Every day, businesses engage in legal contracts in order to resemble a formality of an exchange of products or acts (Kubasek et al., 2015, p.239). Without contracts, business agreements would be difficult to enforce if one party defaulted and there were no ramifications. If one party decided to back out of a contract, there can be legal courses that the defaulted party can take. The following analysis will review the case of Marshall Petersen, a local health food products business.
I met Marshall and his wife in a Sunday school class as he started to explore his faith. During conversations with Marshall, I learned he was interested in increasing his business with new health products. I informed him of my family’s produce, Muscadine grapes. I conversed with Marshall more about the grapes and he was interested in selling samples. The samples were a huge selling item in his store so Marshall started with a modest phone order. Over time, Marshall began investing heavily in advertising for the grapes, which led to increased orders based on the high consumerism of the product. While I have faithfully delivered promptly at consistent prices, Marshall failed to make the required payment on time. When Muscadine grapes made national headlines that skyrocketed demand, my company became overwhelmed with orders. An out-of-state company offered to pay twice the price for the grapes, but required the signing of an output contract. This contract would limit my ability to continue business with Marshall. I tried to negotiate a deal with other local suppliers; however, Marshall brought up a requirements contract that was signed by my son, who was under the legal age of 19 at the time of signature (Contract Case Study).
Basis of a Contract
According to Kubasek et al. (2015), a “valid contract has six elements: legal offer, legal acceptance, consideration, genuine assent, competent parties, and a legal object” (p. 244). A legal offer is what begins the...