Business Law Report: English Legal System, Company, and Contract Law

This comprehensive business law report delves into the intricacies of the English legal system, exploring its sources, including legislation, case law, and common law. The report examines the role of government in lawmaking, detailing the process from preparation to royal assent, and analyzes the application of statutory and common law in justice courts. It illustrates the impact of company, contract, and employment legislation on businesses, covering aspects like employment terms, company formation, and accounting practices. Furthermore, the report explores the legal formation, management, and funding of different types of organizations, and concludes by recommending legal solutions for resolving a range of business disputes. This report provides a thorough understanding of business law and its practical implications.

Business Law

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
P1 Different sources of law....................................................................................................3
P2. Role of government in law making and analysing the way statutory as well as common
law are applied in Justice court..............................................................................................4
TASK 2............................................................................................................................................6
P3. Illustrating the way company, contract and employment legislation have effect on the
business...................................................................................................................................6
TASK 3............................................................................................................................................8
P4. Exploring the way different types of organization are legally formed...........................8
P5. Analysing the way business organization are managed and funded................................9
TASK 4..........................................................................................................................................10
P6. Recommending the legal solutions for resolving range of business disputes...............10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Laws can be defined as the regulation which are formed by the governmental authorities
in the nation. It can also be referred to as the Binding rules which enables states to govern its
territory. Business law also regulates as well as governs the contractual agreement between the
parties. It consists of legislations which governs the way business are formed as well as
managed. Business laws establish regulations which are required to be followed by all the people
as well as organisations operating business in different industries. The main purpose of business
law is to resolve the issues faced by companies. In content English law, it mainly governs as well
as regulated the business practices of firm operating business in England and Wales.
Report will have focus on identifying the sources of English law. Study also emphasizes
on analysing the way employment, contract and employment law effects business. It will also
highlight the way different types of organisations are legally formed. Assignment will also
include the solutions for range of commercial disputes.
TASK 1
P1 Different sources of law
Business law is also recognized as commercial legislation which mainly governs the
dealing between people. It can be defined as legislation which mainly governs business practices.
It mainly deals with commercial matter. In context of England legal system, business law is
required to be followed by all companies established in England and wales. Business laws also
referred to as mercantile legislation which deals with the issues of both private as well as public
law. It also governs the commercial transaction between two parties (Falk,2019). Sources of
laws can be defined as the origin from where the different norms in English legal system came
into force.
The main sources of laws in English legal system are:
Legislation: Primary law in English legal system, are formed by the act of parliament. In context
of English legal system, Parliament is only the authority which has right to create as well as
implement laws in the nation.
Case law: These are the legislation which has been originated from the decision taken by the
tribunal in existing cases belonging to the similar nature.
Common law: It is basically the Judge made law. The English legal system consist of
hierarchical structure where the supreme court is the higher authority. The decision taken by

Judge is binding on lower courts. There are few norms in English legal system which are made
by the Judge in the supreme courts and are required to be followed by all lowers courts.
Convention of human right: Before the brexit, UK follows the norms designed by the legal
authority of European Union. But after brexit, UK government decided to create their own
legislation. Still, there are few norms in English legal system which are highly influenced by the
legislation in EU legal system (Frenkel, 2019.). The European convention of human right has
been designed by the EU government and which has been followed by UK in order to protect the
right of people.
Delegated legislation: Such types of norms are originated basically from the orders passed by
the ministry. In English legal system few norms are formed by the government on the basis of
the authority delegated by the members in parliament. The government in UK are provided with
the authority to develop norms in few situations and for resolving specific issues.
P2. Role of government in law making and analysing the way statutory as well as common law
are applied in Justice court
In context of English legal system, parliament is the main authority which only has right
to formulate as well as implement legislation in the nation. But still government have crucial role
to play in law making procedure. Before starting of the law making procedure, the role of the
government is to address the issues faced by companies as well as people residing in the nation.
Functions of the government is to identify the suitable solutions for the problems faced by people
or organization operating business in different industries. The main role of the government in
law making procedure is to represent the interest of public (Yeoh, 2019). Process of law making
starts at either at house of commons or house of lords. An introduction of bill related to the
taxation is required to be presented by the government in front of members in House of
commons.
There are different phases in the law making process these are:
Preparation phase: It is the phase where the role of the government is to consider the problem
faced by the companies or people in the nation. Function of legal authority is to prepare the list
of problem or solution. Duty of government in prepared the draft of proposal which is required to

