Your Task:
1. Unlike most modern states, Britain does not have a codified constitution but an unwritten one formed of Acts of Parliament, court judgments, and conventions.
2. You are required to discuss the reason why some countries do not have a written constitution, bring an example of such a country, and compare with the UK unwritten constitution.
3. If there is no wri
Lucy Jones
Introduction to Business Law
Chapter 1: The nature of English law
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What is law?
Law is – the body of rules and
regulations that govern the activities of
persons within a country.
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Characteristics of
English law
Figure 1.1
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Classification of law into
public and private law
Figure 1.2
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Doctrine of precedent
Judges of lower courts must apply the
legal rules set down by higher courts (or
courts of the same status) in earlier
cases where the facts are similar.
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Historical development of
Common law and equity
• Both are judge made law i.e. the law that is found
in cases coming before the courts.
• Before 1873 there were two court systems in
England – the Common Law Courts (common law
used) and Chancery Courts (equity principles used).
• Today ONE court system where judges use both
principles of common law and equity.
Difference between common law and equity?
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Criminal cases
• R v Smith =
Regina (Rex) against Smith
• Regina – Queen – State
• Smith – person accused of crime
• A prosecutor must prove the defendant is guilty
beyond reasonable doubt. The defendant does not
have to prove his innocence.
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Civil cases
Smith v Adams
• Smith = Claimant
• Adams = Defendant
• The claimant must prove his case on the
balance of probabilities, i.e. he must show that
he has a greater right than the defendant.
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The English legal profession
• Barristers
• Solicitors
Judges are appointed usually after working
as solicitors or barristers.
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End of the lecture
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Lucy Jones
Introduction to Business Law
Chapter 2: The court system and
alternative dispute resolution
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The English court system and other
methods of civil dispute resolution
• Using the Court System
• Alternatives: There are many ways to resolve disputes, and they
don’t all involve a trial before a judge in court:
1. Arbitration is a private process where disputing parties
agree that one or several individuals can make a decision
about the dispute after receiving evidence and hearing
arguments. Arbitrations different from mediation because
the third party arbitrator has the authority to make a
decision about the dispute.
2. Mediation is a private process where a neutral third person
called a mediator helps the parties discuss and try to resolve the
dispute.
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The English court system and other
methods of civil dispute resolution
– Conciliation is an alternative out-of-court dispute resolution instrument.
Like mediation, conciliation is a voluntary, flexible, confidential, and
interest-based process. The parties seek to reach an agreeable dispute
settlement with the assistance of the conciliator, who acts as a neutral
third party.
the conciliator will be asked by the parties to provide them with a nonbinding settlement proposal
– Tribunals are generally set up to provide a faster, less expensive and more
informal process for deciding disputes between people. Tribunals are
intended to be less formal, more efficient, cheaper and more accessible to
ordinary people.
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An outline of the English court
system
Figure 2.1
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Who are the senior judges in
the English legal system?
Figure 2.2
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Outline of where judges sit in the
court system
Figure 2.3
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Criminal trials take place in:
Magistrates’ Court
• Usually heard by 3 magistrates (or one District Judge
(Magistrates’ Court).
• Magistrates (or District Judge (Magistrates’ Court) determine
guilt of defendant and sentence.
Crown Court
• Heard before judge and jury.
• Jury determine guilt of defendant and judge determines
sentence.
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Classification of criminal
offences
1. Offences only triable on indictment.
2. Offences only triable summarily.
3. Offences triable either way.
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Appeals in criminal cases
Trials in Magistrates’ Courts
• By defendant against conviction and/or sentence to Crown
Court.
• By defendant or prosecution on points of law to High Court and
Supreme Court.
Trials in Crown Court
• By defendant against conviction and/or sentence to Court of
Appeal.
• Further appeal on point of law to Supreme Court by defendant
or prosecution.
defendants have a greater right
Appeals from summary trials in the
Magistrates’ Court
Criminal appeals from the Crown
Court
The Divisions of the High Court
Civil claims
Court that claim is commenced in:
• County Court
• High Court
Court procedure:
• Claim form and particulars of claim
• Defence
• Trial
• Enforcing judgment
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Courts where civil appeals are
usually heard
• High Court (Divisional Court)
• Court of Appeal
• Supreme Court
An appeal from the High Court may go
straight to the Supreme Court if it contains
matters of general public importance.
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End of the lecture
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Useful links to check out:
• Supreme Court
• https://www.youtube.com/watch?v=uUJS4H0rbJw
• The Crown Court:
TV cameras to be allowed in Crown Court
• The Magistrates’ Court
• High Court judge
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Lucy Jones
Introduction to Business Law
Chapter 3: Sources of English law
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Sources of law
THREE MOST IMPORTANT SOURCES TODAY:
• Legislation
• Case Law
• European Union Law
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Sources of law
Figure 3.1
Legislation
Primary legislation
•
•
Acts of Parliament also called statutes.
Made by Parliament (House of Commons, House of
Lords, monarch).
