...enforceable. But formal deeds are the exception because of the formality of the document itself. Second, consideration can be present (executed) or future (executor), but past consideration is not acceptable. If any services were made before the promise, it will not be consider as a consideration. Third, consideration must come from the promise, but need not move to the promisor. It can be move to a third party who is nominated by the promisor. Fourth, consideration needs not to be adequate or commercially realistic. Therefore, if the consideration of a contract is only nominal and doesn’t have the true value of the subject matter, it will still be enforced by the law. Fifth, consideration must not be so vague as to be illusory and lastly consideration must be sufficient in the eye of law. The purpose of writing this essay is to show that consideration needs only to be sufficient, not adequate and to consider whether there is sufficient consideration in situations where there is a pre-existing legal or...
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...Business can be a difficult field to work in. Companies are there to make money. Investors of companies, partners, and owners, all want the company to earn more profits and continue to increase the value of the company. At the same time, every individual in business would like to increase their net worth as well. Throughout this course we have been learning about different aspects of business law, particularly how it pertains to starting a business. As I have read articles in the Wall Street Journal, I have come to realize how much a business (whether it be a start-up or not) will go at lengths to gain a leg on competition. I noticed three ways in particular we may see this: patent infringement, bribes, and kickbacks. By these three we can see that there is an ethical issue in business, because businesses are willing to do what is not ethically right to gain an advantage. To begin with let us dive into patents. As explained in the text of book for class, patents can provide powerful protection on new products, processes and inventions (Bagley and Dauchy, 542). It is not so much the benefits that can come from having a patent but the weaknesses that can occur. Some weaknesses listed in the book include: “High standards of patentability; often expensive and time-consuming to pursue; must disclose invention to public” (Bagley and Dauchy, 572). It is that last weakness that can be an issue with dealing with patents. In the articles that I have had the opportunity to study; some...
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...Question Alan, Dave and Joe have been very good friends since their university days. In January 2010, they formed a private limited company, ADJ to run a real estate agency at Suntec Street, with Alan and Dave each holding 20% of the shares. Joe owns the remaining 60% of the shares and is the only one director of ADJ. ADJ needed to buy a motor car for the company’s needs, as all 3 of them frequently bring their clients around looking for properties to buy, sell or rent. During the sale of a second hand motor car by Motor Dealers to ADJ, Motor Dealers represented to Joe that the car had travelled 12,000 km, but is of show room condition. After ADJ bought the car and sent it for servicing, Joe discovered that it had travelled more like 120,000 km. ADJ tried to return the car and get a refund of the purchase price from Motor Dealers. Motor Dealers refused saying that it believed its statements were true. ADJ recently entered into a contract with XY Partnership for the extension and renovation of their office premises to be completed by 26 March 2010. Their contract contained the following clause 12: “XY Partnership agrees to pay ADJ the sum of $3,000 per day by way of liquidated damages, in respect of unfinished work for each day after 26 March 2010.” XY Partnership was not only 6 days late in finishing the building work, but the finished product proved unsatisfactory. ADJ had to spend a large sum of money to remedy the...
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...Business Law Final Essay Question #2 Unfortunately, it sounds as if Carol was knowingly swindled. Whereas it would seem that Carol would be able to get John’s statements, “was a creampuff” and “this car runs like it was driven by a little, old lady”, she would not be able to. The comments that John made would be seen as puffery most likely. Puffery is unfortunately legal in the United States. A seller is allowed to make statements asserting their opinion of value that the buyer cannot rely on as the basis for the bargain. This is almost a “buyer beware” situation where John’s statements cannot be proven and are speculative in nature. “Creampuff” and “driven by a little, old lady” could also be open to interpretation. However, the statement that John made to Carol, “Definitely would pass inspection” is most definitely an express warranty. “Express warranties are specific promises made by the seller and include oral representations, written representations, descriptions of the goods or services, representations in samples and models, and proof of prior quality of the goods or services.” John made a promise to Carol and represented the car as being “definitely” able to pass inspection. The kid was also acting as an agent for Shady’s when he promised to fix Carol vehicle. Carol may run into the problem of not having a witness hear John’s statements to her and having his statements being considered hearsay. John’s statements about the car being able pass inspection could...
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...Paper: Legal Forms Of Business with Supporting Scenarios Chanel Moore-Bass Law/531 Business Law March 19, 2012 Carmina Perez-Fowler, UOPX Faculty Online Week Two: Individual Paper: Legal Forms Of Business with Supporting Scenarios There are seven major forms of business: sole proprietorship (sole trader), partnership, limited liability partnership (LLP), and limited liability company (LLC), subsidiary or subchapter corporation (S), franchise, and corporate/company (C- traditional). The various forms of businesses are established and recognized by state laws. To determine the type of business form to use, it is important to know the differences, advantages, and disadvantages. Sole trader/proprietor is the clearest and simplest form of business to establish. It is just one owner, debt/tax liabilities fall on the owner, the income (profits/losses) reports on personal tax return. Examples of sole proprietorship are franchise, self employment, and independent contractor. Advantages are total autonomy of the business, no legal procedure to setup, no set hours/wages, and no shareholders. Disadvantages are if owner dies the business dissolves, full responsibility of tax/debt liabilities, difficulty obtaining long-term financing, and personal liability if sued. General partnership is more than one owner, involving verbal or oral agreement but not filing paperwork to create a specific entity, such as a corporation or LLC, either partner can bind the business to a contract, sharing...