be approved by the lowers courts. Once the approval has been taken by the courts at lower
authority, then proposal is required to be drafted in proper manner.
First reading: At this stage, government is required to give proper notice before
presenting the proposal in front of parliament. It is the phase, where government is to present bill
for the second reading in front of parliament.
Second reading: It is the phase where the role of government is to present the bill for
second reading. This is a phase where the suggestions related to the amendments in the bills can
be given by the members in the parliament. Role of government is to make changes in the bill as
per the instructions of the members in the parliament.
Committee stage: Once the amendments are made then bill is required to be presented
for evaluation to the special committee in the parliament. It is a phase where the committee
measure the effectiveness of bill in terms of its effect on the people m, benefit of implementation
etc.
Report stage: It is a phase where the results related to the bills are revealed by the
special committee in the impalement. At this phase government cannot make changes in the bill.
Third reading: This is phase where role of government is to present the bill for third
reading. It is the phase where the short discussion or voting related to the enforcement of bill
can take place. When the bill gets approved then, role of government is to forward the bill to
other houses and repeat the process.
Royal assent: Once the third reading is completed the bill is required to be presented in
front of the queen for the approval. Once queen approved the bill then specific law can be
enforced. If in case bill get rejected by queen then in such situation, government in the nation is
required to identifying the other way of solving the problem faced by people or companies in
nation.
Analyzing the way statutory and common law are applied
The statutory legislations are in written format and it could be applied to cases in the
court. In context of English legal system Judges are required to incorporate both statues as well
as case precedents while issuance of ruling. Statutory laws are generally applied by the judges in
trial cases. In relation to the common law, judge in the court need to ascertain the facts. In
addition to this, Judges are required to conduct investigation for locating relevant cases as well as
statues (Becher mand Benoliel, 2019.). For example, a case study related to the enforcement of

civil law in courts of England and wale. According to the norm in English legal system, a person
who perceives that other individual has done civil wrong can file law suit. In addition to this, an
individual can fill complain form and can submit the same to the country tribunal. It is the court
where the judge mainly handles the cases which consist of claim of minimum up to twenty-five
thousand pounds and maximum up to fifty thousand pound.
The different legislations in English legal system are high effective, as they provide
remedies for the losses which has been suffered by an individual die to the act of other person.
The norm in English legal system provides suitable solutions for the various issues faced by the
people or companies in the nation. In addition to this, new reforms in English legal system
provides the clear roles as well as responsibilities and power of Judiciary. The new reforms are
effective, as they restrict the utilisation of power in negative way by Judiciary.
TASK 2
P3. Illustrating the way company, contract and employment legislation have effect on the
business
Employment legislation in UK are mainly governs as well as regulates the employment
terms and contracts. It also governs the contractual agreement between employer as well as
employee. Employment law in UK classified employer into two categorize these are Employed
as well as Self employed. The employment legislation in UK, provides rights only to the
employed people. It is the legislation which covers the following salaries, working hours,
environment etc. According to the employment law in UK, employers are required to provide all
the benefits as well as facilities as per the terms and conditions in the employment contract. The
changes in the employment laws has direct effect on the relationship between employer and
employees (McGregor, Wood. and Vickery, 2019). Changes in the employment laws has
significant influence on the Human resource practices.
Employment legislation is basically set of law which deals with right of employees and
responsibility of employer. Employment law covers a wide range of issues from pension plans
and retirement, to occupational safety, to discrimination in the workplace. If in case the employer
in an organization fails to comply with the legislation, then in such case they might have to face
legal issues. Employment law has direct effect on relationship between employee and employer.

