Womens Issues

Womens Issues

Essay on The Minimum Wage Should Be Increased - 1048 Words

Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higher income level reduces employee turnover and increases efficiency and ultimately, raising the minimum wage does not reduce employment. Even with high unemployment rates, the minimum wage is useful for the economy. Today the federal minimum wage is $7.25 per hour since July 24, 2009. It has failed to keep up with inflation. The†¦show more content†¦Economists explain this connection with efficiency wage theory. The theory implies that higher wages motivate workers to work harder and increase their incomes to enable them to eat well and become healthier. Increasing the minimum wage thus will increase productivity and demand for labor. A recent study by Andreas Georgiadis (2008) supported this view. In the study, Georgiadis states â€Å"estimation results suggest that higher wage costs were more than offset by lower monitoring costs, and thus the overall evidence implies that the national minimum wage may have operated as an Efficiency Wage.† These policies also encourage employers to increase training investments. Economists Daron Acemoglu and Jà ¶rn†Steffen Pischke showed in their study (1999) that compression in the structure of wages can cause firm-sponsored training. They concluded â€Å"When the wage structure is distorted away from the competitive benchmark and in favor of less skilled workers, firms may want to invest in the general skills of their employees† In their research, in 2001, they also state â€Å"In noncompetitive labor markets, minimum wages tend to increase training of affected workers because they induce firms to train their unskilled employees.† Opponents to minimum wage raise claim that the minimum wage costs jobs by pricing low-wage workers out of the labor market. However, when we review academic studies that examine the effects of minimum wage increases onShow MoreRelatedMinimum Wage Should Be Increased1057 Words   |  5 PagesRebecca Nevins Meredith Sides English 101 16 November 2015 Minimum Wage Should Be Increased Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higherRead MoreMinimum Wage Should Be Increased?1472 Words   |  6 Pagesdifficult if you are living on minimum wage. Of course it’s more difficult for some people than others depending on their situation and their living conditions. Americans and working class people who do come to America for a â€Å" better opportunity† and for the famous American dream struggle. Minimum wage should be increased because of the overqualified, educated, and experienced Americans who are relying on minimum wage jobs as a result of the struggling economy. Raising minimum wage will hel p employees sustainRead MoreShould Minimum Wage Be Increased?1691 Words   |  7 PagesShould Minimum Wage be Increased? Introduction The term, â€Å"minimum wage† refers to a lowest payment that an employer is bound to pay to its workers. Today minimum wage is made compulsory in more than ninety percent of nations including Canada where workers are demanding to increase minimum wages for a long time. Minimum wages are revised by governments in order to met growing needs of workers. There is a difference of opinion on the issue of increasing minimum wages among people of Canada. EmployersRead MoreThe Minimum Wage Should Be Increased1289 Words   |  6 PagesThe National Minimum Wage Should be increased to a Living Wage. Back in 1998 Labour s’ Tony Blair introduced the national minimum wage (NMW). It was created in aid of employers not valuing their workforce, often giving them very little wages. When it was first introduced the rate was set at  £3.60 and has slowly risen to  £6.70. However this is not enough to live on. It has been estimated that you need no less than  £7.85 an hour, rising to  £9.15 in London, to survive on. There is a clear differenceRead MoreThe Minimum Wage Should Be Increased976 Words   |  4 Pagesthe federal minimum wage. The post may have a picture of a soldier, a disheveled EMT in the back of an ambulance, or a waving American flag with overlying text stating something to the effect of ‘â€Å"Burger flippers† think they should be paid as much as these minimum wages workers? No way!’ If my experience on social media is any indicator, the most popular posts always contain â€Å"burger flipper† or â€Å"baconator.† Posts like the ones described above make moral judgements about the minimum wage with littleRead MoreMinimum Wage Should Not Be Increased1669 Words   |  7 PagesFederal minimum wage is a huge controversy around the world and especially in the United States today. It is the lowest wage that employers can legally pay their employees. The world’s first minimum wage law was passed in the year eighteen ninety-four in New Zealand. New Zealand’s minimum wage experiment caught the attention of other countries. It made them start considering the law for their own countries. The United States passed their federal minimum wage law in nineteen thirty-eight. The federalRead MoreThe Minimum Wage Should Be Increased Essay1758 Words   |  8 Pagesincrease the minimum wage in California from ten to fifteen dollars by the year 2022. The minimum wage will be increased by one dollar each year until 2022. This will give businesses enough time to meet state requirements to raise wages for em ployees. The bill was created to help people who are making less than minimum wage but it will disable California’s economy system and cause negative effects for people who are living on the current minimum wage system. The rise of the minimum wage will causeRead MoreShould The Minimum Wage Be Increased?1169 Words   |  5 Pageslarge scale over the State of Michigan’s plans to increase the minimum wage from seven dollars and fifty cents to ten dollars. Although increasing the minimum wage may seem beneficial to some, possibly stimulating the economy or increasing the standard of living for those who live below the poverty line, when looking at the economic issue through a larger lens and placing it into its context, one finds that by increasing the minimum wage, not only is the State of Michigan not addressing the most criticalRead MoreFederal Minimum Wage Should Be Increased911 Words   |  4 PagesThe question that ponders many people’s minds is whether the federal minimum wage should be increased or not. The current U.S. minimum wage is $7.50 and this wage has not increased since 2009. Families with minimum income wages are suffering due to the fact that they cannot provide everyday needs for their families. This is the reason why many people are rioting. They are frustrated with the government’s nonchalant attitude towards the hard situations in which they are living in. A final decisionRead MoreFederal Minimum Wage Should Be Increased1180 Words   |  5 Pagesto come to conclusions that the federal minimum wage is excessively low. The government can stand to help people gain more money, resulting in a less poverty-stricken country. The cost of living or gaining has increased significantly over the past twenty years, and the minimum wage, for most isn t enough for them to support themselves. There have been efforts to increase the federal minimum wage, but none has succeeded in getting approved. Minimum wages are too low for a human, to provide for

My Learning Experiences free essay sample

During our training at Balik-Manggagawa, I learned a lot of things such as interacting with other people. We know that people have different characteristics and attitudes, however, making friends with them is not that difficult. I learned to build on my competence, professionalism in dealing with people, discipline and ability to communicate with people. I gained self-confidence and maturity which are needed in the work and acquired the ability to work harmoniously with employers, workers and other trainees. I also have taken and developed values to become productive individuals like commitment, interpersonal relationship, teamwork, professional behavior, enthusiasm, politeness and punctuality. At first, I thought that it is not easy to take OJT because aside from the adjustments, there are lots of tasks and activities to be assigned and performed. But with enthusiasm â€Å"Though you’re tired, there’s no need to stop work, only when you’re done† to become productive. We will write a custom essay sample on My Learning Experiences or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page To be productive, we need to be punctual. There should be no space for tardiness as the saying goes: â€Å"Time is gold†. We don’t need to waste our time and we should have proper time for each specific action. Honestly, I go to BM on or before 8:00 in the morning even if my scheduled time is 9 o’clock A. M. to practice this important value. Another important value that must not be forgotten is politeness. We should respect the employees and co-trainees all the time. Always greet the clients, employees and co-trainees or smile at them at all times.

Research Proposal on Samsung Essay Example

Research Proposal on Samsung Essay Samsung group is one of the greatest groups of companies in South Korea which was founded in 1938. In the international market Samsung is known as one of the best producers of electronics. The history of Samsung is very long and interesting and runs to the first part of the 20th century. At that time Korea was a Japanese colony and it is obvious that it was difficult to start and develop business there. Nevertheless, Lee Byung-chul, a smart entrepreneur decided to start business which led to the beginning of the development of Samsung. At first he traded food products (exported products to China), then took up security and insurance and founded Samsung trading company and planned to trade with the USA by the 1950-s. In the end of 1960-s Samsung entered the market of electronics and started to produce TV-sets, quite an exclusive product at that time, because no more than 2% of people in Korea owned them. When Sanyo united with Samsung, one of the greatest branches of the company was founded – Samsung Electronics. From the 1990-s Samsung started to produce high-quality electronics beginning to conquer the global market. Today Samsung is the leader in the production of TV-sets and computer displays in Europe and is the main rival of the greatest companies of the world which produce electronics. Except of electronics Samsung is still famous for its chemical and heavy industries, insurance and security, etc. We will write a custom essay sample on Research Proposal on Samsung specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Research Proposal on Samsung specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Research Proposal on Samsung specifically for you FOR ONLY $16.38 $13.9/page Hire Writer It is useful to devote time to the research of the success and the long way of the development of such companies as Samsung. If a student has investigated the topic well and has something new to write to the public, he has the right to prepare a good research proposal on the topic. A successful Samsung research proposal is supposed to be interesting, thought provoking, informative and logical. A student should be able to present the aim of his research briefly and persuade the teacher in the importance of this topic for the investigation. A student should share his predictions concerning the results of the research and provide the professor with the methodology chapter which will demonstrate the potential of the future investigation. The process of term paper writing is not the easy one, because very few students know how to write a research proposal correctly. In order to solve this problem a student can find a free sample research proposal on Samsung and realize how the paper is written by the professional. An expert who prepares a free example research proposal on Samsung always follows the norms and standards of paper writing, so it is will be useful for every student to take advantage of such help. At EssayLib.com writing service you can order a custom research proposal on Reproductive Health topics. Your research paper proposal will be written from scratch. We hire top-rated PhD and Master’s writers only to provide students with professional research proposal help at affordable rates. Each customer will get a non-plagiarized paper with timely delivery. Just visit our website and fill in the order form with all proposal details: Enjoy our professional research proposal writing service!

