Qualification Unit number and title

Pearson BTEC Level 5, Unit 26: Business Law

HND Business Unit code: R/601/1145
Credit value: 15 credits

Student name Assessor name

Ahmed Gul Afridi Sundus Malik

Date issued Completion date Submitted on Validity

00-00-0000 00-00-0000 00-00-0000 00-00-0000

Business Law
Assignment title

Assignment no Unit 26

Hand-in Policy

You must complete this assignment on time. If you experience difficulties, you must inform your tutor
accordingly.

Late Work Policy

Consideration will be given to students who have valid reasons for late submission (eg, illness).

Plagiarism

In cases of plagiarism, college regulations will be applied. You must declare that this assessment is your own
work by signing the following statement:

Leaner’s Declaration

I certify that the work submitted for this assignment is my own and research sources are
fully acknowledged.

Student signature: (Ahmed Gul Afridi) Date: 00-00-0000

Contents
Scenario ........................................................................................................................................................ 2
Postal rule ..................................................................................................................................................... 3
Scenario 2...................................................................................................................................................... 4
WHETHER THE LOSS WAS COVERED OR NOT .................................................................................. 5
Scenario 3...................................................................................................................................................... 6
Contract Law V Tort Law ............................................................................................................................. 6
Defenses ........................................................................................................................................................ 7
Task 4 ............................................................................................................................................................ 8
Defenses ........................................................................................................................................................ 8
References ................................................................................................................................................... 10

Scenario
Task 1

Introduction

After reading this case it came across that John offered to sell his gun to Daniel.
The offer condition was through post and it was accepted by Daniel. We will see if
the contract was there or not.

Offer

John offered a gun to Daniel and wrote a letter to him on Wednesday. Offer means
asking anyone if they want something or not. The offer should be completely
communicated to offeree and the terms and condition for the offer should be
clearly stated.

Harvey V Facey 1893, in which the court stated that there was no contract. Facey
did not reply to the offeror and their lack intention seen for Facey accepting the
offer. John offered to sell his gun to Daniel and send him an offer letter on
Wednesday and told Daniel to reply him back till Saturday.

Acceptance

Daniel accepted the offer from John and replied him back. When to make an offer
to other person, if he/she agrees with it than it means that he/she has accepted your
proposal.

Fisher V Bell 1960, in which the court stated that there was no contract. The price
offer was not too welcoming to be accepted. The acceptance of hence; there was no
contract between the parties. John offered to sell his gun to Daniel and this offer
was accepted by Daniel and he replied him back.

Communication of acceptance

Acceptance was valid but an issue rose of its communication. In order for a
contract to take place the offer should be effectively communicated to other party.
Entorres vs. Far East Miles 1955, in which the court stated that in order to for the
acceptance to takes place the offer should be effectively communicated.

Postal rule
I t is an exception for an offer that an offer takes place when it is communicated. If
there is any condition of postal rule in the contract than offer and acceptance can
be made through post, mail etc.

Adams V Lindsellc1818, the held was that contract was taking place the moment
the offeree posted the post trough mail box. In the above case, the offer and
acceptance was taking place through mail and the postal rule will help to make the
contract to take place effectively.

Termination

John terminated the offer for Daniel on Saturday. It is the cancellation of an offer
or rejection an offer from a party or person.

Rams Gate Victoria Hotel V Montefoire 1866, the held was that there was no
contract because time has over lapped. The offer that was made from John to
Daniel was terminated on Saturday.

Conclusion

It concludes that John offered Daniel a gun on Friday, but terminated the offer on
Saturday. Daniel accepted the offer and replied John back on Friday, but due to
some delay it reached to John on Monday. By this time the gun was sold to Nick.
The contract between John and Daniel was valid through postal rule because it’s
not Daniel fault if the mail reached lately to John because Daniel posted the mail
on time.
Scenario 2
Task 2

Mike used to give his jacket to Daily dry cleaners, but now he is claiming for
because they ruined his jacket. Daily dry cleaners are against John’s action because
of the exclusion clause that was written on the desk.

