Small Business Contracts Essay

Small Business Contracts Essay

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Sharon and Don decided to do business together via a verbal agreement. Don is already a small business owner of a local health food business. Sharon found out that Don was an owner of a business in the area after meeting him. Don became interested in Sharon’s family’s products once she showed him their products. Don and Sharon agree to sell samples of her family’s products in his store. When the products started selling well in Don’s store, he contacted Sharon to order more of the family’s products. For some time Don placed orders with Sharon’s family, and received awesome customer service. Sharon’s company would deliver the products that Don requested at the same rate and in a timely fashion. Upon receiving the order or orders, Don would receive an invoice that requested payment in 30 days, however, Don did start being late on his payments, but he still received any products that he placed an order for. During a delivery to Don, Sharon’s 17 year old son was convinced by Don to sign a contract that would make the company agreeable to continuing business with him. Sharon’s family business was doing very well and because of this a company in Connecticut was interested in them and proposed an offer. Later on Sharon finds out about the contract that her son signed with Don.

Covenants of good faith and fair dealing
Don has gotten Sharon’s 17 year old son to sign a contract which Don believes holds them liable to continue business with him regardless of any other offers that they may receive. According to Anderson, (2012) regardless of what a written contract says, your business can be liable for doing or not doing something that was never discussed before a contact was signed. Because of the “implied covenant of g...

... middle of paper ...
Jenkins, Sarah Howard (Fall, 2006). Symposium: Contracting out of the Uniform Commercial Code: Contracting out of Article 2: Minimizing the obligation of performance & liability for breach, 40 Loy. L.A. L. Rev. 401.
Reddy, J, Johnson, H., Taylor, E., & Francis (2011) Commercial Law 2011-2012, Modern Business: Commercial law. Alexander Hamilton Institute (US)
times of terminally ill patients. Health Psychology, 24, 225-229. doi:10.1037/0278-6133.24.2.225
UCC - Uniform Commercial Code | LII / Legal Information Institute. (n.d.). Retrieved from
Who Lacks the Capacity to Contract? | (2014). Retrieved from

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