Delegated legislation
•
•
Made by bodies other than Parliament.
Power to make delegated legislation is given by
Parliament.
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Stages of bill
Figure 3.3
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Example of a Bill before Parliament 2019-21
• Keep up to date with the progress of Bills going through Parliament check out
the link: https://services.parliament.uk/bills/#m
Advantages and disadvantages of
delegated legislation
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Case law
• In a case a judge may be interpreting an Act of
Parliament or
• He may be developing the law set down in
previous cases.
• He may reverse the decision of a lower court
which hear the case.
• He may overrule a principle of law laid down in an
earlier case.
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In a case a judge will:
• Give the actual decision (which party is
successful in the case before him).
• Give his legal reasons for making the decision
based on the material facts (ratio decidendi).
• He may discuss the law generally and give
some hypothetical situations (obiter dictum).
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Outline of the doctrine of
precedence in the court structure
Figure 3.5
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Decisions of the Court of Appeal
Figure 3.6
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European Union law
Treaties: Treaty of Rome 1957, Treaty on the Functioning
of the European Union 2009.
• Regulations: have direct force in Member States.
• Directives: seek to harmonise the law in Member
States.
• Decisions: addressed to a particular Member State and
binding on that State.
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Key institutions of the EU
Figure 3.7
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How Does EU Law Apply In The UK After
Brexit?
• Before brexit, eu law took effect in the uk through the european communities
act 1972 (the eca 1972).
• Since 1972, certain types of EU rights and obligations, which are intended to be
directly effective, were given effect in the UK without the need for any further
domestic legislation.
• In terms of its application, EU law is ‘supreme’. This means that where there was
a conflict between EU law and UK domestic legislation, the latter could be
disapplied – a principle which provided the only circumstance in which a UK court
can disapply an Act of Parliament.
• UK judges were also bound to follow decisions by the Court of Justice of the EU
the 1972 Act.
How Does EU Law Apply In The UK After
Brexit? (Con.)
• Instead, the UK’s relationship with the EU is now governed by the Withdrawal
Agreement, a new international treaty negotiated by the UK and the EU under
Article 50 of the Treaty on European Union. The Withdrawal Agreement is
intended to –
1. tie up the administrative and financial loose ends from the UK’s membership of
the EU,
2. protect UK and EU citizens living in each other’s territory, and
3. provide a stand-still period in relation to the application of EU law in order to
allow for the negotiation of a trade deal, referred to in the Withdrawal Agreement
as the ‘transition period’ and in UK legislation as the ‘implementation period’.
On 26 June 2018, the European Union (Withdrawal) Act
2018 (EU(W)A 2018) received royal assent.
Lucy Jones
Introduction to Business Law
Chapter 4: The nature of the
agreement (contract) : offer and
acceptance
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Contract
• Agreement: written, oral, inferred by
conduct
• Between 2 or more persons
• Intended by them to be legally
binding and enforceable by law
Consumer Rights Act 2015
• The Consumer Rights Act 2015 is an Act of Parliament of the
United Kingdom that consolidates existing consumer
protection law legislation and also gives consumers a
number of new rights and remedies.
• The law is now clearer and easier to understand, meaning
that consumers can buy, and businesses can sell to them
with confidence.
• under the Consumer Rights Act all products must be of
satisfactory quality, fit for purpose and as described
• Consumer Rights Act 2015 link:
https://www.legislation.gov.uk/ukpga/2015/15/contents/enacted
Law of contract: Freedom to
contract
Generally parties are free to make their own bargains
1. The core of a contract is a bargain and in theory parties are free to
make their own bargains.
2. In practice there are some restrictions on contracts. Businesses
often use standard form contracts which can only be accepted or
rejected.
3. The law gives added protection to consumers who are generally in a
weaker position when it comes to making contracts with a business.
4. There are some clauses which if inserted into contracts will not be
enforceable.
5. Prohibition by statute on types of clauses: e.g. clauses excluding
liability for personal injury through negligence.
Importance of contracts to
business
Figure 4.1
Ownership does not pass in valid
contracts
Figure 4.2
Ownership may pass in voidable
contracts
Figure 4.3
Essentials of a valid contract
•
•
•
•
•
•
•
Offer and Acceptance
Consideration – something for something
An intention to create legal relations (usually presumed in
a business transaction)
Compliance with required formalities where applicable
Capacity to contract
Genuine consent to the terms
Contract must be legal
Nature of statements
Figure 4.5
Bilateral and unilateral contracts
BILATERAL CONTRACT
• A promise made in return for a promise – each
party promises to do something.
UNILATERAL CONTRACT
• One party promises to do something usually in
return for the completion of an act. The other
party does not promise to perform the action
but if he does so then the contract is completed
Offer
Offeror – makes the offer
Offeree – accepts the offer
OFFER must be certain and not vague
OFFER must be distinguished from an
INVITATION TO TREAT
Pharmaceutical Society of
GB v Boots Cash Chemist (1953)
• is a famous English contract law decision on the
nature of an offer.