Implied and express terms

Express terms are the terms that are expressed for example for a company express
terms will be like hourly wages, and holidays etc. Implied terms are the terms that
are not explained, but it is common that both the party know about them while
making a contract.

Exclusion clause

It is a term used in a contract that excludes the liability of one party in a contract.

Common law

I t is a law based on judges decisions and on the present situation of a case.

Previous laws of UK are not used in it.

Incorporation

It is a legal process for starting a business or making a new decision. It is three

categories signed document, unsigned document and previous dealing.

Signed Document

In order to make a contract, the terms should be expressed in that document and
the document should be sign in order for future claims.

L’Estrange V Graucob 1934, in which the court stated that her claim was not
successful because she did not carefully read the terms in which she was bound
with. There was no document signed in between both the parties in the above case.

Unsigned Document

There is no signature of any parties while making a contract. This contract can take
place through telephone, email and messaging etc.
Chapelton V Barry UDC 1940, in which the court stated that the exclusion clause
was written on the ticket, it is the fault of ticket buyer who did not read them.
Hence, the claim was denied from the claimant. This was a contract without any
signed document, but the desk in the Daily Dry cleaner’s shop clearly stated that
they will be not be responsible if anything happens to their customer’s product.

Exclusion Clause

I t is a term used in a contract that excludes the liability of one party in a contract.
Exclusion clause if affected when there are some previous dealings done.

Spurling V Bradshaw 1956, in which the court stated that there were previous
dealings done and through exclusion clause this claim is not successful and the
defendant is not responsible for the orange juice. There was terms written on desk
that was not read by Mike so, it’s not the fault of Daily Dry cleaners. The
exclusion clause can be seen easily on the desk and can be easily read.

WHETHER THE LOSS WAS COVERED OR NOT

Statutory Rule

Mike can get compensation through statutory rule, which were written under unfair
terms in 1917. Section 2 states that the death in business cannot be denied and the
business cannot take care of the loss if it is too much, hence mike is responsible for
the damages because he did not take that exclusion clause seriously. Section 11
tells us that the contract should be fair and the failure can choose to say that it was
wrong, hence mike says that it is wrong, at least compensate him with 150 pounds
for his jacket. Mike is not happy with Daily dry cleaners and wants some
compensation for his ruined jacket.

Conclusion

In the above case mike used to give his jacket to Daily dry cleaners, but now they
have ruined his jacket and he appeals for compensation. Daily dry cleaners are not
responsible for this situation because they wrote their terms on their front desk that
was in their shop and denying any compensation for Mike. But Mike can get
compensation through statutory rule. Hence he can get come compensation.
Scenario 3
Task 3

Introduction

Susan fell from bike and had severe injuries. Soon was taken to hospital. Doctor
Alice was doing her surgery, but in between the surgery, Susan condition got
worse and now she is suffering from brain disorder.

Contract Law V Tort Law

A contact is said to take place when both the parties accepts the terms and
conditions expressed in the contract. Daily contacts include buying properties,
applying for a loan etc. Tort law is done in civil courts, where the harmed person is
given compensation for his damages. In tort law, the harmed person is
compensated, but in contract law, the decision is according to the express terms in
contract.

Negligence

It is an act where an individual acting careless hurts other individual and it’s every
individual’s duty to not harm any other person.

Donoghue V Stevenson 1932, in which the held was that the claim was successful.
This case established the modern law of negligence and established the neighbor
test. Maybe in between the surgery the doctor Alice has been careless which has
led to brain disorder for Susan.

Breach of duty

A breach of duty is when you are a bid to terms were expressed in contract, but
fails to act upon them or fail to complete such actions than it is called as breach of
duty.

Vaughan V Menlove 1837, the held was that the plaintiff is responsible and the
defendant should be compensated because the negligence in the breach of duty was
seen. Doctor Alice did breach his duty because wile doing the surgery the situation
got worse which leads to Susan’s brain disorder.
Loss suffered

These are the damages done by someone’s action through injury, property etc.
Damages can be compensated like if someone has been harmed from unlawful act
etc. The person who has injured other person should pay for his injuries.

