Business Law Report: Contract Remedies, Doctrine and Case Analysis

This report provides a comprehensive overview of business law, particularly focusing on contract law and the remedies available in case of a breach. The report introduces the fundamental principles of contract law, including the essential elements required to form a legally binding contract, such as offer, acceptance, consideration, and legal intention. It details various remedies for breach of contract, including injunctions, repudiation, recession of contract, specific performance, damages, and restitutionary claims. The report then presents a case study involving a consultancy business and a dispute over payment, analyzing the application of contract law principles. It explores scenarios involving counter-offers, full and final settlements, and the doctrine of promissory estoppel, ultimately concluding that the doctrine prevents the recovery of the remaining balance in the given case. The report emphasizes the importance of business law in maintaining stability and ensuring the enforceability of agreements.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
...................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business law covers the body of law and it deals with all the issues and matters deals
with the public and private organisation. It is also known as commercial law as all he business
practises and trading merchandise and various aspects use to deal through business law. When
certain organisation wants to run any business then they have to take care of the matter which
covers all the segmentation of rules made in law(Díaz, 2019). It covers certain laws like
employment law, bankruptcy, intellectual property right etc. Contract law is used when any
person is willing to bind themselves in an agreement then they have to follow the principals and
rules made in contract, this mainly have essential elements that are to be fulfilled in order to
frame a contract. All the parties should imply the cultural and social norms in their working as
while making any agreement and framing any contract it is important that their should be
followed ethics and principals. In this report their will be provided all the remedies available for
the parties in breach of the contract.
MAIN BODY
Contract law covers all the rights and duties being given to the party in order to make a
legally binding contract their contains certain rights, obligations and duties for all the working of
the company and as to enter in a contract it should provide some elements that has to be present
as It complies of an offer between the parties one of the member has raised an offer about any
event and then that offer should have to be accepted by another party that means an acceptance
of the offer is needed and that deal should be made on certain consideration and that must be
decided by the mutual consent of both the members and the should be ready for fulfilling all the
legal obligations then only the parties can be said as they are in a contract(Kish-Gephart and et.
al., 2019). It covers ways through which a contract can be ended they are like termination of
contract, frustration or expiration of term of the contract. And if any party tries to do breach or
fraud with the other party then law provides some remedies for that breach that implies breach of
contractual relation of the contract like damages, injunction, specific performance of contract and
many more.

In the context of this case study, Raymond has a small business of consultancy in which
he is the sole proprietor of that firm, He came in a contract with Samantha in which he has to
draft a business accounts for her and the consideration decided by them is sum of £800. After
finishing the work Raymond went to Samantha for getting the payment where she denied by
saying that she can't afford to give £800 and she can only provide sum of £200 as their final and
full payment. They both had an argument but later after some time Raymond reluctantly just
agreed for that £200 as full payment and counted it bas final(Lane, 2016). After sometime,
Raymond read in a newspaper that Samantha's painting are sold in a £20,000 and she is earning
well so he decided to take the rest of money from her that means the remaining amount of £600.
For getting in any contract their has to fulfilled some obligations like their must be a offer
in the parties, acceptance for that offer, a consideration being decided mutually and legal
intention to be in that contract and as Raymond and Samantha's has fulfilled all these elements so
they are considered to be in a contract which is legal and valid.
The contract contains some remedies which are to be taken in account in order of any
breach of contract some of them are: Injunction this implies to the person who does any breach
and the court orders and restrain that person to do certain things(Zwitter, 2019). Repudiation,
can also be called as anticipatory breach it saves the party from any fraud as if any person has
done any breach in the contract then the other person can deny for working under contract.
Recession of contract in this it is important that all then obligations are to be fulfilled and if any
of the party has refused for that legal obligation then another party can refuse for the
performance of work. Specific performance of contract this is also named as an equitable remedy
where the court uses its discretionary power to bind the person to do an act. Sue for damages in
this breach the party who has suffered ;loss by other can sue them for the damages in the court.
Restitutionary this can be claimed as a monetary breach where the person gets the damages on
account of gain made by the defendant not on the loss incurred to the plaintiff that means the
gains of the defendant will be the award or damages of plaintiff(Miller, 2017).
In case where, Samantha have paid the amount of £200 before three weeks then the
situation will be comparatively different as the their will be a counter offer from Samantha's side
and the acceptance of that offer will rely on Raymond that he wants to get that work done in
£200 or not. Counter offer refers to an offer which is made when the parties are negotiating for
fixing the consideration of the work and once when the party makes a counter offer then the

