Business Law Case

Decent Essays

Sharon and Don decided to do business together via a verbal agreement. Don is already a small business owner of a local health food business. Sharon found out that Don was an owner of a business in the area after meeting him. Don became interested in Sharon’s family’s products once she showed him their products. Don and Sharon agree to sell samples of her family’s products in his store. When the products started selling well in Don’s store, he contacted Sharon to order more of the family’s products. For some time Don placed orders with Sharon’s family, and received awesome customer service. Sharon’s company would deliver the products that Don requested at the same rate and in a timely fashion. Upon receiving the order or orders, Don …show more content…

The definition of implied covenant is, “parties cannot intentionally or purposely do anything which will destroy or injure the other party’s right to receive the fruits of the contract” (Anderson, 2012, p. 1). If the contract that Sharon’s 17 year old son signed with Don requires that they do continue to do business with him it is a possibility that the contract may be legal, based on the laws of their state. Minor’s capacity to contract Legally binding arrangements when it comes to contacts there are people that have the lack of legal liability. Minors are placed in a special category and if they sign a contract the agreement is considered voidable by them. Voidable means that the person that signed the contract, that lacks the capacity to enter into a contract, can void the contract or go ahead with the contract. Since Sharon’s 17 year old son is considered a minor in most states he would be considered to have the lack capacity to make a contract. Since there is not much information about the contract and or state, it seems as though the contract that the 17 year old signed can be voided. Fraud in the execution of a contract Sec. 229. Fraud In Execution – Contents of Written Contract – “The commonest form of fraud in the factum exists where an instrument is writing is drawn up and signed by one party under a false belief as to its contents, due to the fraud of the adversary party. In such case the contract is generally held to be

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