Analyzing Contract Validity in Business Transactions

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The following is an analysis of a business situation between a supplier and a specific buyer of their product where the validity of a contract, and potential breach of contract is to be considered. Included in the analysis is the statement of facts, relevant legal rules of law, as well as a biblical perspective that can be considered in coming to a resolution and optimal outcome that will be mutual beneficial for both parties. The facts John Doe, an owner of a local produce company, produces Muscadine grapes that are known to contain high antioxidant qualities. John Doe recently gained Marshall Peterson’s business, supplying his local health food products business with a regular shipment of the grapes. Mr. Peterson has established some frequency …show more content…

First, is the requirements contract that was presented to and signed by John Doe’s minor son, a binding contract? There are some considerations of law that will address this specific issue further in this analysis. Secondly, is there an implied contract, and what is the course of action that the two parties take moving forward, from both a legal aspect as well as a biblical aspect? Lastly, the two men met in their Sunday School class, and Mr. Peterson is not a Christian. What are the ramifications from the contractual conflict to the new relationship of John Dow and Marshall Peterson, and what are the potential impacts on Marshall’s exploration of his faith? Potential Causes of Action to Produce Business Marshall Peterson has invested a significant amount in advertising, and growing his business of offering the Muscadine grapes that John Doe’s company supplies to him. In the event that Mr. Peterson is required to either discontinue the sale of the grapes, or will need to locate and establish a new relationship with a new supplier, his business will likely be negatively affected at least for a short time. If he chooses to pursue legal action, then there are certain legal considerations that he will enlist to build his case. good faith and fair …show more content…

In order to have a valid contract, there are six elements that need to be established. The following is a defined list of these elements, as well as analysis pertaining to the case at hand. legal offer. A legal offer is “an offer that shows objective intent to enter into the contract, is definite, and is communicated to the offeree” (Kubasek et al, 2015, p. 244). The legal offer in question is the offer to supply Mr. Peterson’s requirement of Muscadine grapes at a price that he was already accustomed to paying. I believe that this offer did exist unilaterally by Marshall Peterson. legal acceptance. A legal acceptance is an “acceptance that shows objective intent to enter into the contract, that is communicated by proper means to the offeror, and that mirrors the terms of the offer” (Kubasek et al, 2015, p. 247). In order for the offer to be accepted, as stated above, there has to be communication of that offer. John Doe was not aware of such offer, and he was only conducting business by way of individual requests and invoices at the time of each request. Consequently, it should be noted that the invoice can be considered evidence of a contract, however not a contract in itself alone (2015). Does the trend of requests equate to an implied contract to serve Mr. Peterson’s requirements? This question will ultimately be addressed by a court, however I would suggest that there is a chance

In this essay, the author

  • Describes the elements of an analysis of a business situation where the validity and potential breach of contract are to be considered.
  • Analyzes the ramifications of the contractual conflict to the new relationship of john dow and marshall peterson, and the potential impacts on marshall's exploration of his faith.
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