Analysis of Business Law and Ethics in Contract Formation

This report examines the core principles of business law and ethics, with a specific focus on contract law. It begins with an introduction to business law and ethics, highlighting their importance in organizational operations. The main body presents a case scenario involving a building business and a customer, illustrating the process of offer, acceptance, and the formation of a contract. The report explains the concept of a contract, its essential conditions (offer, acceptance, consideration, and legal intention), and provides an analysis of the scenario to determine if a valid contract was formed. It also explores the rights and responsibilities of parties involved in a contract, including rights related to business activities, opinions, and access to information, as well as general responsibilities and the implications of fraud and negligence. The report concludes by summarizing the key takeaways and emphasizing the significance of contract law in fostering ethical business practices.

Business law and
ethics

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Case Scenario..............................................................................................................................3
Explain contract..........................................................................................................................3
Essential conditions for a valid contract.....................................................................................4
Advice Angharad and Bridie on which contract(s), if any, have been formed in this
negotiation...................................................................................................................................5
Rights and Responsibilities in Contract......................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business law is the main body that contemplates law and provides al;l the important
information about the laws that are being used in the organisation. They merely consists of set of
rules which covers all the areas which are important for the organisation.(Batrancea, and et. al.,
2018).any act, contract act, Employment act etc. Business ethics provides that all the
corporations should use various areas of working in which they should always follow the norms
and the culture that are being important for the growth of the organisation. This report will deal
with all the essential terms and features of contract.
MAIN BODY
Case Scenario
Angharad owns a building business in which she has made an advertisement about her
business in the local prints and with that in the online media. Through that advertisement Bridie
came to Angharad in order to built a wall of her garden with a blueprint and the map in which
that has to be designed. Angharad responded to Bridie that she is ready to make that wall but that
will amount £500 and that quotation will remain open for 10 days. To this Bridie denied that she
is not interested in that offer. Later on after some days Bridie sent a e-m,ail to Angharad that she
is interested bin that offer and now want to get that wall done in £500 for that Angharad
responded that now the new quotation will be of £600.
Explain contract
Contract is being made in the parties when their applies certain positions that the parties
are agreeing to come in an agreement. It mainly provides that the agreements that can be made in
the parties and it is also enforceable by law then it amounts to contract. Their are certain
elements which are variedly important for a contract without such elements that contact can not
be raised or made (Alizadeh, and et. al., 2020). Their are several acts which are being made in
order to maintain certain laws they are IPR, Comp. Those elements are like offer, acceptance,
consideration and the legal intention to do certain work. With this contract law also has to fulfil
some requirements in order to make the contract working in all the agreement and areas they are
that the person indulging in a contract has to be of sound in and major. No person who has not
attain the age of majority can come under a contract. If any of the parties has made breach in the

contract then their can be applies certain restriction and the contract law covers various rules
which can be applies. In order of any breach made by the party the parties can claim in the courts
and they can get the damages as compensation. In case of breach the party can even terminate the
contract by the help of court there are certain specific relief that are being made in the parties for
the fulfilment of the contract and that helps in making the contract between the party
enforceable.
Essential conditions for a valid contract.
In all the contract there are various elements that need to be completed in order to enter in
a contract their use to apply that all the parties have to fulfil certain requirements in order to
come in the contract as they will bind by a contract only after that obligation they are as follows: Offer- This is the condition in which one of then party makes an offer in front of the
other party and they will work in accordance with that(Colpan, and Jones,, 2019). It
implies that all the parties have to first make an offer in regard to doing certain thing or
work. Acceptance- When the offer is being made in the party then their will be seen that
whether the other party is ready for that offer and that they are willing to make certain
accept that offer, if the offer being made by one party have to be accepted by the other
party. Consideration- The contract is being made in the party only when there is a consideration
being recorded in them. Thus for a valid contract their has to be a effective consideration
on account of making that thing done without the consideration a contract cannot be
framed.
 Legal intention- The parties framing in a contract have to be bind with the legal intention
to do that contract, thus in order to make that contract enforceable their must be a legal
intention in the parties that implies that their should be a legal obligation in the party to
do that contract.
Thus, in this case there is a valid contract between the parties as Bridie has made an offer
and Angharad accepted it and they had also decided the consideration for that contract with a
legal intention thus that means there was a legal contract between the parties.

