...Business law and contracts Introduction There are quite a number of business entity that are lead and regulated by various laws.Theselawsensures that each business operates within its jurisdictions. In running a business, one has to deal with various types of contracts with other businesses or different individuals. Whatever types of businesses that one dealin, understanding of business contracts is an essential part of running a business and making sound agreements that can be defended in a court of law in the case that one party defaults on their original profit. Contracts governance by common law or the Uniform Commercial Code (UCC). A contract can be defined as an enforceable legal agreement undertaken by two or more parties, corporate or individuals that necessarily creates an obligation between the parties to do or not to undertake certain things (Brullote, n.d). In many countries, business and individual contracts are majorly guaranteed by two laws: the Uniform Commercial Code abbreviated as UCC and the common laws each having its distinct jurisdiction. To transact business properly, it is required that one understands both contracts (Brullote, n.d). Common laws contracts are those contracts that are controlled by a set of rules that are established by various states. These are traditionally basedlaws that are set by thelegislature and are always being changed to suit the various changes n business environments. Common law contracts are meant to guide various...
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...importance of key elements required for the formation of a valid contract. Business Agreement Business Agreement is the mutual understanding or assent of two or more than two legally competent parties. It is done or agreed upon on the relative duties and rights regarding current or future performance. An agreement typicallydocumentsthe give-and-take of anegotiated settlementand a contract specifies the minimum acceptablestandardofperformance. Types of Business Agreement There are various types of business agreements depending upon the nature, type and operations / activities of the business. These types can be categorized into following categories based on the above stated criteria. * General Business Agreements * Business Employment Agreements * Leases * Sales Agreements The General Business agreements contain Franchise Agreement, agreement with different agencies for advertising, insurance agreements, agreement on not taking legal actions, Settlement Agreement, Stock Purchase Agreement, business partnership agreement, privatization agreement etc. The different types of Business Employment Agreement are Employment Agreement, Consultancy agreement, Sales Representative Agreement, Employment Separation Agreement, Reciprocal Nondisclosure Agreement etc. Leases are of different kinds like Real Property Lease, Equipment Lease etc, and same is the case with Sales agreements, it also have different types of contracts and agreements like Bill of Sale, Agreement for the Sale of...
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...Scuppernongs grape company and Don’s store began slowly at first, and then developed into a steady exchange of business. Don, without mentioning anything to the Scuppernongs grape company owner, had his minor son sign a contract that included a guaranteed price schedule. This is when the relationship was officially damaged. Scuppernongs grape company now has a contract offer to be exclusive with a company in Connecticut. When the Scuppernongs grape company owner contacted Don, he informed him of the contract and that he intended to hold the Scuppernongs grape company to the terms detailed. Due in part to the contract being invalid as it was signed by a minor who also was not an authorized legal representative of the company, the Scuppernongs grape company should accept the contract offer from Connecticut. Minor’s capacity to contract The Scuppernongs grape company owner’s son was working part-time as a delivery driver and was minor at the time Don had him sign a contract as a representative of his father’s company. Don did this without the knowledge of the minor’s father. Minors are not capable of entering into contracts unless there are specific and preapproved prerequisites met, and in the case of the aforementioned minor there are no preapproved reasons as to why he would be able to enter into contract himself. The law considers that such people need to be protected from exploitation, and will generally refuse to enforce contracts against them on the...
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...carries 10 marks 1. What are the essentials for a Valid Contract? Describe them in details. Essential of a Valid Contract All contracts are agreement but all agreements need not be contracts. The agreements that create legal obligation only are contracts. This validity of an enforced able agreement depends upon whether the agreement satisfies the essential requirements laid down in the acts. Section 10 lays down that ‘all the agreement are contracts if they are made by the free consent of the parties competent to contract for a lawful object and are not hereby expressly declared to the void’. The following are the essentials: a) Agreement: An agreement which is preliminary to every contract is the outcome of offer and acceptance. An offer to do or not to do a particular act is made by one party and is accepted by the other to whom the offer is made the we say that there is meeting of the mind of the parties. Such a position is know as consensus ad idem. b) Free consent: The parties should agree upon the same thing in the same sense and their consent should be free from all sorts of pressure. In other words it should not be caused by coercion, undue influence, misrepresentation, fraud or mistake. c) Contractual capacity: The parties entering into an agreement must have legal competence. In other word they must have attained the age of majority should be of sound mind and should be disqualified under the law of the land. A contract entered into between the parties having no legal capacity...
