Bus/415 Week 4 Team Paper
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Foodmart, Inc.
BUS/415: Business Law
June 4, 2012
Foodmart, Inc.
In this paper, Team C analysis several scenarios related to contract law as it applies to contracts with minors, e-commerce, promissory stopple, and contract formation. The scenarios will structure the foundation for considering legal remedies that apply to different circumstances.
Scenario #1: Contract Formation
Foodmart entered into a bilateral written agreement with Masterpiece Construction to perform a renovation. Masterpiece had a six-month time limit to complete the renovation. Masterpiece could not meet this deadline because it took more contracts with other clients, so it decided to sub-contract the renovation to Build Them to Fall (BTF). Masterpiece did a unilateral novation where it replaced itself with BTF as the party obligated to perform the renovation. The problem here is that Masterpiece did not have the right to do so. A novation requires knowledge and consent to transfer the obligation, and Foodmart did not consent to such transfer (Cheeseman, 2010).
The actions of Masterpiece constituted a breach in its contractual obligations. The defense that Masterpiece will use is commercial impracticability. Commercial impracticability is a defense that may excuse a duty under a contract if that duty becomes impracticable to perform due to forces neither party could contemplate or control. However, this defense does not apply because there was not an unforeseen event preventing the performance of the contract. Masterpiece accepted additional projects knowing it did not have enough people and resources to deliver on the obligation it had already entered into with Foodmart. Foodmart was not consulted and did not approve the substitution of BTF. Since this is not an assignment of the contractual rights, Masterpiece is fully responsible. Specific Performance would apply if the project was unique and only Masterpiece could complete it. The courts can require Masterpiece to finish the...
BUS/415: Business Law
June 4, 2012
Foodmart, Inc.
In this paper, Team C analysis several scenarios related to contract law as it applies to contracts with minors, e-commerce, promissory stopple, and contract formation. The scenarios will structure the foundation for considering legal remedies that apply to different circumstances.
Scenario #1: Contract Formation
Foodmart entered into a bilateral written agreement with Masterpiece Construction to perform a renovation. Masterpiece had a six-month time limit to complete the renovation. Masterpiece could not meet this deadline because it took more contracts with other clients, so it decided to sub-contract the renovation to Build Them to Fall (BTF). Masterpiece did a unilateral novation where it replaced itself with BTF as the party obligated to perform the renovation. The problem here is that Masterpiece did not have the right to do so. A novation requires knowledge and consent to transfer the obligation, and Foodmart did not consent to such transfer (Cheeseman, 2010).
The actions of Masterpiece constituted a breach in its contractual obligations. The defense that Masterpiece will use is commercial impracticability. Commercial impracticability is a defense that may excuse a duty under a contract if that duty becomes impracticable to perform due to forces neither party could contemplate or control. However, this defense does not apply because there was not an unforeseen event preventing the performance of the contract. Masterpiece accepted additional projects knowing it did not have enough people and resources to deliver on the obligation it had already entered into with Foodmart. Foodmart was not consulted and did not approve the substitution of BTF. Since this is not an assignment of the contractual rights, Masterpiece is fully responsible. Specific Performance would apply if the project was unique and only Masterpiece could complete it. The courts can require Masterpiece to finish the...