Law for Business Managers: Contracts, Negligence, and Business Mediums

This report delves into key aspects of business law, providing a comprehensive overview of contracts, negligence, and various business mediums. It begins by defining contracts under the law of England and Wales, outlining the requirements for a valid contract and applying these principles to a case study involving a father and son. The report then examines the criteria Jerry (the claimant) would need to satisfy in an action for negligence, including duty of care, breach of duty, causation, and damages, providing real-world examples. Furthermore, it identifies and analyzes the main business mediums available to Ringo and his friends, John and Yoko, such as sole proprietorships, partnership firms, and limited liability companies, discussing the advantages and disadvantages of each. Finally, the report emphasizes the importance of correctly identifying the employment status of workers, offering insights into the legal implications for Ringo, John, and Yoko's business. The report also touches upon the importance of following ethical and code of conduct regulations in business and the implications of not doing so.

LAW FOR BUSINESS
MANAGERS

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
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 ?..........................................................................................4
(b) Would Ringo be liable to pay Paul based on the facts above?.........................................5
2. Discuss the criteria that Jerry (as the claimant) would need to satisfy in an action for
negligence...............................................................................................................................5
3. Identify the main business mediums available to Ringo and his friends John and Yoko and
the advantages and disadvantages of each of these mediums................................................7
4. 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.......................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
United kingdom legislation has provided several laws and regulations to protect and
secure citizens of nation. Business law was created to administer all stages of a business
organisation and provide them correct guidelines. This study will cover all ethical and code of
conduct regulations which are to be followed by acts of negligence, contracts and agreements,
different types of organisations and suggestions of different types of business. Case studies will
be solved in which number of laws and acts will be explained that how they can help to take any
of the business. Suggestion will be given that what are those business option which is available
with the company where they can invest their fund. All of this suggestion will be based on law
and regulations which has been enforced in UK.
MAIN BODY
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 ?
Contract Law is the law which defines that how any of the company need to proceeding
in any of the work in legal ways. As explained above law and regulation which have huge
impact on business organisation, because it tells that how any of the work is needed to be done
and what are those things which should be avoided. This is one of the laws which must be
followed to work ethical. Whenever, person or even organisation fails to perform their part of

work then it is understandable as breach of contract (Hansmann and Kraakman, 2017). It is
always of two types, either written or verbal. Contract law is one of the safest law as it helps to
reduce the arguments. In UK, it is necessary that complete procedure should be followed to make
any of the contract as valid. The elements which are needed to be considered in any of the legal
contract is explained below
Offer is when a contract is initiated a party forwards a business proposal to another party,
which will award both sides with monetary rewards. Consideration and Negotiation is the
second party shall make negotiations and change some points in contract according to their
consideration in contract. Acceptance comes after negotiating terms offer is accepted by second
party they form a legal binding to commence the agreement in a legal formation. Legal Relation
is Law and regulations are mentioned in agreement for safety of both parties. In case any breach
of contract appears it protects innocent party and acquires them claim from compensating party
(R (Factortame Ltd) v Secretary of State for Transport, Local Government and the Regions, is
one of the case where contract has been breached and work has been not performed according to
the requirment of law) . Validity is an any legal document, is not proven valid unless all laws
and regulations are correctly mentioned in it. Carlill v Carbolic Smoke Ball Co is one of the
landmark case which discusses about element of contract. Here, court decided that any of the
contract should be legal in binding (Four landmark cases that changed the legal landscape in the
UK, 2017).
In any contractual agreement its very necessary to follow all steps mentioned above, if
any one of them is missing the contract is declared null and void in nature. Parties shall keenly
observe every detail of contract and then agree for it, any negligence towards such formations
will put a negative affect while seeking justice in court rooms.
(b) Would Ringo be liable to pay Paul based on the facts above?
As per the given case scenario, it is understandable that both father and son have entered
into the valid contract. There was a offer and acceptance which makes the contract valid under
contract law. According to the contract law, whenever person enters into the contract they not
allowed to breach its terms and condition in any of the situation except when terms and condition
of agreement changes due to some circumstances. Here, father has breached the contract by
clearing out that Paul should put up some more amount of weight (Macey, 2013). This was not
the terms and condition of the contract. The contract which was formed between both the party