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...wise to spend the money to hire an experienced consultant, or professional third party to look into the potential partner’s past. In this report two companies (CadMex and Gentura) are attempting a business venture. Before they can move forward a few issues need to be addressed in a memo. Initially an explanation why Gentura might be in breach of contract with CadMex will be given. Next, a discussion of what remedies are available will to be conducted. From there, a recommendation will be made on how the Gentura situation will be handled. An analysis for selecting the proper forum and venue for dispute resolution will be included. Finally, an analysis of the situation from an ethical standpoint will be done in order to support ones recommendation. I. Breach of Contract Breach of a contract between two parties can bring about severe legal issues. Substantial performance occurs when there has been a minor breach of contract (Bereznicki-Korol, Clarke & Yates, 2005). In other words, when a party to a contract renders performance that deviates only slightly from complete performance; a minor breach occurs. In the case with the two companies stated above, an explanation as to why Gentura would be in breach of its contract must be given. Given the fact that Candore is in the midst of a viral epidemic, the company is forced to...
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...development of a contract administration plan affect a company’s business? The development of a contract administration plan affects a company’s business by giving its employees a basic guideline and creates a standard in specific areas. Contracts can also benefit businesses in assisting them with the assurance that they are following specific legal responsibilities in the case of regulatory compliance. A contract is usually very specific and prescribes individuals with a tool to conduct business to ensure a minimal amount of conflict with other partners within the business or with outside sources that are involved with the business. Contracts can also give specific guidelines when it comes to ADR. In the event of a conflict, ADR alternatives can be agreed upon by both parties and detailed in the contract. Contracts keep both parties best interests in mind when dealing with profit, conflict, and any other uncompromising situations that may arise. The contract also often spells out exactly who will be responsible for fees if litigation or an ADR are needed. A contract administration plan is a road map to ensure that all involving parties receive all that they bargained for from outside contractors. Developing a quality contract administration plan is essential for a good contract administration. Contracts may be complex or simple; in either case, a contract administration plan should focus on major contract output and best practice methodologies for analyzing contract performance...
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...to have duties under the law of contract and the main legal requirements for the formation of a contract with practical examples and applied theory to support the arguments and then we are going to discuss about how business-people come to have duties for negligence under the law of tort and the main legal requirements for liability in negligence with practical examples and applied theory to support the arguments and then we are going to discuss briefly about the E-commerce and how business-people have duties under the law of e-commerce with exactly one legal requirement of the E-commerce Regulations 2002 and then finally we will discuss briefly about the business ethics and then thoroughly about if the business-people operate mainly out of self-interest or not and then we are going to discuss briefly why we are disagree with statement of "The Wealth of Nations" (1776) by Adam Smith. “Contract and how do business-people come to have duties under the law of contract” When two or more parties agreed upon specific terms and conditions in written and willingly want to perform their duties and responsibilities is called agreement and when the agreement is enforceable under the law is called contract. Every contract should need to have the offer and acceptance from two or more parties and with something in return (consideration) and with the purpose to make legal relations. The main legal requirements for the formation of a contract are as follows: • Capacity: ...
