Business Law Report: Business Structures, Contract Law, and Duties

This report provides an overview of different business structures, including sole proprietorships, partnerships, limited liability partnerships (LLPs), and companies, outlining their respective advantages and disadvantages. It delves into the essential elements of contract law, such as offer, acceptance, and consideration, necessary for legally binding agreements. Furthermore, the report explores the duties of directors in company law, emphasizing their responsibilities and obligations. The analysis aims to provide a comprehensive understanding of the legal landscape for business managers. Desklib offers a range of study tools and solved assignments to support students in mastering these concepts.

Law for Business
Managers

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is an important method which focus on gaining and maintaining the
advancement and the further growth in all the profit generation and also in creating and
implementing the techniques through which the the people can gain the easy life by the help of
effective goods and services. Their are severable different kinds of business practises which
considers to have different roles and objectives that embarks to manage the revenue generation
and immense profitability. Some of the main types of business are like sole trader, company,
partnership etc. (Howden, W.J., 2021). This report will cover three parts in which different
kinds of business with their advantages and disadvantages along with it different elements of the
contract law and further it will also cover the directors duties in company law.
MAIN BODY
PART 1
As Mary and Gina are willing to open a business for selling and buying organic
vegetables have different option in the business as there is been seen that in order to initiate and
business their serves out to carry out all the financial responsibility, assets, management of
accounts, marketing and so many other areas to be taken care of. Their are some of the varied
options which are being available in business they are like:
Sole Trader
All such business practises in which the single individuals are being involved in all the
business and the entity, theses are mainly the unincorporated entity which are managed and hold
by the single person and they mainly coincides the business functions. This is the most common
type of business which are being carried by the small business owners and their implies to be a
simple procedure required in formation and the general areas being made. They are not having
any legal entity and mainly ll such business are effectively being practised as in freelancing, self-
employed works etc. when all such areas. When all such business are majorly being extended
then this implies to manage and implicate the rules and the regulations through which all the
abiding cultures are given under (Lian, J.W., 2021).
Advantages

 This is mainly the easiest form of business in which the establishment will not require
any high expensive amounts. Their will not be require much of paper work in managing
and holding all such business and its reflecting functions and works.
 Less regulations are being required to be made in all such business areas and this implies
that in all the sole proprietorship there is no management and requirement will be applied
for any of the financial details and the informations for the firm (Macqueen and et. al.,
2021). Sole proprietor are not being forced to give the taxes to be multiple times they will have
to pay the taxes just once. Other then this their will not be any kind of payment of taxes
through which the profit can be gained.
Disadvantages
 Their will lie unlimited liability on all the owners as they will have to manage all the
unlimited areas of working and all the debts are incurred through all the creditors,
obligations and the general repayments. all the nature and the outstanding debts are being
managed and this creates a financial stress in all(Greenwood and et. al., 2021).
 Their will be having the limited capital raising as they are not having much options for
sharing and managing all the capitals and funding this implies that all the owners and the
general equity are being attained through it and their implies to provide the ability to
manage and implicate the loans through which the personal management and the credit
history are applied.
Partnership
This is mainly all such business working in which two or more individuals manages and
own a business practises and their implies to have all the common shares, liabilities, assets, debts
and the obligations. In all such business practises where the partners will have the common
distribution of loss and the profit and the decision making is also being managed equally. It
provides all the formal arrangements through which the management and the further operation's
in the effective business are being raised. All the registration are being made through HMRC and
the companies house.
Advantages
 All the partnership are mainly easy to be framed and managed and this can be started
without major obligations and the registration. This requires to have the self assessments

and along with it they cam eventually manage all the rights and the responsibilities to be
addressed and framed in an individual manner.
 As there are mainly two or more partners being working altogether so this generates and
manages all the sharing of the burdens all together. Through this all the partners can
mutually shares the common interest and manages all the work together. Through this their is easy management of capitals as it will evolve and maintain the the
money to be managed in proper manner and as there are so many partners so the
investment can also be aligned in combined manner and ways(Reficco and et. al., 2021).
Disadvantages
 Their will not be any independent legal status as it is been seen that all the partners will
be having the common and equal shares and due to which they all will having the equal
rights on the firm.
 In case if any of the partner leave the company or the firm then iu8t will dissolve the firm
even when there is willingness to continue the firm.
 In case if their arises any kind of conflict arises then the dissolution can occur and this
will make them all to leave the firm even after the willingness to be at the be
firm(Colovic, A. and Schruoffeneger, M., 2021).
As in case of Hurst v. Bryk and Others there is been held that in case when there is seen
any kind of breach in the contract or agreement made between the partners then this will make
the firm to be dissolved and all the other partners can claim accordingly.
Limited liability partnership
LLP is an important partnership entity which manages all the benefits as in regard to the
sale and the effective management. All such partnership firms in which all the management and
the general adherence with the laws and the joining the business with common rights on the
profit, loss, mutual agreements and the asset. In all the LLP there is been seen that all the
partners generally have the limited shares. It implies that in all such firm the partners generally
shares the limited amount of capital and they will have all the income tax to be paid from the
profit which is being shared by them. The amounts and the capital managed will be
competitively according to their sharing asset.
Advantages

