Law for Business Managers: Contract Law, Business Mediums, and Safety

This report delves into crucial aspects of business law. Part 1 examines the distinction between an offer and an invitation to treat, supported by key case law such as Harvey v Facey, Pharmaceutical Society of Great Britain v Boots, and Carlill v Carbolic Smoke Ball Co. Part 2 advises Claire and Ric on two suitable business mediums, including lump sum and cost-plus contracts, highlighting the advantages and disadvantages of each. Finally, Part 3 addresses the implications of working conditions for Josephine's employees under current health and safety legislation. The report aims to provide a comprehensive understanding of contract law principles, business structures, and workplace safety regulations.

LAW FOR BUSINESS
MANAGERS

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART 1............................................................................................................................................3
Discuss, with reference to key cases, the difference between an offer and an invitation to treat3
PART 2............................................................................................................................................6
Advise Claire and Ric on two suitable business mediums highlighting the advantages and
disadvantages of each..................................................................................................................6
PART 3............................................................................................................................................8
Advise Josephine as to the implications of these working conditions for her employees under
the current health and safety legislation......................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Law is one of the most important thing that is required in society to maintain law and
order within it. These are those kinds of rules and regulation which is helpful in maintaining
balance and peace in society. Business is that kind of activities which is related to forming of
organization to perform activities relating to buying and selling of goods. Contract laws are those
type of laws that has been formed to make financial agreement performed between two
organizations. Scope of business and law is very wider because it cover various aspects related to
establishment of business within an organization. Nature of business and law is dynamic because
it prescribes guidelines regarding process to be followed by business establishment. Things to be
covered in this file is based on contract law that has been dealing with activities of business. This
file is divided into three parts out of which two part contains case laws and questions has to be
answered based on it and one part has question regarding contract law and its elements.
MAIN BODY
PART 1
Discuss, with reference to key cases, the difference between an offer and an
invitation to treat
Contract law is that kind of law which is being recognized as that kind of documents
under this rights and duties are being mentioned as per the agreement signed between them. A
contract is legally enforceable only when requirements are being fulfilled as per the law. Under
these basically exchange of goods, services, money or promise is involved. There is a term that is
being used in it that is breach of contract which means that law is willing to award injured party
over access to legal remedies like damages or cancellation of it. Certain elements are there that
makes contract legal and they are mutual assent, expressed by a valid offer and acceptance;
adequate consideration; capacity; and legality. An offer may be defined as a statement showing a
desire to contract on certain terms and to be legally bound by those terms. On the other hand,
an invitation to treat is only inviting the party to make an offer
Harvey v Facey the facts are being given as follows:
Harvey sent a Telegram to Facey which stated: -
"Will you sell us Bumper Hall Pen? Telegraph lowest cash price-answer paid;"

Facey replied by telegram:-
"Lowest price for Bumper Hall Pen £900."
Harvey then replied:-
"We agree to buy Bumper Hall Pen for the sum of nine hundred pounds asked by you. Please
send us your title deed in order that we may get early possession."
In this it was held by Privy Council that contract is being concluded between parties
which means no contract has been conducted. As Facey has not directly answered any question
in direct manner and the first question as to whether they would sell and the lowest price stated
was merely responding to a request for information not an offer. There was thus no evidence of
an intention that the telegram sent by Facey was to be an offer (Tsuruta, 2020)
Pharmaceutical Society of Great Britain v Boots
In this case boots has introduced over new self-services system within its shop in order
to make customers pick up goods from the window and put them into the basket and take them to
cash counter. Over this an action has been brought by the Pharmaceutical Society of Great
Britain in which the legality of the system was challenged that is regarding legality of the sales
made of pharmaceutical products that has to be sold in the presence of pharmacist. The court is
needed for determining of contract that come into existence.
In this case it was held by the court that goods on the shelf is an invitation to treat not an
offer and a customer takes goods till he does offer to purchase. Also shop has assisted the choice
of accepting the offer or not. That is why contract is concluded within till presence of
pharmacist.
Carlill v Carbolic Smoke Ball Co in this case a newspaper advert is being placed in which
the defendant stated that £100 reward will be paid by the Carbolic Smoke Ball Company. To
those persons coming in contract after influenza of using the ball for three times daily and
continuously for two weeks by following the printed directions with each ball. £1000 is to be
deposited with the balls and has been using in accordance over direction that caught flu. She is
sought over claiming which has been stating an reward of £10( Russell, 2020). The defendant
raised the following arguments to demonstrate the advertisement was a mere invitation to treat
rather than an offer:
Further in this case advert is sales puff and is lacking intend over offering. It is not possible
for making an offer to world. There was no notification over acceptance. Wordings is very vague
or wider which has been constituting an offer because of state with limited period over catching
the flu. In this no consideration or is being provided since the ‘offer’ did not specify over user of
ball and must have purchased them.
In this case court of appeal is being held that Mrs Carill is being entitled for rewards which
has been adverting through constituted and has been offering through various kinds of

