Contract Analysis Case Study

Contract Analysis Case Study

When two sides want to enter into an agreement so that they both get what they want, they enter into a contract. Sometimes though contracts can be broken because they don’t meet certain legal requirements or other legitimate reasons. At issue in this case study, is whether my company should continue to do business with Marshall Petersen and his health food business, due to recent information brought to light and whether the contract he had my 17 year-old son sign is actually a valid contract that needs to be honored.
My company, based in Alabama, has been providing Muscadine grapes to Mr. Petersen’s local health food products store for the approximately 6 months, ever since he and his wife visited my Sunday school class and he mentioned that he is beginning to explore Christianity. During this time there was never any written contract for services. Orders were phoned in and delivery was made promptly and at consistent prices. Invoices were supposed to be paid within 30 days of delivery of the products, but payments were frequently late with each invoice generally being paid within 45-60 days. Even though I had the right to charge him interest and penalties for the late payments, I elected not to.
Due to a recent increase in popularity of Muscadine grapes nationwide, my company has been offered a lucrative contract to supply them to a Texas based organization. This organization is requiring me to sign an output contract, governed by the Uniform Commercial Code, which means I have to agree to supply them with my entire production of grapes and they will purchase the entire production. (Constitutional Daily). I felt bad for the impact that this could have on Mr. Petersen, especially since he has invested heavily in promoting the products at his store, so I suggested reputable alternate suppliers. To my surprise, he became very angry and insisted I honor the requirements contract that my minor son had signed, of which I was unaware of, and honor the...

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