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...To: Business Owner From: Justin Lugar Date: November 4, 2015 Subject: Business Form Recommendation It seem as though the you are looking for a couple distinct business characteristics for improving areas of concerns you have for your, so far, promising business venture. Since you are now operating in a sole proprietorship, which allows business and personal finances to be one in the same, one worry is not having enough liability coverage to protect your personal assets/finances in unforeseeable lawsuits. Another concern is the being able to raise enough investments in capital assets to be capable of expanding your business. Right now you are not being double taxed, meaning at the corporate level as well as the personal level. Since there is a sole proprietorship going on taxes are only taken out at the personal level, saving you, as the owner, a substantial amount of profit. It is likely that this is one benefit you would like to keep in order to maximize your earnings. Based on the type of business you are seeking to operate I would recommend changing from the sole proprietorship to a Limited Liability Company (LLC) and I will explain why. To sum up what Http://www.referenceforbusiness.com/small/inc-mail/limited-liability-company.com states, the LLC offers the members (owners) protection from business liabilities that might be incurred. This means that they are not personally liable for paying any of the company’s debts beyond what they have invested in the company....
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...Company in the U.S Follow the crowd or choice a new way? This essay discuss the two types of company, Sole Proprietorship and Limited Liability Company (LLC). Nowadays additional amount of people are starting their own business, the most common type of business are Sole Proprietorship however LLC are amounting. Therefore we states that LLCs are more suitable for startups because of it’s new thinking and security. Sole Proprietorship is the simplest form and the most ubiquitous form of companies, Over 70 percent of U.S. companies are owned and operated by sole proprietors (Beesley 2013). It is an autonomous and the business only has one owner with no difference between the company and the proprietor. Normally everything in the company are in the owners name for instance bank accounts, contracts signs and the checks customers are writing. The owner are legitimate to all profits and are accountable for all of the business’s debts, losses and liabilities. (Entrepreneur.com 2005) Every start-ups cost money nevertheless this form is the most inexpensive one, obviously the business still need purchase all the equipment required for the business except there are no fee to get started. To start a business the only legal obligation in most states are to attain a business license, register your name and get permits demanded, the license can be obtained at the city Clerk’s office and the permits depends on which kind of business you are starting, for example if you going to open a restaurant...
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...Myers-Nelson Law and Ethics in the Business Environment 1. Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. The type of relationship or lack thereof between a child and their biological parent has no bearing on whether an employee is eligible for FMLA. An employee can ask to use FMLA to care for a family member (whether they had nothing to do with them), for their own physical/mental health care and after the birth or adoption of a child. The Family and Medical Leave Act (FMLA) provides an entitlement of up to 12 weeks of job-protected, unpaid leave during any 12-month period to eligible, covered employees and employers must grant eligible employee this right for one or more of the following reasons, the birth and care of a newborn child, placement with the employee of a son or daughter for adoption or foster care, care for a spouse, son, daughter or parent with a serious health condition, medical leave when an employee is unable to work due to a serious health condition, qualifying exigencies arising out of the fact that the employee’s spouse, son, daughter or parent is on active duty or call to active duty status as a member of the National Guard or Reserves in support of a contingency operation. A spouse means a husband or wife as defined or recognized under the employee’s state law. A parent...
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...Purchasing Officer's Personal Liability PROC 5810 Webster University Online 22 July 2013 Abstract If you research the internet, there are massive amounts of information on how the law handles purchasing agent actions when acting upon directions from their principal, but what happens when the agent acts alone, is the agent held responsible? What about signature authority or when the agent is careless and takes on actions that he/or she has no right to perform. Can a purchasing officer be held personally responsible for actions outside the knowledge of his principle? Purchasing officers (agent) are employees who buy supplies and materials for the companies they work for. They dicker over the smallest costs and make decisions for the company on materials and supplies that would benefit the company. Agents are also in charge of managing contracts and ensuring that they are completed in time. Purchase agents have to be educated with enough knowledge to make the right decisions on handling the purchasing, inventory levels, suppliers and the economics which will enable them to make the important decisions to help a company succeed. Contracts involve negotiating for bids, being technical in your knowledge and being able to access what products are needed is part of what makes the agent the expert and their field. Purchasing agents are expected to be able to meet with vendors and to be able to iron out the problems, so as not to cause harm to the company. The control...
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...of a firm's debt and equity financing? A. working capital management B. cash management C. cost analysis D. capital budgeting E. capital structure 3. Which one of the following is defined as a firm's short-term assets and its short-term liabilities? A. working capital B. debt C. investment capital D. net capital E. capital structure 4. A business owned by a solitary individual who has unlimited liability for its debt is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. 5. A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. 6. A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a: A. generally partner. B. sole proprietor. C. limited partner. D. corporate shareholder. E. zero partner. 7. A business created as a distinct legal entity and treated as a legal "person" is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. unlimited liability company. 8. Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers? A. articles of incorporation ...
