In a quest to explore Christianity, Marshall Petersen began visiting the Sunday school with the encouragement of his wife. I am his Sunday school teacher and upon further communication, I informed him of the high antioxidant qualities of the Muscadine grapes my family’s produce company sells, and I asked him if he might be interested in promoting either the grapes themselves or the various products developed using their seeds. He was interested. The grapes became a hot commodity and over six months, he paid for orders and delivery has been prompt, and no issues about payments even though they can be 15 to 30 days late. During one of the deliveries, Marshall made my son signed a contract that includes a guaranteed price schedule consistent with what he had been paying. Marshall told him that it was “just a formality” to guarantee a continuing business relationship. The signing of that contract established a formal business agreement between the two companies. Our business transactions were running perfectly, we were trying to meet the demand for our product, and until recently when a company in Texas offered to pay me twice the going rate for my products. I informed Marshall as I don’t want to leave him out to dry. He was very angry and he told me that he expects me to continue to supply him with all the product he needs, when he needs it, and at the prices he had always paid, per the requirements contract between our businesses and in accordance with an implied duty of
In this case, there are several important issues to note. The initial issues is that a contract was signed by a minor acting on behalf of the company and not by a specified owner of the company. The question here is if this contract is legally binding and what recourse of actions the parties may have. The first step would be to consider the legality of the contract. In order for a contract to be legal it has to possess several important criteria. Contracts have to be communicated to the parties it effects clearly. (Kubasek 2015). In this case, the contract was not communicated at all to the owners of Muscadine grapes and it was also not
This discussion board post will respond to various questions regarding the Contracts Analysis Case Study involving Marshall Petersen and his local health food business from a
2. Chen, a retail seller of fruit, entered into a contract for the purchase of 10 bushels of peaches from Georgina, at a price of $5 per bushel. Delivery was to be in one month. One week after this contract was formed, unexpected cold weather destroyed most of the peach crop and prices doubled. Georgina asked Chen if he would agree to a price increase to $7 per bushel,
Lastly, the logos Pastor used in this film were tremendously credible. Pastor gathered all the information he collected about organic foods by interviewing actual workers from the food industry. Pastor’s logos were very informative, valid and caught the viewer’s attention by using a hook and then using a credible source to help inform the facts. For example, in the film Pastor says,” Pesticides cause cancers”. Then Pastor interviews a scientist who answered his questions about pesticides being related to the cause of cancer. Thus, he informs the viewers of in a very effective manner. The logos Pastor used in the film were also used to
The contract was to govern the business relationship, and the terms were expected to be adhered to by both parties. According to the contract, the supplier was supposed to supply me with the products during the time of agreement without failure unless under unavoidable circumstances. Any condition that prevented delivery of products on the dates scheduled, the supplier was expected to provide a reason for the delay and if possible give the estimated time of delivery. The prices of the products were expected to be fixed, and no additional charges or price adjustments were to be made without my consent and that is after negotiations between the two of us. Also, the products were supposed to be delivered in exact quantities, location, and on time.
The manager at the national chain store has sent a demand letter to Sam for the 1,000 units that he verbally promised. Therefore, an evaluation of the agreement, the consideration, the contractual capacity, and the legal object will be made to determine whether a valid contract exists.
In this case, there are two issues that emerge; the first entails as to whether Johnson, who is a farmer should be treated as a merchant according to the definition of the Universal Commercial Code. The other issue that emerges in the case concerns as to whether the oral contract made between the two parties of selling 600 bushels at the price of $ 4.02 should constitute a binding contract.
I have being living in Montroogermy Alabama for over six months now.I recentlt met the defendent at a local church I have been attending. The defendent has a family owned produce business an approached me about possibly supplying me with new products. He offered me samples of Muscadine grapes. He offered me these grapes or to purchase samples of products with these seeds. The samples I was provided became very popular with my customers. I began to regular orders with the defendents company. As these products becane popular I also began to invest heavily in the advetisement of these products. Due to the ongoing business relationship and after reviewing my investment costs I decided to write a requirements contract. I provided this contract to the to the defendent to safe guard my investments. This contract was clear and concise.This contract guaranteed a price schedule consistent with what I have always paid the defendent for these Muscadine grape products. The contract was presented to the owners son who I assumed was a fair representative of the company. I informed the son that this contract needed to be signed to guareente a continuing business realtionship that implies duty of good faith and fair dealing . The defendent has informed me of a offer from a company in Texas that offered to pay twice the rate for these products with the conditon of a output contract as apart of the deal(case study). Due to a skyrocketing demand for these Muscadine products and this
Educate the residents of Fox Grape community about the importance of healthy diet and how fast food can effect our life.
Contract is defined as an agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law. For purposes of this chapter, we are concerned with agreements to buy and sell some type of agricultural product. Contracts 101 You should be concerned about contract law because it determines how parties to the contract will need to keep the promises they make. Although very few contracts ever end up in court, if the parties to a contract disagree on something and are unable to resolve the disagreement, they may have to resort to the judicial process. This means that as the parties negotiate a contract, they need to consider how a judge might ultimately interpret it. For a contract to be enforceable, it must involve:
It has been three years, and the company has managed to produce vintage wines which are higher in quality and sell for the higher price; besides, they contribute to the prestige of the winery. Due to this success, the company started to sell wine “future” to large whole-sales. Under the terms of the contract, whole-sales pay the company upfront and agree to take delivery of certain numbers of bottles in two years 20% off the predetermine future price. In anticipation of increasing cost, the company made purchase commitment and placed a purchase order for a significant number of oak barrels from France that are used to age the wines.
He may also feel that the contact was breached and he is owed restitution. Marshall in this disagreement should first attempt to resolve this dispute without pursuing any legal action. He could use his faith and biblical teachings, to show errors of ways. He could argue the contract unenforceable due to fraud and inept execution, if he must rely on legal relief. The business relationship is best suited to be served also. The common law duty is to always act in good faith. Good faith performance is an implied agreement in nearly every contract in American common law jurisdictions (Burton, 1980). In the contract in question the promise was made, upholding an expectation of receiving the terms agreed upon in the contract. The issue is to act in good faith or to enforce the law. Marshall can secure not only supply, price, but also control of the benefits earned by his supplier. From a legal aspect, Marshall has acted in bad faith. A minor capacity to sign a contract is the bad faith act on Marshall’s part.
Certain business situations necessitate that customers take title to the goods purchased, agree to pay for them and yet not be in a position to accept delivery of the goods. In such cases, the sellers fulfill the manufacturing requirements and segregate the goods in their warehouses so as to make the goods available to the customers for shipment. Such transactions are labeled ‘bill and hold’ agreements (Grant Thornton, 2010).
Contract Law Case Study Both the parties in the question have come to a problematic situation
Competitive wine companies have improved their order systems and are outperforming Grand Wines Ltd in terms of delivery speed, order accuracy, availability of ordered stock and overall customer satisfaction.