Agamemnons Clytemnestra Essays - Greek Mythology, Clytemnestra

Agamemnon's Clytemnestra Analysis of Clytemnestra's Character in Agamemnon In Aeschylus' tragedy Agamemnon the character of Clytemnestra is portrayed as strong willed woman. This characteristic is not necessarily typical of women of her time. As a result, the reader must take a deeper look into the understanding of Clytemnestra. In Agamemnon she dominates the action. Her most important characteristic is like the watchman calls it, male strength of heart. She is a strong woman, and her strength is evident on many occasions is the play. Later in the play after Clytemnestra murders her husband, Agamemnon, and his concubine, Cassandra, she reveals her driving force and was has spurned all of her actions until this point. Clytemnestra is seen by the Elders of Argos (the Chorus) as untrustworthy and although suspicious of her they still could not foresee the impending murders. Her words are plain but her meaning hidden to all those around her. She more or less alludes to her plan of murder without fear of being detected. Only the audience can seem to understand the double meaning in her words. One example of how Clytemnestra hides meanings in otherwise plain words is stated in her hope that Agamemnon and his soldiers do not commit any sacrilege in Troy that might offend the gods. Now must they pay due respect to the gods that inhabit the town, the gods of the conquered land, or their victory may end in their own destruction after all. Too soon for their safety, the soldiery, seized with greed, may yield to their covetousness and lay hands on forbidden spoil. They have still to bring themselves home, have still the backward arm of the double course to make. And if no sin against heaven rest on the returning host, there is the wrong of the dead that watches. Evil may find accomplishment, although it fall not at once. This can be interpreted in two ways. The first being that her wish for Agamemnon to return safely is so she may kill him herself. The second, is that of sarcasm. Perhaps she really does wish for Agamemnon to upset the gods. That way when she murders him she will divine sanction. Another instance that there is a double meaning in her words is in her pleadings to the herald to take this message back to Agamemnon, let him come with speed to the people that love him, come to find in his home the wife faithful, even such as he left her, a very house-dog, loyal to one and an enemy to his foes? The audience knows this to be untrue because not only has she not been faithful, but the person she was unfaithful with is the rival to Agamemnon's crown, his cousin Aegisthus. The Chorus' distrust in her is shown by their comment to the herald in which they are trying to explain her boastful and yet sarcastic attitude, She speaks thus to teach you; to those who clearly can discern, her words are hypocrisy. Time and again in the play her strength is demonstrated when she forces Agamemnon, Aegisthus, and the Elders of Argos to bend to her will. For example, she influences the Elders to sacrifice to the gods for Agamemnon's safe return and temporarily wins their trust and support. In fact they sing her praises for suggesting it by saying, Lady, no man could speak more kindly wisdom than you. For my part, after the sure proof heard from you, my purpose is now to give our thanks to the gods, who have wrought a return in full for all the pains. Her shrewdness is also shown by the way she coaxes her husband into submission. She wants him to walk on rich purple tapestries in hopes that this would anger the gods and they will aid her in his murder. She does so by challenging his manhood like in the statement, Then let not blame of men make you ashamed. In which she is basically calling him a chicken. He gives in and takes off his sandals and walks on the tapestries even though he fears it may n ot please the gods. She single-handedly plots the murder of Agamemnon and Cassandra. When she is

Athens Put Socrates and Philosophy on Trial

Athens Put Socrates and Philosophy on Trial Introduction Philosophy is an ancient field of study that entails systematic study of knowledge, nature, existence, reality, mind, and reason through logical and rational arguments. Philosophers use logical and rational arguments when explaining their perception of life and their existence. For centuries, humans have been accumulating knowledge about their existence in a bid to understand the nature of life.Advertising We will write a custom essay sample on Athens Put Socrates and Philosophy on Trial specifically for you for only $16.05 $11/page Learn More In Athens, Socrates was the most prominent philosopher who examined the lives of Athenians and found that they were groping in the darkness of ignorance since they did not understand their existence. Thus, Socrates argued that ‘unexamined life is not worth living’ after observing the how the Athenians lived. As he tried to enlighten the people, Athenians leaders observed that Socrates was spoi ling the minds of the youths, and thus guilty of using his philosophies inappropriately. Hence, this essay argues that Athenian leaders put Socrates and his philosophy on trial, for they did not like to examine and assess their lives using philosophy. Unexamined Life Socrates was an Athenian philosopher who made a significant contribution to the development of the Western philosophy. Although Socrates was one of the wisest men in Athens, he considered himself as ignorant. He argued that gaining wisdom only begins when one understands own ignorance as it forms the basis of knowledge. During his life, Socrates observed that Athenians lived miserable lives since they could not understand the essence of life. Thus, Socrates decided to examine the lives of the Athenians and teach the youths on how to attain better lives as he envisioned. According to Socrates, ‘unexamined life is not worth living’ because people are groping in the dark, and thus unable to attain real meaning of life or live worthy lives. Therefore, Socrates talked to Athenians while examining their lives and teaching youths on how to gain wisdom and live worthy lives. Socrates used the Allegory of the Cave to describe how Athenians are groping in the darkness without hope of attaining real meaning of life. In the allegory, Socrates argues that Athenians are seeing illusions in life and taking them as reality, just as prisoners in the cave assumed that shadows are real people walking across the wall.Advertising Looking for essay on philosophy? Let's see if we can help you! Get your first paper with 15% OFF Learn More The prisoners in the cave have accustomed to the shadows until they could not differentiate reality and illusions. In this view, Socrates asserts that philosophers like him are among people who have come out of the cave and are able to differentiate reality and illusions. Hence, the work of Socrates was to enlighten the Athenians so that they can tra nsform their understanding of life from cave illusions to the reality in the world. Although Socrates tried to enlighten the youths, Athenian leaders had a different perception. The Athenian leaders perceived that Socrates was spoiling the minds of the youths with philosophical doctrines that are against laws and regulations of the Athenian empire. In essence, what Socrates did was to examine the lives of the Athenians in a bid to enhance their understanding of life and resolution of issues affecting their lives. Despite Socrates’ important role in enlightening the youth, the Athenian leaders charged Socrates and dismissed his philosophy as destructive. In response, Socrates protested that the jury did set the penalty very high that he could not afford to pay, and thus putting him and his philosophy on trial. Despite his plea and protest, the jury still sentenced Socrates to death. In the course of examining the lives of the Athenians, Socrates also questioned the existence o f the piety. Socrates analyzed Euthyphro concept and asserted that the gods love pious things and hate impious things. In his argument about piety, Socrates came up with the Euthyphro dilemma since he wondered whether the gods loves pious things or the gods make things pious by loving them. Socrates believed that things are pious on their own and independent of the gods. Hence, piety is an inherent attribute of things and not gods. The Euthyphro dilemma attracted massive criticisms from Athenians because it touched on a sensitive matter about the Athenian gods and their deity roles. If god cannot make anything pious, it means they have no ability to transform the lives of people from impiety to piety. Such dilemma made the Athenians charge Socrates for introducing new doctrines that are against their gods. Hence, Athenians accused Socrates of introducing foreign gods while relegating Athenian gods. Conclusion Socrates was a noble philosopher who examined the lives of the Athenians a nd realized that they were ignorant about life. According his assessment, Socrates argued that ‘unexamined life is not worth living’ because people grope while searching for the real meaning of life.Advertising We will write a custom essay sample on Athens Put Socrates and Philosophy on Trial specifically for you for only $16.05 $11/page Learn More Despite the fact that Socrates examined the lives of youths and taught them, Athenian leaders accused him of corrupting their minds while introducing foreign gods. Eventually, the jury sentenced Socrates to death for alleged destructive teachings and impious philosophy. Thus, the Athenians put Socrates and his philosophy on trial when they sentenced him to death and rejected his philosophy as destructive.

Religions Influencing the Policy Research Paper

Religions Influencing the Policy - Research Paper Example Though it has been assumed to play major roles in peace making around the world, divisions and battles have taken place in the name of religion. Over decades, religion has diversified and developed to include major religions like Christianity, Islam and Judaism. Christianity and Islam are the two major religions that have contributed to economic, social, political and cultural development in world societies. Christianity has over two billion followers throughout the world; God being the Supreme Being then there is Jesus the son of god believed to have died to save Christians from their sins and the Holy Spirit. Christians read the bible and believe in its teachings taught by pastors and priests across the world. Christianity describes the way of life, the reason for existence and the plans for the future nourished by the Holy Spirit. Christians believe that they should not have anything to do with politics instead they should simply preach the gospel. They insist that Christ died for our sins and rose on the third day but that does not make it a geographical or a social entity for violence or political gains (Livingston page 8). But this does not mean that Gods kingdom has nothing to do with the world or that politics are not important, it simply means that the gospel should not be reference for political violations. What Christians should strive for is how the politics will have impacts in their lives and how it can affect their belief in Jesus Christ and the church. It is believed that every Christian is a soldier of the Lord and there are Christians who entangle themselves with politics in the belief that God will not object. There is nothing wrong with fighting injustice or wanting things to be done differently because that’s part of expressing opinion but politics is not an easy way to take for Christians. There will always be question of why a Christians joins politics; their motives are they for fame, money, power or truly taking the seat to serve the people. Politics offers are promising and at times purity motives may be hard to sustain as one will be devoting more money, energy and time on politics than Christianity which encourages one to take on humble ways. Christians believe that you cannot eliminate wickedness by laws or legislation instead the easiest way which is also approved by God is through salvation and forgiveness of sins through his son Jesus. In the bible we see that God established government, but not political sciences that come up with new laws, better laws meant to make the world a better place or try to take advantage of the less elite. Government was meant to give people a leader who ensured that everyone lived according to God’s will and teachings (Livingston page 7). Politics cannot make a better world for humans to live in it or save souls but God can do both. The bible encourages people to follow and even obey the laws put across but it never gives a go ahead for Christians to be involved w ith politics. This is because Christianity is a big role the same goes for politics and keeping the balance between the two can be overwhelming. Keeping up with the two lives is nearly impossible that’s why Christians are encouraged to stick to their faith and practice the will of God which is spreading the gospel. Islam Islam has more than a billion followers who worship Allah, have Muhammad as their latest prophet and believe in angels. Muslims are the followers of Islam who are devoted to Koran and its teachings. Muslims unlike the Christians are required to know all the teachings of the Koran by the time they are a certain age. Though Islam religion is strict and disciplined in its customs and rules, its

Proprietary Rights and Corporate Torts Essay Example | Topics and Well Written Essays - 1250 words