performance under which condition is to be stated within the offer (Repiquet, 2020). The court
rejected all the arguments put forward by the defendants for the following reasons:
1. In this statement referring is that deposit lover £1,000 over demonstration with the intention
that has been miring over sales puff
2. Also it was held by court should be making an offer over world
3. Unilateral contracts is not been required over making an communication with intention that is
being accepted with improvisation of performance.
4. Whilst there may be some ambiguity in the wording this was capable of being resolved by
applying a reasonable time limit or confining it to only those who caught flu whilst still using the
balls.
5. The defendants would have value in people using the balls even if they had not been
purchased by them directly.
Abandoning of project is not being able to finish work under such condition contract is being
destroyed as the promise was not full filled and laws is required to be used.
PART 2
Case scenario: Claire and Ric wish to start up a business as Business Management
Consultants in Hitchin, Hertfordshire. They have approached their local bank, Hustle PLC, for a
loan to pay for some IT equipment and software licenses. The bank is willing to lend the money
provided that Claire and Ric draw up a proposal of what type of business medium they are
proposing to use.
Advise Claire and Ric on two suitable business mediums highlighting the
advantages and disadvantages of each.
Lump Sum or Fixed Price Contract Type
Lump sum or is also known as fixed price contract in which all construction related
activities are being handled or regulated with an fixed price of agreement. Also lump sum
contract has favored in situation that is providing of clear Scope and schedule with negotiation
and acceptance. This can be understood through example that if necessary to shift liability to an
builder and is required to prevent changes in order to determine work and such kind of contract
is required to be suited as per situation. Also in this present risk and contract holder is present as
a contract to some cost. It is important to hold some kind of cost that has been assigned to
contract and is going to create challenge for obtaining of credit back to an uncompleted job.
Advantages of Lump Sum Construction Contract for the Contractor are as follows:
 Margin of profit is huge and rationalization over contract is being designed with
designer.

 As per general reliability contract has to be enhanced through quality over performance
and production that makes completion of smoother and faster( Rammeloo, 2019).
 Lump sum of contract is being comparative over easier assessment with social conditions
which is binding over price and pre-construction that makes selection process very easy.
 Accounting over relativeness of lum sum contract is very low an intensive with
diminishing through expense for making stability in flow of cash.
Disadvantages of Lump Sum Construction Contract
 Lump sum contract always poses risk to contractor
 Quantifying changes is bigger challenge with demands
 Lump sum contracts pose greater risk to contractor.
 Quantifying changes is a big challenge. Such contracts demand documentation and record
to keep change in order at various stages. So, more paper work is required.
 Rejection of change order requested by the employer.
 Building of contract design and planning should be completed before execution over
activities.
Cost plus Contract are those type of contract under which actual cost and purchase cost is
being covered with other expenses that is being involved within a contract. When negotiation
is being done in specific manner or way expenses should be involved within it and under this
mostly cost types contract is being included. The amount that has been represented is of a
percentage over material and labor cost in which contractor also decides for its percentage to
create profit. Cost in this can be both direct and indirect. In this aspects of various cost is also
involved.
Advantages and Disadvantages of Using Cost-Plus Contracts
 The pros of using these types of contracts include the following:
 They eliminate the risk for the contractor.
 They allow the focus to shift from the overall cost to the on the quality of work being
done.
 They cover all the expenses related to the project, so there are no surprises.
 On the downside, these contracts may also do the following:
 They may leave the final cost up in the air since they can't be predetermined.
 They may lead to a longer timeline for the project
Time and Material Contracts are those type of contract that has been explaining various types
of contract use in case. It deals with capacity and quantity of time with materials that has been
determining of making a project risky (Peterson, 2018). Also owner contractor has been
compatible with tariff over per hour or per day, including possible additional cost applied over
construction. Also the owner can define over duration of a project under which a contractor
should perform reduction of risk to minimum possible. Then downfall of such contract seller is
able to increase and identified the expenses unknown that has to be bearded by buyer.

The advantages of using a T&M contract include:
 It provides the client with cost transparency and allows them to verify invoices and
timesheets to ensure the costs are correct.
 It allows for greater flexibility in the extent of the works required.
 It allows works to progress even when there is no definitive plan for how it will
be completed.
 It saves time in the initial estimating process which otherwise has to be done to a much
higher level of detail and accuracy.
 Although there is generally a limit on their profit, the contractor can proceed knowing
they are going to recover expenses with some profit, and so they can avoiding cost-
cutting.
The disadvantages of using a T&M contract include:
 It can prove more risky for the client to proceed without a clear understanding of the
final cost.
 It can increase the likelihood of disputes arising.
 Errors or inaccurate estimates can leave them with a low profit that may not be deemed
worthwhile.
 It can necessitate more involvement from the client to ensure the contractor is motivated
to progressing the works on time and within budget
Unit Pricing Contract and is also known as hourly rate contract and under this type of
contract various things are included that is reimbursement expenses, fixed price type contract. In
this kind of contract adjustment can be done during the process under which the owner has been
offering certain quantities with price in predetermined number and items. Bilateral Contract
under this those parties are involved which has been implementing over certain things. Whereas
in Unilateral contract one party that is the bidder, requires to perform form another party rather
than promise and an offeree cannot be sued (Mitchell, 2019).
As per the scenario that has been mentioned in the case the business medium that is going to
be used is going to be used by them is social media marketing that is going to enhance their
capability and growth. Also makes them reach to customers in easy manner.
PART 3
Case scenario
Josephine is the founder and Director of “Best Body Ltd”, a successful company which
produces locally sourced vegan food, drinks and snacks. There are currently 20 employees
working at the factory where the Best Body goods are produced and packaged. Several negative
comments have been made to Josephine, by employees, about the conditions of the factory.
These have included exposed wires, leaking machines which make the factory floor particularly
slippery, a lack of fire extinguishers in the building, a faulty fire exit door which does not open,
and a lack of any written Health and Safety Policy.