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...do contracts play when it comes to these big payouts? Is it ever ok to break a contract, and if so, when? A bonus is defined as “a sum of money granted or given to an employee in addition to regular pay, usually in appreciation for work done” (Dictionary.com, n.d.). It’s no secret that money is a powerful incentive to employees to strive harder and to meet the goals that the company sets for them. Not only do bonuses increase productivity, but they also incentivize employees to have a longer length of employment and even increase morale. In general, bonuses are directly connected to an employee’s performance and their ability to generate sales or exceed a quota. A bonus can also be a result of the financial success of the company (WiseGeek.com, n.d.). For example, if a company has a particularly successful year, there could be a bonus in the form of financial reward for all of its employees to thank them for the good job they have all done. A bonus can also come from a stipulation in a contract. Sometimes when professional athletes sign a contract to play for a new team, that contract includes something that’s called a “sign-on bonus”. This simply means that when the athlete officially signs the contract, they are automatically rewarded a pre-negotiated sum of money for doing so. In the corporate world there are similar types of bonuses. When a high powered executive signs on to work for a company, often times they have contracts. These contracts dictate...
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...Course Instructor Institution Date of Submission Acme Fireworks Business Contracts The business contract is considered as the common legal transactions most business people get involved to ensure the activities run smoothly. When a person understands the contract law, he/she is good to create a sound business agreement. However, the agreement would be legally enforceable in case something bad happens. As the manager of Acme Fireworks, I was requested by the owner to determine which law between common law and the Uniform Commercial Code (UCC) will govern the business. According to Sheleff, (2013), the common law controls the majority of contracts that include intangible assets, employment, real estate, services, and insurance. On the other hand, the Uniform Commercial Code (UCC) governs contracts for the securities and sale of goods (Meiklejohn, 2008). Therefore, the contract between Acme Fireworks and the retailers would be governed by Uniform Commercial Code (UCC). There are various articles in the UCC and specifically, Article 2 deals with the transaction of goods. The statute in the article stipulates precisely the regulation of sales to consumers and other classes of buyers. Acme firework is a retail outlet that deals with the sale of fireworks and also displaying them. It will enter into a contract with other large businesses to produce large quantity on a regular basis, and it would be governed by UCC. It is because...
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...Investment Firm Investment Firm – Legal Issues Question 4 Contract Law Major issues faced by the U.R.E Investment Firm LLC in relation with contract law are lack of proper terms and conditions, lack of importance of health and security of the employees, and one of the most important issue is companies sometime when entering into any contract do not make anything in writing these are some major issues faced by the country in relation with the contract act. A contract is an agreement enforceable by law. Every time an agreement is considered binding and enforceable by the court in the sense that no one can be prosecuted, the agreement is a contract. So while making any contracts these rules should be properly followed, they are informal, oral or written or implied behavior. It must meet the following conditions: Offer and accept unconditionally. Valuable consideration. Authentic consent. The parties must have the capacity to enter into contracts. In the Household Registration Law (a person's residence is the country in which he lived with the intention of permanently stay there) this universal jurisdiction (Glick 2003, 85). Types of contract which should be performed with suppliers, customers and employees are Contract by record These obligations are based on court records, the records of the condition. They are not the real contract, the obligations of the parties arising from the court records of any agreement into a separate reason and only. They can through the...
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...Silvio, were stopped at a traffic light and a truck that was driving over the speed limit “rear-ended” the SUV in which the New Jersey residents were traveling. The truck contained fireworks for a local fireworks company, two of the residents were injured and hospitalized, and the car was totaled. The case was brought to the federal court because the damages experienced by parties were done in another state, New York. A truck owned by “New York Domestic Corporation” did the damages. The domestic company was preparing for a national holiday. This case was brought to the federal court because it involved New Jersey residents trying a New York State company. The plaintiffs wanted to hold the company and NYC liable for the damages experienced. Under “strict liability”, the defendant is guilty because of the negligence on the truck driver’s part. It is stated under strict liability that damages caused by “ultra hazardous” activity can result in harm even when the person “used the utmost care”. Here, the truck driver was not only driving with hazardous fireworks but also caused 2 of the plaintiffs to be hospitalized and the car to be totaled. The driver was not cautious of the speed limit set by the state of New York for the safety of its citizens. Therefore, The Fire truck company is liable for the damages and ordered to pay the hospital fines and for damages done to SUV. A New Jersey...
