardous
places. The standards which the business must be aware of is relating to delivering the quality
products to the customer within the set time period.
4) Different laws to be followed by company
There are many different types of laws and legislations which are to be followed by
the company in order to exist in this highly competitive world. This is basically because of
the reason that these laws provide a guideline to the employees how to work. The common
laws applicable on every business are as follows-
Employment law- this is a law which is applicable at time of when employees are recruited
within the business. This is necessary to be followed as this protects the rights and safeguard
the interest of employees.
Common law- the common law is a type of law which remains common throughout the land.
It means that if any situation which is present in current case has happened earlier than the
judge of current case can use the judgment passed in earlier case also (Clarke, 2017).
Contract law- this is a type of law which includes the regulation of all the terms and
conditions which are necessarily to be maintained during the signing of the contract. This law
binds both the parties under the contract to follow all the legal issues.
5) Different types and classification of business organization
In this highly competitive market there are many different types of business which are
operated and functioned to earn a living. The different types of business and organization are
discussed as follows-
Sole proprietorship- this is a type of business which is started by a single person only and all
the risk and profits are of that person only. This is a very small scale business operated by the
person managing the business single handed.
Partnership- this is a form of business wherein the two or more person comes together and
start a business and all the liabilities and assets are divided among them equally or at agreed
ratio (Graziano, 2019).
Company- this is a type of business which is formed legally among a group of people and the
shares of which are offered to the general public. This is a legal association of the people
coming together and shares all the profit and liabilities in the agreed ratio and manages the
business.
6) How different organizations are managed and funded
As there are many different forms of business and also there are many different ways
of managing and funding these business which are as follows-

Sole proprietorship- this is a business which is totally managed and funded by the sole
proprietor only. Here the fund can be raised by taking loan from friends and family and no
other way to source it. Also the management of this business is completely done by the sole
proprietor only (Smits, 2017).
Partnership- this type of business is managed by the partners and also it is funded by the
personal capital which the partners bring in. Also, another source of funding is taking loans
from the banks and moneylenders.
Company- this business is managed by the owners of the company and the shareholders of
the company. This is also funded with the basic source of capital of the shareholders. Another
way of funding is placing the shares of company in the market for general public to purchase
it. Also, one more source of funding is the loans from banks and big financial institution and
in form of loans and debenture issued to general public. Also, for management of the
company they also hire some professional and experts.
PART 2
1) Overview of contract law, employment law and company law:
Company law, 2006: This is mainly imposed in respect of managing the overall
integrity of the company regarding it procedure from establishment of the business to the
winding up procedure. Sometimes, laws are also imposed in respect of managing the name of
the business which is not relevant to other company name or also not affecting the integrity of
the country (Cherry, 2017). The issues related to insolvency of the business raises in respect
of not having sufficient funds to carry the business activities for longer way and in such
manner, the liquidators is appointed. The duty of the liquidators is to examine the company
assets and debts and then write off to pay money to the creditors and investors to whom the
business is sustaining.
Employment law: This law is mainly imposed in respect of maintaining the close
relationship between the employer and employee who are working in the business. Their
rights are protected under the Employment Rights Act, 1996. Employees carry various rights
in respect of enjoying the rights given under the Pension act, 2008 or time scheduling for
attaining work mentioned under the National Minimum wages act, 1998. In return employer
also carry various rights in respect of terminating or restricting any person to attain any
activity in respect of violation done in not following any of the norms.
Contract law: It refers to the agreement between the parties regarding entering into
any contract. Contract law is mainly imposed after fulfilling the essential elements such as
parties must be competent to handle the contract or there must be offer and acceptances
between the parties and also such agreement must be made on the consideration amount
(Austen-Baker, 2017). If entering into any contract, they are legally bound between the
parties to follow all the terms mentioned in the contract. If the breach committed in any of the
terms, parties carry the right to terminate the contract.
2) Legal points on each case
Case 1: In this case the legal points which is considered is relating to the variation in the
contract. Thus, in this case the liability of the Gordon is to get the salary of 2017 as it is

mentioned in the variation contract regarding not paying the salary. As orange computers Ltd.
Store facing issues regarding not managing their business in right way and thus, not affording
to pay salaries to their employees.
Case 2: The legal issues which the Janet is facing is relating to not getting the installation of
the internet package within the set time period. The invoice bill stated with the full amount of
the package which is undertaken by Janet, but the installation is done on the mid of the
month. The legal points which is considered is relating to violation in the contract law.
Case 3: The legal points which is examined in this case is relating to company law in which
the deal is made by the Blackhorse limited. They are dealing their business with four main
customers, in which one of the business is failed to pay the debts to the company which
results in facing the issues of the insolvency (Yeoh, 2019). Thus, the procedure is undertaken
for the winding up of the business.
3) Appropriate legal solution to each of the issues
Case 1: In this, the legal solution which is referred to the parties is relating to the terms and
condition mentioned in the variation contract. Variation in contract is made when both are
parties made the agreement in written format and also the validity of the contract is effective,
till the completion of the terms. Under the contract act, 1990, there must be agreement
between the parties regarding buying or selling of goods or services and also such deal is
made on the bases of the consideration (Bruner, 2018). In terms of employment and labor
law, it is the rights of the employees to provide right wages as per their work accomplished.
If the employees are facing any issues in getting the right wages, than they file the complaint
against the company under the Employment Rights Act, 1996.
Case 2: Under the contract law, it carries various essential elements such as parties must be
competent to handle the contract or there must be offer or acceptance of particular things. It is
also necessary that contract must be made on the consideration and also must be on the bases
of written way. In agreement, the parties must agree with all the terms and condition which is
made between the parties and also in case of breach in any of the contract, the parties must
carry the right to terminate the contract (Cowton, 2017). Thus, solution in this case is
resulting to breach in the terms of the contract which is committed by Virgin media regarding
providing complete bill instead of doing installation in the mid of month.
Case 3: The legal solution which the Blackhorse limited can undertake is relating to applying
the voluntary winding up procedure in which they can appoint the liquidators which settle the
matters of the business. Through this manner, they can dispose of money to the creditors and
after examining the debts of the company, they can save amount in the business. In respect of
saving the money, they can again start up the business after paying money to the creditors.
4) Advice and solution to the relevant parties
Case 1: In this case, the advice which is given to Gordon in respect of getting wages of the
work committed on the years 2015, 2016 and 2017 is liable to be given. As the agreement is
made between the Gordon and Fred regarding not paying wages for the three financial years
due to company is facing server losses (Zhang, 2018). The deal is made between the parties
regarding giving commission for the goods sold. As due to entering into the variation contract
with Fred, he is liable to get wages for the years 2017, but can also claim for the wages for
the year 2015 and 2016. Thus, the reason behind making the variation contract is relating to

