Business law Flashcards
What laws are relevant to the sources of law in the UK?
The parliament act (1911-49)- Allows for parliament to skip the house of lords.
Parent act- This is the primary legislation that allows councils and ministers to create delegated legislation.
What are the offer and Acceptance of a contract?
At its simplest, an offer is a proposal of such a kind that it can
be converted into a binding contract by the simple response ‘I accept’.
‘An acceptance is the final, unequivocal assent to the terms of the offer.’
What laws are relevant to offer in contract law?
Byrne
v Van Tierhoven [1880] say that the offeror can revoke the offer at any time before acceptance.
Fisher v Bell [1961] A store having an object with a price in the window is not an offer for sale.
Carlill v The Carbolic Smoke Ball Co [1893] A statement that can be interpreted as an offer by the public is an offer unless stated otherwise.
Taylor v Laird (1856) the offer must be communicated by the offeror to the offeree.
What laws are relevant to acceptance in contract law?
Tinn v Hoffman and Co (1873) if parties chose an express method to carry out the contract, then that method must be used.
Entores Ltd v Miles Far East Corp [1955] and Chwee Kin Keong v Digilandmall.com [2004] The contract is only binding when the acceptance is communicated to the offeror. through messages such as email, letters or in person
Hyde v Wrench [1840] A counteroffer rejects the initial offer and is not a valid form of acceptance.
Felthouse v Bindley (1862) Silence is not a form of acceptance.
What is a consideration in contract law?
Something of value given to the other party in exchange for a contractual promise.
Currie v Misa (1875) Due to this court case consideration must consist of some form of right, interest, profit, or payment for there to be a legal contract.
Chappell v Nestle Co [1960] It was decided that the wrappers did have value, therefore, were part of the selling price and part of the consideration meaning Nestle were unable to sell the records.
What is intention in contract law?
The two parties must intend to enter a legal contract for it to be binding.
Dalrymple v Dalrymple (1811) The rules of a contract don’t apply to something said in passing or when the parties didn’t intend for any grave consequences whatsoever.
Hadley and Others v Kemp [1999] People can just say they didn’t mean to create a legally binding if a reasonable offeree would have seen that the intention was present.
Balfour v Balfour (1919) It was a social and domestic interaction therefore the courts did not get involved.
What are the features of an Unincorporated business?
No separate legal identity.
The individual enters a contract for business.
Risk/liabilities and debts belong to individuals.
Personal assets are at risk.
Flexible.
Can be owned by one person.
Non-profit organisation.
Type of unincorporated business;
Sole trader
Partnership
What are the features of soles traders?
A business entity that is owned and run by one individual
Self-employed.
Easiest and most flexible of the several types of business organisations.
No legal distinction between the business and the owner.
Unlimited liability-responsible for all debts.
The business can be put in someone else’s name however the owner must comply with the companies act (2006) ss 1200-1206