original offer will be revoked and their contract will deal on that counter offer. In case of Hyde v.
Wrench, the court explained that if their made a counter offer in a contract then the prior offer
will automatically destroyed and parties will deal with that new offer. In this scenario Samantha
has made a counter offer and Raymond will not accept it as due to lower consideration.
In the instance where Raymond requested £400 from Samantha as full and final
settlement, then all the situations will change as firstly the offer was being made by Raymond of
£800 and after an instance Samantha has made a counter offer of £200 and their new
circumstances will raised on it but when Raymond will again make a offer of £400 as final
payment then the old offers and the counter offer will be revoked and everything will lie on the
new offer made by Raymond (Mitchell and et. al., 2016). If Samantha agrees on that payment
then they will work according to the contract and their legal obligation will lie on that new offer
but in case if Samantha denies for that amount then Raymond has the right to sue for breach of
contract as she has earlier accepted that offer.
In this case where Raymond wishes to get the money and claim for the remaining amount
of £600 from Samantha as she was running a successful business and she earned a maximum
profit of £20,000 from her painting(Simms, 2019).While seeing then earlier situation where
Raymond has accepted the £200 as a full and final settlement payment from Samantha so he is
not allowed to get the remaining balance of £600 from her this will be considered in Doctrine of
promissory estoppel which implies that even when their was no formal consideration or written
statements or agreements being made still parties are always binding towards the agreement
being made between them that means the promise made between the parties are always binding.
This doctrine was accepted by Lord Denning in his judgement in case Central London Property
Trust v. High Tree House, that when their is an agreement being made between the parties even
in the case of smaller payments it will be a implied obligation and the parties will be tend to be
binding towards it and it is not important that their will be a consideration being set in
them(Sims, 2017). Thus in this case Samantha will not be held liable for the payment of £600 to
Raymond as he has accepted £200 as full and final payment and their will be applied doctrine of
promissory estoppel in it.

CONCLUSION
From the above report it is concluded that, Business law makes an important role in the
society and these laws creates a steadiness in the working between the parties, the legal
formalities done in the contract makes it binding for all. Contract law covers an important role as
it covers all the agreements and their obligations for the parties and also provides the remedies
through which a person can claim for the breach or the infringement. In this case scenario
doctrine of promissory estoppel will be applied and Raymond will not be allowed to recover the
remaining amount from Samantha.

REFERENCES
Díaz, R.H., 2019. Transparency in the Insurance Contract Law of Colombia. In Transparency in
Insurance Contract Law (pp. 351-367). Springer, Cham.
Kish-Gephart and et. al., 2019. Behavioral business ethics: The journey from foundations to
future. In Business Ethics. Emerald Publishing Limited.
Lane, H., 2016. New developments in interpretation: contract law. Without Prejudice, 16(10),
pp.38-40.
Miller, G.P., 2017. The law of governance, risk management, and compliance. Wolters Kluwer
Law & Business.
Mitchell and et. al., 2016. Law, corporate governance and partnerships at work: a study of
Australian regulatory style and business practice. Routledge.
Simms, J.E., 2019. Teaching Accounting Ethics Using Ex Corde Ecclesiae. Journal of Business
Ethics Education, 16, pp.191-212.
Sims, R.R., 2017. A contemporary look at business ethics. IAP.
Zwitter, M., 2019. Ethics and Law. In Medical Ethics in Clinical Practice (pp. 1-5). Springer,
Cham.