Proprietary Rights and Corporate Torts - Essay Example This paper considers some of these cases that applied intentional tort against defendants who have gained wrongful access to company files and properties, and discusses the impact of their use on corporate law. Methodology This research paper was conducted initially by gathering suitable materials such as books and cases that are related to the subject. The method primarily used is data mining on the subject of intentional torts, including classifications thereof, and corporate cases that involve intentional torts. This entailed electronic searches of relevant materials and a subsequent search for primary sources such as cases from various jurisdictions and secondary sources such as books. The next stage is to actually get a copy of the sources thus gathered either electronically or on tape. Finally, the data gathered were summarized and presented. Intentional Tort and its Application in Corporate Trespass Cases A look at case law across the country reveals that a number had applied intentional torts in corporate trespass cases. This is true in the states of New York, Ohio, Virginia, California and Indiana, among others. In CompuServe Incorporated v Cyber Promotions, Inc and Sanford Wallace, 1 a preliminary injunction was granted to the plaintiff in an action for trespass to chattels. ... Similar cases to the foregoing are AOL v LCGM , 2 AOL v IMS, 3 AOL v NHCD 4 where the defendants were charged with trespass to chattels, among others, under Virginia common law for sending unsolicited email advertisements to AOL subscribers, and Hotmail Corporation v Vans Money Pie Inc, 5 where defendant deceitfully used Hotmail accounts as addressees. In all those cases, trespass occurred with intermeddling of personal property without authorization or when the use amounts to the impairment of its value. Other similar cases are EarthLink, Inc. v Carmack 6 decided in Georgia, and Tyco International (US) Inc. v Doe, 7 decided in New York. Three cases, viz., eBay v. Bidder’s Edge, 8 Register.com v Verio, 9 and Oyster Software Inc. v. Forms Processing Inc., et al, 10 used crawlers/search robots to search plaintiffs’ websites. In eBay, auction listings were obtained from the plaintiff’s site, in Register.com, domain name registrants and in Oyster, meta tags. The cour ts ruled that the acts constituted trespass to chattel because they interfered with possessory right without authorization and damage ensued. The Sotelo v DirectRevenue, LLC 11 case, on the other hand, involves the use of spyware and the defendant was an internet-based company that provided internet games for download bundled with spyware, which allowed pop-ups while users use the internet. The trespass to chattel was justified due to lack of authority and electronic contact that caused damage to the computer. In Thrifty-Tel, Inc., v Bezenek 12 the defendants were the parents of minors who had tapped into a telephone system by cracking its authorization and access codes using computer technology. Initially tried for conversion, the cause of action was

World War I Essay Example | Topics and Well Written Essays - 1000 words

World War I - Essay Example The rise of pan-Slavism and consequent rise of German nationalism also played a great role in enhancing the war combined with imperialism and militarism (Sammis, 2002). The American government first remained neutral until 1917 when it entered the war due to pressure from the German military that were sinking ships on Britain waters. The American President Woodrow Wilson was very instrumental in ending the war in 1918, and in designing the Treaty of Versailles as well as forming the League of Nations. The paper will discuss the events that led to the war and the events that followed. European nations before the war employed imperialist policy. According to Spielvogel (2009) by 19th century, Britain had 5 continents while France occupied large areas of Africa. The Britain and France occupied huge tracts of land hence creating rivalry with German which began to scramble for the remaining parts of Africa. The colonizers were undergoing a period of industrialization hence saw the new colo nies as a source of labor and market for finished goods. Imperialism created a lot of rivalry and tension among nations as they competed for power. Most of the colonized people were under the power of colonizers and followed the rules of the colonizing state. However, the Slavic states yearned for freedom from the controlling states. They formed a cultural and political movement in the 19th century known as pan-Slavism which united all the Slavic. The movement got support from Russia whose main aim was to extend its rule over Slavic people (Stone, 2009). The nations also felt threatened by their counterparts hence wanted to unite their people so that in case of war, the states would fight against a common enemy. The attack on German speaking central Europe by France in Napoleonic wars instilled a sense of nationalism (Sammis, 2002). Bismarck had the idea of uniting Germany but Austria which had much power was resistant. Bismarck used diplomacy to create an atmosphere for war between Austria and Prussia and reinforced Prussian army so as to defeat Austria thereby relinquishing its position to Prussia. France was unhappy with the defeat hence waged war on Prussia but had no allies as opposed to Prussia which was supported by all German states. France was defeated and lost two provinces Alsace and Lorraine to Germany hence tension between the two nations (Stone, 2009). German was unified in 1871 under Prussian rule with Wilhelm as the new emperor. Austria began concentrating on the Balkans hence forming the Austro-Hungarian Monarch. The Balkan war in 1912-1913 saw their freedom from Turkish control but a conflict of interest by Russia and Austro-Hungary. The nations in order to outdo each other and in preparation for war engaged in arms race and gave the army and military a lot of power in controlling government policy. Spielvogel (2009, p.534) notes that the European military machines had doubled in size between 1890 and 1914. The German empire led by Bismarck e ngaged in massive shipbuilding in order to produce large naval fleet than Britain. In 1914, Britain had 49 battleships while German had 29 (Duffy, 2009). New highly destructive weapons such as; submarines, tanks, and poison gas were made which worsened the war. The readiness for war culminated into alliances. Various alliances were formed by the powers to help each other in case of war and to protect themselves from potential threats. Heyman (1997) observes that the prime ministers, foreign ministers and military leaders were crucial in the formation and dissolution of alliances. For example,

A marketing report and analysis of Nestle

A marketing report and analysis of Nestle Nestle is the leader in food and beverage industry with wide range of products which accompany consumers live from birth through adulthooh, from breakfast to dinner, at home and elsewhere. This, day by day, represents them as a great responsibility and commitment to quality, taste and nutrion across all their products, to touch lives in a positive way and earn customers trust. They have joined into nutrion, health and wellness strategy with three fundamental beliefs: Pleasure and health: Nutrion have great taste if it is a part of healthy balanced diet. Eating with moderation and balance: Nestles products are designed to a variety of choices for every moment of the day and for all company members. Transparent communication: Transparent is the best way to win customers trust. All ingredients used to produce Nestles products are included on the label. With long term commitment is to enable customer an informed choices about diets and lifestyle, helping them care for themselves and their families, Nestle is really a leader in nutrion, health and wellness area. Business generates the most revenue Nutrion, Health and Wellness generates the most revenue for Nestle. In the recent year 2010, Nutrion, Health and Wellness confirms Nestles strategic direction, with main products is Food and Beverages creat 103.722 CHF millions in revenue equal to 94.53% in Total Revenue. Nestle, 2011, Strong 2010 performance press release, http://www.nestle.com/Common/ NestleDocuments/Documents/Library/Events/2010-full-year-results/Press_Release_EN.pdf Nutrion, Health and Wellness market, which is 100 percent right as determining from Nestles Board of Management in 2007, is a massive market for growing. Over 5 year operating, the industry keep fastest growing rate and contribute most revenue for corporate. This industry has been opened for Nestle S.A in 2007 by Brabeck Letmathe Nestle Groups Chairman when he produce Nestle Roadmap a strategy to transform corperate from traditional business into Nutrion, Health and Wellness with slogan Good Food, Good Life . Business generates the most profit Nutrion, Health and Wellness is the area that brings in for corporation the most profit. In 2010, with EBIT rate of 13.4% equal to 13.898 CHF millions, Food and Beverages main range of products in Nutrion, Health and Wellness area creats main income in total for corperation. Nestle, 2011, Strong 2010 performance press release, http://www.nestle.com/Common/ NestleDocuments/Documents/Library/Events/2010-full-year-results/Press_Release_EN.pdf Business will drive grow in the next decade These are 4 areas provide Nestle exciting prospect for continuos growing in the next decade: Nutrition, Health and Wellness Emerging markets and PPP Out-of-home leadership Premiumisation Nestles Successful Transformation from traditional business into a nutrion, health and wellness company, that brings them to No.2 player all over the world. Efficiently investing in value-added category. Stronger finance and credit. Flexible reaction to changing in strict health care standard and unfair competing. Their global strategy and local execution help them reach almost targets in recent years. Corperate Responsibility. In recent years, to become a successful corperation nowadays, these are their vital programs, which have contributed not only for society but also for themself as listed: Essential Program Context Action Achievement Rural Development Creat positive impact on argriculture area (provide local employment, technical transforming), and evironmental development Provide 200.000 local employments For Nestle: profitable growth, better quality in raw material, raw material supplying guarantee Improve standard of living, increase productivity in rural and economic in general In 2009, they provided microfinance in amount of CHF 48 millions For Customer: more qualified and healthier products for consumer Minimize impact of climate change and sometime is social issues For Society: higher quality for crop, more technical assistance, developping employment and environment, lower natural resources use, larger in yield help lower producing cost. Creating for themsef a stable, protected and qualified raw material to guarantee shareholder value-added Technical assistance and knowledge transfer Water and environmental Sustainability Produce tasting products that also have more and more lower environmental footprint by improving operational efficiacy They have already invested over CHF 220 millions in sustainable programs during 2009 For Nestle: reduce risk concerning health care standard, reduce cost, creat long term availability of resources, profitable growth Reduce use of water, some non-renewable energy and resources with target to reduce CO2 emissing performance and other evironmental affects Launch more projects to reduce greenhouse affect, eliminate waste in operation For Society: better standard of living Promote with supplier to help them a sustainable practices in supply chain Human Resources Dovelopment Long term investment in training Offer more comprehensive training, more opportunities for career For Nestle: skilled workforce, improve performance Continuous improving environmental and occupational health and safety management For Society: more employment, better standard of living, higher worhplace safety standard. Global and diversify Corperation developing Improve health and safety performance Increase Nestles engagement, employee health and wellbeing, reduce accident in workplace Creating an ethical and responsible workplace Climate Change Solution Reinforce Nestles role and plan to reduce greenhouse gas emissions Directly controlling operation For Society: lower environment impact Improve through supply chain Helping Nestles consumer Crisis Management Food and beverage market is changing everyday, customers need put producers into circumstance that whether they adapt to new trend or left behind on the race with other competitors. Nestle is an outstanding example in transforming their traditional managing operation into Health, Nutrion and Wellness management with Roadmap to Good Food, Good Life a unique flexible strategy that brings them to number 2 largest company all over the world. In Management and Strategic segment, I am pleased to express: Strategy Nestle Roadmaps success and Nestles solution for Melamine incident in China. In the Crisis management, Melamine scandal in China is outstanding example. On March 15th,2008, Chinese authorities informed that their over 20 Chinese milk companies was launching products contained Melamine this toxic has caused at least 4 babiesdeath and other 1253 Chinese children have fallen ill. Suppliers have been believed to add Melamine to milk to make it higher in protein. There was some ranges of Hong Kong Nestles products using Chinese milk powder. Source: http://news.bbc.co.uk/2/hi/asia-pacific/7623037.stm After that, some press report in Hong Kong claimed a Nestle growing milk containing Melamine. Immediately, Hong Kong government requested Nestle to withdraw all their products that have been found to contain Melamine. The problem could have pushed them into a long-lasting downturn and other consequence concerning reputation. However, commented on this scandal, Peter Brabeck Letmathe Nestle Groups Chairman said: Sales in China are rather being favouredà ¢Ã¢â€š ¬Ã‚ ¦Its rather positive than negative ( Reporting by Devidutta Tripathy; editing by Sue Thomas ) Ref Reuters Sep 26th, 2008 http://www.reuters.com/article/2008/09/26/nestle-idUSDEL31014820080926 How did they react? Yes, it is fantastic that Nestle today, after 3 years from this scandal, did not failed and become the leader in food and beverage area, the number 2 largest corperation all over the world. The first step in chain of resolving incident was complying with authorities request in showing all ingredients and formular used to produce milk, they were also withdrawing some kinds of products in Hong Kong as authorities requests as in line with Nestles Corperate Business Principle. In the mean time, they sent their samples of milk to honour testing center like Hong Kong Standards and Testing Centre Ltd., Food Industry Research and Development in Taiwan, etc. This action was conducted at places where their products have presented. The third step, they announced governments reports and confirmation that their products have been 100 percent safe and exact with things printed on their products label. The final step in this chain, they have combine Research and Development department and Maeketing department in communication with consumer on their producing standards, products quality that 100 percent safe and good for health as confirm from authorities. With this action, they have been not only winning back customers belief on their products, but also underlining that Nestle is the No.1 food and beverage producer all over the world with best quality and healthy products, as their slogan Good Food, Good Life . This is really a key turning-point to help Nestle successful as today. Strategy Nestle Roadmap. Source: http://www.nestle.com/Common/NestleDocuments/Documents/About_Us/Nestle_Roadmap.pdf Nestles strategy is being considerred the leader in Nutrion, Health and Wellness, and reference for financial performance. That is combination between their opportunities competitive advantages, internal strength operational pillars, focused segment growth drivers. This is a simple but right-targetting product from Peter Brabeck Letmathe Nestle Groups Chairman. Three major elements in their strategy including: Internal strength Operational pillars: Innovation and renovation ( from active and creative workforce ) Wherever, whenever, however ( supplying capability ) Consumer communication ( one of RD activity ) Operational efficiency These areas will help accelerate Nestles operation in all key areas with excellent achievement in execution. Focused segment Growth drive: Nutrion, Health and Wellness Value-add ( a massive market for healthy product ) Emerging markets and popularly positioned products the lower end. ( in 2011, growth scenaro in emerging market is around 170 billions US dollars ) Out-of-home consumption Differentation Premiumsation the high end This areas provide exciting prospect for growing. Opportunities Competitive advantages: Unmatched product and brand portfolio Unmatched research and development capability Unmatched geographic presence People culture, values and attitude This competitive advantages come from the value chain over decades, the link between great products efficient RD, great people strong value, broad geographic entrepreneurial spirit. This combination day by day is creating Nestles motivation on the road to leader in Food, Health and Wellness. In general, Roadmap is created from the combination between competitive advantages and their own strength and a right targeting market. Roadmap is almost following three major steps in building strategy for corporate. Analysis: determining the current position ,situation, performance and aspirations of the organisation and its members. Herein, that is competitive advantages. It help them regconize potential opportunities, their right strength that would make drive growth for Nestle in the future. Choice: determining possible courses of action, their possible consequences, problems and difficulties, benefits and advantages. Decision making is the most important step in every company, a wrong choice means a foresee failure. On roadmap, that is drivegrowth, corperate has been right when they choose emerging markets and popularly positioned products to be their motivation in growing in the next strategic years. Implementation: committing the organisation to pursue one of the possible future courses of action. Herein, operation pillars is a group of process to implement a lack or a small failure in the overall strategy. Vision, Mission, Goal. Nestles Vision: By bringing together all of its global RD resources, Nestle is able to provide high quality, safe food solutions for consumers worldwide whether this is in terms of nutrion, health, wellness, taste, texture or convenience. Above all, Nestle brings to consumers products that are of the highest quality. And safety is non-negotiable. Werner Bauer, Chief Technology Officer, Nestle S.A. Innovation, Technology and Research Development Nestles Mission: Their mission is creating value for shareholder and society. CREAT SHARED VALUE Reduce Poverty + Improve Health + Empower People SUSTAINABILITY Protect the future COMPLIANCE Laws, Business Principles, Codes of conduct Nestles Goals: Being recognized the leader in Nutrion, Health Wellness, and the industry reference for financial performance. But how they have been motivating their employees over decades to be the leader. Performance Compliance All Nestles employees have a good knowledge that here or there, we must have responsibility for down performance in the organization. Company have a good reward and recognization tied to performance. Culture Building Sustaining a high performance environment. Maintaining and evolving Nestles culture based on their own principle. Source: Creating successful future Jan 2008 Comment.

