Report on Legal Principles: Promises, Torts, and Corporate Law

This report provides a comprehensive overview of key legal concepts relevant to business managers. It begins by examining the binding nature of promises, analyzing various scenarios where promises were made and determining their legal enforceability based on case law, including consideration and the distinction between legally binding and voidable contracts. The report then delves into the doctrine of tort, specifically focusing on a case involving Samantha's injury due to negligence, applying the IRAC (Issue, Rule, Application, Conclusion) method to assess Extortionate PLC's liability. The analysis considers the elements of negligence, including duty of care, breach, causation, and damages. Finally, the report explores the concept of a corporation as a legal entity or artificial person, discussing its implications in business law and its role in establishing legal responsibilities. The report concludes by summarizing the key findings and emphasizing the importance of understanding these legal principles for effective business management.

Law for Business
Managers

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Discuss with reference to case law whether the promises are binding or not.............................1
PART 2............................................................................................................................................3
Under the doctrine of tort consider whether Extortionate PLC is liable for Samantha’s injury. 3
PART 3............................................................................................................................................5
‘A corporation may be defined as a legal entity or artificial person’..........................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Law is the important topic which discusses about the regulations which must be followed.
It is necessary because it simply helps to protect and provide the safety and even provides the
rights to every individuals. The most important thing about law is that, it helps to take the
decisions by having the knowledge about rights and remedies. In the same manner, law is crucial
for any of the business manager as they are the one who has to work within the premisses of a
office where some of the important decisions are required to taken. The role of manager is to
understand about the law from initial stage to ending stage.
In context of the file, it has been categorised into three different part. While talking about
the first part different question will be answered where main work is to determine that whether
contracts are legal binding in nature or not. In second part, case study will be solved with the
help of law of tort. In the final part, there will be detail discussion about the topic corporation.
While discussing about corporation, the main focus will be on artificial person and legal entity.
PART 1
Discuss with reference to case law whether the promises are binding or not
Firstly, it is necessary to understand that promise is a part of agreement where the most
important thing which is necessary to be focused is that consideration should be there. Whenever
any of the promise is done, involvement of two or more then two party is necessary i.e., promisor
and promisee. Promise can be easily done in the form of written as well as oral form. But to
make any of promise/agreement as valid, it must be legal binding. If in any of the situation,
agreement is not done as per the guidelines of law then it will fall under the category of voidable
contract (Wilkinson-Ryan, 2012). Also, whenever any of the promise is made, consideration
should be there in it. Below, there is the discussion about three different situation where Sergio
had made promise to different parties. Now, it will be important to deterimine about the promise
that whether those promises are legal binding or not nature.
(a) To give his son Alexander £5,000 if he abandoned his career as a chef and qualified as a
solicitor
In this particular case, Sergio had made promise with his son where he had focused that
if his son will end up his career in the field of chef and try to develop himself as a solicitor then
he will give him £5,000. It is one of the legal binding form of promises as consideration has been
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done by father to his son. Here, just offer has been made and it will be valid only in the situation
if Alexander Quit his career and start to develop him as a solicitor.
Talking about the similar case, Balfour v Balfour [1919], is one of the landmark case
which discusses about the offer which was made between husband and wife. It was decided in
the case that once they start living apart, it will be the responsibility of Mr. Balfour to give £30
on a monthly basis (Del Vecchio, 2013).
b) To pay his secretary Liam £500 for having been willing to give up his lunch hour when
necessary during the previous three months;
Here, in this situation Sergio had made the promise with his secretary Liam as she was
the one who performed for the company whenever their was the required within the company
from last three months. It is the promise which has been made on the basis of past performance.
It is also a legally binding agreement.
Grange Vs. Abellio London Ltd., is the famous case which simply explains that
employer is never allow to force their employees to work during the lunch hour. If this will be
done then in that particular situation contract or any of the agreement will not be made legally
binding. But in the above case, Sergio was giving £500 on the basis of work where urgent
required was there within the company.
c) To pay Natasha, who has a contract with a local newsagent to deliver newspaper in the
area, £10 if she delivers it by 8am every day for one month and if she manages to put the
newspaper through the letterbox without tearing.
This was the promise made by Sergio to Natasha where offer has been made that £10 will
be given in the situation where she will deliver the newspaper before 8am early in the morning
on regular basis. Here, offer has been made by Sergio and if Natasha accepts it then it will
become legal binding in nature. In short, it is one of the legal binding short of promise which has
been made by Sergio to Natasha.
Hyde v Wrench (1840), it is one of the landmark case which explains that acceptance
should be made on the same terms and condition which has been made in offer else it will be
counted as counter offer (Luntz, and et. al., 2017). In the same manner if in above case Natasha
changes the terms and condition of offer then in that condition it will be counted as a counter
offer. But, if Natasha accepts the terms and condition then it will be counted as legal contract.
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PART 2
Under the doctrine of tort consider whether Extortionate PLC is liable for Samantha’s injury.
