Unit No/Title: Unit 7 / Business Law

Assignment No: 1/1

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Pearson BTEC Level 5 HND in Business -HRM

Unit 7: Business Law
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Abstract

Company Law (known as Corporate Law in some countries) refers to the

formation and governance of corporate entities. In the UK, the responsible body
is the Corporate Law and Governance Directorate of the Department for?
Business, Enterprise, and Regulatory Reform (BERR), formerly the Department of
Trade and Industry (DTI).

In this report the researcher going describe

• What is English law

• Potential Impact of the law on a business
▪ Employemnet Law
▪ Contract Law
▪ Company Law
• Law Cases
▪ Case one
▪ Case Two

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Acknowledgement

This would not have become a success without the contribution of many. And I make this the
opportunity to thank all of them who gave the support.
I would like to extend my sincere gratitude to my lecture for her guidance and
constant supervision in completing the project.
Also, I like to express my special gratitude and thanks to industry persons for giving me such
attention and time by providing necessary information regarding the project.
My thanks and appreciations also go to my colleague in developing the project and people
who have willingly helped me out with their abilities.

Thank you.
………………

Pearson BTEC Level 5 HND in Business -HRM

Unit 7: Business Law
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Table of Content

Abstract ...................................................................................................................................... 2
Acknowledgement ..................................................................................................................... 3
Table of Content ........................................................................................................................ 4
1. Introduction to English Law .................................................................................................. 5
1.2 Potential Impact of The Law on A Business ....................................................................... 6
1.2.I. Employment Law ......................................................................................................... 6
1.2. II. Contract Law .............................................................................................................. 7
1.2.II Company Law .............................................................................................................. 9
2. Law Cases ............................................................................................................................ 10
2.1. Case One ....................................................................................................................... 10
2.2. Case Two ...................................................................................................................... 12

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Unit 7: Business Law
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1. Introduction to English Law

England and Wales operate a widespread law system that mixes the passing of law and the
creation of precedents through case regulation. The legal guidelines are hooked up by means
of passing regulation by Parliament which includes the ‘Monarch’, the House of Commons,
and the House of Lords. The House of Commons is without delay elected by way of the
human beings and the Prime Minister is traditionally a member of this House. The Court
System and case regulation are managed by way of the judiciary that's become independent
from Parliament. (BODLEIANLIBRARIES, 2022)

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1.2 Potential Impact of The Law on A Business

1.2.I. Employment Law

UK employment legal guidelines are in the region to ensure that each employer and employee
are covered. Providing laws on dismissal, vacations, pay, discrimination, and extra, these
laws are in the region to defend employees’ rights whilst also safeguarding an agency’s
hobbies and retaining the relationship between the two galas. Ultimately, employment laws
(of which there are many) are there to guard groups and outline what their obligations are
towards their personnel, and what protections they've as commercial enterprise owners. They
hold the employment dating truthful to both parties. Contracts defend employers due to the
fact they are readable and a reference point to make certain each worker and organization are
making a song from the equal hymn sheet.
On the opposite hand, UK employment legal guidelines also are there to defend employees,
from hiring practices to conduct inside the place of business and truthful pay.
Employees are covered from the instant they observe for a task by means of the Equality Act
2010, which prohibits discrimination towards candidates (and personnel) primarily based on
their membership of a fixed of nine covered traits – which includes gender, race, or
incapacity. When a staff member joins the team, they may be also covered by way of Health
& Safety laws, set out inside the Health & Safety at Work Act 1974. These ensure all body of
workers contributors have the right to a secure working surroundings. (Citation, 2022)

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1.2. II. Contract Law

There is one issue that ought to be positive, and that is that you don’t want to find out there's
a problem with your contract when you are taking walks via the door of a courthouse with a
disgruntled man or woman on the alternative facet.