• A display on supermarket shelves is an invitation to
treat.
• Customer makes an offer to buy the goods at the cash
desk.
• The contract is completed when the cashier accepts
the offer.
Fisher v Bell 1961
• is an English contract law case concerning the
requirements of offer and acceptance in the formation
of a contract.
• Flick knife in shop window.
• Offence to ‘offer for sale’ an offensive weapon (flick
knife).
Decision: The display in the shop window was not an offer
but invitation to the prospective purchaser to make an
offer (invitation to treat).
Partridge v Crittenden (1965)
• is an English case, which was heard by the High Court
• The defendant placed an advert in a classified section
of a magazine offering some bramble finches for sale.
• According to the Protection of Birds Act 1954 made it
an offence to offer such birds for sale.
• He was charged and convicted of the offence and
appealed against his conviction. offering a wild bird
for sale because:
• Advert = invitation to treat
Harvey v Facey (1893)
•
•
is a contract law case, it defined the difference between an
offer and supply of information. Facey was traveling on a train
between Kingston and Porus and the appellant, Harvey, who
wanted the property to be sold to him rather than to the City, sent
Facey a telegram. It said, “Will you sell us Bumper Hall Pen?
Telegraph lowest cash price-answer paid”. Facey replied on the
same day: “Lowest price for Bumper Hall Pen £900.” Harvey then
replied in the following words. “We agree to buy Bumper Hall Pen
for the sum of nine hundred pounds asked by you. Please send us
your title deed in order that we may get early possession.â€Â
Must distinguish offer from statement giving information or
expressing an intention
Request for information – Harvey v
Facey
Figure 4.4
Acceptance
• Unconditional assent to all the terms of an
offer.
• It must be positive act.
• It must be communicated to offeror (but there
are some exceptions: postal rules, unilateral
contract).
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Electronic contract
• Is an advertisement on a website an
offer or an invitation to treat?
• When is a contract completed on the
internet?
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Lucy Jones
Introduction to Business Law
Chapter 5: Intention, capacity,
consideration, and privity
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Essentials for a legally enforceable
contract
Figure 5.1
1. Intention to create legal
relations
Figure 5.2
Simpkins v Pays (1955)
•
Mrs Pays, her granddaughter and lodger enter into a
competition each week.
• They agree to share any prizes.
• Entries are sent in Mrs P’s name.
• One week they win £750. But Mrs P refuses to share
money with lodger.
Decision: From facts there was an intention to enter into
legal relations – lodger entitled to 1/3rd of winnings.
Commercial/business agreements
•
•
•
Presumed parties intend agreement to be legally binding unless:
• Agreement states it is not binding or
• Party seeking to have agreement set aside can show that at the time the
agreement was made there was no intention that it should be legally
enforceable.
If the commercial/business agreement is vauge an intention to create legal
relations will be presumed for example: Edwards v Skyways. The claimant
was an airline pilot working for the defendant. He was to be made
redundant. The defendants said that if he withdrew his contributions to the
company pension fund, they would pay him the equivalent of company
contributions in an ex gratia payment.
This was ambiguous and the court found in favor of the claimant –the
presumption of an intention to create relations had not been rebutted.
2. Contractual capacity
• Capacity to enter into contracts may be limited
where one of the parties is:
•
•
•
•
A minor
Intoxicated
Mentally impaired
A corporation acting outside its powers.
Contractual capacity: minors
Figure 5.3
Contractual capacity may be
limited
Figure 5.4
3. Consideration
• In order for a contract to be legally enforceable
there must be an exchange of consideration
(the law does not enforce of not charge
promises unless made under deed).
• The consideration provided by each party must
have some value but need not be of adequate
value i.e. the law is not concerned if one party
makes a poor bargain.
The same consideration can be used by a party in
more than one contract provided the contracts are
with different parties
Figure 5.5
Value of consideration
Chappell v Nestle (1966)
• Chocolate wrappers sent to Nestle could amount
to part of the consideration for a record, as Nestle
benefitted the sales of chocolate which may not
otherwise have been sold.
Even items which are disposed of by one parties as having no value
may represent valuable legal consideration.
Past consideration
Re McArdle (1951)
• Mr. M died and left his house to Mrs M and then to their children in equal
shares.
• Daughter-in-law, (D) made house improvements costing £488.
• After improvements made all children signed agreement that they would
reimburse D when Mrs M died.
Decision: Agreement was after work done and was not legally enforceable D
could not claim reimbursement
Consideration given before a contract is completed (past consideration) is not adequate
for a binding contract.
4. Privity of contract
Figure 5.7
Privity of contract
Figure 5.8
Contracts (rights of third parties)
Act 1999
Persons who are not party to a contract can sue for their rights
under the contract:
• Where the contract expressly permits enforcement by third
parties or
• Where the purpose of the contract is to benefit the third party
(unless clear that the contract did not intend to create rights
for third parties).
A person need not be in existence at time contract was made to
gain rights under it.
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