Foodmart Inc. Paper

Foodmart Inc. Paper

Team A will discuss the four different scenarios regarding the Foodmart Inc. case in the text. In the scenario the produce manager is Brian McDonald and Jeremy Atwater is the 17-year- old working in the produce department. Team A will discuss legal issues, possible defenses, solutions, and venture theories of the legal outcome.

Scenario 1

Foodmart contracted with Masterpiece Construction to renovate the store on Main Street in My Town. Masterpiece, unable to complete the renovation within the six-month time limit because of an increase in new contracts, subcontracted the job to Build Them to Fall Construction. Foodmart was unaware of the subcontract. When Foodmart realized, due to the poor quality of work, which Build was handling the renovation, Foodmart petitioned the court for an injunction and sued Masterpiece for breach of contract and specific performance. Masterpiece argued that it had a right to delegate the duties of the contract, or to discharge the contract due to commercial impracticability.

Within this situation there are several situations that have arisen due to the fact of Masterpiece unable to finish the work in the time specified in the contract, the work quality was poor and the communication between Foodmart, Inc., and Masterpiece Construction was inadequate. Within any interface with a company it is important to do the homework to ensure, we are conducting business with a reputable company. Speaking to the fact of contract administration, the details of the contract are the most important area to pay attention. The company Foodmart, Inc was unaware that the work was subcontracted to build. The work in this case constitutes the right for Foodmart to claim breach of contract with regard to inferior performance, Foodmart was under the impression Masterpiece was completing the work in the store; other breaches also include the quality of materials, etc.

Foodmart has a defense of to their understanding the work was being instituted and completed by the company hired, Masterpiece Construction. The contract specification was not cleared with understanding that if Masterpiece Construction could not complete the work they would subcontract the work to other companies. Other factors are the damages causes due to lack of sufficient materials and loss of monetary value by not being able to use that space in the time specified in the contract to complete the work.

Masterpiece Construction has a defense that due to unavailability to complete the work they have the right to subcontract the work as they see fit to complete the job, unaware that the company they subcontracted the work to would do a poor job and therefore their company should not be liable for damages caused by another company.

In this case Foodmart, Inc. will win the case on defense they hired Masterpiece Construction to complete a job, Masterpiece discovered after the contract was signed they were incapable to complete the job due to lack of resources. The contract was developed and agreed upon by both parties and therefore stands in the court of law by contractual obligations.

Scenario 2

At the end of the summer, Jeremy Atwater earned enough money to put a down payment on a car. He decides to continue working part-time during school to earn money for the car payments. Jeremy purchased a car from Smooth Sales Used Cars. Smooth did not ask Jeremy how old he was; the salesman assumed he reached the age of majority. Jeremy paid the down payment and signed a contract stating that he would make payments of $200 each month. Six months later, Jeremy lost his job, and could no longer make the payments. Jeremy took the car to Smooth and said he wanted to cancel the contract and that he wanted his money back. What are the possible outcomes? Compare and contrast potential legal and equitable remedies.

The issue in scenario two is whether a formal or informal contract was used. Formal contracts require specific words; therefore require a special form of creation. In contrast, informal contracts do not require a special form at the time of creation (Chesseman, 2010). Informal contracts can be used for leases, sales contracts, and service contracts. Informal contracts are fully enforceable. In addition, if a person does breach a contract he or she can be sued. In scenario two Jeremy did sign a contract with Smooth Sales Used Cars; however, when Jeremy signed the contract he was under the legal age of 18.

Minors have rights and obligations when contracts are involved. Therefore, minors do not meet the contractual capacity to enter a contract. The Infancy Doctrine will most likely take into effect. The Infancy Doctrine allows minors the right to disaffirm (cancel) contracts in which he or she entered with another adult (Cheeseman, 2010). In this situation Jeremy properly relinquished the car back to Smooth. Moreover, he properly disaffirmed the contractual obligation within the right time frame.

In conclusion, Jeremy does have the right to disaffirm the contract that was written by Smooth Sales Used Cars. Jeremy did transfer, down payment money therefore, this money will be returned. Jeremy will restore to status quo position. Status quo means Jeremy must return to the position he was in before the contract. The car must be returned in the same condition at the time of sale. Smooth Sales Used Cars lost in this situation because they chose to do business with a minor. This is an example of why it is important to request a valid driver's license to clarify the age of an individual.

Scenario