Business Law Assignment

Topics: Contract, Corporation, Law Pages: 11 (3205 words) Published: November 7, 2006
Created by Legal Advisor, Domestics Ltd

Position examined regarding 3 following matters:


i)Relating to contract made with Raw Trade Ltd (supplier of raw materials) – a delivery has been made in breach of the contract, possibly resulting in losses of £50,000.

ii)Relating to contract of sale made with Bright Dealer Ltd (authorised dealer) – the dealer has failed to pay it's debt of £6000.


To manufacture refrigerated containers and trailers with Astra Ltd at new purpose built factory. John Wright of the Board of Directors (lawyer also of Astra Ltd) is to sell own plot of land for sum of £1,000,000 for site of new factory. Recommendation also included as to the type of business association which could be established most conveniently for this purpose.

The following headings identify points to be considered alongside the 3 matters above. Ongoing conclusions will also be presented.


Differences between a Civil and Criminal Claim:

A crime may be defined as "a legal wrong for which the offender is liable to be prosecuted, and if convicted, punished by the State." Therefore a criminal claim is made "by the state on behalf of the general public". In civil law, the state may provide the processes by which a dispute may be resolved but other than this has no direct involvement in the altercation. The dispute is between the individual parties only. Civil law comprises of 6 main areas of law with which a director need be concerned: •Law of Contract

•Law of Tort
•Commercial or Mercantile Law
•Company Law
•Employment Law
•Land Law

Due to their fundamental difference, the terminology used for each type of claim is also different…

General TermCriminal ClaimCivil Claim
Person(s) starting the caseProsecutorClaimant/Plaintiff
To bring case againstCharge, then prosecuteBring action against Found guiltyConvictedLiable
Found not guiltyAcquittedNot liable

Another difference between these types of claim is the court systems. They are dealt with by different types of court with different jurisdiction: Civil claim – County or High Court in first instance.

Criminal Claim – Magistrates or Crown Court in first instance. (Both can later be referred to the Court of Appeal, House of Lords and the European court of Justice.)

The two claims which could potentially be made by Domestics Ltd are both civil claims. It is clear that in both cases, an agreement has been made which has then been breached - covered under Law of Contract. The nature of these contracts (which has not been outlined in the brief) is irrelevant, as the contract may be written, verbal or implied from conduct.

Courts in which the claims against Raw Trade Ltd and Bright Dealer Ltd should be filed:

The court in which a case is initiated is the "court of first instance". We have seen that to bring action against a party under the civil law system (regarding business matters), there are two courts concerned. These are: •The County Court

•The High Court (Queen's Bench Division or sometimes Chancery Division) The difference between the two is simple; the County court deals with less serious or lower value claims, and the high court with those of more importance/value. There are "cut off" claim values to define which claims are held in which courts, and these are illustrated below:

This diagram shows that there is an overlap where cases with a value of between £15,000 and £50,000 may be held in either court. Usually, these cases are heard in County Courts, but the essential factor is the complexity of the case. If the case falls within this value overlap yet is of an extremely complex nature, then it can be heard in a High court.

In addition to this, the "3 Track System" has also since been introduced. Established in 2000 by Lord Woolf, its aim was to create better efficiency within the legal...
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