Enterprise Law Report: Contractual Terms and Business Ethics

This report provides an in-depth analysis of enterprise law, encompassing contract law and business ethics, through a series of case studies. The first case examines the contractual dispute between Daniel and Brandon, focusing on the enforceability of agreements and the concept of consideration. The second case delves into the business ethics and potential liabilities of Rebecca and Joel in their startup, Fusion Flowers, exploring issues of misrepresentation, vicarious liability, and the implications of starting a new business. The report also outlines the different types of contract terms, including express and implied terms, and their characteristics, with examples from a construction contract. The conclusion emphasizes the importance of contract law in establishing legally binding agreements and the significance of ethical behavior and information disclosure in business operations. The report underscores the need for parties to adhere to contract terms and ethical standards, which are crucial for maintaining integrity and ensuring fair business practices.

Enterprise Law

INTRODUCTION
Enterprise law are mostly imposed on the business activities in which owner bring their
business into market to earn profits. This helps to enhance their economic activity and also bring
new business which enhances their expansion activity and also treat employees to behave
ethically in the business. Law are mainly imposed to the employees and the companies so that
they maintain their integrity and unity in the society and also behave ethically regarding
following government norms (Svantesson, 2016). This report will include the case study of
Daniel and Brandon and their terms of contract which they made while entering into the
contract. The another case study represents the business ethics and their implementation in case
of Rebecca and Joel. Lastly it shows the case study of Dani and Steve which they made at the
time of opening a new salon.
MAIN BODY
Question One - Advising the situation of the Brandon in terms of recovering money
Issue : In case of Daniel V Brandon, Daniel owned a home and wanted a swimming pool paved
and landscaped. He enters into a contract with Brandon for the work done and payment is
decided As $40,000 which is to be made after the completion of the contract. A month later,
when the work was completed Daniel offer $25,000 which in return is accepted by the Brandon
as the matter of appreciation in respect of flowering shrubs which Daniel gifted him at the time
of contract (Smith, 2018). With this settlement they both agree to accept the payment of $25,000
as the full and final settlement. After five day, Brandon received a letter from the Daniel and the
letter specifies that Daniel won a lottery of $500,000 and they are planning a trip to Europe with
their family for few months. After receiving such letter Brandon feels that he need his completed
payment which he made in half previously.
Rules : Under contract law, when both the parties enter into the agreement which are valid in the
eyes of law. To enter into the agreement with the parties, they must bring some value which can
be in terms of consideration (Cartwright, 2016). As contract are valid, they are made according
to the norms and condition imposed and decided by both the partiers and after entering into the
contract they both are bound to follow it until the contract is void or if both the parties decided to
break the contracts and enforce into new contract. The contract is fulfilled if they are entered in
some consideration is both the parties bring some security amount to enter into the contract.
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Application : In the case of Daniel V Brandon, both the parties enter into the contract with the
following terms and the consideration is also there which represents their contract to be in fair
terms. As Brandon and Daniel both decided that there payment is to be made after the
completion of work which is $40,000. But due to appreciation which is given by Daniel
regarding flowering shrubs melt the heart and they both agree the payment of $25,00 as their
final settlement (Micklitz and et.al., 2018). In the case of contract, if both the parties agree to
settle the money in contract, it is valid and no party can issue the claim after the contract is
finished or any party take opportunity to dismiss the terms of contract after the time lapsed. As in
case of Brandon V Daniel, Brandon cannot demand any amount, as the contract is not more in
existence and they both decide the payment to be settled mutually. So Daniel is not liable to pay
any payment in respect of contract made between the parties regarding the full payment
(Hemming and Daniel, 2018).
In case of Cole V Pinnel (1602), Pinnel the plaintiff, sued Cole In a debt upon bond for
the amount of £8 10s., the defendant Cole argued that as per mutual agreement that they both
agree with the payment of £5 2s. Thus, it is concluded with the judgement that they both had to
agree the payment and no such amount is demanded in the near future (Bigwood and Mullins,
2018).
Conclusion : From the above case study it can be concluded that the validity of the contract
depends upon the terms of the capacity of the parties and their mutual consent to agree the terms
and condition of the contract and there contract is legally bound by laws and both the parties
have to perform such contract. There are various condition under which contract is unlawful
which further become void. In the case of Daniel V Brandon they both enter into the contract and
after the contract is over, no party can claim for any compensation.
Question Two - Interpreting the potential liability of the Rebecca in various case study
As per the companies Act, when both the parties enter into the contract they have to
follow various terms and condition which are imposed on all the partner at the time of
establishment of companies. In the case of Rebecca V Joel, they both start a start up business and
named it as Fusion Flowers (Beale and et.al., 2018). Joel brings $50,000 which he contributes on
his behalf and Rebecca bring Van, tools and other equipment which is used in the business. They
both decide that profits will be shared equally and losses also occurs equally. They appointed
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Matthew to take care of their delivery order and also delivery the flowers within the allotted time
(Harvey, 2019).
Case A
In the given case, as the Rubecca was not aware about the contract made by the Joel for
purchasing the flowers from Ooh Orchids. The seller has asked Rubecca to make the payment of
such purchase. As per the provisions of business ethics, of any one partner created any contract
without informing another partner, it can be covered under the misrepresentation. In this regard,
