people in business

Stakeholders

the people whose interests are affected by an organization's activities

Employers

a person that employs people to work for them

Employees

works in return for a wage and carries out the essential tasks

Managers

runs a business and ensures it reaches objectives

Producers

makes finished products to sell to consumers

Entrepreneur

a person who spots a gap in the market and takes the personal and financial risk involved

Investor

gives the entrepreneur money, to help it succeed. expects return on capital

Competitive Relationship

when one stakeholder benefits at the other party's expense. it is a win-lose relationship

cooperative relationship

when stakeholders work together towards a common goal. it is a win-win relationship

Dynamic Relationship

the relationship between stakeholders in business is constantly changing

Dependant Relationship

the parties in business need each other in order to be successful

Contract

a legally binding agreement between two or more people in which each promises to do something for the other, that is enforceable by law

Offer

an offer is made when one person asks another to enter into a deal with him/her and promises to be bound by it, if accepted

Invitation to treat

a guide as to what offer might be accepted should a consumer offer to buy the item

Intention to Contract

both parties intend to create a legally binding contract

Acceptance

means that when an offer is made, the other party agrees to all the terms of the deal

capacity to contract

the ability and right to enter a contract

Legality of Form

certain contracts must be drawn up in writing before they can become legally binding

Legality of Purpose

reasons for contract must be legal.

Termination of a Contract

performance, agreement, frustration, breach of contract (warranty and condition)

Breach of Contract

one party breaks their contractual obligation for a condition

Condition

essential element of a contract

Warranty

a smaller, non-essential element of the contract

Rescind the contract

both parties return to original position

Compensation

judge offers damages in the form of money

Specific performance

court orders party who broke contract to fulfil its terms and carry out contractual obligation