Legal Environment of Business: Business Environment for XYZ Construction Inc.

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Introduction XYZ Construction Inc. is concerned about the economic and legal factors that could affect the organization, particularly as the company transitions during these upcoming months from a private company to public ownership, or, initial public offering (IPO). XYZ must be concerned with the legal environment of our business, which is the basic set of rules, and laws that surround the atmosphere of business in general, and the industry that frames XYZ Construction Inc. This document will first describe the business environment for XYZ Construction Inc. Next, this paper will analyze the legal factors XYZ will face during this transition, and the activities our employees will need to become familiar with in order for XYZ to remain…show more content…
If for some reason one of these parties does not keep the promise made by this written or verbal agreement is enforceable by a court of law. “A contract is an agreement that is enforceable by a court of law or equity. A simple and widely recognized definition of contract is provided by the Restatement (Second) of Contracts: “A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.” (Pearson Learning Solutions, 2012, pg.854) This gives each party protection for business dealings. A contract must have the following to be enforceable by law. According to Pearson Learning Solutions, 2012: 1. Agreement. To have an enforceable contract, there must be an agreement between the parties. This requires an offer by the offeror and an acceptance of the offer by the offeree. There must be mutual assent by the parties. 2. Consideration. The promise must be supported by a bargained-for consideration that is legally sufficient. Money, personal property, real property, provision of services, and such qualify as consideration. 3. Contractual capacity. The parties to a contract must have contractual capacity for the contract to be enforceable against them. Contracts cannot be enforced against parties who lacked contractual capacity when they entered into a
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