Business And Employment Law

BUSINESS AND EMPLOYMENT LAW

Table of Contents

1. Assessing Different Sources of Law in the UK. (Brexit Affect) ................................................ 3

2. Partnership Agreement................................................................................................................ 3

3. Incorporating Business Food Hall Deliveries ............................................................................. 4

4. Director of the Company ............................................................................................................ 4

5. Certainty in Valid Legal Contract ............................................................................................... 5

6. Legal Ways to ensure that a Company’s Capital is maintained.................................................. 5

7. Main Legal Option Regarding Financial Hardship ..................................................................... 6

8. Possible Remedy to Peter............................................................................................................ 6

9. Main Case Law related to Negligence ........................................................................................ 7

References ...................................................................................... Error! Bookmark not defined.

1. Assessing Different Sources of Law in the UK, their interrelationship and impact of

Brexit

In terms of sources of law, it can be said that Common Law and Statute Law of the UK are

important. Furthermore, Case Law and European convention of human rights can be

considered as sources of Law in the UK. The concept of Common Law focuses on consistency

and Statute Law deals with parliamentary decisions and both are interrelated. On the other hand,

based on Case Law common law and statute law have been formulated. The Human Right Law

has also been formulated based on Case Law. The UK considers the idea of parliamentary

sovereignty which has the highest authority in the country to frame rules. The UK sovereign law

making power has been vested on the parliament and the decision of the parliament is final in

terms of framing legal policies. The sovereign power of the UK has been challenged by the

European Union (EU) as the UK has been bound in its practical steps by the agreement with the

EU. The Brexit concept has hampered the consistency in government policy and deteriorated

parliamentary position globally (Fagan and Rubery, 2018). Furthermore, it has directly affected

implication of Human Rights Act 1998 in the UK which has been followed by the EU.

2. Partnership Agreement

Partnership business or professional activities have been regulated by Partnership Act 1890 in

the UK. Based on this law, all four partners will get equal share of profit in the partnership

business but the liability of properties will be legally vested on David and Toby. Based on the

analysis of the Partnership Act 1890, all partners have to ensure internal system and effective

procedures for making partnership. Terms related to responsibility, payments, liabilities and

distribution of profit percentages need to be present in the partnership agreement. All four

partners can take part in the incorporation process and management decisions of the business

(Salomon vs. Salomon and Co Ltd., 1897). Responsibilities of four partners are not equal in case

of firm’s activities as David and Toby is owner of the business properties. As per Limited

Liability Partnership Act 2002, all partners are having legal personality and an individual

partner cannot deny legal personality for negligence. Hence, in case of opening law firm, profit

will be shared equally among four partners but liabilities of four partners are different as only

two partners are owners of firm’s property. In case of debts of others, all partners will have equal

liability as legally all partners are equal.

3. Incorporating Business Food Hall Deliveries

Based on the Companies Act 2006 analysis of the UK, it can be said that business incorporation

cost is around 850 to 950 GBP (standards business formation). For starting the business

effectively, Sally and Marcus have to mandatorily incorporate as per Companies Act 2006

(Ebrahimi vs Westbourne Galleries, 1972).

If the company fails to survive in the competition, partners are having some liabilities and they

cannot deny their deny that. The first liability is all partners have to repay debt of the company as

per agreement. Hence, liabilities have to be discharged mandatorily according to the rules and

regulations of the Act 2006.Secondly. The settlement to the employees have to be made

effectively as per Companies Act as they have been appointed legally as per Employment Law in

the organisation.

In case of further investment process, they have to ensure that the company has the ability to

recover their losses. Their investment strength has to be proved for attracting new investors as

without proper evidence; an investor will deny investing in an organisation. As per Part 17 of

the Companies Act 2006, new shares are needed to provide to the existing shareholders for

maintaining their power base.

4. Director of the Company

As per the Companies Act 2006 in the UK, a director has to promote success of the company

without which an organisation cannot develop (Tsagas, 2017). Hence, for being the director of

their own company, James needs the ability of promoting the success of the business.

Furthermore, independent judgement is important for getting success in the practical field. As

James is in the training scheme with a merchant bank, he will learn professional qualities to be a

business director. Hence, the idea of Marcus and Sally is good that they want to provide the

position of director in their company but it is essential to manage the entire organisation

effectively. In case of managing minority shareholders of the company, directors have significant

role. This is because the payment to the majority and minority shareholders has been decided as

per rules of the Companies Act which is evaluated by directors (Dafen Tinplate vs. Llanelli

Steel, 1920). Hence, the overall discussion clearly reveals that the management capability is

essential to James for getting success. If James can effectively manage their company in the

comprehensive and competitive environment, Marcus and Sally can easily develop their position

in the market.

