LAWRENCE EMEKA MODEME ENGLISH LEGAL SYSTEM AND OBLIGATIONS MODERN BUSINESS LAW PARTS 1–4 Download free eBooks at bookboon.com II English Legal System and Obligations – Modern Business Law: Parts 1–4 1st edition © 2016 Lawrence Emeka Modeme & bookboon.com ISBN 978-87-403-1493-9 Peer review by Prof. Yenkong Ngangjoh Hodu, Faculty of Law, University of Manchester Download free eBooks at bookboon.com III LEGAL SYSTEM AND OBLIGATIONS CONTENTS CONTENTS Dedication xi Introduction 1 How To Answer Law Questions 2 Part 1: The English Legal System 5 1 Introduction To The English Legal System 6 1.1 Introduction 6 1.2 Learning Objectives 7 360° 1.3 Meaning of Law 7 1.4 The Constitution 7 1.5 Separation of Powers 8 thinking 1.6 The Rule of Law 360° 8 . 1.7 The UK Constitution 8 1.8 Sovereignty of Parliament thinking. 9 360° thinking . 360° thinking. Discover the truth at www.deloitte.ca/careers Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. © Deloitte & Touche LLP and affiliated entities. DownloadDiscover free the eBooks truth atat bookboon.com www.deloitte.ca/careersClick on the ad to read more IV © Deloitte & Touche LLP and affiliated entities. ENGLISH LEGAL SYSTEM AND OBLIGATIONS CONTENTS 1.9 Classifications of Law 10 1.10 Evidence 13 1.11 Appeals 13 1.12 Judicial Review 14 1.13 Who can Sue or be Sued 14 1.14 Parties to a Legal Action 14 1.15 Law Reports 17 1.16 Chapter Summary 17 1.17 Practice Questions 18 2 Sources Of English Law 19 2.1 Introduction 19 2.2 Learning Objectives 19 2.3 Common Law 19 2.4 Judicial Precedent or Case Law 20 2.5 Equity 23 2.6 Legislation or Statute 25 2.7 Delegated or Secondary Legislation 28 2.8 European Union Law 31 2.9 Chapter Summary 35 2.10 Practice Questions 36 3 Interpretation Of Statutes 37 3.1 Introduction 37 3.2 Learning Objectives 37 3.3 General Approach to Statutory Interpretation 37 3.4 The Literal Rule 38 3.5 The Golden Rule 40 3.6 The Mischief Rule 41 3.7 The Purposive Rule 43 3.8 Other Rules of and Aids to Interpretation 44 3.9 Presumptions Relating to Statutes 45 3.10 Chapter Summary 46 3.11 Practice Questions 46 Download free eBooks at bookboon.com V ENGLISH LEGAL SYSTEM AND OBLIGATIONS CONTENTS 4 The Court System 47 4.1 Introduction 47 4.2 Learning Objectives 47 4.3 Tribunals 47 4.4 Magistrates’ Courts 51 4.5 County Courts 52 4.6 Crown Court 53 4.7 High Court 53 4.8 Court of Appeal 55 4.9 Supreme Court 55 4.10 Court of Justice of the European Union 56 4.11 The European Court of Human Rights 56 4.12 Chapter Summary 57 4.13 Practice Questions 58 Part 2: Contract Law 59 5 Formation Of Contracts 60 5.1 Introduction to Contract Law 60 5.2 Learning Objectives 61 5.3 Meaning of Contract 61 5.4 Formation of Contract 61 5.5 Offer 61 5.6 Acceptance 71 5.7 Consideration 74 5.8 Intention to Create Legal Relations 80 5.9 Relevant Form 83 5.10 Privity of Contracts 84 5.11 Chapter Summary 86 5.12 Practice Questions 86 6 Contract Terms 87 6.1 Introduction 87 6.2 Learning Objectives 88 6.3 Express Terms 88 6.4 Implied Terms 89 6.5 Nature of Terms 92 6.6 Exclusion or Limitation Terms 95 6.7 Chapter Summary 108 6.8 Practice Questions 109 Download free eBooks at bookboon.com VI ENGLISH LEGAL SYSTEM AND OBLIGATIONS CONTENTS 7 Discharge Of Contract 110 7.1 Introduction 110 7.2 Learning Objectives 110 7.3 Discharge by Performance 110 7.4 Discharge by Agreement 113 7.5 Discharge by Frustration 114 7.6 Discharge by Breach 116 7.7 Remedies for Breach of Contract 118 7.8 Chapter Summary 130 7.9 Practice Questions 131 8 Vitiation Of Contracts 1 Misrepresentation, Duress And Undue Inlfuence 132 8.1 Introduction 132 8.2 Learning Objectives 133 8.3 Misrepresentation 133 8.4 Duress 142 8.5 Undue Influence 146 8.6 Chapter Summary 149 8.7 Practice Questions 150 9 Vitiation of Contract 2 Mistake, Illegality And Incapacity 151 9.1 Introduction 151 9.2 Learning Objectives 151 9.3 Mistake 151 9.4 Illegality 162 9.5 Incapacity 172 9.6 Chapter Summary 175 9.7 Practice Questions 178 Download free eBooks at bookboon.com VII ENGLISH LEGAL SYSTEM AND OBLIGATIONS CONTENTS Part 3: Tort Law 179 10 Negligence 180 10.1 Introduction 180 10.2 Learning Objectives 182 10.3 Meaning of Negligence 182 10.4 Conditions for Negligence Liability 182 10.5 Proof of Breach of Duty 193 10.6 Factual Causation 194 10.7 Legal Causation 197 10.8 Negligence Defences 202 10.9 Chapter Summary 205 10.10 Practice Questions 206 11 Negligence: Special Duty Situations 207 