was verbal. So, by looking at the above terms, conditions and facts, it is the duty of Ringo to do
the payment of Paul i.e., 10GBP. But, if this case is brought within the court, then it is the duty
of Paul to prove there was contract. In short, the justification which are being given by Ringo is
not appropriate and he must work according to law of contract.
2. Discuss the criteria that Jerry (as the claimant) would need to satisfy in an action for
negligence.
Negligence is dereliction by practitioner of any profession who was not careful,
reasonable and cautious while performing duty causing loss or injury to any person. In standard
protocols of every job, should be particular about norms of delivering correct services.
Professional negligence is failure of these standards due to which client suffers financially or
physically. Donoghue v Stevenson [1932] AC 562, HL is one of the important case where it
Judges decided that any of the person who has been given the responsibility is not allowed to
negligent the work and if in any of the situation it is found so then legal actions can be taken at
any period of time. This unethical behaviour causes civil lawsuits against company and
practitioner as well. Analysing negligence includes four divisions as following:
The term duty defines duty of practitioner which is to complete his job with perfection
and provide client correct services without any scope of mistakes. The worker performs service
for client which will portrays goodwill of company. Employees duty either increases or
decreases company's demand in market. (Nielsen and Parker, 2012). Breach is while performing
duty if any sort of breach of code of ethics or negligence appears its considered as breach of
contract. In this case its breach of duty authentication. Any provision mentioned in contract
between both parties, if not followed by any party is considered to be breach of duty. In cause
client should prove that damage caused is done by practitioner and due to only his/her mistake.
Claiming money from company will need this crucial point to be proven positive. The employee
should be proven guilty of damage which is caused by employee. In Harm, damage because of
negligence of person should be provided by client. Damage could be harm to property or
reputation of client. This will help innocent party to claim compensation and fix damage caused
to property. Harm should cause any physical, mental or social damage to clients property which
will lead to filling lawsuit against practitioner's company (Steel v NRAM [2018] 1 W.L.R. 1190
is one of the case which tells that professional body has the responsible of duty of care (UK:
Professional Negligence Round, 2019)).

There are mainly three types of negligence and according to the situation it is decided
that defaulter falls under which from of negligence. In contributory negligence, client was
negligent himself and did not point out any damage which might cause and also forgot to inform
the worker about it. Here both parties are held liable and chances of getting any compensation
from claiming them are very low in such scenario. For example if any work to be done is in a
zone where plenty mistakes might appear ,this will help practitioner to be aware about it and
avoid any negligence working in this environment. (Schoonjans, Van Cauwenberge and Vander
Bauwhede, 2013). In Comparative negligence, liability will decrease because of negligence by
client, because he could have avoided any damage to his property. No party is fully liable in such
cases but negligence from practitioner is initial stage of causing harm to property. Here both
parties are held liable fifty fifty because both were negligent about providing correct guidance to
follow. In Gross negligence, practitioners’ carelessness due to lack of seriousness towards work
and no concern for safety of others. Causing loss or damage to which whole liability is on
practitioner. Here, client is innocent party and whole miss-happening is caused due to workers
negligence .
From the above-mentioned elements Jerry is liable to claim compensation from Elixir
Gardens for damage of property by their member George. All elements to prove negligence are
supporting case. First duty was proven by George doing gardening, second breach of duty of him
not measuring the trees properly, third he was rushing to leave by 5pm which made him do work
inappropriate and last damage caused to Jerry's house roof. After ascertaining negligence its
proven by situation that it was gross negligence of practitioner(George) and company is liable to
pay cost amount to recover property.
3. Identify the main business mediums available to Ringo and his friends John and Yoko and the
advantages and disadvantages of each of these mediums.
In present status, there are number of business organisation where Ringo and his friend
John and Yoko can invest their money to earn profit in future but they are new in this field so it
will be important to know that what are those laws and policies which should be followed. In
additional they must have the knowledge about their advantages and disadvantages so that
decision making process can becomes much and easier. The explanation about different types of
business mediums are listed below:

Sole Proprietorship is the type of business is small in size and easy to perform. The
burden on investor never arises in it due to which it becomes easy for the association to complete
their targets and goals on specific time period (Brown and Nagy, 2015). Here, company do not
get number of rights which restricts the business to take some of the important business
decisions. Advantage for sole proprietorship is that meetings are not required to conduct for
taking any of the business decisions. While talking about disadvantage, this type of business do
not get the right to sue on the name of organisation because investor themselves are counted as
the owner of the company and they have to use their own name.
Partnership Firm is the type of business which do get the opportunity to manage their
work easily. It is said that people of this sort of business do get the liberty in the field of taxation.
Partnership firm can be incorporated only if two or more than two people come together with the
common objective (Bruneel, and et. al., 2012). This type of business is easy to perform and lots
of flexibility is available in it. It can be formed with the help of small amount of capital too
which is one of the advantage for them. Whereas they also don't have the right to sue or be sued
in the name of organisation. Also, liability is unlimited in it which is disadvantage for them.
Limited Liability Company is the form of business organisation which do have the
concept of both partnership and company is known as Limited Liability Company. This type of
business is easy to perform and number of benefits are also being provided to it. It is one of the
most popular form of business at current time which makes this type of business different from
other form of business organisation. The main advantage for LLC is the guidelines are given by
Company law due to which it becomes easy to perform any of the task smoothly (Hayden and
Bodie, 2012). But this types of company have disadvantage too for example, while following the
rules and regulation, overall expenses do increases here.
Corporation is the business which has the liberty as to other form of business entity is
known as corporation. The corporations are the types of business where business activities are
performed at greater platform and every sort of decisions should be taken by considering the
rules and regulations. This type of business do enjoys the right of perpetual succession which is
mostly not given to any form of business. Corporation are those types of business where proper
teams is available whose main duty is to take business decisions due to which chances of errors
automatically reduces in it. Entry and exit of any of the member doesn't effect on the
sustainability of the organisation which is positive sign for organisation( Rong and et. al.,

2012).Whereas this type of business organisation must follow the long procedure to take any of
the business decision which reduces the overall revenue of the organisation and that is counted as
disadvantage for company.
It is recommanded to all of three friends that they should try to invest their money in the
field of partnership firm because here they can expand their business level up to certain level. All
of the partners will also get the number of benefits in it and fair idea will also be available with
them that how they are required to work in future. Here, partners will not have to follow the long
procedure to take any of the decisions and overall cost will also be low over here.
4. 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.
Selection process: Analysing capabilities of person is most important aspects to select
employee for company which is done through selection process. This includes steps those test
candidate on several aspects such as communication skills, confidence, job-orientation,
background checking and most importantly knowledge in core field of business infrastructure.
Selection procedures can vary for different companies according to their required need. The
following steps will help Elixir Gardens to select suitable candidates for company:
Preliminary interview is also called as screening process, categorising and reviewing
people on general terms. Candidates are measured on criteria that they are eligible for job field or
not. Academic qualification, skills, experience and personality of candidate is graded. Basically,
this process removes unqualified applications for job and select correct person (Johnson 2012).
This first step is quite simple and generalizes about job work qualifications, basic goals of
company and guidelines followed by company to maintain its brand royalty.
Application process requires selected candidates in preliminary round are asked to fill
forms consisting details which are required by company for next level. It includes age, name,
address, qualifications, area of interest, future goals and most important purpose to join
company. Various organisation has different application forms to compare candidates on basis of
communication skills, multiple courses, ability to handle tough situations, leadership quality,
group cooperation and many more as per requirements of company.
Screening applications are analyse on basis of company's needs. Generally managers or
selection committee of company execute this process. The applications are filtered on many
grounds such as age , gender, past employer, experience, knowledge and many more (Kolk,