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...Malone International Legal and Ethical Issues in Business October 25, 2015 Abstract What kind of statements are companies allowed to make in their advertising campaigns to get noticed by the general public? How much of this advertising is taken seriously by the general public? Will a company be held responsible to follow through for their statements made in an ad campaign? We will examine these questions in this paper. Circumstance In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a TV commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each. The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form along with a demand for the Harrier jet. The company wrote back, stating that the Harrier jet in the commercial was simply used to created humorous and entertaining advertisement. They apologized...
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...Elements of a Contract Business 670 Legal Environment Instructor: January 21, 2013 Abstract This paper is a brief analysis of the elements of a contract using a hypothetical of an employment contract. Elements of a Contract The issue of whether or not a contract may be enforceable where an employee is hired under a two-year employment contract with Fabulous Hotel and the term is up with a clause in the original signed contract to prevent the employee being hired to the same position, a chef, within the same metropolitan area for two years after their employ with Fabulous Hotel. In order for a contract to exist end be enforceable, some elements of a contract must exist in order for a contract to be enforceable. It can be determined that in this hypothetical provided for this assignment that there was an offer from Fabulous Hotel and an acceptance of that offer to be an employee as head chef for a period of two years. This simply shows that Fabulous Hotel offered a job and that said job was accepted under the terms of the contract offered by Fabulous Hotel. The consideration of this contract is that of employment. When I come in to work as head chef for Fabulous Hotel, they are therefore legally bound to pay me for my services as an employee for the work performed. As for capacity, when entering into this contract all parties involved do not lack the mental capacity to enter...
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...BA2_C15.qxd 9/3/05 4:25 pm Page 264 chapter 15 Contract accounts Learning objectives After you have studied this chapter, you should be able to: l describe the factors that are involved in accounting for contracts l describe how accounting records of contracts are maintained l explain the need to apply prudence when assessing profit or loss on a contract that is still in progress l describe some of the requirements of SSAP 9 relating to long-term contracts Introduction In this chapter you’ll learn how to record revenues and expenditures arising on contracts in contract accounts and how to estimate profits and losses on long-term contracts so that appropriate entries may be included in the financial statements for internal use. 15.1 Financial statements and the business cycle The span of production differs between businesses, and some fit into the normal pattern of annual financial statements more easily than others. A farmer’s financial statements are usually admirably suited to the yearly pattern, as the goods they produce are in accordance with the seasons, and therefore repeat themselves annually. With a firm whose production span is a day or two, the annual financial statements are also quite suitable. On the other hand, there are businesses whose work does not fit neatly with a financial year’s calculation of profits. Assume that a firm of contractors has only one contract in progress, the construction of a large oil refinery complex...
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...Student’s Name | __________________ | Professor’s Name | __________________ | Course Title | __________________ | Date | __________________ | SALIENT POINTS OF A CONTRACT & BIDS EVALUATION Introduction(Some basics about contract in brief) A Contract is – * An Agreement (Expressed or Implied) * Enforceable by Law * Between Two (or more) Competent Parties * To Do (or Not To Do) a Particular Thing (being a Lawful Object) * With Free Consent * For a Consideration (or Remuneration) A Contract may be concluded by Signing a " contract " Document by Two (or more) Parties, or Placement of a Purchase Order and Its Acceptance . Contract Price may be Fixed or Variable (i) Fixed Price Contract covers costs to be incurred till job completion.It is convenient for budgeting and billing. (ii) Variable Price Contract includes a Price Variation Formula.It is convenient to quote and may ultimately be economical to the client. (iii) The price escalation should have a ceiling. (iv) Contract Price may include or exclude taxes and duties and their variations as may be stipulated in the contract. Brief Information of companies vying for the government contract. VectorCal:- VectorCal navigation is medical navigation device which helps used to facilitate navigation through bodies. Principles for good VectorCal navigation design A site must: 1. Let me know where I am at all times ...
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