In the settlement Law some of the important thing points of English contract regulation which
Every businessman and woman must be familiar with those principles.
• Privity of Contract
It is vital to consider only the events of the settlement that can also put in force the phrases of
the agreement.
• Consideration
Contracts need to include mutual guarantees, or obligations, between the parties making the
settlement.
• Exceptions to the rule on Past Consideration
There are exceptions to the problem of beyond attention. The first relates to an antecedent
debt. The Bills of Exchange Act 1882 way that a pre-present debt or responsibility may be an
amazing consideration for an invoice of alternate.
• Formalities
There are very few formalities that are required by means of law. There is not a requirement
for all contracts to be signed as deeds, and the requirements for signing, sealing and delivery
of deeds have additionally been abolished.
• Contracts that ought to be written
There are several types of contracts that must be in written shape. For example, contracts
containing a assure should be in writing.

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 • Authorized Signatures and Authorized Persons
Legally, to bind a corporation to a contract, it should be signed by using a person who has the
authority to achieve this. This would usually be a director of the company, its solicitor, or a
manager.
• Capacity
This goes hand in hand with the problem of authorized signatures and authorized individuals.
• Battle of the Forms
In instances in which businesses are coping with “general terms,” it's miles crucial to don't
forget which “fashionable phrases” follow to a settlement.
• Exclusion Clauses
Exclusion clauses in fashionable term agreements are also likely to fall foul of the Unfair
Contract Terms Act (“the Act”). This is especially relevant whilst doing business with the
public.
• Breach
Where one birthday celebration does not perform its obligations as in step with the agreement,
they dedicate a breach of the agreement. A breach of agreement is technically a failure to
carry out the settlement in accordance with the strict phrases (A.Taylor, 2013)

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1.2.II Company Law

The Company Act 2006 become surpassed via the Parliament of the United Kingdom
because of the number one source of regulation. It is the longest Act formulated by the UK in
its history with over 1300 sections conglomerated in 700 pages. The Act has been outdated
via the brand-new Corporation Tax Act of 2009. The importance of the Act is that it goals at
modernizing and simplifying agency regulation, codifying the duties of the administrators of
the company, granting superior rights to stakeholders, and simplifying the executive burden
carried through the organization operating in the UK. The importance of the act is that its
units the director's duties as defined in sections 171 to segment 177 However, the
administrators do now not supply consciousness on duties that effects an incredibly negative
effect on the economic system and the rate of the growth of the company. The first and
primary duty is that administrators need act within powers. The director is needed to carry out
the responsibilities that are required to be finished via them. This is stated in Section 171 of
the Company Act 2006. The subsequent duty is exercise independent judgment. The director
is needed to perform fiduciary duty by making use of their powers without getting motivated
by different people. An instance of such responsibility is Fulham Football Club Ltd. V Cabra
Estates p.C, where the administrators did now not make use of their energy (D.Collison, 2014)

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2. Law Cases

2.1. Case One

The debt holder moved toward BCR during March 2014 with obligations adding up to
£36,000 and requirement activity from HM Revenue and Customs including a distraint over
private and business resources. The debt holder was 62 years old and sole proprietor and
publican of a free house in Staffordshire which had been effectively shown to the borrower
and her late spouse starting around 1982. It was additionally her essential home. Exchange
had forever been sensibly great. The borrower and her late spouse had forever had the option
to take care of themselves which implied they had the option to abstain from acquiring. The
slump in exchange began when the account holder's better half was determined to have
malignant growth during 2005. He was very famous with every one of the clients and
tragically this prompted an extensive drop in footfall. Different Visas and credits were used
to help with the running of the business until his demise in 2010.
Beginning around 2010 the debt holder had found it incredibly challenging to exchange and
get back to benefit, and subsequently attempted to keep up with the base obligation
reimbursements. This brought about HM Revenue and Customs serving a distraint notice on
the debt holders individual and business resources.
With the help of BCR, an Individual Voluntary Arrangement ("IVA") was proposed and
acknowledged by her lenders. This shielded her from additional leaser activity until she could
look for a purchaser for the bar to deliver assets to settle her obligations in full.
A purchaser was found, and the offer of the bar was finished in June 2016 which brought
about loan bosses being settled completely.
Notwithstanding the offer of the freehold property, BCR effectively guaranteed Payment
Protection Insurance ("PPI") installments that were already miss-offered to the borrower.
This expanded the complete excess to the account holder which would have been negligible
regarding chapter 11.
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Endless supply of the deal continues a declaration of consummation was given to the
borrower and her lenders informing them that the game plan had been effectively executed.
Those lenders will have no further response against the debt holder in regard of the pre-IVA
obligation. The IVA course has brought about lenders getting 100 pence in the pound and the
borrower leaving with an excess for her retirement. In Sri Lanka
Twisting up or liquidation of organizations in Sri Lanka is administered by the arrangements
specified in the Companies Act No. 17 of 1982.' The strategy for twisting up is to be found in
the Winding-up Rules under the old Companies Ordinance of 1938. Subsequently, no
dithering to express that the liquidation cycle in Sri Lanka is old fashioned.
Part IX and X of the Companies Act manage ending up of organizations, the legal course of
wrapping tasks of an organization up through acknowledgment and dispersion of its resources
among its loan bosses and contributories as indicated by their privileges followed by
disintegration of the organization. (Cabral, 2016)
Case: Alderson v Temple

