Commercial or business law refers to set of rules that govern and guide parties involved in a business agreement or a transaction. These laws govern the activities of the persons or the parties within the transaction. For example for business contract to be signed between two parties there has to be a drawn rules on what each party is expected and their obligation in a specified business transaction. These rules were developed to reduce conflicts resulting from one party’s failure to meet their part of bargain and to help in arbitration or litigation in case a disagreement arose .
The principle of fact in law refers to a statement which can be substantiated or established by experiment or observation. A fact can be true or force when re-tested with better instruments. In law a for a statement to be a fact it has to demonstrate a cause of action, to determine whether evidence submitted is admissible or can stand trial, as a ground for possible appeal of the case if the needs arose and by authority to establish whether a possible crime have been committed or law broken (Beatty & Samuelson, 2010). In the case presented between McClain and octagon Plc these are some of the facts presented from both sides; Octagon Plc leased premises to McClain on five years tenure and the necessary documents were signed by both the two parties. The area had been estimated and the owners of Octagon confirmed to McCain that they were sure of the measurements. The measurements were estimated to occupy 23% of the whole premises and so McCain was to also pay 23% of the open premises (Bakhitiari & Uhl, 2012, pp 101-107).
The facts provided by owners of Octagon were accepted by trial court on the favor of Octagon but when rested by appeal court, they failed to stand the test of evidence given. It is also evident from their dealings that, Octagon had hidden important facts to the McClain and used that to fraud her. Business law puts a lot of emphasize a lot of importance on the issue of fact and effects of lack of concrete evidence. The business law put a lot of importance on the presentation of fact and makes them abided. In business contracts, the issue of facts has to be applied in presentation of the tenets to the contract; this will protect the parties in dealings and offer room for litigation or arbitration in case of disagreement arising between the two parties. For any contract to be abiding and valid, it has to be based on facts.
From the contract signed between the two parties, there are lots of issues about the law; there was lack of complete disclosure by the one party on what constitute the building this was due to lack of good faith on the side of the Octagon Company. The content of the contract was not complete in matters of law as it needs to have been signed before an attorney or an advocate, after receiving and independent report from property agent nominated by consent of the two parties. This could have protected the client who suffered loss due to overstatement of the space. The contract was not drawn with consent of the advocates for the two parties as it favored the owner by giving his sides leeway to make many assumptions. The trial court and the appeal court have been drawn into law tussle in interpretation of the contract.
The trial court interpretation of the contract was not done basing on what the whole document contained and thus made a decision to indemnify the octagon plc from any act of wrong doing. The content of the contract was not drawn legally and that made the second court to overturn the ruling of the first court.
From the legal point, the agreement between the two parties was drawn basing more on the basis of faith and trust between the two parties which the octagon did not uphold leading to financial loss of the McClain. There were overstatement and misrepresentation of the facts, which favored Octagon holdings and less to loss of money by other party. The agreement was legal but Octagon made it appear social bringing loss to McClain. In legal form, octagon should cater for the financial loss incurred by McClain. McClain is also to blame as she was ignorant of the whole process.
In conclusion, every business contract has to be based on facts which will guide what each party present and the other accept. The contact assists when the issue of disagreement between the parties arose.