Contract Analysis
There are three issues that I have found that I think are relevant when analyzing this case. First, can an invoice be considered a legal and binding contractual agreement? The case mentions that the purchaser, Marshall, was frequently late in making payments and had generally paid within 45-60 days of invoice. Though you have NOT charged late fees and the invoice expressly states that late payment charges are permissible. Therefore, is an invoice a legally binding contract? In an article written in 1st Commercial Credit, “In and of itself, an invoice is not a binding agreement.” It is merely a “list of items.”Both sides must agree and sign the invoice for it to become a legally binding document. This analysis does not state whether both parties signed any of the invoices during the several times that transactions have transpired. Due to the fact that Marshall was never given a late notification, never charged any interest or received any penalties, he saw no reason to pay on time as he was not obligated. Therefore, the invoice is NOT a binding contract and neither party is bound to uphold their end of the bargain.
The second question in the analysis relates to underage minors signing contracts. The case indicates that the then 17 year old son made a delivery and Marshall asked him to sign a contract that would guarantee a price schedule and consistent shipment of products. The question that arises is can a minor enter into a legally binding contract on behalf of a company? According to National Paralegal, “The primary requirement is having the capacity to contract. Capacity to contract is questionable when dealing with minors because the rationale is that a minor is regarded as not having sufficient capacity to understand and pass upon questions involving contractual rights.” In this case, Marshall tells the young boy, “This is just a formality” and the case indicates that the young boy does not understand what he is signing. This...