Business Law Report: English Contract Law and Simon's Case

This report provides a comprehensive analysis of English contract law, focusing on the key elements required for a valid contract, including offer, acceptance, consideration, and intention. The report examines a case study involving Simon, a TV celebrity, who plans to hire Kim, a former celebrity and law student, as a legal advisor. The main body of the report delves into contract law principles, explaining the legal obligations of parties and the consequences of breaches. It further discusses conditional contracts, implied terms, and the importance of clear communication in contract formation. The report applies these concepts to Simon's situation, outlining the legal requirements he must consider when entering a contract with Kim, such as ensuring free consent and assessing Kim's capacity to contract. Overall, the report provides valuable insights into the intricacies of English contract law and its practical application in business scenarios.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1...................................................................................................................................................3
2...................................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The English contract law is basically the body which regulates contracts within England
as well as Wales. This law binds both the parties to some legal obligations and have some
elements which must be fulfilled for valid contract. Simon being the part of TV show wants to
hire the legal advisor for managing his financial and legal aspects. For this, Simon decided to
appoint Kim who is former celebrity and is currently studying law. Thus, Simon starts to plan the
legal strategy. The main aim of this report is to advise Simon about legal requirements of English
contract law before entering the contract.
MAIN BODY
1
Contract law
A contract is basically the legally enforceable agreement between tow or more than two
parties where each of the party assumes the legal obligation which must be thoroughly
completed. In short, contract predominately recognizes as well as governs rights and the duties of
parties to agreement and thus is legally enforceable. Contract law is primarily the governing
body which mainly relates to the making as well as enforcement of agreements. This contract
law mainly states that whenever an agreement is being made between tow or more parties than
that agreement is highly law enforceable and thus have some terms and conditions which both
the parties have to comply with. According to this law, when parties enter in an agreement
related to any aspect then they become legally bind to perform their obligations and thus breach
of any of the rule is considered as serious offense which gives the another party right to sue the
defaulter. The contract law has some elements which makes the contract valid (Austen-Baker,
2017).
Offer
This law mainly relates to offer and thus a valid contract should have terms and
conditions that one party wants other party to follow and agree.
Acceptance
This is the another major element of valid contract under English contract law. A contract
is said to be valid only when another party accepts it without being under coercion or under
pressure.

Consideration
Under the English contract law, contact is said to be valid when each party give up on
something. This is generally known by the name consideration as something in return is given by
both parties.
Intention
This is another most important element of a contract under English Contract law. Both
the parties must have a valid intention to enter into a contract which makes them bound under
legal obligations which makes a contract valid. The informal agreements does not make a
contract valid (Cartwright, 2016).
Thus, as per the English contract law both the parties needs to fulfill these elements for
entering in contract.
Now looking at the case of Simon and Kim, this contract is highly relevant. Simon who is
a TV celebrity wants to appoint a legal advisor in order to increase its brand awareness and
taking brand message to wider audience. Simon feels that Kim would be the perfect choice who
is former celebrity and is currently studying law as Kim have great popularity and will help
Simon to increase the revenue of its TV show. Simon thinks that Kim will receive great job
offers as well as passing the final exams will help Kim to secure its job. Thus, Simon starts
planning the legal strategy for appointing her.
In order to have a valid contract, Simon would have to consider the various requirements
under English contract law. One of the requirement as per this law for having the valid contract
is intention. As Simon is entering into a legal contract with Kim thus both the parties must have
some valid and legal intention. Simply entering into a statement would not make this contract
valid. Like the major intention of Simon to hire Kim is her popularity and understanding of the
legal terms. While the major intention of Kim is to get various job offers and after competing her
studies have a great career. Thus Simon must fulfill this requirement under English Contract law
(Chen, 2017).
Besides this, another requirement which Simon must take into consideration while
entering in a valid contract with Kim is the free consent. Under the English Contract law, Simon
must have a mutual agreement with Kim and Kim must not be forced or coerced illegally to enter
the contract. Like Simon is anticipating by himself that by becoming the legal advisor of his TV

