TO: Alexis Fairchild, Mediator
FROM: Marshall Petersen
DATE: November 14, 2014
SUBJECT: Breached Contract Lawsuit
The purpose of this mediation memorandum is to discuss the various breaches of contract made by the Muscadine grape producer, with whom I entered into a requirements contract to supply Muscadine grapes for my business with a guaranteed price schedule. I will delve into the facts of the case, explain the contract that has been breached, examine the legal issues of these contract breaches, request potential remedies, and call for conditions under which a settlement could be achieved.
Facts of the Case
My wife and I met the grape producer in a Sunday school class that he taught about six months ago. I own a local health food products business and shortly discovered that he and his family own a produce company that sells Muscadine grapes. He asked me to promote the grapes and the different products that use the Muscadine seeds in my store, because of the high antioxidant qualities of the grapes. He gave me some samples and my customers loved them, so I began placing phone orders with the grape producer. As these Muscadine grapes became more popular, I increased my orders and continued to invest in the advertising of the grapes in order to gain more business. The produce company always delivered my requests on time, at fair and regular prices, as well as delivering an invoice for payment within 30 days. Sometimes I was late in making payment for the grapes, but mostly paid within 45 to 60 days. The produce company did not charge any interest (Liberty University Contract Analysis Study, 14 November 2014, para 1-2). At this point, we were not under any contract.
Because of the ever-increasing demand for these grapes, I elected to draw up a requirements contract that included a guaranteed price schedule that was constant with what I had been paying. I asked the son, who was a part-time deliveryman, to sign the contract on...