Financial forecasting & planning Essay

Financial forecasts are, quite simply, your forecast of how your business will perform financially over, say, the year ahead. Preparing forecasts will help you to assess your likely sales income, costs, external financing needs and profitability. Financial forecasts are essential if you need to raise money from a third party, such as a bank. But they also provide you with the means to monitor performance on, say, a monthly basis and thereby exercise effective financial control – arguably the second most important management function in running a business. Objectives The aim of this section is to help you to prepare financial forecasts. It will enable you to: †¢Understand costing and pricing; †¢Use break-even analysis as a way of setting sales targets; †¢Understand financial forecasting; †¢Assess working capital requirements. Assignment The purpose of these assignments is to ensure that you are able to prepare the necessary financial forecasts for your business. Satisfactory completion of the set of assignments will demonstrate that you know and understand how to: †¢Identify and calculate the financial outlines it will be necessary to prepare. †¢Calculate your own personal survival budget. †¢Determine the funding/materials requirements of starting in business. †¢Consider how you will take and keep effective financial control of the business. †¢Consider and plan to deal with alternative scenarios. 1. Personal budget How much money do you need for yourself. Think about food, clothes, holidays, personal travel, etc. Draw up a personal budget. Don’t skimp. You may be in business to have fun – but you need to make money as well. Use this budget in calculating your costs and prices. Of course you may not have enough sales at the start to be able to take that amount of money, so you should also calculate the minimum requirement that you must take from the business. 2. Costing and pricing Calculate all your costs and determine a suitable price for your product or service. Think about your raw material requirements as part of your direct costs; think about your likely overhead costs. 3. Break-even Now that you have calculated all your costs and set a price, you should be in a position to prepare a break-even chart. Is your forecast of sales above or below break-even? Do you have a reasonable margin of safety? How much profit will you make if you achieve your sales forecast? 4. Forecasting profit and loss You should have all the figures that you need to prepare a forecast of profit and loss. What is your anticipated gross profit margin? What is your operating profit? How much money will be retained in the business? 5. Cash flow forecasting You should have all the figures that you need to prepare a cash flow forecast. Remember to think about everything shown on the profit and loss account, expenditure items not shown on the profit and loss and, in particular, to think about timing or receipts and payments. You will also need to think carefully about your stock holding requirements and your capital expenditure. The first time you prepare the cash flow, ignore any investment or borrowing other than that required for capital equipment. The worst cumulative deficit will indicate the minimum level of working capital required. 6. Forecasting your balance sheet Once you have completed the profit and loss and cash flow forecasts, you  should be able to prepare a balance sheet forecast. What level of working capital requirement is suggested by the balance sheet? 7. Sensitivity analysis Have another look at your profit and loss and cash flow forecasts. What happens if sales are 15% less than you have forecast? Do you still make a profit? What happens if raw material prices go up by 25%? What does this do to your profitability? Can you pass on such increases to your customers or will they switch suppliers? 8. Effective financial control You should now be in a position to exercise control over your business. Will you use a simple manual book-keeping system or a computerised one? As a brief reminder, write down the key reasons for keeping effective financial control. What are the critical numbers at which to look to ensure you retain effective financial control? Break Even Analysis Break-even analysis identifies the point at which your business starts to make a profit. You can work out the break-even point using any timescale, e.g. weekly, monthly, yearly, etc. To calculate the break-even point you need to know the following: †¢The total fixed costs of your business – these include rent and rates, your drawings, loan repayments, etc; †¢The total variable costs for producing your product – these include labour, materials and packaging; and †¢The selling price of your product. Once you have these figures, you can work out your break-even point using four simple calculations and plotting the findings on a graph. Example: Ron from Widgets ‘R’ Us want to work out how many widgets he needs to sell in order to break-even every month. He works his fixed costs out as follows: †¢Rent –  £167 per month †¢Salary –  £834 per month †¢Rates –  £70 per month †¢Loan repayment –  £100 per month †¢Total –  £1,171 ( £1 = Rs.84) (Note: It is better to round figures up rather than down, as this will increase your safety margin.) This figure can be plotted as follows: Ron then works out his variable costs for the production of each widget: †¢Materials –  £9.00 †¢Packaging –  £1.00 †¢Labour –  £11.00 †¢Total cost –  £21.00 per widget ( £1 = Rs.84) He selects a value on the ‘number of widgets’ axis (in this case, 250) and does the following calculation: †¢250 widgets x  £21.00 per widget =  £5,250 Ron plots this figure on the graph and draws a straight line from it to zero. The next step is for Ron to work out his total costs. To do this, he adds his fixed costs to his variable costs:  £1,171 +  £5,250 =  £6,421 ( £1 = Rs.84) He plots this figure on the graph and draws a straight line from it to  £1,171 on the ‘Pounds’ axis. Ron now needs to work out his revenue line. To do this, he simply multiplies his products’ selling price by the example number of widgets he chose earlier (250):  £32.50 x 250 =  £8,125 ( £1 = Rs.84) He then plots this figure on the graph and draws a straight line from it to zero. Ron can now find his break-even point simply by locating the exact point where the revenue line disects the total costs line. In this case, Ron must sell 100 widgets each month if his business is to break-even. If he sells more than 100, he makes a profit; if he sells less he makes a loss. Costing And Pricing Costs Although accountants define costs in several different ways, there are, effectively, just two types of cost. The first cost is that which is directly attributable to the product or service. Direct costs include, for example, raw materials and sub-contract work. If you make desks, for example, the cost of wood will be a direct cost. Within reason, the cost will be the same for each desk, no matter how many desks you make. When you make a sale the income first has to cover the direct costs relating to that sale. Whatever is left is called gross profit or contribution. All other costs are overheads. These include, for example, staff salaries, marketing, rent, rates and insurance. They also include depreciation; that is, an allowance for wear and tear on capital equipment. Overheads are often called fixed costs because, generally, they are fixed for the business. Interest is often regarded as a deduction from net profit rather than an overhead cost. You need to include it as an overhead in your costing calculations, even though it varies with the size of your overdraft or loan. If you are self-employed, you will take drawings from the business. Whilst, strictly speaking, drawings are an advance against profit, include them (and an allowance for income tax) as an overhead when calculating total costs. The contribution is so-called because it contributes towards covering the overhead costs. Each sale generates a contribution. When enough contributions have been made, and all the overhead costs are covered, they start to contribute to net profit. Price The price at which you sell your product or service clearly needs to exceed the total costs of providing it. But the price should also reflect what the market can stand. If you are selling a differentiated product or have  adopted a strategy of market focus then you may also be able to charge a premium price. If you are pursuing a cost leadership strategy you will need to be ruthless in keeping your costs down and under control. In calculating your price you will need to follow a number of steps: †¢Estimate your likely sales for a period, say, one year; †¢Calculate the total direct costs and divide by the sales volume to give direct costs per unit (say per product or per hour of service); †¢Calculate your total overhead costs and divide by the sales volume to give overhead costs per unit; †¢Add direct costs per unit and overhead costs per unit to give total cost per unit; and, †¢Add a further profit margin (to allow for reinvestment, etc). If necessary, add VAT as well. You now have a first stab price. How does that compare with your competitors? Will customers buy at that price? Do you need to reduce costs? Can you achieve a higher profit margin? What happens if you fail to achieve sales at the determined price? Remember that the overhead costs are fixed, so if sales fall the overheads will be spread over fewer items and the unit cost effectively increases. The converse is also true. Increasing the volume of sales means that the overheads are spread over more units, so the unit cost falls. This means that you can, if you choose, reduce the price. And reducing the price might increase your level of sales. It’s a fine balancing act. Depreciation Depreciation is an allowance for wear and tear on the equipment used in your business. As time passes, your equipment will usually lose value, and this can be considered a cost to your business. You need to think about how long you expect your assets to last. For example, if you purchase a computer system, you may forecast that in 5 years it will be obsolete. That means the depreciation rate is 20% per year. If you determine it to be 2 years, then it will be 50% per year. This does not have any effect on cash flow, just on how profits are calculated. Deprecation is an accounting cost that must be included to give a Profit & Loss account more relevance. Finance Action Planner (FAP) The Finance Action Planner (FAP) is a learning tool that will help you to: †¢Develop your all-round financial skills †¢Learn more about a range of financial issues †¢Identify suitable sources of finance †¢Create a set of financial forecasts †¢Test out different financial scenarios Financial forecasts Once you have an idea of your likely costs and an idea of how much you need to sell to make a profit you are in a position to prepare financial forecasts. There are three basic financial statements (the profit and loss account (P&L); the cash flow statement; and the balance sheet) that describe the activities and financial state of any business. These can be prepared on a historical basis – to show how a business performed during a defined period – or as forecasts – as estimates of how the business will perform in the future. 3 steps to forecasting 1. Businesses often start by forecasting their cash flow and then aim to derive other forecasts from it. It makes more sense, however, to start by forecasting the income and expenditure of the business, which will indicate whether you will make a profit, then worry about when money will be received or paid out – to discover if you will have enough cash when it is needed. Income and expenditure is summarised in a profit and loss account. 2. You will also need to look at your likely sales for, say, the year ahead. This needs to relate back to your market research and, if you are already in business, to previous performance. The direct costs can then be estimated (usually as a percentage of sales) to give gross profit. 