preview

Case Study: Nature of Agency

Satisfactory Essays

A contract is an agreement that is voluntarily entered into by two or more parties that specifically causes a legal obligation. Within the original contact there is, then, the expectation that all parties would perform as agreed unless the parties agree together to change the terms of the contract, or the actions of the party that deviates from the terms of the contract are ratified (implicitly accepted) by the other party (Blum, 2004, pp. 3-21). Contract and breach of contract has important implications for all organizations since contracts are so regularly applied (and implied) on a regular basis. For contracts to even exist, the intent must be that all parties honor the intent (Law Cards, 2004). In the case study, Nature of Agency, there are a number of issues relating to both contractual agreements and contract administration. In essence, Non-Linear Pro is taking legal action against Quick Takes Video for breach of leasing agreement. The indication is that issues pertaining to the equipment contracts have only devolved, despite the 8-year partnership between the two organizations. In fact, one of the Quick Takes executives is aghast with surprise when he learns of the lawsuit. Further, the validity of the pertinent legal issues comes into question when one looks at the way the contracts were managed and the product's internal manufacturing defect ratio. In legal terms, breach of contract is the concept that defines an action that was taken that disallows or dishonors a

Get Access