the not having stability in business. But this contract is valid for the particular time period till
the both parties agree to enter into the contract. This is supported with the relevant case such
as Carlill V Carbolic Smoke Ball Co [1893] 1 QB 256 court of Appeal, in this the issues is
raised regarding variation in the contract of the terms which is made in buying the Carbolic
smoke ball. In this case, the breach is committed by the company regarding not paying the set
amount, which is win by Carlill regarding using the smoke products (Carlill V Carbolic
Smoke Ball Co [1893] 1 QB 256, 2020).
Case 2: By examining the matters which is stated in this case, the matters reflects the issues
regarding not following the elements of the contract law in better manner. It is stated that the
elements of the contract stated with the terms as the contract must be based on written
consent with both the parties (Parry and Gwaza, 2019). Thus, in this case Janet carry the right
regarding filling the suit against Virgin media in respect of breach committed in the terms of
contract. As it is the duty of the virgin media to install the internet package within the set
limit but he didn’t do it and also provide the invoice of the complete month. Thus, it results in
breach of the contract and also Janet can repudiate the existing contract as per the set terms. It
is explained with the case of Bettini v Gye (1876) QBD 183, in this case Bettini agreed to
perform in the opera for the time period of three months. Due to not having good health
condition, she is on leave for the period of 6 days. The issue in this case is relating to
breaching the terms of the contract as nothing specific is mentioned in the agreement
replacing him in case of falling ill (Bettini v Gye (1876) QBD 183, 2020).
Case 3: By winding up of the company, it results in completely closure of the business, but
the different option which the Blackhorse limited can undertake is relating to the voluntary
winding up procedure in which they appoint the liquidators to handle the matters. The reason
behind appointing the liquidator is they manage the fund of the company in such way that
after paying money to creditors and investors, they save money to invest in business again.
Through this manner, the business will not completely wound up (Croce, Ughetto and
Cowling, 2019). This is explained with the case relating to Salomon V Salomon & Co. Ltd as
in this suit, the discussion is raised regarding not paying the money to the creditors after
facing continuous losses. Thus, Mr. Salomon appoints the liquidators to settle the matter and
in case of any additional funds raised, he invested into the business for starting the company
into new form (Salomon V Salomon & Co. Ltd, 2020).
5) Effectiveness of recommendation
In case 1 the effectiveness of providing the accurate judgment is resulting in entering
into the valid contract which is made between the parties, so that trust is maintained between
the employees regarding providing more productivity at work place. Similar in case of
employment law, this is mainly imposed in respect of building the strong relationship
between the employer and employee in business. In case 2, the effectiveness rises in form of
examining the parties’ right which is examined during entering into the contract. It also helps
in providing various remedies which parties can attained in respect of facing any breach in
not following any of the norms (Allen and Blackham, 2018). In case 3, compulsory winding
up results in affecting the reputation of the company, thus voluntary winding helps in
sustaining their position through maintaining their business activities in better way.

6) Appropriate use of legal solutions
The legal solution which is adapted by Gordon in first case is relating to the
termination of the variation of contract. Through this manner, they gain profits in respect of
repudiating the contract by the new terms of contract. Another legal solution is relating to
rescuing from insolvency and liquidation. By this aspects, they can save the business through
reinvesting in the money.
CONCLUSION
From the above study, the report concludes the matters relating to the study of the
business law which is mainly imposed in the respect of securing the right of the individual,
employees and investors to retain in business for longer way. In this, the legal system is
determined which helps in working under the norms stated by the government. It also
examined various business organization such as partnership, limited company and sole
proprietorship to manage the business in right manner. It also concluded that the various legal
solution are given to the parties whose rights are affected by attaining any task or activity.

REFERENCES
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Cowton, C., 2017. Business ethics in the UK. In Encyclopedia of Business and Professional
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Lehmann, M. and Zetzsche, D., 2016. Brexit and the consequences for commercial and
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Yeoh, P., 2019. Corporate Governance Codes in the UK: The Risk of Over-
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Online
Bettini v Gye (1876) QBD 183. 2020. [Online]. Available through: <
https://www.lawteacher.net/cases/bettini-v-gye.php>.
Carlill V Carbolic Smoke Ball Co [1893] 1 QB 256. 2020. [Online]. Available through: <
https://www.lawteacher.net/cases/carlill-v-carbolic-smoke-ball-co.php>.
Salomon V Salomon & Co. Ltd. 2020. [Online]. Available through: < https://www.explore-
law.com/salomon-v-salomon/ >.