Business With Marshal Will Not Be Profitable As The Company

1172 Words Mar 23rd, 2016 5 Pages
Case analysis

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Continuing business with Marshal will not be as profitable as the company in Texas. The most probable business decision would be to stop doing business with Marshall and engage with the company in Texas. Stopping the business dealings with Marshall may result in legal actions for breach of contract and breach of covenant of good faith and fair dealing. In order to succeed in a claim for breach of contract it is imperative for Marshall to establish the existence of a contract. A contract can either be express or implied. Implied contracts are inferred from the circumstances of the situation and the conduct of the parties. These contracts are not explicitly stated but are equally biding as written contracts. The difference between implied contracts and express contracts is that courts will look at the intentions of the parties in determining whether an implied contract exists (Manesh, 2013). In Baltimore & Ohio Railroad Co. v United States, the court held that an implied contract exists where there is a meeting of minds although this may not be included in an express contract. This contract is inferred from the conduct of the parties to the contract with respect to the circumstances surrounding the situation. The parties may not have exchanged words regarding the contract but their actions will indicate the existence of a contract. The transaction between me and Marshall established an implied contact as the actions in…
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