Business Law and Ethics Report: Contract and Remedies

This report provides an in-depth analysis of business law and ethics, focusing on contract law, breach of contract scenarios, and available remedies. The introduction establishes the importance of business law and ethics in commercial matters, covering essential aspects such as contract law, intellectual property rights, and employment law. The main body delves into the elements of a valid contract, including offer, acceptance, consideration, and legal intention. It examines various remedies for breach of contract, such as repudiation, restitution, recession, damages, specific performance, and injunctions. A case study involving a consultancy business highlights the application of these remedies, including counter-offers and the doctrine of promissory estoppel. The conclusion emphasizes the significance of legal formalities in business operations and the role of contract law in regulating obligations and practices. The report references relevant books and journals to support its analysis.

Business Law
and Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business law is the dealing of person in the commercial matters in accordance of law for
the proper and embodied running of an organisation. It mainly covers into parts that are laws
which covers the commercial transactions and with that laws related to commercial entities(Bian,
and Çalıyurt 2018).As there is change in society there is always need of change in law and every
person is nowadays dealing with the business so they require to get more emphasis on the laws
which ambit the business law and they are contract law, intellectual property rights, immigration
law, employment law, Bankruptcy and taxes ,etc. Contract law covers the agreement being made
between the two or more parties and which provides certain rights and duties of the parties.
Contract law has some essential elements which are needed to be fulfilled in order to come in a
valid contract. Business ethics covers and provides various policies which are required to be in a
part of business as persons should follow all the basic norms and culture with their social
responsibility. This report will provide the breach of contract and also the remedies which are
available for the parties.
MAIN BODY
Contract law is branch of commercial law and also deals with the business law in a
relation with then parties which are ready for a contract, There are few rights and obligations that
are need to be fulfilled in order to enter in a valid contract, they are like: There shall be an offer
made by one party for the agreement and that offer should be accepted by the other party in order
to frame a contract, once there is agreement between the parties then there will be seen that is
there any existence of intention in the parties to create a binding contract or whether there is a
legal relationship in the parties, after this it is important to check that there should be a
consideration in between the parties that means an amount or the payment should be discussed
that will be given on exchange of all goods and services when the contract is done. When all
these elements are fulfilled and parties are voluntary agreed for all those conditions then their
will arise a contract enforceable by law(Burgunder 2016). The contract law can be revoked on
termination of contract or on the expiration of the time period which was agreed in the contract
and through Frustration which arises when the person is not doing their duties for which they are
legally bound. And to save the parties from any breach contract law has provided certain

remedies for the breach of contract that may be in the form of damages , injunction or specific
performance of contract.
From this case scenario it is figured that, Raymond was a sole proprietor of the
firm and he runs a small consultancy business. There made a contract between Samantha and
Raymond for preparing a business account draft for sum of £800. After sometime when
Raymond has made that draft account He went to Samantha for the payment of that work and
there she refused to give him the full payment by saying that she cant afford to pay £800 instead
of that she can only give him £200 as a full and final payment of that work. They both engaged
in a bitter argument but later on, Raymond agreed for the cheque of £200 as a full and final
payment(Crane and et. al., 2019).After few days when Samantha's painting started to sell in good
prices and Raymond read that in newspaper and he wishes to get his remaining £600 from her.
In a Contract law it is important that certain obligations are fulfilled between the parties,
and in case of Raymond and Samantha there has been a offer made by her with that there was an
acceptance between the parties, they had framed a decided a consideration for there work and
also there was a legal intention in them so there was a legal obligation between the parties and it
is a valid contract.
There are various remedies in a Contract for the parties like; Repudiation or can
be called anticipatory breach where if any party has done any breach in the contract then the
other person can deny to that work even if there was a valid contract between them,
Restitutionary this is also called as monetary remedy as if there is any breach between the parties
them the compensation is decided on the gains and the profit earned by them of the defendants
not on the loss of the plaintiff. Recession of Contract where the party refuses to do any work if
the other party is not fulfilling any legal obligation of contract(Fryzel, 2020). Sue for Damages
this is a legal remedy where if one party is not doing the required obligation or breaks the
promise made while entering in a contract then the other party has the right to claim for the
damages in court or compensation, Specific performance also known as equitable remedy where
court has all the discretionary power and they can order the parties to fulfil all the obligations
made in contract and Injunction in this the court can restrain a person from doing certain act
which are making breach of contract. Thus, from all these above remedies Raymond can use
Specific performance of contract.

