Case Study

Case Study

Case Study

Case Background

Mary went into Laura's workshop and expressed an interest in purchasing 200 evening dresses for £20,000. Mary said to Laura that she would like to have the dresses straight away. Mary told Laura that she was Lady Celia Wallybottom and that she represented the well-known ladies' designer clothes retailer, Wallybottom & Co. Ltd. Mary produced a cheque book with Wallybottom & Co. Ltd's name printed on it (which she had stolen earlier that day). Laura allowed Mary to take the dresses in return for a cheque signed by Mary on behalf of Wallybottom & Co Ltd. Mary disappeared after selling the clothes to Harry for £18,000. The following month, Laura entered into an agreement with Ashley to supply 500 dresses and 200 jumpers exclusively to his chain of shops each month for two years. The day before the first delivery, Ashley saw the whole range of designs which Laura was to supply to him displayed in a competitor's shop. When the January consignment arrived, only 400 dresses were delivered, because a strike by her workers had cost Laura one week's production. Ashley purchased the remaining 100 dresses and the 200 jumpers that he needed from another supplier. Ashley had to pay 20% more per item than the price he had agreed with Laura.

Contract Law

The history of contract law is not a new but it was not until the nineteenth century did it become a key aspect of commercial law. It was not until the establishment of England as a trading nation in the seventeenth century the feudal systems was used. This traditional system was instantaneous and occurred as soon as the deal was made. After the seventeenth century there was a growing need to settle trade disputes. The merchant law only covered thoughs who members of the guilds so the courts conducted trails based on the laws the guilds used. This formed the basis that gradually evolved over time by adding more case law and statues that govern the rules of commerce today.

The examination of the basic contract laws and principles which a person starting a new business will encounter will be analyzed by including the elements of a valid contract, breach of contracts and possible remedies. Finally this essay will cover consumer protection legislation and possible remedies and employment law issues (Turner 2003).

The contract is a branch of law that generally determines the circumstances in which a promise shall be legally binding on the person(s) or corporation making it. In other words a contract is a legal agreement made between two or more people. This includes corporations as legally they are considered as an artificial person by the courts and thus are treated as any other independent person. Such agreements give rise to certain obligations that may be enforced in the judicial system. Failure to adhere to the obligations outlined in the contract creates a liability to pay compensation in the form of damages. Damages in general are monetary compensation the courts award to ...