 In all such LLP there is no management or requirement of minimum contribution all the
partners can contribute according to the least possible capital formation as through
tangible, movable or immovable.
 Their will not be any limitation on the partners as their will not be any restriction on
joining the firm in the partners. As in comparison to all the public and the private company there is given that in all the
LLP their will be provided that all the registration cost is low. And the registration is
being made through HMRC and Companies House.
Disadvantages
 The company will have to pay the higher income tax according to the annual turnover
which is being made by them(Chen and et. al., 2021).
 LLP even though when they are not having any kind of major activity their will be seen
that ll the penalty for the non compliance can be applied in it.
 LLP are not having the concept which is merely for the shareholding and the equity for
the company. As due to this all such angel investors, private equity funds and the other
venture capital will not be able to invest in the company.
Company
This is an important legal structure in which the separate legal entity is being made and it
carries out perpetual succession for all the working. These are mainly all such legal entity or the
group of individuals which are being engaged in the commercial practises through which all the
taxes and the other financial liability along with its corporate law and the general engagement
with jurisdiction is maintained.
Advantages
 Their will not be major personal liability and they carry all the rights and the treatment to
be made according to the rules complied by the company so no liability arise on any other
person(van Dijk and et. al., 2021).
 Their will be managed the proper tax planning and also the implementation of the profit
which are attained and managed accordingly. It maintain the finances and the general
assets through the working and all the profit to be applied and raised.

 It provides the separate legal entity and this will be managed entirely thorough all the
separate areas and the effective management and carry the responsibility for the debts and
the liabilities.
Disadvantages
 This majorly carries the complex process and also is a time taking and costly method to
frame the company.
 Their are certain strict procedures which are needed to be applied and followed by them
in order to manage the work and the effective proper procedure.
 Their is required to manage and hire the accountant in order to contemplate and manage
all the business affairs.
Thus, there can be applied that Mary and Gina as in order to state a business can go to the
option of partnership as that will make the distribution of the profit according to the sharing
amount which is being decided in between them. Partnership will help both of them to share their
responsibilities and burden so that they can contribute effectively towards the achievement of the
organizational goals.
PART 2
Contract law complies to provide all the agreement which are being made to be
enforceable by law and in which two party agrees to make the agreement which is being framed
in between them. This can also be provided as the legally binding promise that can be expressed
or implied made between the parties in order to complete the task or to fulfil the obligation being
promised. As in order to make such agreements their lies that all the important essential elements
are needed to be fulfilled through which the contract can not be made possible, they are like: Offer- This is mainly the expression of willingness being made on certain terms as this is
generally a invitation which is being given by one of the party in order to enter in an
agreement. The offer can be made fulfilled when their implies that it is being
communicated to the offerer. their is being made that it is the initial stage and all the
nat5ure and the validation is being framed through all the nature and work(Cartwright
and et. al., 2021). Acceptance- This is an agreement which are being made on the specified terms for the
offer. It means when any of the person willingly accepts the offer which is prior made to
them are being concerned and implied in it. All the acceptance when is being

communicated by one of the party to the other then only terms out to be valid. Their
implies that silence will not be treated as the acceptance and this creates the major areas
through which all the proceeding and the ways are managed. Consideration- It is mainly the monetary obligations or the amount which is being
decided while managing the contract law and this implies to provide that all the
enforcement of the obligation can only be made by managing the adequate value of the
task. Their implies that in order to frame and manageable any of the contract no contract
can be applicable without the sufficient and proper management of monetary amount to
be fixed for the consideration (Benzidia, S and et. al., 2021).
 Legal intention- This is majorly all such elements in which all the parties will have to be
with proper legal intention without any ill motive. No contract can be made without the
proper intention to be marked in between them. As it is important that all the parties will
have to fulfil the agreement without any ill motive.
Invitation to treat
This invitation to treat is mainly when someone makes an offer to the other party through
all the contractual negotiations which are being made for entering in an agreement. This is being
made when any of the important things are displayed for large number of individuals and in that
their5 will not be given any defined person that can only choose it. It is mainly all such
advertisements, catalogue and other common areas through which the invitations are managed.
In all such areas when the invitations are being given by the seller then they will have the right to
manage and refuse any of the up takings or the goods that are not being implied or made through
all such areas and ways. The products that are being made with mistakenly wrong process can
also be managed to be refused. Their is been implied that all such areas where the main elements
are required and this is mainly an offer through which assigning and the management for all the
counter areas are altered. Thus, their can be seen that when the invitation to treat implies and is
being accepted by the seller then it will become an offer which is an element of contract
law(Beaulieu‐Guay and et. Al., 2021).
In Pharmaceutical Society of great Britain v. Boots (1953) in this case the court held that
all the goods which are being constituted in the shelf will be invitation to treat and not complied
to offer. It is the choice of the shopkeeper or the shop assistance that they want to accept the
offer or not. So the contract can only be framed when the choice of the pharmacist is being made.

