Business Law Law and the Legal Environment

Question: Discuss about the Business Law for Law and the Legal Environment? Answer: Facts and Issue: Simon wants to hire a boy band, No Direction for his TV show Youre Hired. Simon wants to pay 250,000 to each band member. Simon knows that the global popularity of the band is very high and that their appearance will increase the revenue worldwide. Simon wants to ensure that the agreement to perform is enforceable. Simon is aware that Payn, one of the band members is unhappy and hopes that the payment of 250,000 for the performance will help him become more settled. Based on the facts here the issue that arises here is to make Simon aware of the requirements of a legally binding contract and the consequences of the breach of contract, if Payn decided to leave the band without performing. Relevant Rules and Procedures: Legally Binding Contracts: Legally binding contracts are applicable to all kind of contracts. In the eyes of law, oral and written contracts are legally binding. A contract is an agreement amid two parties, where they come together to perform specific conditions which are a part of the contract. For example, one party agrees to deliver a certain amount of goods to the other in return of payment of money. Irrespective of whether this contract is written or verbal, it is an enforceable contract. In this case, Simon has also entered in a legally binding contract with the band. All the members of the band are bound by the terms of the contract. The band as well as Simon both is bound by the contract to perform specific conditions that are part of the contract. For a contract to become legally binding two basic rules are applicable: offer and acceptance. Offer means where one party makes an offer or agreement to provide a service to the other and the other party accepts the offer. The moment there is exchange of of fer and acceptance, a legal contract is formed (Grear,et al.2014). Similarly, in this case, there was offer and acceptance between Simon and the band members he appointed to perform. If any of the members deny their performance of the contract, then Simon can hold them legally liable for the performance of the contract. If any person breaches any part of the contract then the other party has the authority to file a suit to enforce the contract. Another essential element for making a contract legally binding is consideration and intention. Consideration means exchange of anything, for example salary for work in case of employment contract. Intention means where both the parties to the contract have formed the contract because of similar intention or likeminded thinking for the contract. In case of any disagreement, the parties may file a suit for breach of contract. The Court may take a decision based on the terms and conditions of the existing contract (Mann and Roberts 2016). In th e given case study, also there was exchange of consideration between Simon and the band members. The consideration was the amount that Simon paid to the members on their performance on any particular day. Intention is also identifiable in this case as Simon was interested in appointing the members of the contract, as this would help in his income generation and the same time the members of the band were also interested in performing as this would allow them to become more popular. The main rule as to why a contract forms an unfair terms is because there is disparity in the terms towards one of the parties authorities and obligations. This inequality is harmful to the consumer and the trader and the relation between the two is because of lack of good faith and non-action in a justified manner (Heminway 2013). Simon has not imposed any unfair terms in the contract. He terms of the contract that existed between Simon and the members of the band is fair and not frivolous. Many of us, unknowingly, are part of lawfully obligatory contracts every day. An uncomplicated act of buying food from a shop is also an enforceable contract that exists between the shop owner and the consumer. Disagreements may occur between the contracting parties with regard to the terms and performance of the contract. If any of the parties file a suit for breach of contract against the other then there must be certainty of agreement. This means that for a contract to be legally binding it cannot be unclear and indefinite. The Judge at the time of making a decision may look at the terms of the contract closely and clarify them (Harner and Rhee 2014). However, this depends on the facts and circumstances of the case. People use legally binding contracts every day. The laws are set out regarding lawfully binding agreements in order to provide protection to two parties in an agreement. Lawful disagreements can be lengthy and time consuming, and rupturing a contract is a grave matter that should never be taken frivolously. In the present scenario, Simon can also make the agreement enforceable by complying with the main elements of the contract. People are not conscious of the ways that makes a contract legally binding. The best way to make an agreement legally binding is where both the parties make a draft of the contract before making it final. In the modern world, there are many ways available to decide the draft of the contract, such as fax, emails, telephone and call agreements. However, the moment an offer is made and accepted. Though the contracts mentioned above are lawfully enforceable, it does not mean that there is no way out of a legally binding agreement. The terms and condition of a contract are very important when the Courts have to decide the effect of a legally binding contract. Simon can also make his contract legally binding in the same way (Maloney and Atlas 2013). Breach of Contract: A contract contains certain obligations that are to be fulfilled by the parties to a contract. A person who fails to perform his part of the contract is said to breach the contract. A violation of agreement occurs when the party does not perform or fails to perform any part of the contract. In the given case study if Payn leaves the band without performing then that will amount to breach of contract and consequently that will make Payn liable for the compensation that will be imposed on him. When a breach of contract takes place then the parties may file a suit against the other for recovering the amount lost due to the breach of contract. Courts and lawsuits are not the only option available for people who have suffered the loss due to breach of contract, the parties may also agree to have a mediator to make the contract binding in case of a contract dispute. This is called alternative dispute resolution. (Beatty and Samuelson 2015). Simon may file a suit against Payn for either bre ach of contract for specific performance or may file a suit for recovering the damages and may claim compensation from him. Simon may also take help from an alternative dispute resolution body wherein, he may settle the matter out of Court. The following remedies are available to Simon in case of breach of contract: Damages Specific Performance Cancellation and Restitution If Payn leaves the show without performing then Simon can file a suit against him for breach of contract. Simon may claim for damages in case of breach of contract. In this kind of remedy, Simon may claim for the loss of amount, he has incurred because of breach of contract. Specific Performance is an order from the Court to perform a specific part of the part. This is awarded in cases when damages are not sufficient. Revocation of a contract can also be awarded in cases when the person whose rights have been infringed and damages is not a sufficient remedy. In the present scenario, the best way out for Simon is filing a suit for breach of contract or he may also file a suit for specific performance of the contract. Reference List: Beatty, J. and Samuelson, S., 2015.Business Law and the Legal Environment. Nelson Education. Folsom, R.H., Gordon, M.W., Spanogle, J.A., Fitzgerald, P.L. and Van Alstine, M.P., 2012. International business transactions: a problem-oriented coursebook. Grear, A., Grant, E., Kerns, T., Morrow, K.L. and Short, D., 2014. A human rights assessment of hydraulic fracturing and other unconventional gas development in the United Kingdom. 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. Heminway, J.M., 2013. 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