6AG502 Business Law Assignment University of Derby

Question 1

Strawbridge Manor and Alfresco Catering have made a agreement for carry out business activities. Strawbridge farm is involve in various farm activities from so many years. Further it deal in various type of fruits and vegetables. In year 1970 the apple industry of UK  is distrusted due to European market. But Strawbridge did not revive its business of apple. Firm trade with  Alfresco and has sale various apples to the firm. Company is dealing with AC (Alfresco catering)  from so many years without any kind of problem. But in December AC refused to pay for the apples by saying that they are not of good quality. AC claimed to the  Strawbridge by state that deliver products are not up to the quality. But in contract it is clear that AC can not claim to  Strawbridge related with quality of products. Further contract also consist that  Strawbridge accept no liability for any defect related with the products supplied by. Oral and written are the two basic form of contract which means that a contract can be in either written or can be oral. Written contract is use by business organisations as this support firm in achieve effective execution of business and at the same time provide basis for undertake claim (DAILY,  KIEFF and WILMARTH JR,  2014). This help in reduce the chances of conflicts between the  two parties. Overall written contract provide a legal proof and support in highlight the terms and conditions so with help of this the party who is victim can take a legal action. In the given case, exclusion clauses can be use by the parties. In the given case  Strawbridge is not liable for the quality of products and services offer by it. This type of clause is applicable in the following situation:

• It has been mention or given in the agreement.
• Parties are not liable to a particular law.

Exclusion clause: These clauses remain written in a document and clearly stated that an party involve in the contract is not responsible for certain happenings. Following are the situation in which this type of law is applicable:

• These are consists in the contract sign by all parties involve in the contract.
• These clauses are not contrary to the law

UCTA 1977: This act restrict the restricting and legality to some particular contract. Mainly this limit the applicability of disclaimers of liability.

Major elements that highlight the significance of legal contracts for business organisation is given below under the following points:

• Fix resource costs:Use of contract in business organisation support execution of all commercial activities in ethical and fair manner. One of the major use of contract is for the firms that provide economic resources to other parties for fix cost.  
• Limit obligations:One of the main feature of contract is that it indicate the obligations of both parties and support in perform roles as per the terms and condition of contract  (Spalding,  2011). All this support organisation in achieve smoothness in its trade practices. Further this limit the responsibilities of parties involve in contract.  
• Non compete agreements:Enforce non compete agreements is one of the main reason that most of the  enterprises use contracts. These type of contract support in develop  strategic relation between two enterprises and support in carry out production process in an effective manner and offer better services to its consumers (Folsom and et. al.,  2012) .  Further this type of agreements could be use by firms to lower the activities of workers who have specific information about the specific products and services offer by firm.
• Expert insight: Before involve in any legal contract it is very essential for an individual to take legal suggestion. Small enterprises are more susceptible as compare to large organisations by carry out various business functions. Attorneys help the parties involve in the contract by provide clear data about the terms and benefits of contract.  

Remedies for breach of contract: Mainly breach of contract is a legal cause of action. Breach occurs when one involve in the contract fails to fulfil his/her obligation as mentioned in the contract. In case of breach of contract various remedies are use such as award are given to the individual for the damage. Further, damages are divided into two categories for which an individual can claim for a reward.

• Compensatory damages: This is a kind of damage that cover total loss due to non breaching party or that arise due to breach of contract. Funds are given to the individual to cover the loss arise due to breach of contract (Macaulay, 2018). In present case, compensation is not include in the agreement if products are not up to the quality. These type of damages are further divided into following two parts:

General damages: This aspect cover the damages that arise directly after breach of contract. These are the basic damages or loss are awarded for cover the breach of contract.

Special damages: As the name implies these are the special damages that arise in case when special incidents take place. These arise due to breach of contract but does not arise after breach of contract.

• Punitive damages: These type of damages rarely cover when arise due to breach of contract. Mainly these take place in cases of tort to cover the accident that take place and affect on both individual and firm. Under this wrongdoer is punish for the unacceptable behaviour and other individuals also deter to not carry the same. These type of damages are awarded due to breach of contract(Folsom and et. al.,  2013). After that individual is punish for the misconduct done by him which results in personal harm.
• Contract for the sales of good act: Under this type damages are determine by compare the actual price of contract with the market price. Amount of difference is given to the party.

Unfair contract act 1977: As per this act, limitation and exclusion clause are the one that are not implied through the court. As per the given case,  Strawbridge is liable to follow the clauses that come under the B2B operations.

Reasonableness: As contract between  Strawbridge and AC is a commercial contract so this help in identify application of exclusion or limitation clause. Given case study consists the following:

• AC accept the clause or not to remain in the agreement.
• Strong bargaining power of  Strawbridge.

As per the  given case study if clause found in the agreement is unlawful then in that case claimant can demand for the punitive damages. In the given scenario these type of damages are rarely awarded in case of breach of contract. These type of damages provide an opportunity to the claimant to punish other party involve in the contract in a court. Basically the award given for the breach of contract is totally depend on the approach use by claimant. Different approaches are there that could be use by the claimant for get proper remedy for the loss that arise due to breach of contract. Various individuals said that in approach of punitive damages more monetary rewards are not appropriate. So there is a requirement to develop different tools for do effective judgement and to offer proper remedy. In given case scenario, Strawbridge can claim for the compensation so firm can develop and use adequate tools for carry out business activities.

