Legal Analysis: Contract Formation and Breach in Business Law

This assignment analyzes the legal aspects of forming a legally binding contract under English law, focusing on the essential components such as offer, acceptance, consideration, and mutual assent. It examines the consequences of breaching a contract, particularly if a party fails to fulfill their obligations. The analysis includes potential remedies for breach, such as compensatory damages and specific performance. The assignment uses the scenario of a contract between a legal advisor and a celebrity to illustrate these principles, covering the responsibilities of each party and the implications of non-compliance with the agreement. The analysis refers to relevant case law to support the arguments and highlights the importance of intention and legal capacity in contract formation.

[Type the company name]
Corp /Buss Law
Legal Aspect of Responsible Leadership
Hp50
[Pick the date]
Contents
1. As Simons legal advisor advise him of the components necessary to create a legally binding contract
with Beyoncé under English Law................................................................................................................1
2. Of the consequences if contrary to the agreement, Beyoncé refuses to sing at the finale falsely
claiming the twins are ill.............................................................................................................................3
References:..................................................................................................................................................5

1. As Simons legal advisor advise him of the components necessary to create a legally
binding contract with Beyoncé under English Law
The parties of the contract entered into the contract because of the enforceability of the contract,
without the enforceability of the contract; there is no scope of remedy or claim. The
enforceability of the contract means the terms and condition of the contracts are legally binding
on the parties and if any breach has done by any party to the contract another party can claim
remedy of the breach from the wrongdoer. Enforceability of the contract is the reasonable
assurance that the promise made between the parties to the contract is enforceable before the law.
Sometimes English law delivers extraordinary guidelines concerning the establishment of the
contract for the specific motive of course of action. For example, as per the rule of English
contract for the formation of a contract of sale and other disposition of interest of the property, it
is important that the terms and condition of the contract must be written in the agreement
between the parties and both parties must sign on that written document (Cartwright, 2016).
In the case of Goel & Anor v Grant & Anor [2017], EWHC 268 the court held that parties to
the contract must aware that electronic mails can create a legally binding contract if the language
used in the email clearly shows that parties to the contract have an intention to create a legally
binding contract.
Therefore the English contract law for the formation of contract and binding of that contract
these components are required:
The first component of the contract is an offer of the promise. Offer is a communication
regarding the desire of any promise which is made by one party to another party in such intention
that other party will accept the promise. In the contract, it is important that promise must be
made between two or more person. A person who initiated the contract and who made the offer
of the promise is known as offeror and the party for whim the offer was made by the offeror is
known as offeree (Taylor & Taylor, 2019).
The second component of the contract under English law is Acceptance. Once an offer is made
by the offeror for the offeree it is the decision of the offeree that whether he/she wants to accept

the offer or not. If the offeree accepts or willing to accept a promise or contract with the same
terms and condition of the promise, in that case, offeree made a communication with the offeror
and accept the offer which is known as the acceptance of the offer.
The third component of the contract is the Consideration of the promise which is the price of the
promise. As a consideration of promise, the price of promise can be in a form of money, property
or any other service. It depends on the terms and condition of the promise that in which mode the
consideration will be paid by the party to the contract. Without the consideration of promise,
there is no contract which can be enforceable by the English law.
The next component of the contract is Mutual Assent which is the same understanding of the
parties on the terms and conditions of the parties. This ensures that parties to the contract have a
meeting of mind on the contract. If any party to the contract reserves any vital information
related to the contract from the other party of the contract, in that case, the parties to the contract
has no mutual assent which means there is no meeting of mind of the parties on the terms of the
contract.
And the very important component is that the parties to the contract are competent and have the
legal capacity to enter into the contract. For the formation of the contract, it is important that the
parties to the contract are above and sound mind.
For the legally binding contract, it is important that the purpose of the contract must be lawful
and also the subject matter of the contract is legal (Tepper, 2014).
In the case of Barbudev v Eurocom Cable Management Bulgaria Eood (2012) it was stated
that legally binding contract required that the parties to the contract must have the intention to
create a legal relation or legal obligation upon each other and also ensures that the agreement
made by the parties must consist of the offer of the offeror and the acceptance of the offeree on
same terms and condition of the agreement. Because the legally binding agreement means that
both the parties agree to perform their part of the contract and also the terms and condition of the
agreement is also binding on the part and if any party breach the terms of the contract victim
party can ask the claim to the wrongdoer in the court (Sullivan & Hilliard, 2016).

The Intention of the parties for the legal obligation of contract can determine by the statement
and conduct of the parties to the contract. In the United Kingdom, for the enforceability of the a
contract it is important that the both parties have intention to create legal relationship
(Bensoussan & Bensoussan, 2016).
In the classic English case Smith v Hughes, the court held that for the test of the real intention of
the parties to the contract is that what the reasonable person can believe through the conduct of
the parties (Smits, 2017).
Therefore the Simon is on the position that he has to make an offer to Beyoncé with his terms
and conditions and after the communication of offer for the formation of a contract between
Simon and Beyoncé, it is important that Beyoncé must accept the offer of Simon on same terms
and condition. Because the mutual consent on the terms and condition of the agreement is also a
component of the legally binding of contract. And as evidence of the contract, they must be made
a written agreement and must sign on that agreement. So that if any party breach the contract the
other party can claim the remedy in the court. For the creation of a legally binding contract, it is
important that Simon and Beyoncé must follow the all above mention components (Stone & &
Devenney, 2014).
2. Of the consequences, if contrary to the agreement, Beyoncé refuses to sing at the
finale falsely claiming the twins are ill.
When an agreement is enforceable by law it becomes a legally enforceable contract. The terms of
the contract decide the parties’ performance obligations. Parties to the contract are legally
binding to comply with the performance obligation if any party fails to comply with these
obligations without any reasonable excuse it is a breach of contract. If any party to the contract
goes contrary to the terms of the enforceable contract it is a breach of contract and breach of
contract may have an assortment of consequences. Breach of contract by one party to the
contract enables the aggrieved party to seek or claim an order from the court for performance of
the contract by another party so that aggrieved party can restore damages, the aggrieved party

