Law of Accounting: Contract, Tort, Agency and Company Law

This assignment delves into the intricacies of accounting law, beginning with an introduction to its fundamental principles and scope. It explores the relation of accounting law to the law of contract, explaining key terms such as offer, acceptance, invitation to treat, and consideration. The assignment then examines negligence within the law of tort, providing relevant case law examples, including 'Behrens & ors v Bertram Mills Circus ltd' and 'Donoghue v Stevenson'. Two case scenarios are presented, requiring analysis of contract formation, breach, and the application of legal principles. The assignment also covers the procedures and necessary documents for registering a public limited company and outlines the duties of an agent in relation to the law of agency. The conclusion summarizes the key takeaways, emphasizing the importance of accounting law in analyzing financial transactions and resolving legal issues. The assignment uses case law to explain key concepts and provides a comprehensive overview of the subject matter.

LAW OF ACCOUNTING
INTRODICTION.............................................................................................................................4
TASK 1............................................................................................................................................4
Relation to law of contract few terms are required to be explained............................................4
Negligence in law of tort.............................................................................................................5
Case scenario...............................................................................................................................5
Second scenario...........................................................................................................................6
TASK 2............................................................................................................................................6
Identify the procedure that is required and document that is necessary for its registration........6
Explain the duties of an agent that are implied into any contract in relation to the Law of
agency..........................................................................................................................................7
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODICTION
Law of accounting is the system that use to record , summarize, analyze and categorize those
financial transaction of an business or individual. Accounting system is used to solve a legal
problem in a manner that it helps in identifying of claims to be given to claimant and damages
that has been done to plaintiff. These are having very unique scope that is analyzing of accounts
of an organization that can be used later as an evitable evidence in an particular case. Nature of
such law is very dynamic because they help in dealing with the finances of an organization. In
the following file things that is going to be covered is Acceptance, Invitation to treat,
consideration these terms are to be explained in relation to law of contarct and then negligence is
going to be explained as per laws of tort. In the end a scenario is given that is required to study
and legal advice has to be given over the problems identified in them.
TASK 1
Relation to law of contract few terms are required to be explained
As law of contract is that kind of law in which an agreement has been formed between two
parties. Such agreement formed is considered as a contract and is valid under the eyes of law. in
other words this means that kind of agreement that is being formed between two parties through
mutual understanding that is legally being enforced in form of agreement. Under contract various
elements are necessary to be present for formation of contract. Such elements are offer,
acceptance, adequacy, consideration and legality. These elements are explained below:
Offer: This means that when an offer is made to another party. In other word it means that when
an contract has to be formed the very first step that is required to be taken is to give offer to an
party (Brouwer, and Hoogendoorn, 2017).
Acceptance: This means that an offer that has been made is accepted by the party. This is
considered as an agreement of unconditional nature towards all the rules mentioned in an
agreement. An offer can also be accepted in exchange of both money or an important thing that
has value. A deal of returning something in return can also be termed as acceptance. In other
words it can explained as an communication done in order to accept an offer made. Also various
methods are there in which an offer can be accepted.
An invitation treat: It is that kind of indication that an party is willing to receive an offer with
the future possibility of entering into an contract of binding nature. An invitation to treat is to
accepted only in binding contract. Both offer and invitation to treat is different to each other in a
manner that offer is made by another party where as invitation to treat is always formed under
binding contract. Such offer made in this cannot be accepted or declined as it is binding to be
followed by both the parties.

Consideration: This is one of the most essential element that has been there in contract. This
means some of the benefits that has been marked under contract for parties present in it. It can
also be said as making an commitment or promise to party. Consideration is divided into three
types and it is executed, executor and past. Executed means an act performed in return of the
promise made. Executed and executor considered as valid whereas past consideration is not that
much valid. In simple words an consideration is the process by which an party made promise to
another party which is bound to be followed by another party in terms of contract done between
them can be valid only after this (Chan, 2016).
These are few terms that is connected to laws of contract in some or the other manner. An
contract cab be considered as valid contract only through its element. This can be justified
through an statement that is All agreements can be contract but all contract cannot be a contract.
Negligence in law of tort
The tort of negligence is an kind of legal wrong that has been marked under law of tort. In these
types of tort is there only when a person is not taking care before committing an particular act.
In other words it is considered to be an act of omission that has been committed by a person
while performing his duty towards an person or public. These kinds of omission can lead an
person to be liable towards plaintiff. An negligence can also be towards inflicted psychiatric
injury. In this law adopts an restrictive approach fro awarding of damage done by an party upon
negligently inflicted psychiatric injury. In context to this an case law is as follows “ Behrens &
ors v Bertram Mills Circus ltd” it was held by the court that the real claim that has been made
by Mr Brown is for fright. It is considered that an elephant coming over a telephone booth is an
terrifying thing and shock received by the mail plaintiff asserts that he was not frighten but the
court considered the shock to be considerable. So, the plaintiff has been granted to get the claim
in this case. Then comes duty of care which means that when an duty has not been followed
properly as being defined under a contract. This is referred to as those circumstances and
relationship in which an law is recognised and has given rise to perform legal duty of care.
Relevant case law related to the basic element of negligence is “Donoghue v Stevenson” 1932
in this the Supreme Court held that it ia an developed principal that every person owes an duty of
care to his neighbour. As the neighbour test is used for establishing of duty of care can be broken
down into an requirement of foresight of harm and relationship of proximity. The test that has to
be applied is for safety and duty of care. This is bound to be question of law. In Blyth v
Birmingham Waterworks Co in this it was held by the court that generally speaking, it us an
standard of reasonable man. Also guidance of those consideration is there in which ordinarily
regulate all thing is related to human affairs. If the defendant has a particular skill, the standard is
that an person with that skill then he can be of any field he wants to be. In this case plaintiff has
been held liable for it (Chan, 2016).

