Business Law and Ethics: Essential Elements and Remedies in Contracts

This report provides a detailed analysis of contract law within the context of business law and ethics. It begins by outlining the essential elements of a contract, including offer, acceptance, consideration, and legal obligation, and discusses the impact of counteroffers on contractual agreements, ...Read More

Business Law and
Ethics

TABLE OF CONTENT
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
CONCLUSION....................................................................................................................................5
REFERENCES....................................................................................................................................6

INTRODUCTION
Business law is mainly entities which helps out to regulate and follow all the policies
with rules and regulations in organisations. It mainly provides out all the transaction that used
to take place in business practices with the help of contract, litigation and all different
responsibilities with the help of governing authorities. It mainly comprises of different laws
such as contract law, IPR, employment law etc. As contract law is mainly a legal transaction
in which an agreement is being made between the parties in order to legally frame a contract
so that there cannot be any kind of dispute that can arise between them. It mainly provides
out remedies for the breach of contract so that parties can thereby be protected from any
wrong (Downe, 2020). This report will cover a case scenario with essential elements that are
being needed for contract and the remedies and rights that are being available in contract law.
MAIN BODY
Case Scenario 1
Contract law is an effective legally enforceable agreement that is being be made
between two or more parties in order to create a responsibility between them to fulfil an
agreement. It many frames in agreement that helps out to right and obligation which is being
in force and recognised by the help of law. all the contract it is important to fulfil the
essential element as without it no contract and thereby be framed. They are like, Offer it is an
expression of willingness in a contract in specified term, offer can be an invitation to treat to
a person who used to invite another party to come in an agreement for doing an act.
Acceptance It is merely an expression of assent that is being given by another person when
the offer is being made. It mainly come into a legal effect when the communication of offer is
being made by the offer it can be expressed or implied (Fawzy, and et, al., 2019).
Consideration This is mainly a value for an agreement which is being fixed for a
given promise that is being made between the party it is mainly the payment that is being
fixed as a consideration between the parties for fulfilling the contract. The contract can never
be made without the consideration as it is important to decide the value for completing work.
Legal obligation to do the parties must also have the intention to create a legal binding effect
on their agreement (Spindler, 2017). As a contract cannot being made without the intention to
create legal relations between them. It is mainly the free will and a clear intention of a party
in order to come in and contract.

Counter offer is mainly an offer that is being made in response to the original offer
which is being given by another party. It is the most common offers in business and
transactions where the party used to give another offer as in the revert of their original offer
that is being made by the party. This mainly place at the time of negotiation in any kind of
business deals and transactions. Counter offer is mainly conditional, and it acts as a rejection
for all the original offer which are there by being no longer available to be accepted (Sage,
2019).
In Hyde v. Wrench (1840) court held that, there is no binding contract that is being
made between the parties as when the counter offer is being made it will revoke out all the
initial offers and it supersedes and destroy the prior offers. As the original offer will thereby
be no longer available so defendant will not be being held liable as once the counter offer is
being made there is no valid binding contract that is being existed in the party. As counter
offer use to implement the rights for the parties and also helps out to revoke all prior deals
and offers (Helvacı, 2017).
Thus, in this case where Avril offered £750 and it was not accepted by Belinda in 7
consequtive days of quotation period and later on the consideration was increased by Avril
with £900. Even if Belinda agrees for the contract, then she will have to agree on the
consideration that is being made by Avril of £900 as once a counter offer is being made it
rejects all the initial offers and contract and all the prior consideration amount will be
ineffective when the counter offer is being initiated.
Case Scenario 2
Remedies for breach of contract Specific performance of contract This is mainly an
equitable remedy which is being given when damages are deemed to be in adequate as court
can thereby order for specific performance which will compel the parties who is in breach to
fill the contract with proper terms through which it will be just and equitable to be done. This
is mainly remedy which is being given when the claimant thereby acts in an unfair and unjust
manner (Moorman, 2020). Damages This is the compensation which is being given to the
injured party when loss is being suffered as because of the breach of contract. It is mainly the
entitlement of substantial damages for all the breach in contract to the injured party to whom
the actual loss has been caused and the type of loss can thereby be recognised and loss is also
not remote. Injunction It is mainly when the party is being restrained from committing any
kind of breach of contract to injunction. It can be temporary and permanent and prohibited

