Case Study 2: Contract Analysis
Case Study 2: Contract Analysis
Business Law – BUSI561
In the contract analysis of Case Study 2, we find what looks like a legal and ethical issue at play. This analysis will cover answers to the following questions: 1. What should you do about continuing to do business with Marshall? 2. If you elect to stop doing business with Marshall, what legal causes of action might he bring against your company, what damages or remedies might he seek, and what legal defenses might your company have? 3. If you stop doing business with Marshall, what are the potential impacts on Marshall’s continued exploration of his faith? What biblical options are available for resolving your disputes with Marshall?
Decision on continuing to do business with Marshall
Initially when reading the case study I saw many factors that give me a lot of reason to stop doing business with Marshall. Firstly, it is expected that when making on time delivery for Marshall that one will receive the same urgency in return. Marshall was frequently late in making payments to the sent invoices. As a business you want to ensure you provide quality product and on time services with the same responsiveness expected with who you are in business with. Not doing so demonstrates a lack of respect and shows that Marshall is taking advantage of the kindness of not being charged a late fee. His actions also shows that perhaps he is taking advantage that he is dealing with a Christian and may think that because we go to the same church that he can take advantage of the relationship. There should be trust and responsibility in all relationships whether it is Christian or not. The surprise of a contract was one that showed immediately that there was no act of responsibility to communicate. Realizing that the contract was signed by the son who was then a minor and working as a delivery boy shows lack of trust and gives the immediate impression of fraud. For the reasons of lack of trust and responsibility I would choose to not do business with Marshall.
Legal causes of action
The contract per the case study is a requirements contract. Per LaMance, an attorney at law, a requirement contract is a type of contract where the exact quantity of items to be sold and purchased is not specifically determined. Instead, the amount to be sold is dependent on the amount that the buyer “requires”. These types of contracts are common in situations where the buyer’s needs are subject to fluctuation (LaMance, 2012). Since the quantity of goods is not set in the contract, there is a high level of concern, because of the lack of trust already experienced with doing business with Marshall. There is also opportunity of abuses and violations to a requirement contract per LaMance. To prevent abuses, breaches of contract, and violations, there are legal concepts one should be aware of, such as “good faith” that are a major part of requirement contracts (LaMance, 2012). Under good faith Marshall should not exercise fraud or intentionally take advantage of parties involved in business for his advantage. By deceiving the seventeen year old son to sign a contract it shows evidence of misrepresentation with intention and fraud.
According to Kubasek, Brennan and Browne (2015), when two parties enter into a legally enforceable contract, it is presumed that they have entered of their own free will and that the two parties understand the content of the contract in the same way (Kubasec, et al.; 2015) In the case study, Marshall told the seventeen year old that it was “just a formality” to guarantee a continuing business relationship (Case Study). By misrepresentation of the contract and not discussing it directly with the adult he made business with, this shows that Marshall made the contract with intent to deceive. In addition the contract was signed by a minor without the capacity to...
References: Harrison, B. A, (2012). The Legal, Ethical, and Regulatory Environment of Business in a Diverse Society, Pages 95, 111
Kubasek, N. K., Brennan, B. A., Browne, M. N. (2015). The Legal Environment of Business – A Critical Thinking Approach, Page 251
LaMance, K. (2012). Legal Match Law Library, “What is a Requirement Contract?” Retrieved from http://www.legalmatch.com/law-library/article/what-is-a-requirement-contract.html
The Holy Bible, English Standard Version. Copyright ©2001 by Crossway Bibles, a publishing ministry of Good News Publishers. Retrieved from http://www.openbible.info/topics/conflict_resolution
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