Food Mart
Foodmart Inc.
Tomara Bowleg, LaToya Oeur, Tracey Holyoak
BUS 415
June 27, 2011
Jane Schneider
Foodmart Inc. Both the business environment and the private sector use contracts as a means for agreement regarding transactions. For any contract to be legally binding four requirements must be met: 1) agreement, 2) consideration, 3) contractual capacity, and 4) lawful object (Cheeseman, 2010, p. 162). After the four requirements are met, it is the responsibility of each party involved to complete their respective obligations. Unfortunately, not all contracts will see completion. Events that arise in the course of the completion of the contract can cause breaches. Other times, one party in the contract fails in his or her obligation because of negligence. When contractual obligations cannot be fulfilled the injured party has certain rights to recover damages or force performance. In this paper the subject to address are situations that have arisen in various contractual scenarios. Based upon the contents of the contracts and causes of the contractual breaches, each scenario will address possible defenses and determine which party will win the suit along with potential remedies.
Scenario One
The first scenario deals with a contract between two organizations. In the course of business, Foodmart, a retail grocery store, needed to renovate its Main Street location. A contract was formed with the independent contractor, Masterpiece Construction, for this job. As the job was in process, Masterpiece chose to subcontract the remaining work to Build Them to Fall Construction. The information regarding the subcontracting of this job was not given to Foodmart. When Foodmart became aware of the situation, it petitioned the court to request an injunction. A suit against Masterpiece for breach of contract and specific performance also ensued.
Upon review of the contract the court approve the injunction, prohibiting Masterpiece from subcontracting the job. The court
Tomara Bowleg, LaToya Oeur, Tracey Holyoak
BUS 415
June 27, 2011
Jane Schneider
Foodmart Inc. Both the business environment and the private sector use contracts as a means for agreement regarding transactions. For any contract to be legally binding four requirements must be met: 1) agreement, 2) consideration, 3) contractual capacity, and 4) lawful object (Cheeseman, 2010, p. 162). After the four requirements are met, it is the responsibility of each party involved to complete their respective obligations. Unfortunately, not all contracts will see completion. Events that arise in the course of the completion of the contract can cause breaches. Other times, one party in the contract fails in his or her obligation because of negligence. When contractual obligations cannot be fulfilled the injured party has certain rights to recover damages or force performance. In this paper the subject to address are situations that have arisen in various contractual scenarios. Based upon the contents of the contracts and causes of the contractual breaches, each scenario will address possible defenses and determine which party will win the suit along with potential remedies.
Scenario One
The first scenario deals with a contract between two organizations. In the course of business, Foodmart, a retail grocery store, needed to renovate its Main Street location. A contract was formed with the independent contractor, Masterpiece Construction, for this job. As the job was in process, Masterpiece chose to subcontract the remaining work to Build Them to Fall Construction. The information regarding the subcontracting of this job was not given to Foodmart. When Foodmart became aware of the situation, it petitioned the court to request an injunction. A suit against Masterpiece for breach of contract and specific performance also ensued.
Upon review of the contract the court approve the injunction, prohibiting Masterpiece from subcontracting the job. The court
References: Cheeseman, H. R. (2010). The Legal Environment of Business and Online Commerce: Business Ethics, E-commerce, Regulatory, and International Issues. (6th ed.) Upper Saddle River, NJ: Pearson Prentice Hall eHow.com. (2011). How to discharge a contract due to commercial impracticability. Retrieved June 23, 2011, from the World Wide Web: http://www.ehow.com/how_6712302_discharge-contract-due-commercial-impracticability.html Legal Dictionary. (2011). Definition of promissory estoppel. Retrieved June 24, 2011 from the World Wide Web: http://legal-dictionary.thefreedictionary.com/Promissory+Estoppel