Legal Issues in Business
June 01, 2013
Thanks in part to Don Willets and his local health food products business investing heavily in Scuppernong grapes, and the New York Times writing an article praising the anti-oxidant qualities of Scuppernongs grapes, the demand for Scuppernong products have skyrocketed nationwide. Demand is so high that orders for the grapes far exceed the ability to actually meet those demands. A company in Connecticut has offered to pay twice the going rate for Scuppernong products but the offer also requires an output contract to be part of the deal. The contract with the Connecticut company will essentially leave Willets and his local company out to dry. Because of the business relationship that Willets and the church member have shared, but more importantly the personal nature of their relationship and how they started business between one another, the church member felt that he should inform him of the contract he was about to sign as well as steer him in the direction of other reputable suppliers in the area. Willets did not take well to this and informed the church member that he expects him to continue to supply him with all the products he needs, when he needs them, and at the prices he has always paid per the requirements contract between their businesses as well as in accord with the implied duty of good faith and fair dealing that have evolved based on our ongoing business relationship. The requirements contract he referred to is a contract that he coerced the church member’s 17 year old son to sign without his knowledge.
In light of all these facts, the church member should not continue to do with business with Don and should brace himself for any legal action he would bring against him. Willets can claim for breach of implied covenant of good faith and fair dealing. however the contract that exists between his company and the church member’s...