In case where Samantha have paid £200 three weeks earlier it will be termed as a counter
offer by her and the preference would have been shifted to Raymond that whether he wants to
accept that offer(Martin, 2020). As counter offer refers to be an offer made at the time of
negotiation between the parties that can be said as an additional offer and when there has been
made a counter offer then the old offer will be cancelled at the further contract will be deal on
the new offer made by the party as in, Hyde v. Wrench, court held that all the offers made before
will be destroyed as once the counter offer is made and further contract will rely on that offer. In
the premise of the counter offer is made from Samantha and Raymond will have a deal that does
he wants that and Raymond will not be going to accept it as due to lower consideration.
In this case when Raymond requests for £400 from Samantha and asks it as full and final
payment, in this scenario all the past situations will change as firstly there was a offer made by
Raymond for £800 which was shifted to £200 by Samantha as she has made a counter
offer(Mees, 2019). But when Raymond will make a offer of £400 then that will automatically
revoke all the past agreements and offer and there contract will shift on this new offer for £400
and after that the decision will be on Samantha that she wants to agree for that or not, if she
agrees then the further contractual obligation will work on that and if she denies then Raymond
has the right to claim for the breach of a contract for the prior agreement being made by her.
Under this case scenario if Raymond wished to claim for the remaining amount of £600
from Samantha by seeing in the newspaper that her business is running well as she has a sale of
£20,000. While the offer made by Samantha was already accepted by Raymond as a full and
final settlement so he cannot claim again for the remaining amount as it will be amounted to
Doctrine of Promissory Estoppel which means that when a party came in a contract then there bis
a binding contract between them that even when there is no formal consideration and written
agreement still both the parties are bind by the promissory estoppel; that is the promise made
between them and the aggrieved parties are protected by that right. In Central London Property
Trust v. High Tree House, Lord Denning held that when there is a promise between the parties
and even that payment was agreed on the smaller amount still that will be binding on both the
parties without any violation as promissory estoppel will apply on that even if there was no
consideration being applied(Rezaee, 2019). Thus, Samantha will not be held liable for giving the
remaining amount of £600 as Raymond has accepted it as full and final payment and doctrine of
promissory estoppel is applied on them.

CONCLUSION
It is concluded from the report that for every business it is important to apply laws as
Legal formalities and are made for making the work proper and impactful. Contract law applies
on all the legal obligation and business practises as it is legally binding on all the parties and also
contains rights and duties according to which parties have to work, with some remedies that
helps to aid the person in all accords, In this case scenario there is no breach of contract so no
party is liable for damages.

REFERENCES
Books and journals
Bian, J. and Çalıyurt, K.T. eds., 2018. Regulations and Applications of Ethics in Business
Practice. Springer.
Burgunder, L.B., 2016. The Selfie-Made Man: A Case Study in Law, Ethics, and Instagram. J.
Legal Stud. Educ., 33 p.181.
Crane and et. al., 2019. Business ethics: Managing corporate citizenship and sustainability in the
age of globalization. Oxford University Press, USA.
Fryzel, B., 2020. Ethics, Misconduct and the Financial Services Industry: Towards a Theory of
Moral Business. Routledge.
Martin, A.F., 2020. Legal Ethics and Judicial Law Clerks: A New Doctrinal Account. UNBLJ 71
p.248.
Mees, B., 2019. The Rise of Business Ethics. Routledge.
Rezaee, Z., 2019. Business Sustainability, Corporate Governance, and Organizational Ethics.
John Wiley & Sons.