5. Certainty in Valid Legal Contract

A valid legal contract means it must have the following elements

a) Offering and Acceptance

b) Capacity and Legality

c) Legal Relationship and Consideration

The term ‘certainty’ is very important in case of a valid legal contract as uncertain contract is

deemed to be void and voidable agreement (Hoffmann, 2019). Hence, a void agreement cannot

be enforced effectively and if a void agreement can be converted into a certain agreement then it

is considered as valid contract. If in the future a certain contract is transformed into an uncertain

contract, the same has to be considered as void. Actually, the consideration is the most important

element for ensuring certainty of a contract (Carlill vs. CarbolicSmoke Ball Co., 1893). From

this discussion, it is clear that a legal contract can be effective and valid if there is certainty. In

this context, it is also important to consider the term ‘negotiation’ as it ensures the making of

agreement. The media has a significant role for enhancing negotiation process as the entire work

can be done instantly. As for example, negotiation by Skype and email helps to make an

effective contract within short time period.

6. Legal Ways to ensure that a Company’s Capital is maintained

As per laws of the UK, private companies do not require to maintain any minimum amount of

capital which is really harmful to the company. The reason is it reduces the reliability of the

company and vulnerable activities have increased (Milman, 2018). In case of a public company,

a certain nominal value has been fixed as per Companies Act 2006 and below that value, shares

cannot be issued. As per the case result of Ooregum Gold mining co. of India Ltd. vs. Roper

(1892), it can be concluded that a public company can issue shares at a discount. The allotment

of shares can be made only for raising capital and other legal reasons including new company

formation, hostile takeover. A minimum amount of shares is needed to be maintained by various

public companies as it is important for maintaining a certain capital. If any public company does

not follow the rule, that is considered as a breach of contract and punishment is imposed on the

company. In this context, it is also true that a company cannot reduce the capital which is

designed to protect creditors and shareholders of the company (Trevor vs. Whitworth, 1887).

7. Main Legal Option Regarding Financial Hardship

In case of Financial Hardship, a company can either take a loan from financial institutions or can

take financial security. The illegal financial assistance has been prohibited as per Companies Act

2006 and furthermore it is considered as bad commercial decision (Anglo Petroleum vs. TFB

Mortgages, 2008).In case of taking loan both fixed and floating charges are needed to consider

effectively as providing charges will ensure to get loan (Mäntysaari, 2010). As per Enterprise

Act 2002, floating charges are mandatory to consider for ensuring the security of loan. In case of

maintaining the funding of the company, the term Administrator is very important as they have a

responsibility to manage funds of the organisation. Transactions are needed to be considered

effectively by the administrator as they have been appointed to identify false transactions. It

enhances financial transparency of the business enterprise and reputation of the organisation is

increased in the market. According to the Insolvency Act 1986, it is important to the

administrator to manage entire financial position of the company (Halliday and Carruthers,

1996). Actually, the company appoints them to rescue the organisation from possible financial

hardships.

8. Possible Remedy to Peter

As per Equality Act 2010, it is the duty of an employer to terminate an employee by providing a

notice for a certain time period. Hence, considering this law Peter can take time of 1, 2months or

1 year from his company to search for a job in other companies. The company no right to

terminate an employee immediately except the company is in insolvent position. As the business

position of ‘Waiters a Minute’ has been deteriorated, the company has closed a part of their

organisation. In this situation without any valid reason the company cannot terminate peter. After

a certain time period they can terminate and here, peter has no right to say anything to the

company. Peter can only claim full and final settlement to the company and in this matter he can

take the help of the Equal Pay Act 1970 (Deakin et al.,2015). In this case the breach of contract

cannot be made between employer and employee as per Employment Law in the UK. Hence, in

case of winding up of a company, the organisation can terminate employees providing full and

final settlement.

9. Main Case Law related to Negligence

Based on the analysis of the case law Cassidy vs. Ministry of Health (1951), it has been

identified that employer is responsible in case of employing surgeon. According to the results a

surgeon is not a servant of an employee and the judgement is true to some extent. This is because

Cassidy went to the hospital for the operation and the doctor has duty to make the operation

accurately. Hence, it is important to gather knowledge in the respective field before starting

practical work. As Cassidy has made court appeal in the capacity of employer, the court has put

the blame directly on employer. From a normal point of view, it can be said that both doctor and

employer has fault in this case. According to the judgement of the court, here the fault is only of

the employer as they have the power to employ knowledgeable and expert persons to avoid

negligence. Hence, it is analysed that employer needs to consider an expert professional to avoid

problems in the professional activities. Moreover, based on the case solution it has been decided

that while a patient selects a doctor, the doctor will not be deployed by a health centre or

hospital.

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