Company law, it is the norm which governs as well as regulates the firms which are
formed under the companies act 2006. It also governs the ways companies are formed as well a
wind up. It is the legislation which creates separate legal entity which takes life of its own
(Barker and Chiu, 2018). In context of company law in English legal system, this norm
highlights the requirement of preparation, filling and distribution of accounting reports.
Company legislation also provides the details of content which are required to be included in the
accounting reports. It also lays down the guidelines related to the accounts books which are
required to be audited. Amendments in the company law has direct effect on the accounting
practices which includes preparation and presentation of financial accounts by organization.
Company law also regulates the way firms are established, named and managed. It is the norms
which also defines the roles as well as responsibilities of directors as well as auditors. The
amendments in the company law has significant influence on the business practices as well as
policies. It is required by organization to keep themselves aware about the changes in the
company law, as it will assist them in gaining the various advantages as well as relaxation in
context of Tax. If in case companies fails to comply with legislation then it might have adverse
effect on the sustainability of business (McLaughlin, 2018). For example, in context of legal
system, there are few new regimes has been introduced related to the share as well as share
capital. As per the latest provisions in companies act 2006, management in an enterprise is no
longer required to take approval from shareholders before allotting the shares. According to the
company law 2006., Firm in order to gain the benefit of new provision in the companies’ act
need to pass shareholder resolution.
Contract law: It is the norms which govern the contractual relationship between different
parties. In context of contract law in English legal system, it is the norm which is applicable to
the firm operating business in England and Wales. The effect of contract law is that it
strengthens the commercial relationship between parties. In addition to this, companies by
complying with contract law can increases the chances of certainty in relation to commercial
relationship. For instance, Tesco has entered into the legally binding contract with XYZ
company for performing specific business function. But due to sole reason XYZ organization has
failed to perform duties and as a result Tesco has to bear financial losses (Wilson and Wortley,
2018). Then in such situation, Tesco has right to file law suit against XYZ firm. In addition to
this, Tesco has right to claim for compensation.

TASK 3
P4. Exploring the way different types of organization are legally formed.
In context of English legal system, it is the companies act 2006, highlights the specific
legal requirement which are to be fulfilled in order to establish specific type of organization.
Considering the rules in companies act 2006, establishments of sole proprietorship firm is very
much easy as only few legal requirements are required to be fulfilled.
First stage, at the initial stage of establishing sole proprietor company, business owner
need to select a suitable business structure. An individual planning to establish sole proprietor
enterprise is required to promote business fir getting the investment. As per the companies act
2006, it is very much essential for an entrepreneur to provide complete information about the
business and sources of finance. The legal formalities which are required by an individual in
order to set up sole proprietor business are:
Business license: A person planning to establish sole proprietor business is required to obtain
the license. In addition to this, an individual is required to share complete information about
business with HMRC (Marett, 2018).
Naming of business: According to the companies act 2006, if there is unique symbol in the
name of organization, then an individual is required to special permission from legal authority.
Registration for self-assessment tax: In context of establishment of sole proprietor firm an
individual is required to get business registered for the self-assessment tax. They also need to
obtain national insurance number.
Documentation: Memorandum and article of association are two important documents which
are required to be submitted to registrar or companies house with the complete detail about
shareholder, employees and director.
Advantages and disadvantages of sole proprietor business:
By establishing sole proprietor an individual can retain full control on business. In
addition to this, a person can also get tax advantage. Tax inefficiency is major drawback.
Establishment of partnership organization
Partnership act is mainly governed by the partnership act 2000. According to the
partnership act there should at least one partner. Partners are required to get their business
registered under HMRC.

Naming of company: At this phase, partners are required to decide the name of firm
through mutual consent. According to limited liability act 2000, company name should consist
of word 'Ltd'. It is not at all important for partnership firm to get themselves registered with
companies’ house (Terziev, Petkov and Dragomir, 2018.).
Advantages and disadvantages of partnership
Sharing of risk is considered to be as the major advantage of partnership firm. The
biggest drawback is that profit cannot be retained.
P5. Analysing the way business organization are managed and funded
Huge amount of financial resources are required for setting as well as managing business.
The different sources from where the funds related to the establishments of business can be
obtained are:
Debt capital: It is a source which is utilized by public companies for fulfilling the
business requirement. Debt capital can be raised through bank loans. Public organization can
obtain funds by issuing its share to Public. The main benefit of using the debt funding is that it
enables retention of more cash.
Equity capital: In this business owner sell few shares to investors in exchange of money.
The main benefit of equity capital is that there is no requirement top pay interest rate. The major
drawback of equity funding is that business owner is required to share profit. The biggest
drawback of debt funding is that it consists of high interest rate (Keith, 2018). Equity financing is
typically used as seed money for business startups or as additional capital for established
businesses wanting to expand.
Personal saving: It is mainly used for establishing either partnership or sole proprietor
firm. The main benefit of utilizing the personal saving is that an individual is not required to be
pay extra charges. The biggest drawback is that Lack of mentoring and mentoring opportunities.
Personal saving as a source of fund are utilized for paying start up costs.
Bank loan: An individual planning to establish small business can obtain funds through
bank loan. The advantage of bank loan is that it is cost effective in context of interest rate. A
person who has taken bank loan is required to pay regular installment and in case a person fails
to make payment then bank might report to the bureau which could have adverse effect on credit
score of firm. Bank loan is mainly used for purchasing machinery and other equipments.