Thus, their can be Catherine as seen the guitar in the shop window and that complied to
have the price tag of f £1200 and when there she went to buy that guitar the shopkeeper refuses
by saying that the tag is incorrect and the actual price of that guitar is £2200, in this scenario the
the window2 shop has made an invitation to treat and their can be seen that all the major
requirements and the obligations are being needed to be fulfilled when the elements of the
contract are being made. Here the shopkeeper in all the incapacitation to treat have the right that
they can refuse to sell the goods in case if there is nay issue or their price which they feel is not
relevant. So in all such areas their will not be any contract framed between the parties. So there is
contract being made between Catherine and the seller as the invitation to treat will only be
completed when the seller is ready to sell the product.
PART 3
In all the companies Directors plays a major role in order to manage the business
functions and also to mandate the rights and the responsibilities of the working nature. Their are
some of the main authorities which are been given to the directors in order to work on behalf of
the organisation and the company. They generally manage all the companies business and all the
operational and the strategic decisions through which they ensure all the roles and the
responsibility for maintaining the statutory obligations of the company. Some of the main
authorities which are being given to all the directors through Companies Act 2006 are like, Act
within power this implies that all the company will have to constitute and exercise the major
roles and the powers through which the purpose and their agreements are managed by the
directors. They implies to create all the association and the shares in systemic manner (Bailey,
T.R., 2021). Manage success of the company this provides that directors will have to manage all
the operations the community with further environment they will have to foster and manage all
the business relations on behalf of the company. The directors will have to exercise all the
reasonable care, diligence and skills in order to maintain the functions of the company and also
to take the right decisions for the organisation and their benefits. this will imply to maintain the
standard and the set of measures through which all roles are being directed and maintained. The
Directors will have the advisory positions through which they will maintain the proper roles and
the obligations to be managed for the company and their will be given the decisions making and
signing the important documents on behalf of the company. The directors will not be allowed to

take any kind of benefits from the third party which means that they will assure and manage the
reasonable care and caution so as to attain the and remove the conflict of interest.
CONCLUSION
From this above report it can be concluded that, Business is the most important areas in
all the countries as it helps in generating the revenue and also in managing the productivity and
advancements. Their is been seen that so many different kid of business practises are being given
which are like the partnership, limited liability partnership, sole traders and many more. All of
them have certain advantages and disadvantages. The contract law is an agreement which is
made between the parties in order to frame the contract which is enforceable by law. The
essential elements without which no contract can be made are like offer, acceptance, legal
intention and consideration. Further it is also analysed that the directors carries the sole
responsibilities of taking important decisions of the company and not taking any other profits
form the external areas.

REFERENCES
Books and Journals
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evidence from Canadian impact assessments. Regulation & Governance, 15(4),
pp.1419-1435.
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strategies: Buyer's perspective on electric and hybrid vehicle technology. Technological
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How grassroots social businesses advance deprived communities in emerging
economies. Management and Organization Review, 17(2), pp.314-343.
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174). Princeton University Press.
Howden, W.J., 2021. Business Intelligence and Data Analytics in Small Business: Exploring the
Drivers of Adoption (Doctoral dissertation, University of Maryland University College).
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platform business model: Stimulus–organism–response perspective. Journal of
Retailing and Consumer Services, 62, p.102631.
Macqueen and et. al., 2021. Democratising forest business: a compendium of successful locally
controlled forest business organisations.
Reficco and et. al., 2021. From donation-based NPO to social enterprise: A journey of
transformation through business-model innovation. Journal of Business Research, 125,
pp.720-732.
van Dijk and et. al., 2021. Serous business: Delineating the broad spectrum of diseases with
subretinal fluid in the macula. Progress in retinal and eye research, 84, p.100955.