Case scenario
In this scenario Marlene Johnson an client of Wilberforce & Wilberforce LLP, has put up an
advertisement in an local news paper. To sell her Ford business mini-van ten months old and is
in warranty also. She is selling for £3,200. She has given her address and details to discuss
further. Jacinta saw this advertisement and wrote to Marlene about purchasing of mini-van at the
price given in the add. As Marlene has received an number of replies for expressing of interest.
On 5 May she wrote to Jacinta that she now wants three thousand seven hundred euro for the
same mini- van and would like to keep her offer open for an week. After this Jacinta wrote an
reply to Marelene upon expressing her interest. On 6 th may she wrote back to Marlene. Due to
certain delay in reaching the post reached on 13th may. On 7th may Marelene met his friend and
discussed about the mini- van. She told that she is required the but she cannot afford it. Upon this
the van was sold to her for two thousand eight hundred euro. At a condition that she has to look
after children of Marelene (Chaplin, 2017).
In this case it can be held from the fact that already an acceptance was made by Justinian and
deal was fixed for the mini-van but her letter took time to reach and in mean while the van was
sell to her friend in low price. This shows that formation of contract has taken palace between
Marlene and her friend over an condition. So, in this case binding contract has been formed by
agreeing over a specific condition. Also second fact the contract was about to form but due to
lack of consideration it was not to consider as valid contract (Chiapello, 2017).
Second scenario
In this scenario computer direct Group- CDG is another client of Wilberforce and Wilberforce
LLP. This company is wholly owned by Mr Ashby and Mr. Benn was an employee in the
company. His job is to provide IT software and business consultancy services. Mr Benn has
arranged an meeting in a pub with Mr Ashby and two other representatives of Computer
Director. Mr Ashby after drinking a lot has promised to pay 5 million Euros if he could raise the
Computer Directors share by four euro. It was an common ground between parties that meeting
in pub has been an social informal setting. This lead towards madding of an offer and is also
legally bound to follow it. Later on the price rises and Mr Ashby refuses to pay to Mr Benn.
In this scenario it can be understood the offer has been made and also has been accepted by the
party. Offer being an important element to start a contract is present here. So, a contract has
been formed between the parties. In any party is not following it then he is bound to be pay claim
for breach of contract.
TASK 2
Identify the procedure that is required and document that is necessary for its registration
Public limited company is that kind of company whose formation is done for distribution of
share to public. Process of there registration is that it has to made directors who are going to

help an organization of public nature to perform activities. Then all documents collected has to
be submitted to House Of Companies for verification. The documents that is required is name
of the company, address of its registered head quarters, registration number. After all this only
trde can be carried by the company (Isidro and Pais, 2017).
Explain the duties of an agent that are implied into any contract in relation to the Law of
agency.
An agent and principal hold an fiduciary kind of relationship in which an person is given
authority to act on behalf of an authority. Duties regarding an agent is required to follow towards
principal is Duty to follow instruction that has been given by principal this means that an agent
cannot perform an action against instruction given by agent. Duty to work with proper skils nand
care this means that its is the duty of agent to perform an work with all skills and care. Duty of
not to earn personal interest this means that an agent cannot earn secret profit without informing
to his principal. Then another duty is not to give work to an sub agent.
CONCLUSION
From the above assignment it is clear that an accountancy laws are those type of laws which has
been made to analyse an account of an organization in future. The negligence has been discussed
with the help of case laws. Negligence means an act of omission that has caused breach of duty
of care. Further laws of contract has been explained with the help scenario given above. The
formation of public limited company with documents required is covered. Then in the end duties
performed by agent towards principal has been told.

REFRENCES
Books and journals
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Chan, J.L., 2016. Government accounting with Chinese characteristics and challenges. Public
Money & Management. 36(3). pp.201-208.
Chaplin, S., 2017. Accounting education and the prerequisite skills of accounting graduates: are
accounting firms’ moving the boundaries?. Australian Accounting Review. 27(1). pp.61-70.
Chiapello, E., 2017. Critical accounting research and neoliberalism. Critical Perspectives on
Accounting. 43. pp.47-64.
He, S., Wang, W. and Lin, D., 2017. Adaptive backstepping impact angle guidance law
accounting for autopilot lag. Journal of Aerospace Engineering. 30(3). p.04016094.
Höwer, D. and et. al., 2018. Cohesive zone modeling for mode I facesheet to core delamination
of sandwich panels accounting for fiber bridging. Composite Structures. 183. pp.568-581.
Ionescu, L., 2016. Mechanisms for Enhancing Ethical Behavior in the Accounting
Profession. Contemporary Readings in Law and Social Justice. 8(2). pp.263-269.
Isidro, H. and Pais, C., 2017. The role and current status of IFRS in the completion of national
accounting rules–Evidence from Portugal. Accounting in Europe. 14(1-2). pp.164-176.
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accounting rules–Evidence from Portugal. Accounting in Europe. 14(1-2). pp.164-176
MENG, K. Z. and ZHOU, D., 2016. H_∞ Guidance Law Accounting for Dynamics of Missile
Autopilot. Acta Armamentarii. (7). p.6.
Son, Y. and Lee, H.L., 2017. A Study on the Enhancing of the Global Competitiveness of the
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