3. The next step is to estimate the likely overheads. Deducting these gives an operating profit forecast. If the net profit is too low you will either need to assess whether you can achieve higher sales or whether you can reduce the overheads. When preparing your forecasts, remember to allow for increased costs, for instance, due to inflation or future pay awards. If you do need a loan, then you will also need to allow an amount for loan interest. If you use equipment, remember to allow for depreciation. Whilst depreciation is  not included in the P&L, you may need to allow for the replacement or repairs of machinery, so you may wish to include a contingency. The P&L forecast will show whether you are likely to achieve your first key financial requirement: making a profit. Preparing cash flow forecasts In preparing your forecasts, you will need to think carefully about all your costs, about your price and likely sales at that price and about the timing of both receipts and payments. As mentioned above, the first forecast that you set out should ideally be a P&L, summarizing income and expenditure for, say, the year ahead. You might do this monthly or annually. The P&L is important for demonstrating profitability; over the very short term, however, the key requirement is to generate cash and know the business’s working capital requirements. This can best be done by preparing cash flow forecast which should set out all the information, month by month, regarding cash inflows and outflows. The cash flow forecast should include: †¢Receipts of cash from customers; †¢Payments for raw materials; †¢Payments for all other expenses; †¢Drawings and wages; †¢Capital expenditure; †¢Capital, loans or grants introduced; †¢Loan repayments; †¢VAT receipts and payments (if VAT registered); and, †¢Tax payments. All of these items should normally be shown separately and in the month into which the money will be received, or paid by, your business. For businesses with a modest turnover and that demonstrate profitability in the year, it is normal only to forecast one year ahead, with a monthly cash flow. Larger businesses, especially those seeking equity investments and/or which do not show profitability in the year, may need to prepare forecasts  for two or three years. The first year cash flow is usually shown monthly, the second year quarterly and the third year just a single annual figure. It is often helpful when preparing cash flow forecasts initially to ignore any finance that is available from the bank or other lenders. The cash flow forecast then shows the true position of the business. It can then be used to decide if the budget is viable and can be adjusted to reflect the true position and to assess the total funding requirement. If you do not have sufficient money of your own, then you will need to seek loan finance or an equity investor. Most small businesses simply look for loan finance. Aim to match the term of the loan to the life of the asset for which it is required. It would be normal to look for a short-term loan, for example, to purchase equipment, or a long-term loan to purchase premises. You will also need to buy stock and pay overheads whilst awaiting payment from your customers. The money required is called working capital and is typically funded by an overdraft. When preparing your cash flow forecast, you may like initially only to include personal investment or loan finance for fixed assets and to ignore funds for working capital. The worst cumulative deficit will then give an indication of your total working capital requirement. Of course, the amount that you need to borrow can be reduced if you have more available to invest yourself. If you have a term loan, the capital repayments will not figure in your profit and loss account – they are not a business expense – although the interest portion of the repayments will be charged as an expense. However, the repayments do need to be included in your cash flow forecast. Balance sheet The money in a business can only come from three sources: capital introduced by the owner(s); loans (whether from the bank or, effectively, from creditors); and, retained earnings; that is, profit which has been generated by, and retained within, the business. That money is used to finance the fixed and current assets of the business. Current liabilities include: †¢Creditors †¢Overdrafts †¢Loans due within one year †¢Money owed under hire purchase agreements †¢Any amounts owed in VAT or tax, etc. In larger businesses, loans falling due in more than one year are usually shown separately. You will, however, have a better idea of your business’s performance if you show all loans as current liabilities. Current assets less current liabilities show your working capital requirement. Since the balance sheet is merely a snapshot, however, it may be better to deduce your working capital requirement from the cash flow forecast. The net assets are always equal to the capital introduced plus reserves; that is, the net finance, sometimes known as net worth or the equity of the business. The net finance, together with any long-term loans, is called the capital employed. All borrowing should be included when calculating capital employed. Pricing strategies The greatest danger when setting a price for the first time is to pitch it too low. Raising a price is always more difficult than lowering one, yet there are great temptations to undercut the competition. It is clearly important to compare your prices to your competitors’, but it is essential that your price covers all your costs. There are a number of possible pricing strategies from which you might choose. These include: 1. Cost based pricing – total costs are calculated and a mark up is added to give the required profit. 2. Skimming – you charge a relatively high price to recover set up costs quickly if the product is good or new. As more competitors enter the market, you lower the price. 3. Individual – you negotiate prices individually with customers based on how much they are prepared to buy. 4. Loss leaders – if you wish to sell to a particular market then you might sell one product or service cheaper to gain market entry. You balance this by selling other products or services at a higher price. This can be risky as the danger is that everything becomes a loss leader. 5. Expected price – what does the customer expect to pay? If you are selling a quality product, do not under price. Often the customer expects to pay a lot as the product or service has a certain ‘snob’ value and this may be diminished if you under price. 6. Differential pricing – you charge different segments of your market different prices for the same service. For example, offering discounts to certain people like pensioners or the unemployed, or charging lower rates for quiet periods. If, after working out your costs, the price you charge is much greater than your competitors’ then you will have to look at ways of reducing costs. Sensitivity analysis It is important to know how sensitive your forecast is to changes. Sensitivity analysis looks at ‘what if?’ scenarios. What happens to your cash position, for example, if sales fall by 10%? What happens if your main supplier increases raw material prices by 12%? Financial institutions when considering propositions for a loan particularly use sensitivity analysis. If your business is particularly susceptible to small changes, then you probably do not have a sufficiently large profit margin. You will thus be less likely to receive the loan required. You may find it difficult to cut costs. You may not be able simply to increase prices to improve your margins – that might deter customers. Are there other ways in which you can push up the margins, e.g. by increasing output? Having undertaken your sensitivity analysis, you may need to review elements of your forecast. Sensitivity analysis can help in making decisions. You may want to consider, for example, the effect of increased raw material, labour or overhead costs; of reducing prices, with constant volumes, to counteract competitors; or reducing volumes, with constant prices, due to over optimistic forecasts. Furthermore, if you are about to spend a large sum of money on equipment, you may want to look ahead several years, if at all possible. Including a sensitivity analysis in your business plan will demonstrate that  you have thought about some of the potential risks – and that is half way to avoiding them. VAT (Value Added Tax) VAT is tax paid on the value added at each stage of delivery of a product or service. It is a method whereby businesses act as tax collectors for the Government. If you are registered for VAT, by submitting a VAT return you can claim back what you have paid in VAT, and hand over what you have collected. Not all goods are taxable – for example, insurance, some education and training, and postal services are exempt. If items are VAT-able, then, ignoring VAT on fuel, there are two rates – standard (currently 17.5%), and zero-rated. Zero rated items are different from exempt items. It is only necessary to register if your output is taxable. If you do register, you will be able to recover VAT on your purchases including materials, capital equipment and overheads. You will, however, have to charge VAT on your sales. The difference between what you collect and what you pay out in VAT is passed on in due course to Customs & Excise. There is more paperwork involved if you are VAT registered – you need tax invoices showing your VAT number, an analyzed VAT account, and VAT return forms. It may, however, be advantageous to register voluntarily if your sales are below the turnover limit, because VAT paid on purchases can be reclaimed. You may also reclaim VAT on capital equipment, raw materials and stocks bought before registration, provided the business still owns them. If you are selling to VAT registered businesses, it is likely to be more attractive for you to register. If you are selling to the general public, it probably will not be. This is, however, an area where you should seek professional advice. CASE STUDY Brian’s Book-keeping Business Brian runs a book-keeping service for several small businesses. His overheads are as follows: Costs £ Per year ( £1 = Rs.84) Office costs5,000 Advertising 1,100 Insurance550 Telephone650 Vehicle running costs900 Other3,000 Brian works 40 hours per week. He spends 8 hours per week on administration, marketing, etc. He works 45 weeks each year allowing for holidays and illness. Brian draws  £200 out of the business each week. Brian has been asked to undertake a specific task and estimates he will need to spend 12 hours on it. What is the cost of providing the service? How much should he charge? Solution: What is the cost of providing the service? 1. Total hours worked per annum = 32 hours per week x 45 = 1,440 hours 2. Total drawings = 200 x 52 =  £10,400 3. Total fixed costs =  £11,200 4. Total costs =  £21,600 5. Costs per hour = 21,600/1,440 =  £15 6. For a job lasting 12 hours, the cost is  £ 180 ( £1 = Rs.84) How much should he charge? Brian has decided that he should also add a further 20% profit margin in case his costs go up and to make a little extra for reinvestment. 180 + 20% = 216 He is also registered for VAT and needs, therefore, to add VAT at the standard rate (17.5%) 216 + 17.5% =  £253.80 So the price he charges to his customer is  £ 253.80 Useful tips: 1. Some readers of your business plan will regard the financial forecasts as the most important component. It is where you summarise the expected income, dependent on your market research, and where you set out your expected costs. 2. The forecasts need to demonstrate that the business is viable and that there is a sufficient margin of comfort to allow for fall in demand or increase in costs. 3. Take care to prepare your financial forecasts as accurately as you can. Then compare your actual results with your forecasts and, if necessary, take corrective action at an early stage to keep yourself on course.