11.1 Introduction 207 11.2 Learning Objectives 208 11.3 Emergency Services and Public Bodies 208 11.4 Pure Economic Loss 209 11.5 Psychiatric Injury 215 11.6 Chapter Summary 220 11.7 Practice Questions 221 12 Occupiers’ Liability 222 12.1 Introduction 222 12.2 Learning Objectives 223 12.3 Meaning of Premises 223 12.4 Meaning of Occupier 223 12.5 Meaning of Visitors 224 12.6 Duty to Visitors 224 12.7 Non-Visitors 230 12.8 Chapter Summary 235 12.9 Practice Questions 236 Download free eBooks at bookboon.com VIII ENGLISH LEGAL SYSTEM AND OBLIGATIONS CONTENTS 13 Nuisances 237 13.1 Introduction 237 13.2 Learning Objectives 238 13.3 Private Nuisance 238 13.4 Public Nuisance 244 13.5 Remedies in Nuisance 250 13.6 Defences for Nuisance 251 13.7 The Defendants in Private and Public Nuisance 253 13.8 Statutory Nuisance 254 13.9 Chapter Summary 256 13.10 Practice Questions 257 14 Liability For Harmful Escapes 258 14.1 Introduction 258 14.2 Learning Objectives 259 14.3 The Tort: The Rule in Rylands v Fletcher 259 14.4 Right of Action 263 14.5 The Proper Defendant 263 14.6 Recoverable Damages 263 14.7 Defences 263 14.8 Chapter Summary 265 14.9 Practice Questions 266 15 Economic Torts 267 15.1 Introduction to Economic Torts 267 15.2 Learning Objectives 268 15.3 Inducing Breach of Contract 268 15.4 Causing Loss by Unlawful Means 272 15.5 Unlawful Means Conspiracy 275 15.6 Lawful Means Conspiracy 277 15.7 Chapter Summary 278 15.8 Practice Questions 278 Download free eBooks at bookboon.com IX ENGLISH LEGAL SYSTEM AND OBLIGATIONS CONTENTS Part 4: Employment Law 280 16 Employment Law: Types Of Employment 281 16.1 introduction 281 16.2 Learning Objectives 281 16.3 Types of Employment 281 16.4 Determination of type of contract 283 16.5 Differences in the Treatment of Employees and Independent Contractors 287 16.6 Vicarious Liability 288 16.7 Form and Particulars of Employment Contract 292 16.8 Duties of the Employer 293 16.9 Duties of the Employee 294 16.10 Workers 295 16.11 Chapter Summary 296 16.12 Practice Questions 297 17 Employment Contract: Termination And Remedies 298 17.1 Introduction 298 17.2 Learning Objectives 298 17.3 Termination by Notice 298 17.4 Termination by Summary Dismissal 299 17.5 Unfair Dismissal 300 17.6 Constructive Dismissal 302 17.7 Redundancy 302 17.8 Termination by Agreement 303 17.9 Termination by Frustration 304 17.10 Remedies for Breach of Employment Contract 304 17.11 Chapter Summary 306 17.12 Practice Questions 307 List of cases 308 List of statutes 324 Endnotes 331 Download free eBooks at bookboon.com X ENGLISH LEGAL SYSTEM AND OBLIGATIONS DEDICATION DEDICATION To my late father Godwin and my mother Christiana. Your honesty and integrity have inspired me. Your discipline has helped to make me who I am. Download free eBooks at bookboon.com XI ENGLISH LEGAL SYSTEM AND OBLIGATIONS INTRODUCTION INTRODUCTION Business law is a combination of legal topics and principles relevant and applicable to businesses. It situates businesses and business people within the legal environment in which they must operate and equips individuals with the legal knowledge and skills necessary for the operation of businesses. Business law is a wide subject. It covers the foundations and structures of the English legal system, the law relating to contracts, torts, employment, and agency. It also covers laws relating to the formation, structure and operations of business organisations, especially partnerships and companies, as well as aspects of criminal law relating to business organisations and business people. Although the topics in Business Law are varied and taken from different branches of the law, they are all connected in an interesting way. The diligent and committed student will find the study of Business Law interesting and rewarding, even if challenging, but the unserious one is likely to struggle. This book, which appears in two volumes for convenience, delivers the fundamental principles of law relevant to businesses in a simple, lucid, comprehensive and easily navigable manner and seeks to instil appropriate skills for recognising and tackling legal problems in a business context. Book one deals with the essentials issues in the English legal system, the sources of English law, the administration of justice and the structure and jurisdiction of courts and tribunals. It also covers the fundamental principles of contract, tort and employment law.