Business Law

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Business Law

Business Law


Business law governs the activities of the corporations at large. It incorporates certain legally accepted practices, which have to be followed by every company that is registered under the law. In the UK, there is no constitution as a single legislative act and securing foundation of social order. The legal system operates on the basis of the unwritten constitution, drawn from the norms of statutory law; the most important among them is the Habeas Corpus Act of 1679, the Bill of Rights 1689, Act of Succession 1701, Act of Parliament in 1911 and 1949, common law, and the rules of a constitutional convention (Kelly and Holmes 2002, pp. 47). What limits a company to follow certain rules are the contract signed between any government entity and the organization.

A contract proposes to formalize an affirmation between two or more parties, in relative to a subject. Contracts can cover an exceedingly very broad range of matters, encompassing the sale of items or genuine house, the periods of employment or an unaligned contractor connection, the town of an argument, and ownership of intellectual property evolved as part of a work for hire (Shulman, 2001). Contracts are an integral part of business law, because contract bound businesses to follow laws and regulations, which grant certain rights to businesses and customers. This assignment aims to review a case, in order to answer two questions regarding the case.

The Case

Andre wishes to purchase a van for his domestic use. He sees an advertisement for a Ford van in a news paper advertisement placed by “vans 4U” a local company, which is mentioned below.



Ford Van - One previous owner - £3,000.

150,000 miles - 1995 model - 1.8 litre engine.

Vans 4U accept no responsibility for any loss or damage sustained to any buyer

Andre visits the showrooms at vans 4U. He shows the salesman the advertisement and asks about the van in the example. The salesman shows him the van and tells Andre that;

The van has been checked by their mechanics and has passed a comprehensive safety inspection; and

Ownership of the vehicle by the previous owner had been verified; and

The description in the advertisement is accurate and correct.

Relying on this information, Andre agrees to purchase the van and pays the full asking price of £3,000. He is given the safety inspection certificate and the registration documents. He drives the van home. Later that day he takes it to his friend Georgian, a car mechanic, who has agreed to inspect the van. Georgian, after inspecting the van points out the following:

The van has travelled 250,000 miles and has a 1.4 litre engine; and

The brakes are faulty and need immediate replacement. He stresses that the van is not safe to drive until this has been done.

The next day the police call at his house. They tell Andre they believe the van was stolen, and they take it away while they carry out their investigations. In connection to this case, this assignment would answer following ...
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