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2.2. Case Two

An agreement between a purchaser and merchant of property (both restricted organizations)

said that the dealer could end the agreement assuming the purchaser was struck off the
Companies Register and broke down.
The purchaser was, truth be told, struck off the Register a few years after the fact. Two days
after the striking off, the dealer suspected to serve a notification to end the agreement.
Notwithstanding, in something like three weeks a court application had been made to
reestablish the organization to the Register, which was effective.
For the most part, when a struck-off organization is reestablished to the Register,
organization regulation says it ought to be treated as though it had never been struck off. The
purchaser hence contended that the dealer's notification was of no impact on the grounds that
the reestablished organization was to be treated as though it had not been struck off, so there
were no reason for serving the notification.
The court couldn't help contradicting the purchaser's contention. It said that a reclamation
will fix the 'immediate or programmed impacts' of a striking off and disintegration. The
expectation was to keep away from issues that a hole in the presence of the organization
would cause assuming there were no such legitimate rule.
Be that as it may, the vender's end of the agreement for this situation was not a programmed
result of the purchaser's disintegration. Rather, it was an outcome of the dealer deciding to
end the agreement and following the legally binding cycle expected to do as such.
That's what the court said if reestablishing the organization refuted the notification to end, the
statement in the agreement permitting end assuming the purchaser was disintegrated would
have been 'denied of impact', and the vender would be in break of agreement. The gatherings
could never have expected a reclamation to deliver an outsider's legally binding privileges
incapable.
Case: Bridgehouse (Bradford No.2) v BAE Systems Plc [2019] EWHC 1768
Recommendation-Parties to a contract should ensure they fully understand the effect of a
clause in the contract allowing to terminate their contract if the other party is dissolved, even
if it is subsequently restored.

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Conclusion

The England legal system which describes all aspects of business law will give any
businesspersons a brief base for what they should adhere before implement a business in
England. Comparing to sri lankan legal system England legal system is somewhat tough in
some respects. Even legal cases prove how court system play when there are legal issues rise.

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 • References

• A.Taylor, 2013. seqlegal. [Online]

Available at: https://seqlegal.com/blog/10-key-facts-about-english-contract-law
[Accessed 02 04 2013].
• BODLEIANLIBRARIES, 2022. BODLEIAN LIBRARIES. [Online]
Available at: https://libguides.bodleian.ox.ac.uk/law-uklaw
• Cabral, H., 2016. lawnet. [Online]
Available at: https://www.lawnet.gov.lk/corporate-collapses-and-insolvency-regimes-
the-sri-lankan-experience/
• Citation, 2022. Citation. [Online]
Available at: https://www.citation.co.uk/news/hr-and-employment-law/uk-
employment-laws-
explained/#:~:text=UK%20employment%20laws%20are%20in,relationship%20betw
een%20the%20two%20fair.
[Accessed 14 May 2022].
• D.Collison, S. J. D. a. L. S., 2014. Financialization and company law. A study of the
UK Company Law Review. Critical Perspectives on Accounting,, pp. 5-16.

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