Company- What are the essential elements of contract law and their functions?
- Elaborate the alternative dispute resolution and their methods.
Introduction to Business Law and Contract Law
Business law is explained as the law and regulations which have the responsibility to deal with every single activity which is being conducted within commercial transactions. It is important for business managers, owners and even professional bodies, as it will help improve individual decision-making ability. In the context of the file, various topics will be discussed which will be related to solving the case study, which is all about contract law, breach of contract, and void ab initio. Also, suitable advice will be given to all of the parties so that they can easily take any sort of action.
MAIN BODY
Case Study Overview: Ciara, Tom, and Los Property Repairs Ltd
The case is completed related to Ciara, Tom and Los Property Repairs Ltd. Ciara is the first party to sell her property at the amount of £400,000 and for that she had posted the advertisement. Secondly, Tom contacted Ciara to purchase the property, but he found that the rooftop has a leakage and wants Ciara to repair it. They both signed the new agreement on the price of £380,000. £200000 was paid in the beginning, and it was decided that the remaining money will be paid off in the next two months.
Now, Ciara had done the contract with Los Property Repairs Ltd to repair the wall at the price of £5000. But, after a certain period of time, Los Property informed us that they will require additional equipment to fix the wall, as it is much weaker than expected. For new machines, the company was asking for an additional £5000 on which Ciara agreed to. At the time of doing payment, Ciara refused to pay any amount, and even Tom denied buying property and sought a refund, which he gave to Ciara.
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Contract Law
It is the law which explains about the legal relationship between two or more than two parties whenever they enter into the contract. It is done just for the purpose of completing any of the specific transactions within the given time period. Whenever any of the persons enter into the contract, then it is necessary for them to make sure that they are not going to breach it in any of the conditions, and if they do so, then legal actions can be taken. Contract law is mainly required in the situation where a company and consumers use the contract law at the time of buying and selling goods, whenever they license products or any of the specific activities. Also, contract law is required for maintaining the employer and employee relations. The main benefit of contract law is that it allows any of the transactions to happen in a smoother manner. In addition, it makes sure that the party is clear about the terms and conditions for which they are going to do any of the transactions. Any of the contracts can be formed in two ways: either a written contract, a verbal contract or both. To make any of the contracts legal, there are certain elements which need to be followed, and that has been explained below:
- Offer: Whenever any of the party enters into the contract, then it is necessary that the first party must give the offer to the second party. Then, it is the choice of the second party whether they want to go for further proceedings or not.
- Acceptance: To make any of the contracts complete, it is necessary that the party must agree on the terms and conditions which have been offered by the first party. The acceptance should be done on the grounds that the second party has not changed any of the terms and conditions, and if both parties have different terms and conditions, then the contract will not be counted as a valid contract.
- Consideration: Once both of the parties accept the terms and conditions, then it is necessary that something should be given in return. For example, if there is a contract between two parties related to employment law, then one party will have to give money, and another one is required to work for them to accomplish the goals of an organisation.
- Mutual intention to enter into an agreement: Whenever any of the parties wants to enter into the contract, then it is necessary for the terms and conditions of the agreement to be bound to contract law. Also, there must be the intention of both parties to enter into the contract because it is not allowed that one party agrees on the terms and conditions and another does not want to enter into it. In short, a contract should be valid and legal as per the guidelines given under contract law.
These are some of the rules and regulations which need to be considered by any of the parties while trying to enter into the contract so that the agreed terms can be completed within the specific time period.
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Scan me Scan meBreach of Contract
It is the condition where any one of the party breaches the terms and conditions of the agreement. In this condition, the innocent party gets the opportunity to file the case against the defaulter party. It comes under the civil wrong where the court has to interfere to sort out the problem. This can occur in the situation where work is not completed on time or one fails to do it or even doesn't conduct it as per the requirement of the agreement. Whenever any of these situations occur, then the court has the option to declare its decision that the defaulter must compensate for the time which the innocent party has to suffer. Also, it is necessary to understand that a situation of breach will not occur if the terms and conditions of the contract have been altered and after that one party denies to complete it in a specific time period.
Advises That Can Be Given in The Above Case
Advise to Los Property Repairs and Ciara
The case is very clear between both the parties that they had formed the contract where one party will perform their duty and another will have to give the payment. By looking at the case, it can be easily determined that the default is of Ciara because she was the one who agreed to pay an additional £5000 for completing the work in the time period of one month. The agreement which they had made in this case was a written as well as a verbal contract. It is completed in one of the cases where a condition of breach of contract occurs, due to which it is necessary that both parties try to see how they can resolve the problem. The best possible solution which is available in front of them to overcome the problem is Mediation method of resolving the problem.
Mediation for Resolving Disputes
It is one of the processes which will be effective for the party to solve the problem in a short period of time. The main motive in this process is to give fair advice to the party so that they can sort out the problem which they are facing in the current period of time. In this process, the mediator will be appointed, who will listen to the points of the disputed party and try to advise on how a fair solution can be taken out. In this case, the major work of the mediator will be to give advice to Ciara that she had agreed on the terms to bring on the new machine for completing the work on time, which means it is her obligation to pay the complete amount to Los Property Repairs.
Advise to Tom and Ciara
The case is not that simple in this situation because Ciara has reduced the amount of money to sell the house to Tom just because it was leaking from the rooftop. But he denied accepting the house once it was repaired and the problems were sorted out, which means it becomes Tom's obligation to pay the damages to Ciara, or he must purchase that house by paying the additional amount of money. Looking at the situation, the case can be sorted out with the help of the Arbitration process.
Arbitration as an Alternative Solution
It is the process which is used for resolving the civil wrong cases without involving the proceedings of court. Here, the panel will decide what the main issues between the parties are, and according to that, the problem will be solved. The most probable decision which can be declared by the panel is that Tom must purchase the property, or else it is necessary that damages must be paid off to Ciara.
Also read: Public Law and Human Rights
CONCLUSION
From the above file, it can be concluded that business law is one of the most important laws that help an individual learn different knowledge through which an individual can easily decide what is right and what is wrong. Contract law helps to complete any deal in a smoother manner within a specific time period. No one has the right to breach the terms and conditions of contract law, or else it will fall under the category of breach of contract, where the defaulter will have to compensate the innocent party. Get more details about the assignment writing service from our expert.
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REFERENCES
- Acemoglu, D. and Jackson, M. O., 2017. Social norms and the enforcement of laws. Journal of the European Economic Association. 15(2). pp. 245-295.
- Burns, L. D., Mullet, K. K. and Bryant, N. O., 2016. The business of fashion: Designing, manufacturing, and marketing. Bloomsbury Publishing USA.
- Cuniberti, G., 2016. The Laws of Asian International Business Transactions. Pac. Rim L. & Pol'y J. 25. p. 35.
- Lowrey, K. M., 2015. State laws addressing youth sports-related traumatic brain injury and the future of concussion law and policy. J. Bus. & Tech. L., 10, p. 61.
- Png, I. P., 2017. Law and innovation: evidence from state trade secrets laws. Review of Economics and statistics. 99(1). pp.167-179.n, 2017)
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