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...Forms of Business Lurene Flynn Law/531 October 24, 2011 Christine J. Benway, J.D. Instructor Forms of Business Determining the type of business to open is very important in order to know the business form that will be used. Knowing the business structure is important because it determines how the business income will be taxed. This paper will discuss the different forms of business, give examples of each form, and justify why the corresponding business form is preferred. Sole proprietorship according to Cheeseman (2010) is the form of business in which the owner is actually the business: the business is not a separate legal entity (Cheeseman, 2010, p. 530). “An individual starts the business in his or her own name and does not require any special legal organization beyond the normal requirements such as licenses or permits” (Georgia Trend, 2006/2007, p. 34). Beauticians are great examples of a sole proprietorship. Beauty shops are usually owned by one person, while having other people working in them.This type of business form is preferred by beauticians or a plumber because it is easy, no formalities, and most importantly no federal or state government approval is required. According to Cheeseman (2010) the owner has the right to make all management decisions concerning the business, including those involving hiring and firing employees (Cheeseman, 2010, p. 530). A sole proprietor owns all off the business therefore he or she receives...
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...addressing a plan for the operations of a sole proprietorship business in a service or manufacturing industry, I will discuss the plan of starting a Business Consulting Agency to provide assistance to businesses. Organization & Communication The relevant issues associated with opening a consulting business are building cliental; establishing lasting business relationships with business owners and providing quality service when needed. The primary services that are offered include market feasibility studies, business plans, operational reviews, re-engineering, strategic planning, seminars and workshops. We strive to provide our clients with business services that help them become more successful and to become a leader in consulting to small businesses. In order to keep our overhead costs down, Business Consulting Agency will be located in the home of Monica Lathan which is equipped with a computer, fax machine and photocopier. Business Consulting Agency is a sole proprietorship, owned by Monica Lathan. As the business grows the firm may develop strategic alliances with other companies. Business Consulting Agency will initially only have one employee, Monica Lathan; additional staff support will be obtained on a subcontract basis and secretarial service will be contracted out as required. Business Consulting Agency is in the process of obtaining a bank loan for $35,000 to finance the start up of the business. During the first year of operation, our key objective is to develop...
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...value, which help users foretell the outcome of events in the past, present, and future. Another reason relevant information is effective is that it is presented in a timely manner early enough for the user to consider when making a decision. It also helps users clarified and adjusted expectations in the past because relevance information has feedback value. Reliability is another quality that makes its accounting information effective. Reliable information is verifiable, it represents what actually happened, and it’s unbiased. Comparability and consistency are two secondary qualities that make accounting information useful. Comparability gives users the ability to compare information between companies in the same industry to make their business decisions. Consistency is another important quality for accounting information to be...
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...5–7 pages) about the forms of business organizations listed below. Your report should have a subheading for each business form with a brief description of the business form and a brief discussion of the key characteristics, advantages, and disadvantages of that form of organization. Differentiate among the following forms of business by explaining how at least six of the seven key characteristics listed in the introduction to this task apply to each of the following organizational forms: 1. Sole Proprietorship 2. General Partnership 3. Limited Partnership 4. C-Corporation 5. S-Corporation 6. Limited Liability Company SAMPLE FORMAT Sole Proprietorship: Write a brief description of the form of business ownership, advantages and disadvantages. The key characteristics of the form of ownership should be addressed by discussing six of the seven bullet points below. You will want to have the heading as the form of business ownership and then use the bulleted list below for the key characteristics. • Liability • Income Taxes • Longevity or Continuity of the Organization • Control • Profit Retention • Location • Convenience or Burden General Partnership: Write a brief description of the form of business ownership, advantages and disadvantages. The key characteristics of the form of ownership should be addressed by discussing six of the seven bullet points below. You will want to have the heading as the form of business ownership and then use the bulleted...
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...LIT1 Task 1 B.S Accounting A. Business forms are categorized into six different organizations. These business forms make up proprietorships, partnerships, corporations, and Limited liability companies. All forms of business have characteristics descriptive of each business form. Identifying the characteristics of each business while accounting for the advantages and disadvantages will help to clarify each form of business. 1. a. Sole proprietorship: A sole proprietorship is a company formed with the ideas and direction of one individual. This type of company is formed on the basis on one individual. A company formed on individual ownership is formed with the understanding of not being incorporated. The success and failure of the company depends on one person. This type of proprietorship has the advantage of just being in one person’s hands. All the decisions are made by one person, all the profits goes to one person. A disadvantage of this type of proprietorship is that the individual has nobody to turn to when he needs help; the responsibility is in his hands. Business entity characteristics fall into seven categories which we will cover below. Liability – There is no real line between business or personal liability and assets, they are the same in sole proprietorship. The outcome of success or failure is determined by the sole proprietor. Government does protect life insurance pay outs in case the business owner dies. Income Taxes – Sole proprietorships have an advantage...
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