DBQ Middle Ages Essay

The Middle ages began after the fall of the Roman Empire. It can be defined as a time of minimal cultural and scientific achievements, suffering, feudalism, and power of the church. The labels for the Middle Ages that best describe the era between 500 and 1400 in Europe are the Dark Ages, the Age of Feudalism, and the Age of Faith. The Middle Ages should be labeled the Dark Ages because of the years of suffering that was inflicted from invasions. Invaders, usually from the North, would come into towns and completely lay waste to everything. These invasions made people live in fear and abandon their homes in refuge of safer places. In document one, â€Å"They sacked town and village and laid waste the fields†¦there is no longer any trade, only unceasing terror†¦the people have gone to cower in the depths of the forest or inaccessible regions.† Besides people’s homes being destroyed from invasions, many people were killed and their belongings and even loved ones taken. In document 3, â€Å"842, in this year there was a great slaughter in London and Quentavic and Rochester†¦843 the Northmen, with their boats filled with booty, including both men and goods, return to their own country.† The Dark Ages has a negative connotation to it, so this label rightly matches the terrible inv asions that occurred leaving families devastated. The Middle Ages should also be labeled the Age of Feudalism because of the absence of imperial authority that was replaced by local political organization known as the feudal system. The feudal system was based on loyalty and obligations between landlords in their vassals. In exchange for protection and land (fiefs) from the Lord, the vassle gave the Lord his loyalty, military service, and ransom if needed, as shown in the feudal obligations of document 4. After the fall of the Roman Empire, its territories in Europe had to protect themselves from outside invaders. To do this, these local kingdoms gave land to those willing to send knights in order to protect the kingdom. In Document two John of Toul is a vassle to the count and countess of Champagne and takes the Homage Oath, â€Å"I, john of Toul†¦will send to the Count and Countess of Champagne the knights who is service I owed to them for this fief which I hold.† Without the loyalty and service from the vassals to the landlord, the feudal system would crumble  leaving that territory defenseless against invaders and rival kingdoms. Finally, the Middle Ages should be labeled the age of faith because of the solid organization and power the Catholic Church demonstrated. The power of the church can merely be seen through its cathedrals as shown in document 10. A lot of money, materials, and labor were required to build the cathedral and only a wealthy and powerful organization could build them. The church even tried to limit warfare between landlords by decreeing days of peace when no battles or attacks could occur. In document 5, the Church believes in the word of God and called for the observance of the Truce of God, â€Å"on every Sunday, Friday, and Saturday, and on feast days no one may commit murder, arson, robbery, or assault.† Besides power, the Catholic Church had a lot of influence over people. Some people gave up the life they knew to follow God and join a monastic order. This is evident in document 8, an excerpt adapted from monastic vows taken by a brother that had an ordinary life but gave it up for a life with God. â€Å"I renounce my own will for the will of God†¦I accept all hardships of the monastic life†¦I promise to remain a monk in this monastery.† The calling of Crusades by the church shows its influence it had over people even in times of war. Pope Urban II was the head of the Catholic Church and he believed it was God’s will to call for a crusade to recapture the holy lands. In document 9, â€Å"your brethren of the Middle East are in urgent need of your help†¦the Turks and Arabs have attacked†¦they have occupied more and more of the lands of the Christians.† Document 8 shows the church’s religious influence while document 9 shows its political influence. In conclusion the Dark Ages, the Age of Feudalism, and the Age of Faith are labels that best describes the Middle Ages. The Middle Ages were low on cultural and scientific achievements and lived off of the knowledge from civilizations before them. Document 6, â€Å"it performs the function of the knowledge and treasures of what had come before.† Its output of creativity and originality did not in any way surpass the turmoil from invasions, political organization from feudalism, or the power of the church, to be known as a golden age. Document 7, â€Å"medieval culture was in perfect, was restricted to a narrow circle of superior minds.† To better understand that  the Middle Ages produced a low amount of cultural and scientific achievements I would need an additional document of a list of achievements produced during this era. I would be able to compare this to other achievements produced in civilizations during their Golden Age.