Advice Angharad and Bridie on which contract(s), if any, have been formed in this negotiation.
As mentioned in the case, Angharad has made an offer of £500 to Bridie for the
contruction of the wall and for that Bridie has declined the offer and said she don not want to do
that. But after sometime she agreed top get that done in £500 but the prior quotation of £500 was
already being ended and Angharad has made the new quotation of £600.
From the case Dickinson v. Dodds, this has been held by the court that once the offer is
been revoked by the party and the ntime period has been ended that that order will not be framed
again(Friedman, and et. al., 2020).
In this case as Angharad has made the offer of £500 earlier and the time period was
ended thus Bridie was not been allowed to do that same work in £500 if she want to make that
work done then they will be working on the new quotation of £600 and that will be counted as a
new offer and all the prior offer will be ended. The parties will be in the contract if Bridie
accepts the new offer with new quotation.
Rights and Responsibilities in Contract.
Rights of the Parties
Rights in the conduct of business activities:
Parties to a contract can exercise their rights during the course of business. They are equally
allowed to participate in the business activities. Such conduct shall be legal and not contrary to
the contract.
Right of the parties to give their opinions:
The parties to the contract have the right to express their opinion before deciding any matter. But
the nature of the contract shall not be changed without the consent of the other party. Such
decisions are to be taken by the majority of partners in a contract. Thus, it gives partners right to
express their opinions freely without any influence.
Right to inspect books and accounts:
Each party has a right to access books of accounts of the business to ensure its accuracy. Even
parties has a right to take the copies of the same. Other party cannot deny to exercise this right.
(Singer and Ron, 2020)
Right to recover:

Parties has the right to recover from the incidental loses incur during a period of time.
Sometimes, losses are occurred due to the negligence of the other party. Thus, parties must act as
it would have been prudent for them to act in the absence of any contract. (Winterton, 2019) .
Responsibilities of the Parties
General responsibility:
The most common responsibility is that the party is required to perform the obligation in a good
faith. There lies a duty to perform the obligations in a bona fide manner. Further the parties to a
contract is required to disclose the true facts and information related to the business which
affects directly or indirectly to the firm or party or to their legal representatives (Recart
Apfelbeck, 2020).
Recovery in case of Fraud:
The party to a contract shall recover the losses incurred in a fraud committed by another party
during the business transactions. Thus, any party who commits fraud must pay to other party for
losses occurred by their actions. The other party can sue or take action on non-recovery of such
losses.
Required to act with due diligence:
The party must perform his duties with due diligence. Also the party is liable to make
compensation in respect of direct consequences of his own neglect or misconduct. The wilful act
of the parties shall not be entertained by the Act.
Parties must act within the scope of authority:
No party is allowed to work beyond the authority. Thus, it is the responsibility of the parties to
perform within the authority delegated.

CONCLUSION
From the above report it is concluded that Business law, on international levels, is
continually evolving with the new areas of law. In the absence of contact law it would be very
difficult to understand the concept of trade. The consideration in a contract binds the party to
perform their duties and also protects both the parties from court proceedings or
misunderstandings. Also the law provides to the parties the rights and duties, remedies on the
breach of contract. Furthermore, contract law encourages parties to carry out their rights and
obligations to the best of their abilities and help them to achieve the required skills, in fact that is
a term of a contract.

REFERENCES
Books and Journals
Alizadeh, and et. al., 2020. Business Ethics as a Prevention Paradigm of Banking Crimes.
Batrancea, and et. al., 2018. Precepts of business ethics on the Romanian market. In Regulations
and applications of ethics in business practice (pp. 227-255). Springer, Singapore.
Colpan, A.M. and Jones, G. eds., 2019. Business, ethics and institutions: The evolution of
Turkish capitalism in global perspectives. Routledge.
Friedman, and et. al., 2020. Is Short-Term Thinking Destroying Capitalism? Vignettes for
Teaching Business Ethics. Journal of Accounting, Ethics & Public Policy, 21(4),
pp.515-554.
Marchant, and et. al., 2020. Emerging Technologies: Ethics, Law and Governance. Routledge.
Singer, A. and Ron, A., 2020. Prioritizing Democracy: A Commentary on Smith's Presidential
Address to the Society for Business Ethics. Business Ethics Quarterly, 30(1).