Both parties can sign a written contract contain the decision that might be take by them for solve the conflicts. All this will reduce the chances of rise conflicts between them in future

Question 2

As the given case study,  Strawbridge given clear warning or notice to all its employees and workers to not use the conveyer belt during grading the apple. Silas an apple grader who was using the conveyer belt just to meet the Christmas order, put his hand in the belt and the belt get started and this results in wrenching two fingers of Silas. In this case scenario, law of negligence  apply as every employees was given clear instructions about bot to use  conveyer belt but still Silas so the same. Due to this the principles of law of negligence is totally apply in this situation. Further, Silas can take actions against the firm.

Duty of care: This is a legal obligation which is imposed on a person require to a standard of reasonable care during perform any act that can results in harm to other. This is known as the first action that require to be consider when carry out any legal activity.

Causation: This is known as the action or decision of causing something or this also known as the relationship that indicate and examine the effect and cause.

Duty: Duty of care take place in the cases in which law recognise that there is a positive relationship between two parties. Due to this relation, an individual has the option to adopt a specific approach or behave in a particular way toward the other individual (Foss and Knudsen,  2013). As per the case scenario of Silas, firm is responsible to provide proper care and medical services to the individual. Further proper actions and policies require to be formulate to avoid same kind of situations in the future. With this proper health and safety of workers can be maintained at workplace.

Breach of duty: Negligence is the element that is relate with the breach of duty. An individual can breach the contract for undertake the responsibility to complete another activity. As in the case of Silas, for fulfil the Christmas order, Silas undertake the process of production and get injure.

Mainly law of negligence highlight the failure to provide or implement a reasonable care. This does not cover the actions which is carry put by individual intentionally but cover the current situation of firm in which a firm or an individual fail to perform his specific duty to the individual whom he has a responsibility toward (Ye and et. al.,  2011). Detection of negligent cation in specific tort results in either lost of financial or personal injury. Major aspects cover in the law of negligence are as follows:

• If complainant is the wrongdoer:As per the given case scenario, Silas was wrong as clear instructions was given to all employees to do not try or unblock the machine. So overall an unlawful act of plaintiff itself results to a valid justifiable defence in misconduct. This maxim is implement not only in case of misconduct but also apply in contract, trusts and property. When maxim is apply to the whole bar on recovery then this is referred as illegal defence. But this can be apply on if illegal can be carry  out in an adequate manner (Nichols,  2012). Illegal defence was implement in negligence context which was lower identical in England. This rule highlight that no duty of care would be owner to he complainant who has commit an offence and get injure during this. During determine a duty that will be inconsistent with criminal law statue in which the complainant is infringed. This defence is related with the legal rules which states that wrongdoer must not disable the rules to emerge any benefit from his/her legal actions. Individuals who approach the court needs to emerge.
• Inevitable actions can be use of defendant as a defence:Impossible to avoid is the meaning of inevitable. An action which cannot be ignored is known as inevitable action and this indicate the exercise of proper caution and care. From the given case of study Strawbridge this can be said that there will be no inevitable accident can take place at enterprise unless the firm could prove that various incidents are there on which firm had no control and no regulation but whose effect cannot been ignored by exercise of skills and care. In early times, defence of inevitable accidents was used to concern the actions trespassing. At that time trespass was actionable unless the defendant can reflect that accident was really inevitable (Vagts, and et. al.,  2015). Utilisation of inevitable accident was analysed certainty as complex.  With given case study inevitable accident like a defence. Various cases are there in which under which respondent escape the obligation in the event in which he hold the position to indicate that an accident happen due to sensible care of their part but at the same time states that various cases are there in which the weight to demonstrate is remain on that individual.

Related with the given case of Silas demonstration done by third parties is off base or unlawful. This kind of safeguard occur when no activities can take place on a corrupt basis. Unlawful demonstration of offended in parties can results in substantial guard  due to carelessness in misconduct. With help of various laws and regulations right decision as per the situation take place and the factors consist in it. As per the accident take place in organisation this is very important to identify the main reason of carelessness. Every individual who is responsible for the incident require to be punish as per the given directions and principles.

Major defences that can be use by Strawbridge in case related with Silas are as follows:

• Contributory negligence:This principles is related with determine the liability of an individuals and is mainly applicable when claimants suffered through the harm which is a result of their negligence. As in the case of Silas, he got injured due to his own negligence.
• Volenti non fit injuria ie:This law state that if an individual  willing himself in a situation where harm may result then he is not able to bring a claim against the another party.

Conclusion

From the given project report, it can be summarised that business law support enterprise in execute all its operations in ethical manner and at the same provide provide control over various functions. Contract support parties in solve their issues and conflicts in an adequate manner as this highlight the terms and condition of various activities.

References

• DAILY, J.E., KIEFF, F.S. and WILMARTH JR, A.E., 2014. Introduction. In Perspectives on Financing Innovation (pp. 13-16). Routledge.
• Folsom, R.H. and et. al.,  2012. International business transactions: a problem-oriented coursebook. ThomsonReuters.
• Folsom, R.H. and et. al.,  2013. Principles of international business transactions. West Academic.
• Foss, N.J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2). Routledge.
• Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and Society Canon (pp. 155-167). Routledge.
• Mann, R.A. and Roberts, B.S., 2011. Smith and Roberson’s business law. Cengage Learning.
• Nichols, P.M., 2012. The business case for complying with bribery laws. American Business Law Journal. 49(2). pp.325-368.
• Spalding, A.B., 2011. The Irony of International Business Law: US Progressivism and China's New Laissez-Faire. UClA l. reV.. 59.  p.354.

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