Unit 4 Business Law Level 6


Business law is the legal formation of government to reduce the business fraud and protect the interest of innocent party. Business law includes common law and commercial laws which undertaken different clauses and form according to the situation. Present report will be base on Business law which will explain about the contract importance and the importance to follows the contract legal obligations. Further apart, it will also discuss about exclusion clause and their examples. Along with that, it will also discuss on tort of negligence. Overall, study will suggest some productive remedies to both the parties. It also look upon the importance of business law in businesses.

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Question 1:

Clauses of business contract law to be found to be unlawful what further remedies might be available.

Contract is the agreement between two or more than two parties, they agreed on the same agreement on the behalf of legal contract law act. Different business parties and members make contract to transferring the goods and services intern of monetary sense. It is the common part of the business which is very essential (Berg, 2017). There are many types of law such as verbal or written contract.

Verbal Contract: verbal contract are those contracts which can be form on the basis of written or a combination of both. Verbal contract base on good faith of all parties and can be difficult to prove.

Written Contract: Written contract is base on some legal basis in which all terms and conditions has mentioned in the legal documents. Written agreement base on some legal implications in which none of the party ha right to adopt misrepresentation. Such as Strawbridge make agreement with Alfresco Catering lit. For delivering apples in fresh quality. It is the contract made between the parties for apple supplying.

Essential elements of a valid contract

Both the party should agree with all terms and conditions.

Consideration between both the parties should be lawful and considerable.

Capacity must be fulfilled under law of contract such as party must be not minor or insane.

  • It must be free concern of all the parties.
  • Contract must be set on some limited period of time.
  • Each party liable to hold their rules and regulations.
  • Contract must be in the form of written basis.
  • Possibility of performance.
  • Enforceable by law.
  • Acceptance of both the party is necessary in the contract.

According to legal contract act, party must be not under any fraud activity otherwise contract become null and void. Besides, if any of the element is not done by the party’s contract become breach.

Exclusion law: it is the contract clause which restricts the rights of parties to the contract. In terms in a contract which intend which exclude one party from liability or limit the person’s liability to specific listed conditions, circumstances, situations (Bulchandani, 2017). Moreover, main purpose of this clause to take action against the person who fails to full fills their obligations.

Contract must be incorporated

It has been made clear and specific.

Must be according to the contract act 1977


In this action process innocence party should have some evidence and proof to make it-self innocent. Exclusion clause includes some way to be incorporated.

By signature

By course of dealing

By notice.

Signature: if the plaintiff signs a document has been signed by the party in that case it will automatically a part of the contract (Clarkson, Miller and Cross, 2014). If than he or she read the clause or not it must be considered under exclusion law. If in case of oral form of limitations is not be considered as a legal contract between the parties. Or another party cannot claim on the basis of illusions.

For example: Curtis V chemical cleaning co 1951 1 KB 805.

Claimant took wedding dress for cleaning by the defendants. She signed a piece of paper headed receipt after being told by the assistant that it exempted the cleaners from liability for damages to bead and sequins. That receipt creates liability for damages. At the time they took their dress back it was totally damaged and stained. In that case cleaners could not escape from the fact they are innocent. They liable to pay all damage and claim to the innocent party.

L’ Estrange V Graucob 1934 2 KB 394

Plaintiff purchase cigarette machine for her café machines from the defendant signed at the time of sales agreement in very small print (Davidson, Forsythe and Knowles, 2015). After some time machine become failed to stop. In that case defendant was in position to protect by the clause.

Notice: exclusion clause also has been done in unsigned documents for example ticket or notice. In case of any inadequacy it should be:

Contained in contractual that must be protected and safe in case of any wrong activity that particular document should be there.

Take the participation of the party in case before at the time the contract is entered.

Remedies of exclusion clause

In this section party is fully liable to take the claim from the fraudulent. In case of any restricted times. Where party fails to obey its liabilities in the contract. Such remedies are giving below:

Liquidated damages

It is the damages which have been done already in advance under which some construction contract has arisen. In this remedy process wrong party has liable to liquidate the damages to the other party (Graw, Parker, Whitford, Sangkuhl, and Do, 2016). Otherwise, party will sue to another party for misconception.

Drafting Issues

Identify the commercial concerns in this case company creates some legal action against fraud party. It more given positive impact on the behavior of innocent party. In this process must be identified what type of loss should be excluded. These types of remedies held under business contract related to profit and loss.

On the basis of above section it has been concluded about the clause related some effective process of learning. That Straw bridge or AC can claim to each other interms of their contract basis (Halliday and Shaffer, eds., 2015). Both the parties are liable to pay to each other. In case of exclusion law.