Advise Josephine as to the implications of these working conditions for her
employees under the current health and safety legislation.
As per the above scenario following regulations can provide certain explanation with
relevancy and they are as follows: (Mayer, 2017)
The Management of Health and Safety at Work Regulations 1999
Also known as the 'Management Regs', these came into effect in 1993. Main
employer duties under the Regulations include:
 Doing risk assessment is part of health and safety regulation and it has to be done for the
workforce of an organization with acting upon the risk that has been identified.
 A person has to be appointed fro angering of workplace health and safety regulation.
 Providing workers with information and training on occupational health and safety; and
 Operating a written health and safety policy.
The Workplace (Health, Safety and Welfare) Regulations 1992
 The main provisions of these Regulations require employers to provide:
 adequate lighting, heating, ventilation and workspace (and keep them in a clean
condition);
 staff facilities, including toilets, washing facilities and refreshment; and
 safe passageways, i.e. to prevent slipping and tripping hazards.
The Health and Safety (Display Screen Equipment) Regulations 1992
The main provisions here apply to display screen equipment (DSE) 'users', defined as workers
who 'habitually' use a computer as a significant part of their normal work. This includes people
who are regular users of DSE equipment, or rely on it as part of their job (Harel, Schwartz and
Kaufmann, 2020). This covers you if you use DSE for an hour or more continuously, and/or you
are making daily use of DSE.
Employers are required to:
 make a risk assessment of workstation use by DSE users, and reduce the risks identified;
 ensure DSE users take 'adequate breaks';
 provide regular eyesight tests;
 provide health and safety information;
 provide adjustable furniture (e.g. desk, chair, etc.); and
 demonstrate that they have adequate procedures designed to reduce risks associated with
DSE work, such as repetitive strain injury (RSI)
The Personal Protective Equipment at Work Regulations 1992
The main provisions require employers to:

 Ensure that suitable personal protective equipment (PPE) is provided free of charge
"wherever there are risks to health and safety that cannot be adequately controlled in
other ways(Culinovic-Herc and Filipovic, 2017).
 The PPE must be 'suitable' for the risk in question, and include protective face masks and
goggles, safety helmets, gloves, air filters, ear defenders, overalls and protective
footwear; and
 provide information, training and instruction on the use of this equipment
The Manual Handling Operations Regulations 1992
The main provisions of these Regulations require employers to:
 Avoid (so far as is reasonably practicable) the need for employees to undertake any
manual handling activities involving risk of injury;
 Make assessments of manual handling risks, and try to reduce the risk of injury. The
assessment should consider the task, the load and the individual's personal characteristics
(physical strength, etc.); and
 Provide workers with information on the weight of each load
The Provision and Use of Work Equipment Regulations 1998
The main provisions require employers to:
 Safety is being ensured with sustainability through equipment which is worked for such
purpose of things provided
 Maintaining of equipment is very much necessary over conditions
 Sustainability is very important for work equipped which helps in ensuring of safety over
the purpose that is being provided.
 Ensuring of safety with Ensuring of safety and sustainability of equipment’s used in work
for the purpose of such thing it is provided.
 Maintenance of equipment is necessary irrespective of its conditions
 sustainability of work equipment is being formed for such purpose that is provided.
 Information, instruction and training has to be provided over the equipment that is being
used at workplace.
 Protecting employees from dangerous parts and accidents that can occur with them.
All the regulation that has been mentioned above is being formed for employees and their health,
safety. It can be seen no equipment’s were there to deal with problem. Also the condition is not
so good. So, punishment is to be given as per Employees safety act 2010.

CONCLUSION
In this file it can be observed that a business and laws are interlinked with each other.
Also contract law is also been discussed and its elements has been explained in relation to the
question that has been asked. Further an case scenario is given and questions has been answered
with explanation over various types of contract. In the health and safety measure has been
explained regarding case law relayed to employee’s safety.

REFRENCES
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Repiquet, M.D., 2020. The Alternative Investment Fund Managers Directive: Ten Years
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Tsuruta, D., 2020. Japan's elderly small business managers: Performance and
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