Foodmart, Inc. Paper
Contracts are essential factor when engaging in any business transaction. They give businesses and individuals the official right to sell and purchase products, as well as transfer property when needed (Cheeseman, 2010). Team A will try to elaborate four scenarios that all have something to do with business sales, rendering services, and electronic contracts. Also, the team will summarize the legal aspects involved in the scenarios, identify the implications and consequences of the contracts used in each scenario.
Scenario One
Masterpiece Construction signed a contract with Foodmart, offering to reconstruct or renovate Foodmart stores. Unfortunately, Masterpiece Construction was not able to meet the expected renovations to be done, because of the many additions to the contracts they have that can no longer be covered in their schedule. With that, masterpiece construction decided to have a subcontract for the job, and passed the remaining tasks to the Build Them to Fall Construction, without any permission from Foodmart. Apaprently, it was the masterpiece Construction that was really responsible for all the renovations, as clearly stated in the contract, and not any construction company. For Team A, the Masterpiece Construction just committed a breach of contract. This happens when a company creates a subcontract with another company, which is exactly what happened in this case. To make matters worse, Foodmart only received inferior performance from the new company, which can then be considered as material breach of contract. Another violation committed in this case is the implied warranty and other conditions that both companies agreed to. Basically, the case will be forwarded to the court, but the obvious consequence would be for the Masterpiece Construction to finish what they have already started. But in case the Masterpiece Construction refuses to do so, Foodmart is already free to choose any construction company they want to finish...