Foundations of Business Law Essay Example | Topics and Well Written Essays - 1250 words

Foundations of Business Law - Essay Example By virtue of a valid sale and waiver of all her rights to the enterprise, Roxanne has transferred all said rights and interests to the property, which also includes liabilities and future litigation, such as the present case against her former business enterprise and its new owner, Sting. If Sting, also signified that it was Roxanne who owned the business through his conduct, Roxanne cannot be still held liable as there was fraud and misrepresentation employed by the former. Conversely, if there was indeed a valid, legal transfer of the rights to the business to Sting, he shall be the one solely liable to pay the obligation of $40,000 to Lumieres Sound and Lighting System. If Lumieres Sound and Lighting System cannot recover from Sting by virtue of his disappearance, the former cannot recover from Roxanne, as she has no knowledge whatsoever of the obligation and therefore, no obligation to pay the debt created by the new owner Sting. Moreover, since the parties were entering a contra ct which amounted to a significant amount of money, namely: $40,000.00, it was incumbent upon Lumieres Sound and Lighting System to verify the identity of the business proprietor they were contracting with, and look into all the considerations such as the financial capability of the other party to pay, among several other factors. It cannot take refuge in the fact that they had been â€Å"a regular supplier to Mogadon in the past, and was not aware of the change of ownership.† In all their financial dealings, a supplier must always exercise diligence and due care by assessing their client’s profile and identity. If there was only an actual transfer of the rights to the property, where legally, Roxanne was still the owner of the business enterprise, she is still liable for all the acts and obligations despite the actual ownership of Sting. Under the law, she still has rights and interests to the business enterprise, and would ultimately be liable for litigation and brea ch of contract, as Sting can only be considered as an agent acting in her behalf. Hence, in the absence of Sting, Roxanne can be held liable. Lastly, although there was an actual transfer of rights and ownership of the business by virtue of the sale between Roxanne and Sting, it was incumbent upon Roxanne to have advised Sting to stop the use of the old business signs, advertising, materials and stationary, and letterhead of Mogadon Music, and informed her former contacts and suppliers of the change of ownership of her former business enterprise. Question 2 To effectively ascertain whether or not Sally has a valid claim and cause of action under the law against Great Eastern Railway, an analysis of the facts and circumstances surrounding the case is proper. The facts of the case are clear and undisputed. There was a valid freight contact entered into by the parties. The issue and question in this case is whether or not Great Eastern Railway, under the stipulations of the contract en tered into by the parties, and through the acts or omissions of its employees, is liable for damages under the provisions and instances set forth by law and jurisprudence. The case at bar merits a situation of breach of contract. Defined in general terms, a breach of contract of a contractual obligation is any failure or departure from the agreed  terms and conditions of a contract, Accordingly, where a breach has been caused where one of the parties to the