Question 2:

Discuss the remedies in tort of negligence

Employment law: employment law is the most important and essential law in the business organization. It made between employee and employer. Employer has responsibility to take care of their employees in the working place (Harner and Rhee, 2014). They need to take care about their safety and health, collective bargaining, workers compensation, pensions, unemployment compensation. Moreover, another major impact on the business of employment law is good environment and protects the safety of employees as well. Employment law is the broad concept in the business world. It makes company reputation high and stable. In present case of Straw bridge and Silas of employment in which Silas is the apple grader who measure the quality of apples. During the inspection they left their two fingers off in that case it is the case of tort of negligence in which after knowing that machine is damage Silas done the activity. Both the party liable to this case for which they need to liable their outcomes (Lambiris and Griffin, 2017).

Tort of negligence

Tort of negligence is a legal wrong process which has been done by the parties. Besides, in that cases individual party fails or to avoid making proper safety precautions and loss has occurs. In many cases contractual relationship between the parties involved. For example doctor patient. Negligence is the biggest crime in contract terms through party loss their life. Besides, in case of present case employer has done negligence in terms to protect the safety of employees. Moreover, employer has duty to give claim to Silas for his loss or to take care of his all medical expenses. It was the duty of employer to remove that machine from the workplace if that has not been for employees (Mann and Roberts, 2015). Employer has duty to make sure that weather working environment is safe or not for the employees.

For example Donoghue V Stevenson, the house of lord that person should be sure about who caused them loss or damage if there is no contractual relation. Donoghue has given a bottle of ginger beer which was gifted by his friend. After a while they noticing that in bottle there was decomposing snail inside. Due to which they suffered from nervous shock. Donoghue does not sue to manufacturer because her friend is the partly to the contract. This is the tort of negligence in which innocent party has full rights to claim on the other party of tort of negligence. It includes some elements has given below:

Element 1: The duty of care

The concept of duty of care is defines the responsibility or duty of obligations which is required to follow by all the party. In case of any negligence fraud party will have to face legal implications. Like in case of Straw bridge and Silas, employer has duty to make aware Silas about the damages of machines (Van Uytsel and Wrbka, eds., 2016). Due to carelessness Silas lose their two gingers off. This makes tort of negligence. It negatives impact that employer needs to pay all medical expenses of employees. At the time of making contract duty arises between both the parties. For example defendants loading the bag of grains in after some while there was a child who stuck in the that bag. In this case it is the duty of defendant to take care of that child.

Element 2: Breach of Duty

In breach of contract plaintiff has some proof against defendants to probe him wrong. Defendant breach the contract pr duty bu failing to exercise the reasonable care in fulfilling the duty. Moreover, another major part of the parties is that to obey the all legal duties with regard to full fill the all contract terms and conditions (O'Brien, Powers and Wesner, 2018).

Element 3: Cause in fact

Under the condition of negligence cases. Plaintiff has to prove that defendant commit wrong activity due to which contract has been breach and void. Moreover, like AC needs have some prove Straw bridge was wrong. If they fail to present them culprit. They cannot take his claim (Mann and Roberts, 2015).

Element 4: Proximate cause

It relates with the scope of a defendants' responsibility in a negligence. In which it has been cleared that defendants has only responsible for those harms which they did. Out off the risk or clause if they perform anything it has been not included in the law. For example Silas has to prove that it is the responsibility of employer to manage the safety of employees in the working place (Lambiris and Griffin, 2017). If in case Silas got injured in some other place. In that situation Employer is not responsible for that clause.

Elements 5: Damages

Plaintiff has to make clear about the harm to the court to collect their claim with strong evidence. On the other side, actual damages has been prove in front of the court.

Filling a negligence claim

In this last process of tort of negligence is that to claim the party who is responsible for the damages. In according to the case Straw bridge has responsible to inform the employees that don't use the machine until unless they repair with another one. But they come under tort of negligence (Harner and Rhee, 2014).

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From the above section it can conclude that, business law is the most essential part of the contract and agreement between two parties. It has to given in a perfect manner. Moreover, another part of the organization is that to make the proper changes in the contract on the basis of obligations and duties. Present report based on business law. In which they discussed about the contract law and employment law interns of positive outcomes. Moreover, the another major factors also discussed in this report such as tort of negligence and exclusion law. It discussed about the case of Straw-bridge and AC. It explained about the duties and rights of contractor or contractee as well.

You may also like to read: 


  • Berg, C., 2017. Enhancing the assignment: Using the Framework for student learning and assessment in a Business Law class.College & Research Libraries News,78(9), p.502.
  • Bulchandani, K. R., 2017.BUSINESS LAW FOR MANAGEMENT. Himalaya Publishing House.
  • Clarkson, K., Miller, R. and Cross, F., 2014.Business Law: Texts and Cases. Nelson Education.
  • DAILY, J. E., KIEFF, F.S. and WILMARTH JR, A. E., 2014. Introduction. InPerspectives on Financing Innovation(pp. 13-16). Routledge.
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  • Harner, M. M. and Rhee, R. J., 2014. Deal Deconstructions, Case Studies, and Case Simulations: Toward Practice Readiness with New Padagogies in Teaching Business and Transactional Law.Am. U. Bus. L. Rev.,3, p.81.
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  • Mann, R. A. and Roberts, B. S., 2015.Business law and the regulation of business. Nelson Education.
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