The concept of impossibility Essays

The concept of impossibility Essays The concept of impossibility Essay The concept of impossibility Essay Introduction This essay will dwell in an effort to analyze the philosophy of impossibleness and its operation in relation to contracts. It will look closely at both the construct of initial impossibleness originating from a common error on the portion of both parties as to the province of things before the contract was agreed and the construct of subsequent impossibleness and defeat. The latter trades with a state of affairs whether the parties enter into understanding on footings both express and implied and so a supervening event renders the public presentation of that understanding radically different from that which was envisaged by both parties at the beginning. These subjects will be discussed in greater item in the first subdivision and will run throughout the work. The essay will analyze the construct of nonsubjective and subjective impossibleness, and the regulations associating to dispatch of contractual duties and allotment of hazard. It will look at the state of affairs when either th e capable affair or a thing indispensable for public presentation is destroyed or unavailable, either partly or wholly. It will so look at how the decease or supervening incapacity of a party will impact a personal contract. Towards the latter portion of the essay, it will discourse the jobs that arise when a method of public presentation becomes impossible or a peculiar beginning becomes unavailable. It will reason by looking at the consequence of hold and impermanent impossibleness on a contract. The construct of impossibleness The construct of impossibleness in contract jurisprudence can be split into two distinguishable classs. There are the instances where the parties neer really make a true understanding because they are mistaken as to some component of the contract before the contract is concluded and the instances where the contract becomes impossible to execute subsequent to the understanding holding been reached. By and large talking, in the first case, the contract is null Bachelor of Arts initio and in the 2nd, an otherwise valid contract is brought to an terminal from the point when the impossibleness arises. A basic illustration to exemplify the difference would be a contract for the sale of a auto. If unknown to the parties, the auto had blown up 5 proceedingss before the contract was signed the contract would be null Bachelor of Arts initio, whereas if the auto blew up 5 proceedingss after the contract was signed, the contract would be valid, but brought to an terminal by the fact that its cap able affair no longer existed. Basically the tribunals are connoting into the contract a status case in point that the capable affair exists and is capable of transportation. This construct of implied status case in point has been regarded with considerable agnosticism among observers in visible radiation of the traditional common jurisprudence position that the tribunals should neither do nor amend a deal. The chief job arises when covering with the first type of impossibleness. It is non ever wholly clear how the tribunals will explicate the implied status case in point. Smith and Thomas suggest three possibilities: A impliedly promised B that the thing existed. A impliedly promised B that he had taken sensible attention to determine that the thing existed. A and B proceeded on the common premise, for which neither was more responsible than the other, that the thing existed and its being was a status case in point of the contract.[ 1 ] Which of these options it will be, depends mostly on the comparative agencies of cognition of the parties and whether one is trusting on the other. This will be discussed at length through the class of the work. It besides may be that on proper building of the contract either, or both of the parties have made absolute promises. In that event, the tribunals will non pardon non-performance for either type of impossibleness. There are besides instances where the contract has non become wholly physically or lawfully impossible, but an event has occurred which strikes at the base of the contract so as to thwart its purpose. [ 2 ] This is normally referred to as defeat and it operates as a signifier of subsequent impossibleness. Objective and Subjective Impossibility The contract will hold to be objectively impossible to execute before it is held to be null. The instance of Thornborow v Whitacre( 1705 ) 2 Ld Raym 1164held that a party can non get away liability on the evidences of impossibleness strictly associating to his single ability or fortunes. Neither will he be discharged from his duties merely because he finds the contract peculiarly hard or burdensome to execute: It is non hardship or incommodiousness or stuff loss itself which calls the rule of defeat into play[ 3 ] Subsequent impossibleness will likewise non pardon the parties from public presentation if it was brought approximately by the behavior of one of the parties. The instance of Southern Foundries ( 1926 ) Ltd V Shirlaw [ 1940 ] AC 701 held at 717 per Lord Atkin: †¦conduct of either promiser or promisee which can be said to amount to himself of his ain gesture, conveying about the impossibleness of public presentation is in itself a breach. Clearly, any impossibleness that can be attributed to either party will be considered a breach of contract and the defaulting party will go apt in amendss in the usual manner. Where the impossibleness brought approximately by one of the parties existed at the clip of the contract he is likely to be held to hold warranted possible public presentation of the contract and held to be in breach of that guarantee. As discussed above it is sometimes possible for the tribunals to keep that a party made an absolute promise and hence accepted the hazard of the fact that the contract might be impossible to execute. Whether a contract is considered to be absolute will be a affair of nonsubjective building of the footings of the contract. If the contract is held to be absolute, the party will be held to his public presentation whether or non the impossibleness is his mistake or non. In the instance Paradine V Jane( 1647 ) Aleyn 26a leaseholder was held apt to pay lease even though he had been evicted from the belongings by armed forces during the civil war. A rental is a type of contract that is normally regarded as being objectively absolute without mention to the subjective purposes of the parties. Overall the contract must be objectively impossible to execute, the subjective positions of the parties as to their fortunes and their personal ability to execute the contract will non normally be taken into history. Similarly, if a party is active in conveying about the impossibleness the contract will non be seen as objectively impossible, but as holding been breached. Conversely, some contracts will be held to be objectively absolute and the subjective purposes of the parties in organizing the contract and their degree of mistake in conveying about the impossibleness of public presentation will non be relevant. Destruction of the Subject Matter In the instance ofTaylor V Caldwell( 1863 ) 3 B A ; S 826the claimants granted the suspects the usage of a music hall and gardens for a series of music concerts. After the contract had been concluded, but before the concerts had begun the music hall was destroyed by fire and the concerts could no longer be held at that place. The claimants argued that the suspects were in breach of the contract for neglecting to supply the music hall and sought to retrieve ?58, which they had spent on publicizing the concerts. The tribunals nevertheless held that the contract had become impossible to execute and was hence defeated. Both parties were hence released from their duties under the contract. In coming to this decision Blackburn J referred to the pronouncement of Pothier [ 4 ] saying that: The debitor is freed from duty when the tinkle has perished, neither by his act nor his disregard and before he is in default, unless by some judicial admission he has taken on himself the hazard of the peculiar bad luck which has occurred. He recognises that the civil jurisprudence is non adhering on English Courts, but states that it is a utile index of the rules on which the jurisprudence is grounded. Blackburn J besides refers to a line of authorization affecting bailment. For illustration the instance ofWilliams V LloydW.Jones 179the claimant had delivered a Equus caballus to the suspect on the status that it be returned on petition. Without mistake on the portion of the suspect, the Equus caballus became ill and died and was hence non able to be returned on the petition of the claimant. It was held that bailee was discharged from his promise by the fact that the Equus caballus had died. Blackburn J stated that it was a settled rule of English jurisprudence that in contracts for loans of movables or bailments, if the promise of the bailee or borrower to return the goods becomes impossible because the goods have perished through no mistake of his ain, the bailee is excused from this promise. It is noted that in none of the instances associating to bailment was it expressly agreed that the devastation of the capable affair would let go of either party from their duty, the alibi is by jurisprudence implied [ 5 ] This rule established in Taylor and subsequent instances [ 6 ] is now contained in subdivision 7 of the Sale of Goods Act 1979 Where there is an understanding to sell specific goods and later the goods, without any mistake on the portion of the marketer or purchaser, perish before the hazard passes to the purchaser, the understanding is avoided. Partial Destruction of the Subject Matter It is interesting to observe that the contract in Taylor was for the usage of Surrey Music HallandGardens’ . It was hence lone portion of the capable affair that was destroyed by the fire ; the gardens were still in tact. However, it was held that the devastation of the music hall rendered public presentation of the contract impossible. This implies that when portion of the capable affair is destroyed the tribunals will look into the intent of the contract. If the portion that is destroyed renders that purpose impossible the contract will be held to hold been frustrated by its devastation. Discharge and Rules Governing Hazard As discussed above a contract, which is the topic of a error made by both parties prior to its formation that makes public presentation impossible, will be null ab initio. This is non the instance if the impossibleness arises after the formation of the contract, i.e. the contract is frustrated. In that event, the contract is said to be discharged from the clip when the frustrating event arose. The parties are discharged from any future public presentation without holding to elect that that will be the instance. [ 7 ] Where the nucleus of the contract is the occurrence of some future event and that event is cancelled the clip of defeat will be the clip when the cancellation is announced. In the instance ofKrell V Henry[ 1903 ] 2 KB 740the suspect hired a level on Pall Mall to watch the enthronement emanation of Edward VII, though this intent was non expressed in the contract. The emanation was cancelled before the formation of the contract, but the proclamation was non made until afte r the contract had been agreed. If the contract is dissociable, it may be that lone portion of the contract is frustrated and the other parts remain in force. It seems that even when an full contract of sale is held to be discharged because it has become impossible to present some of the goods, the purchaser can waive’ this and demand bringing of the remainder of the goods. This was the instance in HR A ; S Sainsbury Ltd v Street [ 1972 ] 3 All ER 1127. Supervening events may besides do the suspend the contract without really dispatching it. [ 8 ] Temporary impossibleness will be discussed in greater item in a ulterior subdivision. Furthermore, illegality may thwart a minor duty without dispatching the full contract. The deductions of things like this for a possible philosophy of partial defeat will besides be discussed subsequently. The essay will now travel on to look at who should bear the hazard and therefore the loss of a frustrating event. For a long clip it was thought that the losingss ensuing from the defeat of a contract should lie where they fell. This led to the decision that any money paid before the frustrating event occurred was unrecoverable and conversely any money already due under the contract for services provided was enforceable. In the instance of Chandler V Webster [ 1904 ] 1 KB 493, CA, a room was hired to see the enthronement emanation, the monetary value being collectible instantly. When the emanation was cancelled, ?100 had been paid on history. It was held that the contract was frustrated thereby let go ofing the parties from farther public presentation, but go forthing promises performable before the frustrating event still standing. On the other side a party who had merely partly performed the contract could non retrieve anything for his services even when he had conferred a benefit on the other side. [ 9 ] It is possible nevertheless that a party who, after a frustrating event, takes sensible stairss to protect the other party’s involvement will be entitled to retrieve wage for his outgo on a restitutionary quantum meruit footing. This was the instance in Societe Franco-Tunisienne dArmement V Sidermar SpA [ 1961 ] 2 QB 278 [ 10 ] . Until 1942 it was besides considered that there could be no recovery for entire failure of consideration. This was on the footing that up until the point of defeat the party who had paid any money had the benefit of a executory contractual promise and that was consideration adequate [ 11 ] . However, in the instance of Fibrosa Spolka Akcyjna V Fairbairn Lawson Combe Barbour Ltd [ 1943 ] AC 32 the House of Lords held that a party could retrieve where there had been a entire failure of consideration. This was an betterment on the Chandler place discussed above, but two rule defects in the jurisprudence remained. The first was that the rule merely applied when there was a entire failure of consideration ; where there was a partial failure the claimant could non retrieve anything. [ 12 ] The 2nd defect was that the payee could non put off any outgo that he had incurred in the public presentation of his side of the contract. These defects were rectified by subdivision 1 ( 2 ) of the Law R eform ( Frustrated Contracts ) Act 1943. The subdivision provinces: All amounts paid or collectible to any party in pursuit of the contract before the clip when the parties were so dismissed ( in this Act referred to as the clip of discharge ) shall, in the instance of amounts so paid, be recoverable from him as money received by him for the usage of the party by whom the amounts were paid, and, in the instance of amounts so collectible, cease to be so collectible: Provided that, if the party to whom the amounts were so paid or collectible incurred disbursals before the clip of discharge in, or for the intent of, the public presentation of the contract, the tribunal may, if it considers it merely to make so holding respect to all the fortunes of the instance, let him to retain or, as the instance may be, retrieve the whole or any portion of the amounts so paid or collectible, non being an sum in surplus of the disbursals so incurred. This deals with the defects in the common jurisprudence by saying that monies paid before the frustrating event are recoverable, amounts collectible prior to the clip of discharge cease to be collectible and the payee is entitled to put off disbursals