BUSINESS LAW NOTES – DANIEL THEYAGU 5TH EDITION (2020)
Business Law
Edited and prepared as additional readings by
Daniel Theyagu
Important message to students:
The information provided in this manual is to supplement your readings from textbooks
and other online resources. Much of the information given are extracted from other
sources and is intended for discussion during lectures and tutorials. Under no
circumstances can you extract or quote information from this source and cite them as part
of your assessment. You are to do independent research from other text books and online
resources. The purpose of these notes is to assist you to have a simpler, clearer and better
understanding of business law.
DANIEL THEYAGU 1
, BUSINESS LAW NOTES – DANIEL THEYAGU 5TH EDITION (2020)
TABLE OF CONTENTS
Topic 1: The Legal System 05
Law and Law of the State 05
Law and Morality 05
Classification of Law 06
Where does law come from (the source) 06
The Constitution 07
Legislation 07
The Common Law 08
The Court Structure 09
The Civil Litigation Process 13
Alternative Dispute Resolution 18
Advantages and Disadvantages of Arbitration 20
Review Questions 23
Topic 2: Making a Contract 24
Introduction 24
Laws applicable to contract 24
Definition of contract 24
Formation of contract 25
The Offer 25
The Acceptance 30
Intention to create Legal relations 31
Consideration 32
Review questions 33
Topic 3: The Terms of Contract 34
Introduction 34
Express Terms 34
Implied Terms 36
Representation vs Terms of Contract 37
Contractual Terms: Conditions and Warranty 38
Exemption/Exclusion Clauses 40
Review questions 47
DANIEL THEYAGU 2
, BUSINESS LAW NOTES – DANIEL THEYAGU 5TH EDITION (2020)
Topic 4: Misrepresentation, mistakes, duress and illegality 48
Introduction 48
Misrepresentation 48
Duress and Undue Influence 52
Mistake 55
Illegal contracts 56
Review questions 59
Topic 5: Discharge of contracts and remedies for breach 60
Introduction 60
Discharge of Contract by Agreement 60
Discharge of Contract by Performance 61
Discharge of Contract by Breach 64
Discharge of Contract by Frustration 65
Remedies for Breach of Contract 66
Common Law Remedies 67
Topic 6: The Sales of Goods Act 75
Introduction 75
Laws applicable to Contracts of Sales of Goods 75
Acceptance and Rejection 85
Topic 7: The Tort of Negligence, Nuisance, Defamation and 86
Vicarious Liability
Introduction 86
Distinction between Tort, Crime and Contract 87
Tort and Contract 88
The Tort of Negligence 89
Breach of Duty of Care 93
Resultant loss and damage 95
Proximate cause and remoteness 95
Strict Liability and the rule in Rylands v Fletcher 97
The Tort of Nuisance 99
The Tort of Trespass 101
Defences in Tort 102
Defamation 104
Vicarious Liability 117
Review Questions 125
Topic 8: The Law of Agency 126
Review Questions 137
DANIEL THEYAGU 3
, BUSINESS LAW NOTES – DANIEL THEYAGU 5TH EDITION (2020)
Topic 9: Introduction of Business Organization 139
Corporate Management 152
Review Questions 165
Important Cases in Business Law 166
Legal Terminology 237
DANIEL THEYAGU 4
Business Law
Edited and prepared as additional readings by
Daniel Theyagu
Important message to students:
The information provided in this manual is to supplement your readings from textbooks
and other online resources. Much of the information given are extracted from other
sources and is intended for discussion during lectures and tutorials. Under no
circumstances can you extract or quote information from this source and cite them as part
of your assessment. You are to do independent research from other text books and online
resources. The purpose of these notes is to assist you to have a simpler, clearer and better
understanding of business law.
DANIEL THEYAGU 1
, BUSINESS LAW NOTES – DANIEL THEYAGU 5TH EDITION (2020)
TABLE OF CONTENTS
Topic 1: The Legal System 05
Law and Law of the State 05
Law and Morality 05
Classification of Law 06
Where does law come from (the source) 06
The Constitution 07
Legislation 07
The Common Law 08
The Court Structure 09
The Civil Litigation Process 13
Alternative Dispute Resolution 18
Advantages and Disadvantages of Arbitration 20
Review Questions 23
Topic 2: Making a Contract 24
Introduction 24
Laws applicable to contract 24
Definition of contract 24
Formation of contract 25
The Offer 25
The Acceptance 30
Intention to create Legal relations 31
Consideration 32
Review questions 33
Topic 3: The Terms of Contract 34
Introduction 34
Express Terms 34
Implied Terms 36
Representation vs Terms of Contract 37
Contractual Terms: Conditions and Warranty 38
Exemption/Exclusion Clauses 40
Review questions 47
DANIEL THEYAGU 2
, BUSINESS LAW NOTES – DANIEL THEYAGU 5TH EDITION (2020)
Topic 4: Misrepresentation, mistakes, duress and illegality 48
Introduction 48
Misrepresentation 48
Duress and Undue Influence 52
Mistake 55
Illegal contracts 56
Review questions 59
Topic 5: Discharge of contracts and remedies for breach 60
Introduction 60
Discharge of Contract by Agreement 60
Discharge of Contract by Performance 61
Discharge of Contract by Breach 64
Discharge of Contract by Frustration 65
Remedies for Breach of Contract 66
Common Law Remedies 67
Topic 6: The Sales of Goods Act 75
Introduction 75
Laws applicable to Contracts of Sales of Goods 75
Acceptance and Rejection 85
Topic 7: The Tort of Negligence, Nuisance, Defamation and 86
Vicarious Liability
Introduction 86
Distinction between Tort, Crime and Contract 87
Tort and Contract 88
The Tort of Negligence 89
Breach of Duty of Care 93
Resultant loss and damage 95
Proximate cause and remoteness 95
Strict Liability and the rule in Rylands v Fletcher 97
The Tort of Nuisance 99
The Tort of Trespass 101
Defences in Tort 102
Defamation 104
Vicarious Liability 117
Review Questions 125
Topic 8: The Law of Agency 126
Review Questions 137
DANIEL THEYAGU 3
, BUSINESS LAW NOTES – DANIEL THEYAGU 5TH EDITION (2020)
Topic 9: Introduction of Business Organization 139
Corporate Management 152
Review Questions 165
Important Cases in Business Law 166
Legal Terminology 237
DANIEL THEYAGU 4
