Business law report Essay Example | Topics and Well Written Essays - 2250 words

Business law report - Essay Example However, formation or the validation of any contract gets hindered from the aspect of misrepresentation, duress and undue influence. This will be described in detail in first section of the report. The later section of the report will deal with analysing the aspect of corporate veil and separate legal entity or personality. Observably, the concept of separate legal entity enables a corporate to be seen as a different individual completely detached from an individual or owner of the same. On the other hand, corporate veil, which is developed in accordance with the concept of separate legal entity, enables or protects the shareholders of a business from having direct liability of debts or taxes of the corporate unit, rather the respective organisation will be entirely responsible for the same. The second section of the paper will mainly highlight the circumstances on the basis of which corporate veil and separate legal entity will be removed by the courts. A) The Impact of Misrepresent ation, Mistake, Duress and Undue Influence on the Validity of a Contract Misinterpretation or Mistake in Contract Misrepresentation is basically regarded as a false declaration made by one party to the other with regard to enter into a particular contract. It is often considered as the aspect of misunderstanding regarding any particular scenario. However, in legal terms, misrepresentation is quite a different concept and it impose certain considerable impacts altogether. In law, misrepresentation is also regarded as a fraud wherein certain legal punitive measures are applicable. This can be viewed as in the case of [Avon Insurance plc. v. Swire Fraser Ltd. (2000)]. Contextually, the impact of misinterpretation on contract will be vital to consider. Misrepresentation can be of several types comprising unwarranted statements, breach of duty and mistake regarding subject matter among others. In unwarranted statements, one person positively declares another that a particular aspect or i nformation is true in nature in-spite of the presence of any evidence. This type of misrepresentation can be seen in the case of [Sheffied nickel co Vs UNVIN 1867 LR 2 HL 149] (Johnston & Zimmermann, n.d.). A breach of duty can also be considered as misrepresentation in the court of law. A person who is involved in breach of duty by misleading the other person for his own advantage will fall under the regulation of misrepresentation. Additionally, mistake with regard to the subject matter of any particular agreement is also considered as one sort of misrepresentation. It is believed that the subject matter for any particular agreement between two parties is the value or the quality that needs to be maintained (vBulletin Solutions, 2013). However, if one of the parties is involved in a specific agreement, execute any mistake with regard to the quality to be maintained, misrepresentation will be deemed to take place. Impact of Misrepresentation or Mistake on the Validity