moderately incurred in their public presentation of the contract. Goff and Jones note that whilst the Act does cover in lineation with the lacks of the common jurisprudence it does non wholly decide the issues. [ 13 ] For illustration, the Act does non state what principles the tribunal ought to use to make up ones mind how much the payee is entitled to put off. In the instanceGamerco SA v ICM/Fair Warning Agency Ltd[ 1995 ] 1 WLR 1226Garland J felt that the court’s undertaking was to: †¦do justness in a state of affairs which the parties had neither contemplated nor provided for, and to extenuate the possible abrasiveness of leting all loss to lie where it has fallen. Section 1 ( 2 ) does allow the payee to retrieve or retain more than he has been paid up to the tine of defeat. I.e. for disbursals incurred in outlook of future payment. They may be able to retrieve such outgo under subdivision 1 ( 3 ) , which takes consequence when 1 party has conferred a valuable benefit on the other party ( other than money ) before the clip of discharge. In that event, he will be able to retrieve a merely amount, which shall non transcend the value of the benefit conferred. Robert Goff J held in the instance ofBP V Hunt[ 1979 ] 1 WLR 783that there were two stairss to measuring a claim under subdivision 1 ( 3 ) , the first was placing and valuing the benefit conferred. Goff J held that normally the benefit would be the end merchandise of any services. In some contracts the services were the terminal merchandise themselves, for illustration, a contract for the transit of goods. He held that if the terminal merchandise is destroyed by the frustrating event so no benefit is conferred because the other party does non hold the merchandise either. This reading has been to a great extent criticised as neglecting to give consequence to the purpose of the Act. [ 14 ] This subdivision of the Act was intended to extenuate against the rough effects of the common jurisprudence regulation of entire obligations’ . In the instance ofAppleby and Myers( 1876 ) LR 2 CP 651the claimants contracted to do machinery in the suspects mill and to keep the machinery for two old ages. Payment was upon completion of the work. After portion of the machinery had been erected, a fire destroyed the whole mill and all the machinery. The claimants could non retrieve anything, as they had non completed the work. Goff J’s reading of subdivision 1 ( 3 ) would take to the same consequence. However, this reading has besides been adopted in the Commonwealth [ 15 ] . It does look to harmonize closely with the diction of subdivision 1 ( 3 ) , which draws a differentiation between the public presentation by on party and the benefit conferred on the other. This implies that the claimant must really hold received the benefit of any public presentation on the portion of the suspect before the suspect can retrieve or retain any money. The 2nd measure Goff J laid down was the measuring of a just sum’ . Contractual allotment of hazard will of class be a factor. Goff J thought that it ought to be every bit much as is necessary to forestall the unfair enrichment of the other party. This attack was rejected by the Court of Appeal in the same instance, who merely held that it was in the about unrestricted discretion of the test justice. In decision, the Act is unhappily lacking in its counsel as to the allotment of hazard and loss between the parties to a contract that has been discharged for defeat. It is possible for the parties to apportion the hazards contractually. This is one of the chief grounds that the tribunals have kept a tight reign on the philosophy of defeat. Parties are expected to be able to anticipate the possibility of dramatic monetary value additions and the eruption of labour differences etc. Contracts hence on a regular basis include clauses which allocate the hazard of such an unanticipated event happening. One common illustration is a force majeure clause’ . In the instance ofChannel Island Ferries Ltd V Sealink UK Ltd[ 1988 ] 1 Lloyd’s Rep 323the relevant clause stated: A party shall non be apt in the event of non-fulfilment of any duty originating under this contract by ground of Act of God, disease, work stoppages, Lock-Outs, fire and any accident or incident of any nature beyond the control of the relevant party. The advantages of such clauses are that they provide a grade of certainty and the parties can hold to a wider scope of fortunes than are presently available under the philosophy of defeat. For illustration, an unexpected addition in monetary values is non considered to be a frustrating event, [ 16 ] but it is common in a commercial contract to see a force majeur clause incorporating proviso for abnormal addition in monetary values and wages.’ It besides allows the parties to find their hereafter relationship. The defeat philosophy discharges the contract regardless of the wants of the parties, but they can supply for a continuing, adapted relationship if they so wish. Inaccessibility of the Subject Matter Where both parties are mistaken as to the handiness of the capable affair at the clip of the contract, this may be sufficiently cardinal to avoid the contract. The taking instance on this issue is that ofCourturier V Hastie( 1856 ) 5 HLC 637in which the parties entered into a contract for the sale of a lading of maize, which was believed to be in theodolite from Salonica to England. Unknown to both the parties, the corn’s quality had deteriorated to such an extent that the maestro had sold it. The House of Lords held that the affair turned on the building of the contract reasoning that: The contract obviously imports that there was something which was to be sold at the clip of the contract, and something to be purchased, no such thing bing, †¦ judgement should be given for the defendants.[ 17 ] The exact legal footing for importing this term has been the topic of some argument among observers and will be discussed briefly now. The draughtsmans of subdivision 6 of the Sale of Goods Act 1979 appear to hold interpreted the determination as saying that a error as to the being of the capable affair of the contract necessarily renders it void: 6 Goods which have perished Where there is a contract for the sale of specific goods, and the goods without the cognition of the marketer have perished at the clip when the contract is made, the contract is null. The tribunal in Couturier did non nevertheless advert the word error ; they based their logical thinking on the building of the contract and the fact that there was a entire failure of consideration on the portion of the Sellerss. Lord Denning applied a different reading in the instance ofSolle V Butcher[ 1950 ] 1 KB 671 at 691in which he held that there was an implied status case in point that the contract was capable of public presentation. He reasoned that in Couturier the parties had proceeded on the premise that the goods were capable of being sold, when in fact they were no longer available for sale. Lord Denning’s reading does look to give consequence to the most likely purpose of the parties. However, in the absence of a clear purpose to let go of each other from the understanding if the capable affair is non available, it is non clear when Lord Denning is proposing a term of this nature should be implied into the contract. The 3rd reading is that whether or non the contract will be null, depends on the its building. This was the reading put on Couturier by the High Court of Australia in the instance ofMcRae V Commonwealth Disposals Commission84 C.L.R. 377. The suspects invited stamps for the purchase of an oil oiler described as lying on the Jourmand Reef off Papua, together with its contents, which were stated to be oil. The Claimants won the stamp and spent a considerable sum of money modifying a vas for the salvage work. In a eccentric bend of events it was subsequently discovered that no such oiler had of all time existed. The tribunal held that: The merely proper building of the contract is that it included a promise by the committee that there was a oiler in the place specified. On that building the Commission had assumed the hazard of the oiler non bing. They distinguished Couturier, keeping that this was non a instance in which both parties had entered the contract on a common premise. The Commission had assumed the being of the oiler, but the purchasers had merely relied on their averment. In policy footings there can be small uncertainty that the attack taken in McRae is a sound one and one which ought to be followed by the English tribunals, but its is slightly hard to accommodate with subdivision 6 of the Sale of Goods Act. There is the possible statement that McRae does non fall under subdivision 6 because the oiler had neer existed and hence could non hold perished’ . This differentiation does look slightly unreal and non within the purpose of the tribunal in McRae. If the capable affair becomes unavailable after the contract has been concluded this may besides render the contract frustrated for impossibleness. For illustration in the instance ofBank Line Ltd V Arthur Capel A ; Co[ 1919 ] AC 435a charterparty was held to be frustrated when the ship was requisitioned and so unavailable to the charterer. Impermanent inaccessibility may besides do, but this will be discussed subsequently. Destruction or Inaccessibility of a Thing Essential for Performance Lord Atkin in the instance ofBell v Lever Brothers Ltd[ [ 1932 ] A.C. 161, discussed the fortunes in which 1 might wish to connote a status into the contract. He states that a status derives its efficaciousness from the consent of the parties, express or implied. He supposes a possible term: Unless the facts are or are non of a peculiar nature, or unless an event has or has non happened, the contract is non to take effect. If there are express words in the contract such as a foundation necessity to the existence’ , there need non be any farther question, but when there are no such words the tribunal must look into the fortunes of the understanding to see whether any such status can be implied. Lord Atkin uses the illustration of the hire of a professional singer whose continued wellness would be indispensable to the public presentation of the contract. The instance ofKrell V Henry[ 1903 ] 2 KB 740has been discussed earlier. For present intents it can be described in the undermentioned footings: The contract was for the hire of a room on Pall Mall to watch the enthronement emanation of Edward VII. The capable affair of the contract was the room and that was still in tact. However, the intent of the contract was to watch the emanation and without the emanation the contract was non capable of full public presentation. Vaughn Williams LJ refers in his judgement to the instance ofNickoll v Ashton[ 1901 ] 2 K.B, which is authorization for the proposition: English Law applies the rule non merely to instances where public presentation of the contract becomes impossible by the surcease of being of the thing which is the capable affair of the contract, but besides to instances where the event which renders the contract incapable of public presentation is the surcease or non being of an express status the continued being of which is necessary for the fulfillment of the contract, and indispensable to its performance. This construct was extended in Krell to include a state of affairs in which that peculiar set of fortunes ( the screening of the enthronement ) was non expressly mentioned in the contract. The contract in Krell was, nevertheless a unusual one ; the room was merely hired out by the twenty-four hours, non the dark, and the intent for the contracton bothsides was the screening of the enthronement. It is clear that the peculiar set of fortunes must hold been in the contemplation of the parties and one that they both realised was necessary for the full public presentation of the contract. There is some difference environing the Krell instance. Cheshire and Fifoot point out that the cancellation was likely non in the contemplation of the parties, but with respect to the proposition that the purchaser should be discharged from his duty to pay on cancellation: It is incompatible with the character of a difficult trader to state that the proprietor of the room would hold agreed to this proposal if it had been put to him during negotiations.[ 18 ] It is more likely that the proprietor would hold told the boss that that was a hazard he would hold to take. It seems slightly unreasonable to import to the marketer a province of head which he may good non hold been in had he thought about it. McElroy and Williams, on the other manus say that the contract was impliedly for the hire of rooms to see the procession , the fact that there was no emanation hence amounted to a complete failure of consideration on the portion of the proprietor of the suites, dispatching the boss from his duty to pay. [ 19 ] The fortunes in which Krell will use are highly limited. The set of fortunes, which the parties assume to be go oning, must be the common foundation of the contract. In the instance ofHerne Bay Steamboat Co v Hutton[ 1903 ] 2 KB 683the claimant hired a ship from the suspect to watch the naval reappraisal and for a day’s sail around the fleet. After the contract, the naval reappraisal was cancelled owing to the same unwellness of Edward VII, but the contract was held non to hold been frustrated. This is thought to be because the boss could still see the fleet and the boat had non been hired out by the proprietor for the specific intent of seeing the Naval Review. This meant that seeing the Naval Review was non thecommonintent of the contract and its cancellation was non hence a frustrating event. Therefore interpreted, Krell can be seen as a really narrow determination and as so been distinguished in more recent instances. [ 20 ] The Death of a Person Essential to Performance In the instance ofGalloway v Galloway( 1914 ) 30 TLR 531the suspect thought that his first married woman had died and married the claimant. The suspect and claimant later separated and entered into a title of separation under which the suspect agreed to pay the claimant a hebdomadal amount in care. The suspect so discovered that his first married woman was really alive and stopped paying the care payments to his 2nd married woman. When she sued for recovery of the arrears, it was held that she could non make so as the colony understanding had been entered into under the common error that she had been married to the suspect, when in fact she could non hold lawfully been. Consequence of Death on a Personal Contract Under general contract jurisprudence, the decease of a party will hold no consequence whatsoever on the contract or any of the rights accrued under it. [ 21 ] The personal representatives of the asleep individual are bound to finish public presentation on his behalf, in so far as the estate allows [ 22 ] and they may action for the return side of the understanding. This is non the instance when personal dealingss are the foundation of the contract. In that event, the decease of one or other of the parties, the contract is leading facie discharged. Importantly, the Law Reform ( Frustrated Contracts ) Act 1943 will use in some state of affairss. Where portion of the contract can be severed and those parts of the contract had been performed before the contract was discharged due to the decease of the party, or they were discharged but for payment of an discoverable amount, the tribunals must handle that portion as a separate contract that had non been frustrated. This proviso keeps in tact dissociable duty already performed, but departs from the common jurisprudence refusal to let the recovery of money paid or benefits conferred. [ 23 ] Contrac