Legal Underpinnings of Business Law

Legal Underpinnings of Business Law

Vada Taborn

BUS 670: Legal Environment

Instructor: William Muniak

March 23, 2015

Legal Underpinnings of Business Law

        “Breach of contract is failing to perform and term of a contract, written, oral, without a legitimate legal excuse” (Law dictionary, 2015). Other terms of breaching a contract can include: showing signs of not finishing their job, never paying the bill in full, and not delivering merchandises that were purchased etc… “Breach of contract is categorized as material or immaterial to determine the appropriate legal solution or remedy for the breach” (Retures, 2012).

There are damages that occur from anyone or any business as a result in breach of contract. One of those damages is compensatory, which puts the company not in breach,” in the position that they would have been in if the breach had not happened” (Retures, 2012). Another type of damage is punitive damages which are payments that the breaching parties have to pay. The payments can be exceeding high past a point that will totally reward the winning party. “Punitive damages are meant to punish a wrongful party for a wrongful act and is rarely is used for business contract settling” (Seaquist, 2012).

Specific performance is an alternative remedy that a non-breaching person or company can choose. This alternative remedy is used as a remedy for those who have breached a contract in an uncommon or distinctive manner. Most likely the damages could not be sufficient enough to put a non-breaching individual or company in a better situation.

A non-breaching person or company can cancel a contract and sue for restitution this is called cancellation and restitution. “If the non-breaching party have given a benefit to the breaching party restitution as a contract remedy means the non-breaching party is put back in the position it was before the breach” (Seaquist, 2012). I would personally limit my “liability exposure within each particular business organizational form by getting an LLC or Limited Liability Company” (Retures 2012). This would provide me with simplicity, flexibility, and limited personal liability form business creditors.

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Limiting Liability Exposure

 The easiest less expensive form of business a person can choose is called a sole proprietorship.  “The process only requires creating a business name, obtaining a license from the city or county, publicizing the business name in a local newspaper, and opening the doors” (Strauss, 2012). Tinker’s Home Security Service could limit their liability by purchasing business insurance including, general liability, product liability, malpractice, or change to a different business form for example, LLC.