Case Scenario: The case is all about injury which Samantha has to suffer, just because of
the negligence of Extortionate Plc. Here, Samantha went for collecting the knowledge about the
process of loan to start her new business. At the time of taking leave from the bank she tripped
and fell down. At the time of saving herself, her wrist twisted and due which she has to suffer
from the injury. Just after suffering from the injury, it was found that Samantha’s friend told her
that it is only her who suffered from this types of injury as number of other people had already
suffered from the same problem.
For the purpose of understanding the matter in detail, it will be better to work according
to IRAC formate will be give idea that what were the main issues which has been raised with the
office . The case is all about the injury and problem which one has to suffer just because of the
default of other persons. To understand the case in detail, all of the necessary information has
been mentioned below:
Issue: Samantha found that the injury from which she is suffering is not because of her
own fault. As there are number of other cases where people has to suffer just because of same
problem. Now, it is required to check or find that whether bank is liable or not for the injury
which Samantha is facing (Cornford, 2016).
Rule: Looking at the situation of the case, it can be easily determine that the law of tort is
only the option which is applicable over here. Law of Tort basically explains that it is a civil
wrong or any of wrongful act which has been performed by one of the party due to which
another has to suffer. Here, mainly people has to suffer from the injury just because of the
problem which has been created by other people. In addition, law of tort clearly explains that any
of this types of injury mainly occurs just because of the negligence which one person does. If in
any of the situation negligence is not done then problem might not occur at any period of time.
In simple words, Law of Tort is discuss about the breach of duty and responsibilities who
each and every does have while performing any of the work. Whenever this types of situation
occurs, it becomes important for the defaulter to compensate the one who has to suffer just
because of the others mistake (Adriano, 2015). To fulfil the terms and condition of law of tort,
there are mainly four different area which are mainly considered and they are Duty, Breach of
Duty, Causation and followed with Injury. It is said that if claim is needed to be made by the
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innocent party, all of the mentioned four condition must be fulfilled. Also, Law of Tort is of
three different types which has been explained below in detail:
 Intentional tort: This is a types of tort in which all of the default which has been
performed by the defaulter party was done only after having the knowledge about it.
Whenever this type of default is performed, it can be easily understood that intention of
party were not clear and which forces the people to pay all of the damages from which
innocent party has to suffer (Law of Tort, 2019).
 Negligence tort: This is also one of the type of tort in where role of plaintiff plays the
crucial role because proper justification is required to be given by plaintiff. Here, it is
assumed that people are known that what are the work which is needed to be performed
and what should not be done. But, still people perform the work which causes the
problem for other then in that particular situation people have to suffer from injury or any
other problem. Specific code of conduct is being given to each and every people that how
they are required to perform any of the work which directly helps to reduce the chances
of errors and risk in significant manner. Whenever any of the default is performed as per
the guidelines of Tort of Negligence, the interference of appointed jury place the crucial
role. The last and the most important thing which is needed to focused by the plaintiff is
about different elements because if all of the four points will be proved then in that
particular situation only decision can be declared.
 Strict liability: It is explained as a legal doctrine which holds a responsibilities for the
party for the actions or as wells as products in which plaintiff is not required to prove any
of the points regarding default or mistakes. For example: any of the person like to have
any of the wild animals with them but if they create unnecessary problem for other
person then in that particular situation liability will directly arise upon the person who
have brought the dangerous animal in the society (Miller, 2015).
Application: From the above rules and regulations, it can be simply understood that
negligence was done by Extortionate Plc where there very clear that they had not kept the carpet
in systematic manner. This types of mistake falls under the category of tort of negligence. If
management of bank could have managed the work related to placing the carpet in a systematic
manner then it would have been easy for customers to visit in bank easily. By looking at all of
the situation of the case, Samantha’s has the responsibility to work in a systematic manner where
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she is required to prove all of the four points to ensure the jury that it was fault from the side of
Extortionate Plc.
Points to be Provide from the side of Samantha
Firstly, the duty of bank was to place the carpet in a systematic manner. Secondly, they
didn't performed their part of work. Thirdly, carelessness was shown even after the number of
people got injured and the last one is injury which Samantha has got as wrist and nails got
injured.
Conclusion: After having the detail knowledge about the case, it can be easily said that
the liability is of Extortionate Plc for the injury which Samantha has to suffer (Murray, 2015). In
order to not fall in similar form of situation, it will be important for Extortionate Plc to place the
carpet in a systematic manner.
PART 3
‘A corporation may be defined as a legal entity or artificial person’.
Corporation can be defined as a business organisation which is separate from its owner. It
is necessary to understand that corporation plays the must important role of any of the nation as
it simply helps to improve the level of economic condition. This are the business organisation
who has to perform their business activities at a greater platform. The most important thing
which is needed to be focuses is that they must follow the rules and regulations which applies
upon them. In order to commence any of the corporation, it is necessary for the members of
board to prepare to work as per the guidelines of Company Law.