TASK 4
P6. Recommending the legal solutions for resolving range of business disputes.
Phb is organization which produces as well as sells wooden furniture. An organization
imports raw material for firm established in Poland. The raw material that is timber are imported
in form of flat backs which is then assembled by employees in PHB company. IN 2017, when
PHB has imported raw material, it has been found defective. Due to the defective raw material,
Phb has refuse to make payment to the organization in Poland (Ridley-Duff, 2018). It has been
since one year there has been commercial dispute between two firms, the reason of the
commercial conflicts is related to the non -payment for the material supplied. Now both the firms
are finding the suitable ways to resolved their disputes. Both the parties can resolve their
conflicts through Alternative dispute resolution mechanism. It is basically a process for resolving
the conflicts without going to the court. The different types of alternative disputes resolution
method which can be adopted by business entities for resolving their issues are:
Mediation: In this method of alternative dispute resolution mechanism, mediator is a person
who supports both the parties in resolving their issues in systematic manner. It is the method
which can be applied in order to resolve the dispute at spot.
Negotiation: It is one of the effective method through which conflicts between parties can
be easily resolved. In this method, parties, negotiator is a person who supports parties in solving
their problems. Under this method, both the parties are provided with chances to facilitate
negotiation and to reach mutual agreement. In this method, parties can set their own rules as well
as principles for solving the conflicts.
Arbitration: It is considered to be as an effective method for resolving the conflict at
international level (Haigh, 2018). According to this method, both the parties are required to
appoint the arbitrator through mutual consent. In this method, the decision taken by arbitrator are
binding on both the parties.
CONCLUSION
It has been concluded from the report that the main purpose of business slaw is to ensure
fair commercial practices and to assist companies in resolving business issues. The other fact
which has been discovered from the study is that the changes in different legislation such as
employment, contract and companies act significant effect on business policies as well as

practices. It has also been concluded that majority of laws in English legal system are formed by
the act of parliament.

REFERENCES
Books and Journals:
Yeoh, P., 2019. Corporate Governance Codes in the UK: The Risk of Over-Reliance?. Business
Law Review.40(1);pp.19-27.
Becher, S. I. and Benoliel, U., 2019. Law in Books and Law in Action: The Readability of
Privacy Policies and the GDPR. CONSUMER LAW & ECONOMICS, Klaus Mathis &
Avishalom Tor, eds., Springer (forthcoming, 2019).
Mc Cullagh, K., 2019. Post-Brexit Data Protection in the UK.
McGregor, A., Wood, J. P. and Vickery, G., 2019. Corporate law: What the modern slavery
legislation means for the governance professional. Governance Directions. 71(1). pp.44.
Frenkel, D. A., 2019. HISTORY AND LAW (Doctoral dissertation, University of Szeged, Szeged
Hungary).
Falk, R., 2019. Global Law. In The Oxford Handbook of Global Studies.
Barker, R. M. and Chiu, I. H. Y., 2018. Unfinished Work in UK Company Law, Reforms: A
Normative and European Perspective to Addressing the Gaping Holes in Directors’
Duties. European Company Law.15(6). pp.194-204.
McLaughlin, S., 2018. Unlocking company law. Routledge.McLaughlin, S., 2018. Unlocking
company law. Routledge.
Bell, J., 2018. Sources of Law. The Cambridge Law Journal.77(1). pp.40-71.
Wilson, S. and Wortley, N., 2018. English Legal System. Oxford University Press.
Marett, P., 2018. Information law in practice. Routledge.
Terziev, V., Petkov, M. and Dragomir, K., 2018. Sources of European Union law.
Keith, K. J., 2018. Sources of Law, Especially in Statutory Interpretation, with Suggestions about
Distinctiveness. Victoria University of Wellington Legal Research Paper Series, Keith
Paper. (26).
Ridley-Duff, R., 2018. The internationalisation of FairShares model: where agency meets
structure in US and UK company law.
Haigh, R., 2018. Legal English. Routledge.