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chapter 1
the law of contract and people in business
| Term | Definition |
|---|---|
| owners | Owner stakeholders are the owners of an organization. They supply capital or equity to the business and have a say in how everything runs. There can be multiple owners at a business, and each owner would have equity in the business. |
| trade union | A trade union (also called labor union) is an organization of workers in a particular industry that exists to secure good improvements in pay, benefits, safe working conditions, or social and political status through collective bargaining. |
| suppliers | Suppliers are people or businesses who sell goods to your business and rely on you for revenue from the sale of those goods. |
| Customers | Customers are the people who buy business products. Customers expect to buy the best quality from that business but at a fair price. |
| Communities | The community in which a business functions can be considered as another set of stakeholders. Good businesses are considered an asset to any community. |
| Creditors | Creditors lend money to businesses, and they could also have a secured interest in the company’s worth. Creditors get paid back from the sale of products or services at your business. In the event of a business shutdown, |
| investors | Investors can include owners but they can also be outside vendors who typically have a right to accurate and timely information such as regular financial statements. |
| Employees | Employees have a direct stake in the company. They interact directly with customers, earn money to support themselves, and give support to the business operations as well. |
| Government agencies | Government agencies can also be thought of as a major stakeholder in a business. They collect taxes from the company, its employees, and from other spending the company does. |
| media | Every business needs media publication relationships to spread the word about their brand. Businesses often need to interact with press to make an important announcement or advertise their product. |
| stakeholder | A stakeholder has a vested interest in your business or a project. This type of stakeholder does not typically have a financial stake in your business. |
| shareholder | A shareholder has a financial interest in a business or project. Often a shareholder is a partial owner. |
| agreement | agreement occurs when a offer has been accepted |
| intention | in order for a contract to take place there must be a wiliness and knowledge on both sides that they entering into a contract |
| consideration | what one party gives to another ,there must be a exchange |
| capacity | a person entering into a contract must have the legal ability to do so |
| consent | the contract must be made votary |
| legality of form | this refers to the manners in which the contract is drawn up. certain contracts must be written up e.g dale of property insurance policy |
| legality of purpose | the contract must be broken down into laws , legally binding contracts must be legal transactions. |
| invitation to treat | Offers are different than an invitation to treat. An invitation to treat is not an offer. When you list your home for sale, you .You are inviting potential buyers to make an offer to you to buy your home. The same is true with most advertising. |
| what are the 4 ways of-terminating a contract | performance ,agreement ,frustration, breach |
| performance | both parties carry out their side of the contract |
| agreement | both parties agree to end the contract |
| frustration | some unforeseen event makes it impossible to carry out the contract |
| breach | an act of breaking the terms set out in a contract. |
| Invitation to treat | Advertisements price tags or shop displays are not legal offers, they are invitation to treat if a price is wrong it can be corrected ,the item does not have to be sold at the mistaken price |
| Recind of contract | Abandon the contract |
| Damages | Thr injured party can sue for compensation |
| Specificy performance | The courts can order the original contract to be carried out eg. The builder may be ordered to complete the construction of the. House |
| Coveat emptor | Let the buyer beware |
| Coveat subsurtor | Let the signer beware of what they are signing |
Created by:
darraghcowley
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