Business Law Case Study Report

              In contract law, it is important to analyze whether all elements of an offer has been made and accepted by both parties. When two parties freely enter into a legal relationship by agreeing on some terms and conditions, it means that they have entered into a contract. It is also necessary to understand that when the contract made is considered legal in eyes of the law. There are five basic elements, which needs to be keeping in mind while making any contract. The first element of a contract is the agreement between the parties entering into a contract. The law does not consider any unilateral contract under the contract law. The second most important thing is the consideration, which means that a bargaining has been made where a service or property will be provided in exchange for money or something else. It means that if two parties are entering into the legal contract, one would provide a property or service etc, and other will pay back for getting that service or property.

            The third element for formation of a legal contract is capacity, which means that the parties have the legal capacity to enter into the contract like they have mental capacity as well as legal age. It means that a child with age 10 may not be considered legal to enter into contract law with any other party. The fourth element for entering into contract formation is the intention. It means that parties have a clear intention that they are making a legal relationship, which is guided by the contract law, binding them legally. If one party is not clear in its intention to form a contract, it may not be considered legal. So, consent from the parties involved is a must. The last element of binding into the legal contract would be the certainty. It means that the contract being made is clear and certain, and it does not have any kind of uncertainty. The terms and condition being finalized in the contract must be clear enough to make it a legal contract (barristers.tv, 2018)

            Looking at the above-mentioned elements of the contract law, it can be said that Ellen has been legally binding into the contract with the owner of the house, who was giving her the premises for her meditation studio. The case has not given any details of the contract between the two, but it is evident that both parties are eligible to make a valid contract, which can be legally binding. She got the premises on lease for 12 months, and in return, she had to pay a certain amount of lease every month to the owner of the house. For whatever reasons, she was not able to pay the rent amount to the owner, and as per the given facts, it is clear that Ellen has breached her contract with the housing landlord (Emerson, 2015).

Her business is going to earn profits or not, it is not the headache of the house owner, as his contract with Ellen has nothing to do with it. In any case, Ellen has to pay the rent amount as they signed in their contract. Ellen can be in fact in saying that she was misled by the council worker regarding the area, but that claim is not relevant to her contract with the house owner. So, it is quite clear that breach of contract has been made by Ellen, and if she would not pay the agreed rent amount, the house owner can take her to the court to claim damages as per breach of contract under the common contract law. She has to pay the amount; otherwise, the house owner can first terminate the contract on the basis of breach of contract and then file a case against her to claim any damages for breach of contract (barristers.tv, 2018).

Through analyzing the case it is clear that the council is liable for the financial harm faced by Ellen. The council employee did not provide the correct information due to which the business of Ellen suffered financial loss and she faced issues in paying the rent of the premises.  The council should pay a significant amount as damages. There are three remedies for the breach of contract which include damages, cancellation of the contract and specific performance. In this case, Ellen is the plaintiff and the council is the defendant which must pay the damages because due to the negligence of the council the business of Ellen suffers financial loss.

If the tort law is applied in this situation than it is clear that due to negligent acts of the council employee the business of Ellen suffers loss, therefore, the council is liable for damages. It can be seen that it was the duty of the council employee to check the premises efficiently because before signing the lease Ellen asked various questions and clearly state that her studio requires a calm environment. It was the duty of the council officer to investigate the area and provide proper information to Ellen. If Ellen know that the nearby building might need renovation in the future and it would cause huge noise than Ellen might not sign the lease. Therefore the council should pay a significant amount as damages because it is responsible for the situation in which Ellen is facing currently (Steele, 2017).

According to the contract law, both parties have to give up something for the valid contract. It means one party would have to give up the services or labor and the other party would have to give up the money. In this contract, Ellen signs up the lease but due to the misinformation of the council, the business of Ellen suffers a loss which would ultimately result in the delay of rent. The contract law states that both parties have to fulfill certain obligations otherwise it would result in the breach of contract. 

Breach of contract between Ellen and landlord will occur because Ellen is falling behind in paying rent which means landlord is not getting its rent on time. It means that the landlord is not getting any benefit from Ellen which is the main thing in any contract to be valid. The council is the one according to tort law will have to pay the damages because due to its negligence the business suffers loss. The breach of contract will occur when Ellen would not pay the rent at all for the significant period of time. If the contract state that Ellen have to pay rent every month without any delay than the contract will breach and the landlord has the right to demand the damages.

According to contract law, it is important for both the parties to give something and take something. The landlord has given the premises to Ellen now it's the duty of Ellen to give rent in return as stated in contract however due to the misstatement of council Ellen suffer loss which is now causing the problem for Ellen. The landlord is not responsible for any harm or misstatement, therefore, the landlord has the right to demand its rent because it is not the concern of landlord that Ellen has suffered loss due to the council (Steele, 2017).

The Ellen is the plaintiff, therefore, it should demand damages from the council. Ellen should find a way through which it can generate enough money to pay the rent to the landlord. The solution of the whole issue is that Ellen must demand damages from the council so that it can pay rent to the landlord and the contract between Ellen and the landlord would not come to an end. Ellen can open its meditation Studio in those hours when there is low noise pollution. Through this, it can earn some revenue. Scheduling the hours of meditation studio might help Ellen to generate the significant amount of revenue.

If the damages are paid by the council than Ellen would have enough money to pay the rent through this contract will remain valid. Therefore Ellen should take help of the legal expert and demand damages from the council. It is quite clear that the council did not provide brief information and the behavior of the council employee was very unprofessional. Ellen has the right to demand damages because she has suffered financial loss. The payment of damages would help Ellen to save its contract from breaching otherwise landlord can also take action against Ellen (Marson & Ferris, 2015).

If all the above discussion is summarized than it is evident that whether her business is going to earn profits or not, it is not the headache of the house owner, as his contract with Ellen has nothing to do with it. In any case, Ellen has to pay the rent amount as they signed in their contract. Ellen can be in fact in saying that she was misled by the council worker regarding the area, but that claim is not relevant to her contract with the house owner. So, it is quite clear that breach of contract has been made by Ellen, and if she would not pay the agreed rent amount landlord have the right to take action.

 References of Business Law Case Study Report

barristers.tv. (2018). Contract Law. Retrieved September 18, 2018, from http://www.barristers.tv/practice-of-law/

Emerson, R. W. (2015). Business Law. Barron's Educational Series.

Marson, J., & Ferris, K. (2015). Business Law. Oxford University Press.

Steele, J. (2017). Tort Law: Text, Cases, and Materials. Oxford University Press.