show Kim would receive various job offers and will be beneficial in her future but Simon must
firstly ask for the consent of Kim and then must proceed.
Along with this, another requirement which Simon needs to consider while entering this
agreement is the capacity to contract. Under the English contract law, agreement must be
between parties who are competent and capable to enter it. Simon before signing the contract
must find out that whether Kim is capable for entering into contract or not by analyzing that
whether Kim have any symptoms of mental illness that might occur in future or not. If yes, then
this makes Kim incapable to enter a contract. Thus assessing that whether both the parties are
competent and capable in entering the contract is highly essential for Simon. Simon after
checking the medical history of Kim found that Kim has any symptoms mental stability which
might occur in future and still Kim enters the contract then that would be considered as illegal
contract.
2
Conditional contract is the legal agreement between two parties where some conditions
are set and if these delineated conditions are met then only contract will be applicable. In the
case of Simon and Kim, Kim is the law student and he has to finish his exams first. Kim can put
condition that she will join this contract once her exams are completed. Simon can give offer to
Kim to get payment of certain amount if she joins again in the firm. This offer can be expressed
verbally or written both. Implied terms are part of conditional contract that states that there are
many things that cannot be written in written document but it is understood by both involved
persons that it will be followed (Contract law cases - contract 1, 2020). Kim is the law student
hence Simon is clear that before her exam she cannot join his firm hence it is part of implied
term and need not to write in contract. Simon can make conditional contract with Kim, he can
offer the Kim to join his company once exams are over. If there is clarity of offer then Simon has
right to make conditional contract. For example: in the case of Huthing vs Lynn (1831) buyer has
clearly stated to pay 5 extra if that horse found lucky for him hence conditions were very clear.
Whereas in other case of Hillas vs Arcos (1932) offer was not clear that which kind of woods
will be provided to second parties hence it was incomplete offer. In the same case Simon can
make contract conditional upon Kim by stating the dates of her final exams and after that Kim
will be legally liable to work with Simon (Mitchell, 2016).

Another term of contract law is that offer must have communicated clearly to the
involved parties. Bloom Vs American Swiss is the example of it. If there is improper
communication, then contract will not be liable. That means if Simon wants to make conditional
contract then he must coordinate with Kim and have to tell her about various conditions of exams
and after getting her approval he can make a conditional contract. In the conditional offers it
must be express properly. If parties have accepted terms, then it can be said that contract get
solicitor’s approval. In the present case also Simon must discuss the terms and conditions with
Kim and if Kim show her acceptance for doing advertisement for the brand then only this
contract can be approved otherwise it will not be considered as valid contract. But if Kim
rejected his offer then Simon will not be in condition to make conditional contract. There is
essential to get concern or acceptance of both involved people (Marsh, 2017).
CONCLUSION
It has been summarized that a valid contract is only made when both the parties fulfills
the conditions of English legal system. In case of Simon and Kim, Simon needs to take into
consideration various elements of English contract law in order to enter the legal contract like
free consent, capacity to enter the contract etc. These must be fulfilled by both the parties for
legally making the agreement.

REFERENCES
Books & Journals
Austen-Baker, R., 2017. Implied terms in English contract law. Edward Elgar Publishing.
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing.
Chen, J., 2017. Should English Contract Law Adopt a General Duty to Negotiate in Good Faith.
BLR. p.18.
Marsh, P., 2017. Contract law. In Contracting for project management (pp. 65-80). Routledge.
Mitchell, C., 2016. Behavioural standards in contracts and English contract law. JCL.33.
Perry, C., 2016. Good Faith in English and US Contract Law: Divergent Theories, Practical
Similarities. Bus. L. Int'l.17. p.27.
Online
Contract law cases - contract 1. 2020. [Online]. Available through <
https://quizlet.com/170213509/contract-law-cases-contract-1-flash-cards/>