Imagine that you are Adam. If you were in Adam’s position, what would you do to protect yourself with this contract?
Adam is a baker who lives in a small village in France. He owns a small shop together with his brother, Hayden, and his nephew Ryan. The three of them worked well together—Adam did all of the baking in the kitchen, Ryan attended to the customers, and Hayden delivered flour every day from the small flourmill that he owned nearby. Adam relied on both his brother and his nephew in order to keep the bakery running. He was glad that he did not need to rely on strangers to run his business. One day, however, Hayden decided that he wanted to move back to his home village in Iceland. He sold his flourmill and used the money to buy a house in Iceland for him and Ryan to live in. Because it would be impossible for him to keep running the shop all on his own, Adam was faced with a decision—he had to either find a new flour supplier and a new person to work in his shop, or he would be forced to close it altogether. He decides to try to find a new supplier of flour. Hayden refers him to Austin, who is the new owner of the flourmill. Because Adam does not know Austin, he does not know whether he is reliable. Failure to make a delivery could mean severe damage to his business, forcing him to lose a day’s business and angering his customers. Although Austin insists that he is a trustworthy and honest merchant, Adam still has some reservations about entering into business with a complete stranger.
Imagine that you are Adam. If you were in Adam’s position, what would you do to protect yourself with this contract?
Step by step
Solved in 3 steps
