Business Law Grocery Paper

Topics: Contract, Breach of contract, Contract law Pages: 6 (2012 words) Published: June 16, 2012
Grocery, Inc.
Located in Any State, U.S.A Grocery, Inc. is a retail grocery store with locations all over the United States of America (U.S.A.). Tom Green and Jeff fresh work for the store located in My Town, U.S.A. Tom is the produce manager and Jeff, 17 years old, is working for Tom in the produce department. The first scenario is the contract between Grocery, Inc. and Masterpiece Construction for the renovation of the store located on Main Street in My Town, U.S.A. The second scenario is an underage contract between Jeff and Smooth Sales Used Cars. The third scenario is a breach of contract and/or promissory estopple between Tom Green and Harry. The fourth scenario is regarding an e-commerce contract between George and Grocery, Inc. Looking at the scenarios that have been presented there are many legal issues that must be addressed. Sub-Contract

Grocery, Inc contracted with Masterpiece Construction to renovate the store on Main Street in My Town (Cooper, 2009). Masterpiece Construction increased its workload during the period covering the promised renovations for Grocery, Inc., causing Masterpiece Construction to subcontract the work for the renovation to Build Them to Fall. Once Grocery, Inc. realized the poor quality of work that had been performed, the company petitioned for an injunction and filed a suit for breach of contract against Masterpiece Construction. Grocery, Inc.’s request for specific performance is burdensome because Masterpiece Construction does not have enough labor to complete the contract for Grocery, Inc., thus creating a hardship for Masterpiece Construction. The personal service contract is the main reason the courts would not grant such a request because the “courts would find it difficult or impracticable to supervise or monitor performance of the contract” (Cheeseman, 2004, p. 311). Masterpiece Construction attempts to escape responsibility for the improper workmanship by formulating two arguments; these arguments include (a) commercial impracticability and (b) the right to delegate duties. Unless the original contract stipulated no delegation of duties by another company, Masterpiece Construction is within its contractual rights to seek help from Build Them to Fall; however, the inferior workmanship from Build Them to Fall causes an issue with Grocery, Inc because of the difference in building styles. Grocery, Inc is within its rights to contest the argument delegation of duties because the duties provided by Masterpiece Construction to Grocery, Inc “would materially vary if the obligor’s duties were delegated” (Cheeseman, 2007 p. 286), meaning the work performed by Masterpiece Construction is not comparable to other companies. The poor performance on the part of Build Them to Fall reflects on the credibility of Masterpiece Construction, thus the performance of Masterpiece Construction is also questionable. Masterpiece Construction did not have the authority to subcontract the work to Build Them to Fall and Masterpiece Construction cannot claim commercial impracticability because the company assumed additional work after entering into the contract with Grocery, Inc. The court would reject the demand for specific performance on behalf of Grocery, Inc. because the construction industry is a service-related industry. The breach of contract would be a material breach and Grocery, Inc can (a) rescind the contract and seek restitution for damages or (b) affirm the contract and recover damages from Masterpiece Construction. Underage Contract

In the scenario, a rescission has occur when Jeff individually or mutually agrees with Smooth to terminate the contract under the terms of the contract such as Jeff not being competence to enter a contract for the reason any contracts involving a minor are unenforceable (, 2009). The contract is missing one of the four elements needed to form a contract; the four elements are agreement, consideration, contractual capacity and lawful object. The...
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