can terminate the contract or the aggrieved party has some combination of these types of
consequences (Stone & & Devenney, 2015).
The Contract made by the parties to the contract is not just an agreement; enforceable
agreements bind the parties to the contract and create a legal obligation on the parties to the
contract. If any party breaks the terms of the contract and defeat the obligations created by the
contract under a legally binding and enforceable agreement it means the person who breaks the
contract can be sued by the aggrieved party for the claim of the damages which arise due to the
consequences of a breach of contract. The Contract can be breached by the parties to the contract
due to variation of reasons and the consequence of a breach of contract by any party can be very
grave. When any party to the contract breaches any term or condition of the contract, the
aggrieved party of a breached contract should bargain for the remedies and the consequences of
the breach of a legally binding and enforceable contract. The aggrieved party can sue the person
who breaches the contract for specific performance if party breach the contract by refusing the
performance of the contract and if aggrieved party suffer any other loss due to the refusal of the
performance by another party, in that case, can claim compensation for the recovery of loss.
When the terms and condition of the contract are breached by any party, the consequences of that
breach can be very strict and harsh and often the monetary damages are involved in the
consequences of a breach of contract.
In case any breach is done by one party, another party can seek remedy but it is important for the
contract that the terms of the contract must have absolute and qualified obligations. If the terms
of the contract have strict and absolute contractual obligations, in that case, if a party to the
contract not comply with the terms of the contract it will be a breach of the contract regardless of
accountability. If the terms of the contract have contractual obligations which are qualified it
means it imposes a duty to the parties to take reasonable care (Food and Agriculture
Organization of the United Nations 2018).
The possible consequences of the breach of contract are Restitution in which one party pays the
amount of the contract to the other party or if goods are in the possession of the party who breach
the contract transfer it back to the aggrieved party, Punitive Damages in which the party who
breach the contract pays the aggrieved party for the loss occurred due to the breach of contract,

Compensatory damages are the remedy in which the party who breaches the contract pay the
sum which is equal to the stated sum at the time of the formation of the contract to the aggrieved
party and Liquidated Damages are the damages in which the amount of the breach is decided by
the parties to the contract at the time of formation of contract and if any party breach term and
condition of contract pay the agreed sum to another party. The aggrieved person cannot claim all
or two remedies at a time (Chircop, 2013).
Therefore, in the case of Simon and Beyoncé, if Simon paid any fee for the judging panel to
Beyoncé, he can seek the compensative damage, if at the time of the formation of contract both
parties agree to any sum for the breach of contract then Simon can claim Liquidated Damages,
and if due to the refusal of the performance by the Beyoncé, any loss occurred to the Simon, he
can seek Punitive Damages.
Consequently it is a duty of both parties that they must comply with the agreement or terms of
contract, if any party fails to comply with the terms it will be a breach of contract and in the
consequence of the breach of contract the injured party is entitled to seek remedy or claim
damages from the party who breach the contract (Poole, 2014).
Refusal by Beyoncé for the performance of the contract is the breach of contract and Simon can
claim and seek damages from the court or also he can seek an order from the Court for the
performance of the contract. As Beyoncé and Simon were legally binding to the contract as the
contact made by both parties were enforceable.
References:
Barbudev v Eurocom Cable Management Bulgaria Eood & ors [2012] EWCA Civ 548, 27 April
2012
Bensoussan, A. & Bensoussan, J. (2016) Comparative handbook: robotic technologies law,
Éditions Larcier, 2016

Cartwright, J. (2016) Contract Law: An Introduction to the English Law of Contract for the Civil
Chircop, J. (2013) Restitutionary Damages for Breach of Contract: A Bad Precedent? Kings
College London, February 9, 2013 Coventry University January 17 th 2019
Food and Agriculture Organization of the United Nations, Legal Guide on Contract Farming,
Food & Agriculture Org., 2018, Coventry University January 18th 2019
Goel & Anor v Grant & Anor [2017] EWHC 268
Lawyer, Bloomsbury Publishing, 2016, Coventry University January 18th 2019
Poole, J. (2014) Casebook on Contract Law (13th ed.), Oxford University Press, 2014, Coventry
University January 18th 2019
Smits, J. (2017) Contract Law: A Comparative Introduction (2nd ed.), Edward Elgar Publishing,
2017, Coventry University January 18th 2019
Smith v Hughes (1871) LR 6 QB 597
Sullivan, J. & Hilliard, J. (2016) the Law of Contract (7th ed.), Oxford University Press, 2016,
Coventry University January 18th 2019
Stone, R. & Devenney, J. (2014) Text, Cases and Materials on Contract Law (3rd ed.),
Routledge, 2014, Coventry University January 18th 2019
Stone, R. & Devenney, J. (2015) the Modern Law of Contract (11th ed.), Routledge, 2015,
Coventry University January 18th 2019
Taylor, R. and Taylor, D. (2019) Contract Law Directions (7th ed.), Oxford University Press,
2019, Coventry University January 18th 2019
Tepper, P. (2014), the Law of Contracts and the Uniform Commercial Code (3rd ed.), Cengage
Learning, 2014, Coventry University January 18th 2019