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a) Explain the fundamental concepts and main principles of law governing business transactions and the operation of limited liability companies.

Max is a local entrepreneur who designs exclusive custom-made trainers and clothing for celebrities. With the success of his business he is looking to expand into a more attainable, ready-to-wear market. Max is called by Brody from Dip n Dye Fabrics Ltd about supplying him with the fabric he needs for the collection. Brody quotes him £23,500.00 and that they can ‘guarantee it to be delivered to his design studio and factory within the next 2 weeks’ but he needs to confirm the order as soon as possible because they cannot hold that price and delivery time for long.

Later that evening Max receives an email from an advertising company called Merely Players Ltd who offer their expertise on social media advertising and networking who can ‘boost your sales by 50%’ and ‘a dedicated social media campaign team for 4 weeks before release - only £4,000.00’. Max calls Merely Players Ltd and speaks to William who he makes an order with for them to manage his promotion campaign. However, when Max receives another email with the details of the cost it is for £7,000.00 so he immediately emails back cancelling the order.

The following day Max calls Brody at Dip n Dye Fabrics Ltd. However, Brody isn’t available, so he leaves him an answer message accepting the offer of £23,500.00 but asks at the same time whether the fabric can be delivered within 10 days and whether they would be able to supply more fabric at short notice if needed.

Max has reconsidered the supply of fabrics from Dip n Dye Ltd because he realised that the demand for his collection outweighs the fabric he has ordered and he has been quoted a better price and quicker delivery. Max gets through to the receptionist to cancel his order, but she says that all of Brody’s messages have been sent to him now. Advise Max as to whether there is a contract with Dip n Dye Ltd and Merely Players Ltd

Learning Outcomes

The learning outcomes that are being assessed in this assignment are:

a) Explain the fundamental concepts and main principles of law governing business transactions and the operation of limited liability companies.

b) Recognise and solve structured problems that may affect businesses and identify aspects that could be improved

d) Utilise the fundamental concepts and principles of the law relating to business transactions and apply these to hypothetical situations.

f) Effectively communicate information in a structured and appropriate written format that demonstrates understanding of law

Your grade will depend on the extent to which you meet these learning outcomes in the way relevant for this assignment. Please see the grading rubric at the end of this assignment brief for further details of the criteria against which you will be assessed.

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