Corporate and Business Law (Essay Sample)

Name Professor Course/Unit Date Submitted Corporate and Business Law 1 Introduction Business executives consult the legal counsel to get legal advice and guidelines applicable to daily operations of the organization. There are business issues that require the legal services. Such matters include compensation, legal issues on the shareholders, taxation system, employment and agreement that pertains sale, purchase, and finance. Other activities that businesses engage in are commercial contracts, mergers, and acquisition as well as leases. There are also rules and regulations set by the government for the interest of the nation and the citizens, and the company is supposed to comply. The rule of law also applies in the relation between the client and the business. . The law is also in providing solutions on claims that can occur when the sale made does not satisfy the consumer and also to tackle matters regarding the breach of contract.[Riches, Sarah. Business Law. Pearson Education UK, 2005. Print.] 2 Understanding the Corporate and the Business Law The term business law is interchangeably used to refer to the commercial law. Business law is part of the civil laws and constitutes the private law and the public law. Essentially, the business law deals with relations, rights, and the conduct of the parties engaged in commerce. On the other hand, the corporate law deals with the relations and general interactions among the partners, shareholders, employees, and the consumers of the product and services of the given company. The corporate law is one of the prominent the law of business associations. Therefore, this law has provisions that ensure that the shareholders in the company have limited liability in case the make low profits.. Finally, both the business law and the corporate law have been developed from the English law which relies much on the legal precedents and the statutes. 3 Law Case Study An example is used of Harriet who owns a business that offers professional cleaning services. Harriet purchased a vacuum cleaner from a company called Super Sucker limited; she intended to use the tool to attend the cleaning services in a contract she obtained to clean Simon's house that is on sale. However, upon opening the box containing the cleaner, its power supply was not present. She also ran into another misfortune when her car hit the tree and she had to incur the cost of repair. Similarly, she did not clean the house as stipulated in the contract. Consequently, the owner of the house sold the house at a lower price than the expected value something that he attributed to the failure to clean so as to attract the price that was satisfactory. Simon who was the owner of the house decided to sue Harriet for the loss made by selling at a lower price. As such Harriet had to consider the possibilities of legal implications and the legal consequences on the Super Sucker Ltd due the inconveniences that resulted from the lack of the power supply of the vacuum cleaner.According to the Byrne v Tienhoven (1880) case, a contract is non-binding if the decision to revoke it is communicated before the contract is accepted. Once the contract is accepted, it becomes valid. However, Harriet still has certain remedies to consider upon the Super Suckers Limited such as damages to the contract since one of the reason the house was not cleaned is due to lack of the particular machine. Remoteness and mitigation for the loss can be other remedies in case Harriet is found liable for the chance that Simon lost to make profit. The case is considered to be remote since the damage was not expected nor foreseen. The case that clearly illustrate the remoteness of the damage is that of Hadley v Baxendale [1854] .[The is case was ruled based on remote results] Application of Law The claims can be of wide range, for instance, for example, failure to honor the agreement and violation of the contract. The consequences, if found guilty as charged in the civil case can be compensation for the damage, loss or injury and it is determined during the trial. The reason for compensation is to make the situation even for both parties involved. The burden of proof, in this case, lies on both the house owner referred as Simon and Harriet. If Simons proofs that indeed Harriet's failure to execute contributed to the reduction in price, Harriet need to counter the proof by convincing the judge on the reasons why she failed to fulfill the promise. The judge must be convinced beyond doubt before passing the judgment. Therefore, the judge might have to rely on legal precedents or even the ratio decedendi to provide a fair verdict. A legal precedent allows the judge to consider certain previous cases to make the ruling as opposed to the ratio dicidendi where part of the judgment is reflected. The case entails unilateral contract between Harriet and Simon due to the presence of a single promise to clean the house. The second contract exists between the Super Sucker Limited and Harriet. According to Dahlia v Four Millbank Nominees [1978] case a contract whose implementation has been initiated cannot be terminated and thus Super Sucker Company has an obligation to ensure that the cleaning machine is working.["Dahlia V Four Millbank Nominees [1978] | Case Summary | Webstroke Law". Webstroke.co.uk. N.p., 2016. Web. 25 Aug. 2016.] There two kinds of losses encountered in the case study; that is, the lost chance to make profit. In this case Simon anticipated some profits by selling the house to Barry but instead, sold it to Rogers at a lower price. With regard to Chaplin v Hicks [1911] case law, the court argued that Chapline should be paid a certain amount for having missed the opportunity for a job interview as a result of the late invitation. Similarly, there is the probability that the court could rule out in favour of Simon and thus Harriet will have to pay him certain amount of money. A contract is valid if the promises therein have been fulfilled to the extent that the parties involved are contented. A contract is one of the civil laws that depend on the legal agreement between the parties. The parties involved are required to acknowledge the agreements, and they should be mature and of sound mind so that the contract can remain valid. Also, for the contract to be valid, several factors need to be considered. An offer is an expression that forms the subject the contract with certain terms and conditions. The person who makes an offer is an offeror while the one who accept the offer is the offeree. On the other hand, acceptance refers to an indication by the offeree that they are ready to respect the terms and conditions of the offer. The key players in the establishment of the contract are supposed to show concern or interest for the value of the offer and make the decision based on the intent.[Although the damages could not be assessed with certainity, this did not prevent the court from setting the amount to be paid. See Poole 389] The breach of contract happ...