Chap. 1 people in business

• People in business

  • Entrepreneurs
  • Investors- provide finance
  • Producers- raw materials to product
  • Suppliers- supply materials
  • Service provider- helpful supports
  • Employers-recruit people
  • Employees- recruited
  • Consumer- buys goods/Service
  • Interest groups- common interest
• Co-operative relationship


  • Work together to achieve a common goal
  • Win-win
  • Better off afterwards
• Competitive relationship


  • Different objectives
  • Win-lose
  • Only 1 can win
  • Commercial advantage over the other
• Elements of a contract


  • Offer and acceptance- promise and agreement
  • Consideration- value is exchanged
  • Intention to contract- aware of contract
  • Legal purpose- law of the land
  • Legality of form- written correct
  • Consent to contract- genuine agree
  • Capacity to contract- legal right to enter a contract. Eg 18+
• Termination of contract


  • Performance of contract- fulfil obligations agreed
  • Frustration- unforeseen event
  • Agreement- voluntary agree to end
  • Breach of contract- fails obligations
• Remedies of breach of contract


  • Damages- sue and same position before
  • Specific performance- court order to complete
  • Rescinding the contract- cancelled and put into original state before
• Entrepreneurs

  • Take initiative and risks associated with setting up a new business or producing a new product or service
  • They have the ability to spot and evaluate opportunities
  • They take calculated risks to achieve their goal
• Interest group

  Organisations representing people who share a common interest or goal
• Interest group

  • IFA ( irish farmers association)
  • IBEC ( irish business and employers confederation)
  • ISME ( Irish small and medium enterprises)
• Invitation to treat

  • An invitation to make an offer which can be accepted or rejected by an offerer
  • Usually it constitutes an invitation to go into a shop and make an offer
• Ultra vires

  A company cannot enter into contracts which are outside its legally stated purpose as set out in its Memorandum of Association