Business Transactions Analysis Case Study

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Case 3 represents a legal scenario whereby the investor was boosting his chances of acquiring the business basing on the decisions eventually taken by the owner. The investor was interested in the purchase of Cabinet Manufacturing Ltd. He acknowledged that the likelihood of purchasing the entity would be definite once he engaged professionals; thus, Danzil and Harris. Indeed, the investor’s actions adhere to the legal stipulations and insight that ought to guide business processes.

Eventually, the investor was shortchanged by the by Danzil and Harris after they presented a higher bid based on their earlier association with the company executives. It is fundamental to highlight that the investor’s actions were based on mutual trust since he identified an idea. Consequently, he approached specialists who could advise on the suitable action. Therefore, it is appropriate for the investor to instigate a legal suit that will prompt Danzil and Harris to reimburse him for the damages. The investor centers his decision on mutual trust, which postulates that business ventures and associations should be based on appropriate ideals and faith. Indeed, the investor’s actions will find significance within a court.

The possible argument that may arise from Danzil and Harris is that the purchase process for the business was in its tender stages. As such, the investor had not declared his intentions with the venture. It is evident that he was waiting for the advice of the specialists who were not obliged to divulge the gathered facts. Indeed, the defendants may argue that the entire process was based on mutual trust; however, they could not place themselves at a disadvantage to profit the investor.

The claimant may argue that he went into a deal with the specialists with the sole intention of acquiring the firm. As such, full information about the manufacturing plant was not relayed to the investor; thus, he discovers by himself that the shareholder in that company is Harris and Danzil. Furthermore, a significant argument is that the specialist used the resources of the investor to conduct research. Later on, it comes to the knowledge of the investor that his resources were instrumental in making decisions. The investor has the capacity to sue both the consultants and the owner of the company who receives the information. In business, this is illegal since it undermines the provision of standards and services. It is evident that the consultants breached the terms and agreement of the business transactions hence they ought to recompense the investor.

The decision that will be appropriate for both facets will incorporate the maintenance of the status quo. As such, the two specialists will maintain the ownership of the company. Evidently, this centers on the supposition that the owner of the company is not privy of the deal amidst the investor, Danzil and Harris. Furthermore, the bid presented by the duo is higher meaning that the owner of the company drew sufficient proceeds. Concurrently, it is imperative for the duo to reimburse the investor for the resources utilized in the process; furthermore, they should pay for damages since they propagated falsehood.

Conclusion

Business transactions must always follow the legal procedures in place to enhance swiftness and success of deals. Research has shown that businesses often undergo transaction without adhering to the laws and regulations set; thus, increasing the proportion of legal battles.

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IvyPanda. (2022, April 29). Business Transactions Analysis. https://ivypanda.com/essays/business-transactions-analysis/

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IvyPanda. 2022. "Business Transactions Analysis." April 29, 2022. https://ivypanda.com/essays/business-transactions-analysis/.

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