2016). After candidates are filtered and suitable candidates gets selected, they have interview of
one-to-one basis or panel. This process is watched and accumulated keenly so that suitable
employees are selected for company.
Employment test do have the great importance in any of the business organisation.
Every organisations core work is to excel in their field, employees hired should be connected to
main goals of company. They should project confidence and enthusiasm towards targets given to
them and work hard for betterment of organisation. This test may vary company-to-company as
each credential differ from one another. These tests could be from written exam, verbal test,
practical test (in case of field work). After qualifying these tests candidates are selected finally
and have cleared all qualification which are needed in the organisation (Stewart and Hitt, 2012).
These tests also differ candidates on qualities, like some are good in field work but bad in
paperwork, this defines categorisation of candidate in company.
Second round has its own importance in in the process of selection.The candidates who
are eligible in above tests are called for employment interview. This interview is for getting more
information about applicant, to give them actual picture of what is required, check
communication skill of candidates etc. There may be direct or indirect interview. The interview
should be conducted in open zone space away from other noise and disturbing elements, where
the candidates could speak freely and frankly.
Medical examination is the most important as it allows company to hire the right
candidate. Companies are generally not liberal at this level, if candidates has cleared all rounds
but fail in this then they are rejected on grounds of being unfit for job. Medical examinations are
now worldwide supported and have become essential element in selection procedure. The
candidate is measured on both mental and physical fitness, so that they can fulfil requirements of
job. Many companies prefer to take medical examination before screening process as per
essential need. It will help save time and energy of screening committee rather than filtering
candidates who will get rejected eventually. This level is never neglected in case of any
consequences leading to accidents.
Final selection is that where all those candidates who cleared above steps will consider
right candidates for job profile proposed by organisation and will be provided appointment letter
to joining their respective role in possible upcoming days or months. This is just offer letter to
one who are selected, its purely depends on person whether they want to join or not (Cuervo-

Cazurra, 2016). Confirmation from their side is equally important to complete selection
procedure.
It is recommendation that Elixir Gardens should follow above mentioned method for
selecting suitable candidate. This procedure will help the company to avoid incidents of
negligence with Jerry, they not only cause monetary loss but also harm goodwill of organisation.
In later future such incidents won’t occur, because of having skilled and qualified practitioners.
In addition to that, Elixir Gardens are expanding business who clearly in demand for good
practitioners in garden grooming to provide excellent and qualitative results and increase profit
ratios.

CONCLUSION
It is concluded from the above file that whenever person or any of the organisation is
entering into the contract, they are required to check each term in detail as breach of contract can
create lots of problem. Number of organisations are their but still, investor must decide that in
which field they want to invest their capital. In UK, decision of negotiation is always declared
based on situations and condition of case and common law is applied in it. It is said that if
company follows the proper procedure to recruit any of the employee then chances of getting
positive result automatically reduces.

REFERENCES
Books & Journals
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Nielsen, V. L. and Parker, C., 2012. Mixed motives: economic, social, and normative
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Rong, J. and et. al., 2012. A behavioral analysis of web sharers and browsers in Hong Kong
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Schoonjans, B., Van Cauwenberge, P. and Vander Bauwhede, H., 2013. Formal business
networking and SME growth. Small Business Economics. 41(1). pp.169-181.
Stewart, A. and Hitt, M. A., 2012. Why can’ta family business be more like a nonfamily
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Online
How to form a valid contract. 2018. [Online] Available Through:
<https://www.rocketlawyer.co.uk/article/how-to-form-a-valid-contract.rl>
Four landmark cases that changed the legal landscape in the UK. 2017. [Online] Available
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