The For The Non Breaching Party Essay

The For The Non Breaching Party Essay

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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 and driving through education and public service announcements” and lobbying efforts (Williams, 2014). PADD currently has over 20,000 members for whom it is planning an annual conference. PADD hired Strategic Meeting Planners, Inc. (“SMP”) to organize the conference and hire a keynote speaker (Williams, 2014).
SME hired Bart Napier through his talent agency, Shooting Star Talent Agency, to be the keynote speaker at PADD’s annual conference. Mr. Napier seemed to be a perfect match for this event. After retiring as a football quarterback, Mr. Napier became an inspirational speaker. He is well known for speeches regarding “the importance of making good decisions in life, taking responsibility for one’s actions, setting good examples for our youth, and using tragedies, failures, and other disappointments…as motivation to make positive impacts on society” (Williams, 2014).
Mr. Napier’s contract consists, in part, of four pertinent provisions: Speaking Engagement, Compensation, Morality Cla...

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...ecrease significantly. For example, if Mr. Napier currently gives 200 speeches a year, averaging $35,000, he would make $7 million. If this bad publicity caused a twenty percent reduction in speeches and an additional fourteen percent fee reduction, his annual pay would now be under $5 million dollars. Does he want to lose $2 million annually or $45,000 on one speech?
In conclusion, Mr. Napier placed himself in a personal and financial quandary. It was more important to him to save the longevity of his career and put this unfortunate lapse in judgement behind him. PADD also saved face with their members when they contested paying the full compensation amount and created a small amount of goodwill, while separating themselves from Mr. Napier. The negotiation process kept this issue from becoming a public trial, which could have been detrimental to both parties.

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The For The Non Breaching Party Essay

- 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....   [tags: Contract, Breach of contract, Negotiation]

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