Common Law

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International College of Business and Human Resources Development

Common Law Assignment 1

BMT: 387-09-09

Task 1(P1)

A contract may be defined as an agreement which legally binds the parties. A party to a contract is bound because he has agreed to be bound. The underlying theory then is that a contract is the outcome of ‘consenting minds’. Parties are not judged by what is in their minds what they have said, written or done.

Contracts are sometimes referred to as enforceable agreements. This too is somewhat misleading. True to the concept of both the common law principles and English law principles, parties to a contract must a mutual relationship and therefore English law will not usually allow one party to force the other to fulfill his part of the bargain. He will usually be restricted to the remedy of damages.

What are the different types of business Agreement?

Different types of business agreements
Are there any other agreements and different types of contracts apart from?

Unilateral - 1 person has obligation to perform a certain act which does not have to be reciprocated by the other party performing an obligatory act.

Bilateral - both parties have duties to perform a specific act in response to each other.

Specialty - formal contracts done by deed. These kinds of contracts come in transactions involving real estates and other assets.

Simple – this form of contracts does not require any writing and or specialty features.

Standard - business forms, invoices bills are good examples. This is an extreme form of unilateral contracts. Loan processing is one very good example.

A business (also known as enterprise or firm) is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, in which most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning. The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage to mean a particular organization; the generalized usage to refer to a particular market sector, "the music business" and compound forms such as agribusiness; and the broadest meaning, which encompasses all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate and complexity of meanings. | |

Basic forms of ownership

Although sales agreements can be executed between merchants and consumers, the highest value sales agreements are usually executed between businesses. Although forms of business ownership vary by jurisdiction, there are several common forms: • Sole proprietorship: A sole proprietorship is a for-profit business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has unlimited liability for the debts incurred by the business. • Partnership: A partnership is a for-profit business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. The three typical classifications of partnerships are general partnerships, limited partnerships, and limited liability partnerships. • Corporation: A corporation is a limited liability business that has a separate legal personality from its members. Corporations can be either government-owned or privately-owned, and privately-owned corporations can organize either for-profit or not-for-profit. A for-profit corporation is owned by...
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