Elixir Gardens Case Study: Contract Law and Negligence

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Business law for managers

Contents
Business law for managers................................................1
Introduction.......................................................................3
1.........................................................................................4
(a) Under the law of England and Wales, what is a
contract and what are the requirements for a valid
contract to be formed?.....................................................4
b) Is Ringo liable to pay Paul on the basis of the facts
given above?...................................................................5
2.........................................................................................7
In light of the facts above, discuss the criteria that Jerry
(as the claimant) would need to satisfy in an action for
negligence.......................................................................7
3.........................................................................................8
Identify the main business mediums available to Ringo
and his friends John and Yoko and the advantages and
disadvantages of each of these mediums........................8
4.......................................................................................10

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.................................10
Conclusion.......................................................................11
References.......................................................................12

Introduction
The businesses in the country are considered to be
managed by the law that is formed by the government of
the country so that it helps in achieving the objective of
doing the business in a fair manner. This is seen that there
is a various legal requirement that the company needs to
follow so that they are able to function as per the desired
objective of the lawmakers (Cahill, 2018). The private, as
well as public law, helps the company to work according
to the requirement of law. the business law has various
provisions that relate to the formation of partnership,
bankruptcy and various other aspects which are related to
the business organisation. here in this report the case is
discussed where the gardening business of Ringo is
analysed and the issue that is taken into consideration for
the purpose of analysing the effects of the company law.

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?
The contract is one of the most important terms that help
in creating an agreement between the parties to the
contract. Contract is considered to be the acceptance of
the terms that are formed between the parties to the
agreement where the terms are mutually decided between
them. the contract needs to be enforced by the court for
the purpose of making it lawful and having the legal
liability between the parties to the contract (Dabas, et. al.,
2018). It is the implied condition of the contract that if the
contract is formed than it has to be followed by all the
parties to the contract and they are bounded by the terms
of contract. For the purpose of formation of the contract
there are various requirements that are required to be
followed by the party to the contract. Hence for this

purpose the formation of contract contains the terms
which include,
 Offer and acceptance of the offer must be done by the
party to the contract and both should agree on the
terms mutually.
 The consideration is considered to be one of the most
important terms that the company should consider for
the purpose of making it legal. It must move at the
desire of offerer and must be considered to be legal.
 Here the intention of making it legal must be there so
that in the case of breach of contract the parties can
sue the parties.
Hence for the purpose of formation of the valid contract
the condition that is required by the legislation must be
followed. Therefore, this can be defined that contract is
the legal agreement that is considered to be binding on the
parties to the contract and this can be seen that it can be in
the oral as well as written form. The contract is
considered to be legal if this is done in the oral sense. The

contract is considered to be the unique set of law that
helps in achieving the objective maximising the
performance and defining the terms of the contract. The
parties to the contract are considered to be having the
freedom to decide the terms of the contract and hence this
is important for the party to the contract to form the
contract at desired level. this is considered to be freedom
of the parties to the contract to form the terms of the
contract (Do, et. al., 2015). The contract is considered to
be civil in nature and hence this is the relationship
between the parties are created to achieve the shared
objective. Common law in the country has created the
space for the contract law so that the individuals in the
country are able to maximise their performance and
achieve the objective of making the individuals know
their rights and duties which are related to the contract
act. There are various terms that are included in the
contract formation which includes:

 Offer: this is considered to be the first step in the
process of formation of the contract here the offeror
providers offer to the offeree. Hence this must be
done for the formation of the contract. This is also
seen that there can be invitation to the offer for the
purpose of formation of contract.
 Acceptance: this is known as the second stage in the
formation of the contract and it can be considered
here that the acceptance of an offer must be done by
the party to the contract. It is seen that the party to
the contract must accept all the terms of contract
which are given by the offeror and should not reject
any or make any counteroffer.
 Consideration: for the purpose of formation of the
contract there must include a valid consideration that
helps in achieving the objective of maximising the
requirements of a valid contract. The consideration
must be valid and it must move at the desire of
offeror.

 The intention of making it legal: This is seen that for
the purpose of formation of the contract it is
important that the contract must be considered to be
having the legal obligation and the parties to the
contract must have the obligation of making it legal.
Therefore, this is important for the parties to the contract
to follow the terms that are specified in the law.
b) Is Ringo liable to pay Paul on the basis of the facts
given above?
To analyse the cause and the effect of the case that is
being discussed here further look at the terms and the
issue in the case has to be done.
Issue
Ringo is an entrepreneur working in the industry of the
gardening and is having the business in the name of Elixir
gardens. The business that he is running is in form of sole
trader business where he himself is the sole owner of the
business. On weekend one of the sons of Paul has come to

home from the university. His father has given him the
offer to mow the lawn that is attached to their house and
he would be paid for this at 10 GBP. The offer was
accepted for the decided consideration. after this the
contract was considered to be performed and it was seen
that the lawn was mowed by him as per the terms of the
contract. Ringo then refused to pay the amount to his son
Paul. Hence the issue here is whether Paul can go to court
for the purpose of recovering the amount from his father
as per the terms of the contract.
Rule
According to the terms of the contract, this is seen that
contracts are based on the mutual consent of the parties to
the contract and they must follow the terms that are
decided among them. this is seen that the consideration
for the contract is considered to be important element that
helps information of the contract and also relates to the
performance of the contract (Hansmann and Kraakman,
2017). Hence this is considered that parties to the contract

breach the terms of the contract then they are liable to
penalty as may be decided in the terms of the contract or
as per the decision of the court if the case is taken to the
court. If the breach of the terms of the contract is done by
the parties to the contract, then they are liable to pay the
penalty or may be liable to perform the contract as per the
decision of the court.
Application
Hence, in this case, this is seen that there is breach of the
condition of contract where Ringo is refusing to pay the
amount to the Paul as this was mutually decided among
them. hence this can be seen that Paul can go to court so
as to demand the price of consideration for the job that is
done by him (Johnston, et. al., 2018). Also court can
provide the remedy in the form of imposing penalty on
Ringo. Therefore, this can be said that Ringo is liable to
pay the amount to Paula as this is decided in the contract.
If this is not done, the court may impose a penalty on
Ringo for the breach that has been done by him.

2.
In light of the facts above, discuss the criteria that Jerry
(as the claimant) would need to satisfy in an action for
negligence
This is seen that the term negligence is defined in the law
of tort where the breach of the legal duty is done by the
individual as decided in the contract. Hence for the
purpose of making the defendant liable under this act, it is
required by the claimant to prove that the duty of care is
breached. Also this is seen that the act that has been
performed by the party to the contract must result in loss
to the party to the contract. This is considered as the fact
here that the loss that has been caused must not be raised
as the defence against the defendant actions.
In the case of Donoghue Vs Stevenson, this was seen that
determination of the duty of care was checked. It was
seen here that the person must take reasonable care while
performing his duty and he must take various steps so that