Business Law Learning Journal
By: Rafi Jageshar
I learned that this is a field of tort law and the occupier must have a duty of care to people who
visit and/or trespass. This is a liability that occurs from accidents caused by unsafe or dangerous
conditions on the premise. This is especially relevant when leasing or renting property. The
contract/agreement signed must be specific on who has what responsibility. For example, if the
agreement signed said the owner had the duty of carry out repairs, then the owner is co
responsible with the tenant to fulfill that duty. The occupier must be aware of what is happening
on their property and must remove any dangers.
This is significant because if you do not know these laws and enter into a lease agreement,
issues may arise further down the road if not clarified from the start. Even though the property
belongs to the owner, if any trespassers get injured on their property due to dangerous conditions,
then the occupier is liable and not knowing this could really cause financial harm. I am very glad
to have learned this concept.
To continue my interest in this subject, I plan to look at the Tenant Law Agreement to research
how occupier’s liability really plays a part in the tenant/landlord relationship
Limited Liability Partnership
Limited Liability Partnership is when some or all the partners in the company have limited
liability. This means if one partner commits negligence or fraud, the other LLP partners will not
be liable. It is similar to investing shares into a company and becoming a shareholder. You are
making an investment and want your personal assets to be safe and not part of the business,
hence limited liability.
My father’s business is a partnership, so this concept has taught me a great deal of what he is
experiencing. I understand the concept of protecting your personal assets and keeping them
separate from your business, just in case the company fails, you do not want to drag your
personal life down as well. I would continue studying partnership and the strengths and weaknesses of having one. The big
disadvantage is if one partner wants to do something and the other partner disagrees. It’s tough to
make decisions when there is a disagreement.
The Law and the Legal System: Charter of Rights and Freedom
Charter of Right and Freedom outlines the rights of every Canadian Citizen. Section 91 is the
federal portion of the government and provides federal authority. Section 92 is the provincial
portion of the government and provides the provincial authority. The Balancing Act was created
so Canadians can’t abuse their rights and must balance out (the law scale). And Due Process was
created to protect Canadian rights: must be told why when arrested, right to lawyer, innocent
until proven guilty and right to fair trial.
This is great knowledge to know because this is how you can protect yourself and your rights.
Every Canadian should know their rights and how to protect them. When you don’t know your
rights, you can be taken advantage of and have your rights broken without you even knowing.
This is very significant material.
This is a really interesting topic as it is very crucial to know your rights. I plan to investigate this
topic more through research and reading books.
Duties of Directors
Fiduciary duty is to put someone’s interest in front of tour own. Directors and officers have
fiduciary duty to each other and their corporation. Basically, being a director of the corporation is
the same as being an agent of the corporation, therefore agency element applies here (act in best
interest of the party). Duty of Care is a legal obligation which is imposed on an individual
requiring reasonable care while performing any acts that could potentially harm other people.
These concepts are very important when being an agent or a director of a business.
These are significant duties because without these in place, people cold abuse their powers and
not be held liable for it. These cuties created a kind of protection for investors and principles.
This is a very interesting topic, because in the past, you have seen directors abuse their powers.
Example would be Enron. They had no duty of care towards its shareholders, and they hid
money in made up accounts so the owners can get rich quickly. They broke fiduciary duty and
duty of care. Four Fold Test
Fourfold test is the usual test used to determine the existence of employeremployer. In
applying this test, the following elements are generally considered:
1. Right to hire or to the selection and engagement of the employee.
2. Payment of wages and salaries for services.
3. Power of dismissal or the power to impose disciplinary actions.
4. Power to control the employee with respect to the means and methods by which the work is
to be accomplished.
I am not too interested in the four fold test as it seems complex.
Bankruptcy and Insolvency: Discharge
Bankruptcy and Insolvency Act consists of three various bankruptcy proceedings: voluntary,
summary and creditor initiated (petition). The purpose is the have a trustee collect the debtor’s
assets. This law gives an opportunity for the debtor to make a proposal to creditors to save viable
businesses and time must be taken against the debtors assets. This Act is the guideline of the
rights of everyone involved (receiver, debtor, creditor, trustee etc.) and the process of distributing
all other the debtors assets to the creditors. Priorities are to liquidate everything the debtor has in
order to cover as much liability as possible. Another reason that the bankruptcy legislation was
created is to prevent fraud, and to this end, consequences are included in the Act for bankruptcy
offences. A debtor that commits any of these offences is normally not given a prompt discharge,
and depending upon the seriousness of the offence, may be subject to fines or jail time.
This is significant in business as bankruptcy is common in businesses when they fail. All though
it destroys your credit rating for seven years, sometimes it is the only way out of debt and
businesses do that to save whatever they have left. I have experience in the bankruptcy field as I
participated in coop there in high school, so I definitely can relate to this topic.
Breach of Contract and Remedies: Quantum Meruit
Breach of Contract can be express or implied. Express is when he tells you and implied is by
conduct. There are two types of breach. Fundamental (warranty, condition) and Anticipatory
(ignoring, anticipating your contractor to future breach. Remedies are: Compensation ($ you lost out of your pocket), Damage (damages that occurred),
Mitigation (minimize the damage), Liquidated damage (sell property to pay for damage), specific
performance (force to honour contract), injunction (Stop immediately) and Quantum Meruit.
Quantum Meruit means you deserve what you earned. For Example, if you agree with a 12 year