Analysis of Breach of Contract and Remedies in Business Law Context

This essay examines the intricacies of contract law, focusing on breach of contract and the remedies available to the parties involved. It begins with an introduction to business law and contract law, highlighting the essential elements required for a valid contract. The main body delves into the conditions for a valid contract, including offer, acceptance, intention to create legal relations, and consideration. It explores various ways a contract can end and the remedies for breach, such as damages, specific performance, and injunctions. Through a case study involving Raymond and Samantha, the essay analyzes the application of contract law principles, including counteroffers and the doctrine of promissory estoppel. The essay concludes by summarizing the significance of contract law in business and the importance of legal formalities.

individual essay

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6

INTRODUCTION
Business law is a branch of law which includes commercial matters. There are mainly
two types of matters which are part of business law namely: laws relating to commercial entities
and laws that relates to commercial transactions(Astorri, 2019). Laws are always evolving with
the change in the society and its needs. There are many laws which comes under the ambit of
business law. They are: contracts law, employment law, intellectual property law, taxes,
bankruptcy, immigration law, etc. A law of contract is mainly the agreement which is formed
between 2 or more people(Winn, and Govern, 2018). Contract law mainly deals with the rights
and duties of the parties of the contract. It also specifically mentions all the essential elements
needed to form a valid contract. The parties must have business ethics before entering into any
contract as the breach of it would amount to damages and punishments. This report deals with
the breach of contract and the remedies available to the parties.
MAIN BODY
Contract law is a branch of business or commercial law which deals with the realtion of
the parties in the contract. It also deals with the rights, duties and obligations of the parties
entering in the contract. When a contract or an agreement is reached voluntarily, fulfils all the
essential requirements of the contract and is enforceable by the law, then it is considered as a
valid contract (Puri, 2016).There are few conditions which are to be fulfilled to make the
contract valid and legally binding. Firstly there shall be an agreement which includes offer and
acceptance from the parties. Secondly, after the agreement is reached it is important to see that
there exist an intention to create a binding and legal relationship between the parties. Thirdly,
there should be consideration between the parties i.e. payment should be made in exchange of
the goods or services provides or anything that is mentioned in the contract(de Elizalde, F.
2018).There are many ways in which a contract can come to end like: expiration of the term of
contract or termination of contract. The contract can also come to end in case of frustration when
a person is not fulfilling duties. To end the contract is not easy(Phang, and Yihan, 2019). To
save the innocent parties from the fraud and breach of contractual relationship there are
remedies given. Remedies includes damages which depends on the amount of breach, innocent
part can also ask for specific performance and injunction.

In this case scenario, Raymond runs a small consultancy business, and he is the
sole proprietor of that firm. He entered in a contract with Samantha for preparing draft business
accounts for her in a sum of £800. Later on, when Raymond completed his work and went to
Samantha for the payment she told him that she can't afford that sum and can only give £200 for
that work (Pazos, 2019).After an argument Raymond reluctantly accepted the cheque of £200 as
full and final settlement. After a due course of time when Samantha's painting begin to sell in
good prices Raymond wishes to recover and get the remaining balance from her of £600.
As to enter in a valid contract there are certain obligations which needs to be fulfilled and
Samantha and Raymond has entered in valid contract as there has offer, acceptance to offer
between both the parties, consideration being made so this is a valid contract as there is a legal
intention between them so they were bound by the legal obligation and as in a valid contract.
Contract law provides various remedy they are like, Recession of Contract in this if there
any of the party refuse to fulfil any obligation and were in a valid contract then the other party
has a right to refuse for the performance of the work for them. Repudiation this can also be
named as anticipatory breach where one party if there is any breach can deny for the
performance of the work even when there was a valid contract between them.(Engelland,
2017).Sue for damages in this legal remedy if there one party breaks the promise and does not
fulfil the agreed conditions and makes the other party to suffer loss then they can claim for the
damages incurred or the compensation being needed. Restitutionary this is monetary remedy that
means when there is a breach of contract then the compensation is being decided on the
defendants gain or the profit being earned not on the loss being occurred to the plaintiff. Specific
Performance this is an equitable remedy which is given for all discretion of courts and the court
orders the party to fulfil the contractual obligations and Injunction where court restrain any
person to do any act.(andrews, 2016) From the above, the remedies available for Raymond is
specific performance of contract and damages.
If Samantha would have paid £200 three weeks earlier then this will be counted as a
counter offer from her side and then Raymond will have a preference that he wants to accept the
offer or not(Newton, 2019). Counter offer means an offer which is made additionally while
negotiation of a contract and this starts to apply once there has been made a counter offer by the
party the original offer will revoke and the parties will deal according to that new offer as in

Hyde v. Wrench, the court held that once a counter offer is made the offer made before that will
be destroyed and the parties will deal according to that new offer. In this scenario there is a
counter offer made by the Samantha and Raymond will have to decide according to that offer
that if he wants to accept it or not and Raymond will not accept as it is of lower consideration.
(LI, J. and LI, 2017).
In case where Raymond had requested for £400 from Samantha as full and final payment,
the situations will change as all the prior legal positions will change as Raymond has firstly made
an offer of £800 and Samantha has changed it to £200, and when Raymond has made a counter
offer of £400 then this will revoke all the earlier offer and parties will deal with the new counter
offer made by Raymond If Samantha accepts it then parties will work according to it and all the
obligations of contract will bind with the new agreement but if Samantha denies then Raymond
has the right to claim for the breach of contract as she agreed earlier for the prior offer.
In the scenario where Raymond wished to claim the remaining balance of £600 from
Samantha as he has seen in the newspaper that she is earning well and has sold the paintings
worth £20,000. As Raymond has earlier already accepted the offer which was made by Samantha
and has also agreed as full and final settlement of payment so he can't claim for the amount as it
will be considered under Doctrine of promissory Estoppel which means that promise made by
the parties at the time of contract will also be enforced as a binding feature between both the
parties even when there was no formal consideration or written agreement being made still there
implies that the aggrieved parties will be protected and that promissory estoppel is binding even
when its is not executed by the parties in a contract. This doctrine was implied by the court in
Central London Property Trust v. High Tree House, there Lord Denning in his judgement held
that when there arose a promise between the parties even when there was a promise where
parties agrees on the smaller payment rather than the actual one that will be binding on both the
parties even if the promise was made without any consideration(Ingrid Pagura BA, 2017).And in
this case Samantha is not held liable to pay the amount of £600 to Raymond as when she offered
him £200 he accepted it as a full and final payment and there will be applied a doctrine of
promissory estoppel on them so he will not be liable to recover the remaining amount bas that
contract was already fulfilled(Fiala, and Hurdig, 2017).

CONCLUSION
It is concluded from this report that there are many laws which gives assurance to the
people before starting a business or entering into any contract. Legal formalities are the basic
requirement for any business. Contract law is the very important branch of law whose existence
is mostly in all the activities. The contract is considered as a legally binding force on the parties
to which they are bound with. It gives the rights and duties which are to be obeyed by the people
in contract and innocent people are also given certain remedies to cover the loss from the party
with whom they were in contractual relationship.

REFERENCES
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