Barnett V Chelsea 1969, in which the court stated that the hospital was not liable
as the doctor’s failure to examine the patient did not cause his death. The surgery
was done by the doctor and after 5 hours of surgery the patient died so, it’s not
hospital fault if the patient died after the surgery. In the above case, it’s not the
hospital fault, but it’s the fault of Alice who was doing the surgery of Susan at that
time which leads to brain disorder of patient at the end.

Defenses
Actions that defend your family or property that is or can be harmed in future.
Here defenses can be of two type Contributory negligence and reasonable
Foreseability.

Contributory Negligence

These are the actions that harm the individual by his\her own actions. In the case of
contributory the actions that harmed you can be fulfilled and can be compensated.

Nettle ship V Weston 1971, the held was that a learner should be able to drive a car
like professional. Although Volenti has done harm, but she is 50% compensated
through Contributory Act 1945. In the above case it can be seen Alice has done
something wrong while doing the surgery, by the will be compensated through
contributory negligence.

Reasonable Foreseability

Reasonable Foreseability is actions that can harm other person in many ways. It
can be physical damage or liquidity damage.

Re Polemis & Furness Withy & Company Ltd 1921, the court stated that there was
no requirement that the damage was foreseeable. The defendant was liable for all
the direct consequences of their action. While suffering from brain disorder, Alice
actions can be compensated through Reasonable Foreseability because the action
that harmed Susan were not intentionally done and Alice can get compensation for
that.

Conclusion

Susan fell from the bike and was rushed to the hospital. Though Alice did surgery,
but it got worse and leaded a brain disorder for Susan. Through contributory
negligence and Reasonable Foreseability, Alice can get compensation for his
actions.

Task 4
Vicarious liability

It is a situation in which one person is held for his actions in a given situation. For
example in a workplace if employee actions has harmed the company can
employer can fire him because of vicarious liability.

Market Investigations LTD V Minister of Social Security 1968, in which the court
stated that she was employed. It can be seen that she has less or no control over the
company for what she did on daily basis. In the above case hospital is reliable for
the damages done by Alice because he was working under them.

Civil War

Same like tort law, actions harming other person and also breaching the contract
terms.

Davies V East 1788, the held stated that plaintiff was successful because the
defendant knew about the quality of goods before they were delivered. In the
above case civil war law has been breached by the doctor because his action has
harmed Susan brain which leads to brain disorder.

Defenses
Consent

When an individual knows the outcomes for his\her own actions. Like shooting a
person can kill other person and know that and you will be punish for this.
Lawrence V MPC 1972, the held was that driver is a thief because the price of the
journey was fixed with the Italian man. DPP V Morgan 1976, the held was that
plaintiff was successful and the three men that raped the women were convicted.
Alice was trying to save Susan life. Doctor always helps their patients. Maybe the
disorder of brain has to happen if she taken to other hospital.

Illegality

Illegality is state when you are against the laws because of brining about a new
change. Every individual knows the law but still they commit it to bring about a
new change.

Velino V Chief Constable of Greater Manchester 2002, the held was that the case
was dismissed because was involved in these activities before this case. In the
above case we can also see that there is also fault of Susan. Maybe when she was
on her bike she was not wearing help which could have helped her avoid this
severe injury. It is possible that she was over speeding.

Contributory Negligence

These are the actions that harm the individual by his\her own actions. In the case of
contributory the actions that harmed you can be fulfilled and can be compensated.

Nettle ship V Weston 1971, the held was that a learner should be able to drive a car
like professional. Although Volenti has done harm, but she is 50% compensated
through Contributory Act 1945. In the above case it can be seen Alice has done
something wrong while doing the surgery, by the will be compensated through
contributory negligence.

Conclusion

In the above it can be seen that Susan is now suffering from brain disorder after the
surgery. Hospital should pay for these damages because Alice is working under
them and it will also help them gain respect because people will think that after all
Alice is responsible for this scenario but the hospital is paying for his damages.
The hospital will also get some compensation through Contributory negligence.
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