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1. (a) The doctrine of the constitution is to avoid to talitarian, government no-one is

above the law, government subject to scrutiny by the courts, government is

answerable to parliament and laws must be fair. It is used as system for check and

balances.

(Jon Rush & Michael Ottley, Business Law P. 93)

(b) English Legal system is described as common law because to be binding as source

of law must be proved to have been in operation without a break “from time

immemorial” (deemed to be 1189!) which in practice means “within living memory”.


2. (a) As the lesser sum cannot be a satisfaction to the plaintiff of the whole sum as per

the Pinnel's Case (1602) and it is true. This rule is also applicable to the 21st centuries

too. Yes the modern legal developments have strengthened the position of the "can't

pay/won't pay" debtor.


(b) First of all from the case it can be said that as promised initially by Will £50,000

for the work with in time and that was accepted by Pete. So if after some time Pete

asked to him more amount in that case Will have a contract of not to pay as it was

decided earlier. Pete can enforce the promise in the deed against Will because a deed

is binding as a result of its formality, without any requirement of consideration.


3. (a) The implied terms in the Sale of Goods Act 1979

This act applies where the property of the goods is transferred or agreed for a

monetary consideration. The law of contract has the potential of inequality of

bargaining power if the quality of the good is not satisfactory, consumer requires

repair and replacement. There are 3 ways in which implied terms become part of a

contract:

o implied by the court (to give business sense to a contract)

o implied by custom (local or trade practice)

o implied by statute (the most common)


(b) The requirement that an exclusion clause must be "reasonable" under the

Unfair Contract Terms Act 1977

If the exemption clause in question clause is both part of the contract and covers the

breach, then the provisions of UCTA should be applied to the clause determine

whether:

o it should stand as a valid exemption clause

o it should fail as a void clause

o it should be subjected to the test of reasonableness

(Jon Rush & Michael Ottley, Business Law P.19)

(c) The requirement that a term must be "fair" under the Unfair Terms in Consumer

Contract Regulations 1999.

o s11 lays out the tests for “reasonableness” :

o s11 (1) in the case of a contractual term, it must have been fair and reasonable

one to include it “having regard to the circumstances which were, or ought

reasonably to have been, known to or in the contemplation of the parties when

the contract was made.”

o s11(5) provides that it is up to the person who claims that a term or notice is

reasonable to show that it is so


4. (a) This was a decision of House of Lords where the modern concept of negligence

was established in Scots delict law and English tort law. The general principle is that

one person would owe another person a duty of care. This rule has a significant

decision in case of negligence. The difference between the wide rule and the narrow

rule is of proposition of the trade that is going to be happening according to the Lord

Atkins’ principle.


(b) Ted as he found that the bookshop was worthless, because Julia his friend forgot

to calculate the debt of the bookshop. According to the law of HEDLEY BYRNE v

HELLER [1964] Ted can ask for the refund from the Alex because he also didn’t

provide the correct information about the debt during the payment as he would know

about the things that this amount that is Ted paying to him is not correct. Based on the

case of McLoughlin v O'Brian [1983] Ted can ask for compensation to Julia as well

because she could not calculate the correct financial statement of the Bookshop.

(Jon Rush & Michael Ottley, Business Law P 54.)

5. (a) Sales or Marketing Agency

The advantages of the sales or marketing agency will be quite good because the

agency knows better about the European markets and have reach to the local and

potential customer too but the only problem will be of finance for the company as

have to pay a lot.

(b) Distribution agreement

The benefit of the distribution agreement that in case the product is not distributed

completely by the agency then the company have a right to execute the agency for

further marketing plan and to distribute all the candles as stated in the agreement but

the only disadvantage is that the company will not find the perfect agency who will

accept the deal easily.

(c) Franchising arrangement

It works for the company perfectly because the company get return as expected and

also can provide necessary training to the people of the franchise and there seems not

to be any loss except the low return as commission because the franchise will keep

some part of it.


6. (a) Salomon v Salomon & Co Ltd [1897] is a landmark United Kingdom Company

Law Case. This law case was for to doctrine the corporate personality that was set out

in the Company Act 1862 so that the creditor of the company can’t sue to the

shareholders of the company to pay the outstanding debt.

(Jon Rush & Michael Ottley, Business Law P.)

(b) The five key differences between the private limited company and a partnership

include legal responsibility of the debts, formal paperwork requirement, no protection

in legal liability in partnership, accountable of debts in case of business fail, and the

partnership can be converted in to private limited but reverse is not true

(c) Private Limited company incorporates with minimum of 2 people but public

limited company incorporates with minimum of seven members and the liability is

unlimited in private but in public the liability is limited. There is no maximum limit of

the members in public but in private there is limit of maximum 50 members.
