Parents Against Drunk Driving Case Study

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When parties enter into a bilateral contract, “an agreement in which the parties exchange promises for each to do something in the future,” each must hold true to his/her promise (Bilateral Contract, n.d.) When is a contract considered fully executed? What happens when one party fails to fully comply with clauses stated in a contract? What recovery is available for the non-breaching party, if fall-out occurs from improper actions of the other party immediately after execution, but before payment is made? These are some of the questions that will be answered in the following scenario and subsequent negotiation. Parents Against Drunk Driving (“PADD”) is a non-profit organization with a mission to raise “awareness of the dangers of drinking …show more content…

This caused PADD to call an emergency legal meeting to assess the situation and strategize regarding damage control. PADD persuaded the outraged attendees that the organization should not be blamed for Mr. Napier’s poor conduct and agreed to refund $200, resulting in a $50,000 loss. PADD expects to lose an additional $2,000 in memberships as a direct result of Mr. Napier’s misconduct. Because PADD incurred a $52,000 loss, which is directly attributed to Mr. Napier’s transgressions, they revoked Mr. Napier’s contract asserting that they were no longer obligated to provide compensation (Williams, 2014). I have been given full authority to resolve this matter with Mr. Napier. After agreeing to the above chain of events, Mr. Napier still contends that he is entitled to full compensation as his contractual obligations were fulfilled. PADD is willing to compromise and pay a portion of the fee. However, because of the nightmare that Mr. Napier’s misconduct caused, is not willing to pay the contract in full. The compromise set forth in the negotiations are: PADD will pay Mr. Napier $5,000 and Mr. Napier will release a statement saying in part that he is not in any way affiliated with the non- profit

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