the defendant from not to do any kind of breach in the contract. It is mainly an equitable
remedy and helps out to provide restraining order to defendant (McLauchlan, 2019).
Recession This is when court orders the party to bring the party who has suffered loss
in an actual position in which they were before. It is mainly when the contract between them
is being terminated by the court through which the party will thereby being in a normal actual
position.
As Darwash has suffered loss so he can claim for damages in court as in order to get
the adequate relief from the loss that has been occurred to him because of Charlie.
Rights of parties in contract Timely consideration All the parties have right to get timely
consideration and payments which is being fixed in their agreement terms while coming in a
contract. As all the values for the act that is being performed should be given on a proper
time period. Right to file suit Any party can file a suit in case of any breach in the contract as
it is the right of parties to go to the court at the time of any kind of breach that is being made
in the agreement (Carroll, 2017). Right to facts disclosure the parties while entering into
contracts should meanwhile Give all the information regarding to the agreement and should
also provide all the material facts that are being needed in the contract. Parties will not be
allowed to hide any kind of important or relevant information regarding to the agreement
(Monateri, 2019). Right to exclusive ownership Parties have right of exclusive ownership
when they are being entered in an agreement is in the party is no been framed in it. Right to
monetary payment in a contract law the parties have right to payment for all the products and
services that had been given nod to perform the acts in the monetary payment that is being
fixed between the parties.
Thus, Darwaash can implement right to disclosure of facts as it is important for him to
know about all the facts that are being relevant to their contract and agreement and Charlie
has not disclosed the matter as he was unaware about the electrical fittings and also have no
knowledge for being electrical contractor so Darwaash Can ask for damages for the non-
disclosure of facts and can go to the court for the damages that has been occurred due to the
act of Charlie.

CONCLUSION
From this above report it is concluded that, contract law provides the agreement that
is being in force between the parties. This mainly covers offer, consideration, acceptance and
legal obligation to do so. Counter offer revoke all the offer that has been made earlier in the
contract and all the new agreement will be framed according to the counter of a that is being
made between the party. Furthermore, it can also be concluded that injunction, specific
performance of contract and many more are some remedies that are being available for
breach of contract.
REFERENCES
Carroll, A.B., 2017. The moral leader: Essential for successful corporate citizenship.
In Perspectives on corporate citizenship (pp. 139-151). Routledge.
Downe, A., 2020. From Relief to Compulsion and Back Again in Contract Law. European
Review of Contract Law, 16(3), pp.410-431.
Fawzy, and et, al., 2019. Civil law context for understanding employer’s payment obligations
under common law FIDIC. Journal of Legal Affairs and Dispute Resolution in
Engineering and Construction, 11(1), p.06518006.
Helvacı, İ., 2017. Formation of the Contract. In Turkish Contract Law (pp. 3-13). Springer,
Cham.
McLauchlan, D., 2019. The limitations on reliance damages for breach of contract.
In Research Handbook on Remedies in Private Law. Edward Elgar Publishing.
Monateri, P.G. ed., 2017. Comparative contract law. Edward Elgar Publishing.
Moorman, A.M. ed., 2020. Sport law: A managerial approach. Routledge.
Sage, N., 2019. Contractual liability and the theory of contract law. King's Law
Journal, 30(3), pp.459-488.
Spindler, G., 2017, March. Contract Law and Copyright–Regulatory Challenges and Gaps.
In Contracts for the Supply of Digital Content: Regulatory Challenges and
Gaps (pp. 209-228). Nomos Verlagsgesellschaft mbH & Co. KG.