The above given statement “Corporation is explained as legal entity or artificial
person”, it means that any of the organisation is one of the separate legal entity and it is also a
artificial person whose decision are required to be taken by the boards of member. It is separate
from its investor/owners (Crawford and et. al., 2015). To understand it in detail, it can be said
that it does have the power to sue on its own name but in case of other organisation like sole
proprietorship and partnership, they doesn't have the right to sue on its own name. In simple
words, it can sue and be sued on its own name which makes it legal entity.
Corporations are one of those organisation which is completely separate from its investor
which allows investor to invest their capital in it because liability will be limited up to the
amount of investment. In context of artificial person, it can be said that it have some of the rights
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and responsibilities which is required to be completed whenever there is the requirement. Firstly,
they have to enter into the contact on its own name, corporation have the right to sue and be
sued, loan can be taken easily. In addition, tax is also required to be paid. This are some of the
reason which can easily help to justify that corporation is a legal person where certain rights are
being handed to other person. The main element of corporation is the liability for the investor is
limited which simply tries to explain that any of the person who is the part of a company has the
option to take decision and earn profit as a from of divided but in any of the situation they will
not be the part of paying any of the debt which may occurs upon the business organisation. But,
the main thing which is necessary to be considered is that any of the business organisation can be
incorporate only in the situation where they commence themselves under the guidelines of
Companies Act 2006 (Sullivan, 2015). This is the only process which can give the right to take
any of the legal decisions.
In simple words, corporation is legal entity as well as artificial person too because they
doesn't have any of the involvement with its investor. If any of the problem occurs and
organisation themselves have to suffer the problem. The main thing which is needed to
understand is that law is required to followed in any of the situation. To understand the point in
detail, one of the land case is Salomon v Salomon & Co Ltd. It is the case which can help to
justify that corporate is legal entity as well as artificial person (Tari Schreider, CISM and CISO,
2017). The main issue was about the default in payment which was done by Salomon in the
name of Co. As per the arguments and facts which were presented by the Salomon, the judges
simply explained that Salomon is not liable to pay any of the debt as he is just the member of a
company and member and co. is always separate from each other. Also, company is a legal entity
with artificial person which can act as legal laws and regulations.
Below, some of the points have been mentioned which can easily prove that
corporation is a artificial person where it is separate from its investors with the help of its
features. Those points are:
 Perpetual succession: It is the main this which is carried by any of the business
organisation. Here, investors comes and goes but it doesn't effect on its legality. The only
way which can create issue in the perpetual succession is illegal activity as that can lead
organisation to wind up their business activity.
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 Right to enter in contract: Any of the corporation has the right to enter into the contract
of its own name. They can even enter into the contract with their employees, parties for
the purpose of performing the work in a systematic manner.
 Option to sue and be sued: In this types of organisation, company has the option to sue
the parties if they breaches the terms and condition even they can be sued as well if they
doesn't work as per the outlines mentioned in the contract paper (Gilbert, 2016).
 Own the property: The main benefit of corporation is that they has the right to purpose
of any of the property/assets on its own name where similar process is required to be
followed which is being considered by any of the individuals.
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CONCLUSION
From the above file, it can be concluded that legal law is crucial which helps to work in a
systematic manner and even it is only the way which can allow the company to perform better in
any of the situation and perform according to the guidelines. It is necessary that to make any of
the contact, it must be legally binding else it will be counted as null or voidable form of contract.
Law of Tort says that if any of the person fails to perform their part of work then in that
particular situation it will be important that defaulter will have to compensate the plaintiff if they
are able to prove the default. Finally, Corporation can be said as the business organisation which
is legal binding in nature and separate from its member.
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REFERENCES
Books & Journals
Adriano, E.A.Q., 2015. The natural person, legal entity or juridical person and juridical
personality. Penn St. JL & Int'l Aff. 4. p.363.
Cornford, T., 2016. Towards a public law of tort. Routledge.
Crawford, G. C. and et. al., 2015. Power law distributions in entrepreneurship: Implications for
theory and research. Journal of Business Venturing. 30(5). pp.696-713.
Del Vecchio, L., 2013. Enforceability of Business Contracts of Minors Eighteen Years and
Over. St. John's Law Review. 16(1). p.24.
Gilbert, J., 2016. Ethics for managers: philosophical foundations and business realities.
Routledge.
Luntz, H., and et. al., 2017. Torts: cases and commentary. LexisNexis Butterworths.
Miller, R. L., 2015. Business Law Today, Standard: Text & Summarized Cases. Nelson
Education.
Murray, J., 2015. The Social Enterprise Law Market. Md. L. Rev.. 75. p.541.
Sullivan, K., 2015. Anti-money laundering in a nutshell: Awareness and compliance for
financial personnel and business managers. Apress.
Tari Schreider, S. S. C. P., CISM, C. and CISO, I., 2017. The Manager’s Guide to Cybersecurity
Law: Essentials for Today's Business. Rothstein Publishing.
Wilkinson-Ryan, T., 2012. Legal promise and psychological contract. Wake Forest L. Rev. 47.
p.843.
Online
Law of Tort. 2019 [Online]. Available Through: <https://tort.laws.com/tort-law>
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