due to involvement of misrepresentation, the Rubecca can not be held liable for the payment of
such flowers. Joel would be liable to pay for them personally.
Case B
The provisions of business ethics contains a clause called vigorous liability. As per this
clause, the employer is personally liable for each activity performed by the employee during his
employment time (Business Ethics, 2018). In the present case, as the driver damaged another car
while delivering the flowers, it can be analysed that the damage has been provided during time
stipulated with employment. In this regard, his employer, i.e. Rubecca and Ooh Orchids would
be liable for the damage and loss occurred due to the accident.
Case B
In this case, Rubecca has started a new business. Further, the discussion about entering
into this business has already being done previously which was rejected by the Ooh Orchids.
Further, the business opened by Rubecca is also not providing any kind of damage to the present
business. In addition, as the business contract does not include any term that no party can start
any another new business, it can be stated that it is not beyond the terms and clauses of business
ethics.
QUESTION 3
A) Explaining types of terms of the contract
As per the contract law, the terms of contract can be set either express or impliedly.
Express terms are those that are expressly included in the contractual terms. Performance of any
of the activity having overriding effect the express contract, would result in providing right to the
party to sue the offended party to the contract. Further, those terms that are not mentioned
anywhere in the contractual term, but the law makes the party to do so, are treated as implied
terms of the contract.
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4. The term of engaging the interior decoration to consultant for completing the formal
interior presentation of the property is included in the contractual term. In this regard, this term
would be covered under express terms of the contract.
19. The completion of contract within the specific time period as mentioned in the
contract is a requirement of contract law that is needed to be fulfilled by each of the contractual
party. In this regard, the term of agreeing to make the time as an essence of all the aspects of
construction and payment would be treated as an implied term.
26. As the term that contractor will not be held liablr for any of the breach of contract
caused due to action of itself, its employees or its sub contractor is expressed in the contractual
term. Further, as no law includes these type of clause, it would be treated as express term of the
contract.
B) Explaining characteristics of types of terms
In the present case scenario, there are majorly two types of contractual terms namely
express terms and implied terms. Express contract refers to those that are included by both the
parties while developing the contractual terms. The express contracts results in development of
collateral contract between both the parties (Beale and et.al., 2018). Not performing any of the
activity against the contractual terms can result in attracting breach of contract in the hands of
the party who have breached the contract. Further, the contractual remedy makes the parties to
the contract able to easily analyse the whole contract and determining the way in which they
need to perform their task as well.
In addition, implied terms are those that are not involved in the contractual agreement,
but the law makes the parties to do so. Implied terms helps in providing equality to the parties in
the contract. These generally describes the major legal requirement to be comply with while
performing the activities for the completion of contract.
4. This term can be covered under the express term. In this regard, it can be said that the
term has been agreed by both the party to the contract (Bigwood and Mullins, 2018). No party
have right to breach this condition. Breach of this term would result in providing the right to
defendant party to sue over him for the injury.
9. As the completion of contract within the time limit is an implied condition, it is not
written in the contractual agreement. Although, as the law asks parties to do so, it has a binding
effect over both the parties. In case of breaching this implied term, and if contractor or client
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suffers any loss due to such breach, the party suffering loss can claim damages on the term of
breach of contract.
26. Elimination of liability of breach of contract through sub contractor is an express
term. It means all the parties have expressed their agreement over the term (Micklitz and et.al.,
2018). Therefore, as per the contract act, it will have binding effect over both the parties. In this
order, none of the party to the contract can held the contract liable for any breach and suffering
of loss or damage due to negligence of employees or sub contractor.
CONCLUSION
From the above study it can be concluded that Contract law helps the parties to
implement their rules and condition to other parties and they both mutually agree that contracts
and follow it. As contact law is bound by the laws and both the parties have to follow it without
any negligence. Similarly, as with the business ethics, it is implemented and examine in the case
laws as every party which are attached with the contract have to behave ethically and disclosed
all the information which are linked with the company matters. There are various terms of
contract and the contract is valid if they are fulfilled by the competent person who are liable to
enter into the contract.
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REFERENCES
Books and Journals
Svantesson, D. J. B., 2016. Private international law and the internet. Kluwer Law International
BV.
Smith, J., 2018. Contract law in Australia [Book Review]. Ethos: Official Publication of the Law
Society of the Australian Capital Territory. (248). p.60.
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing.
Micklitz, H. W. and et.al., 2018. Dissemination of Consumer Law and Policy in Africa, Asia, the
Americas, and Australia. Journal of Consumer Policy. 41(4). pp.303-307.
Hemming, A. and Daniel, M., 2018. Halsbury's laws of Australia: contract GC I_II_V. Update of
contract GC I, II, and V.
Bigwood, R. and Mullins, R., 2018. Teaching Contract Vitiation in Australia: New Challenges in
Subject Design. Bond Law Review. 30. p.185.g
Beale, H. and et.al., 2018. Cases, materials and text on contract law. Bloomsbury Publishing.
Harvey, A. I., 2019. Anti-Money Laundering and Counter-Terrorism Financing Law and Policy:
Showcasing Australia. In Anti-Money Laundering and Counter-Terrorism Financing Law
and Policy. Brill Nijhoff.
Online
Business Ethics. 2018. [Online]. Available through
<https://www.investopedia.com/terms/b/business-ethics.asp>.
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