Foodmart Inc. Paper

Foodmart Inc. Paper

Scenario 1:

All contracts are involved in a process and they all start with established terms of the agreement, negotiations, and all parties of the contract are held liable until the contract is met or completed. All parties must commit to the contract. When a contract is well written, the contract will display responsibilities of all deadlines, the contract will clearly outline expectation and it will explain the consequences of not keeping the contract commitment.

Foodmart, Inc. is a grocery retail store that is going through a major renovation. Foodmart, Inc. has a contract with Masterpiece Construction and the contract is within a six month timeline. The construction company has subcontracted the job to Build Them Construction. However, Foodmart, Inc. is not aware of Masterpiece Construction subcontract with the company Build Them. Foodmart, Inc. has filed for a specific performance and injunction. Foodmart, Inc. has sued Masterpiece construction for breach of contract.

The work that was done by the company Build Them Construction is in breach of the contract, because Foodmart, Inc. did not approve or authorize a subcontract. However, the company Masterpiece still remains in breach of the contract. There is some options that exist when the breaching party fails to meet there commitment to the contract. The non-breaching party is allowed to rescind the contract and try to collect their payments back if they choose to, and the other option is to sue the breaching party for damages because the contract is still consider being valid. Because Foodmart, Inc. is seeking an injunction and suing Masterpiece Construction for breach of contract and also specific performance, Foodmart has chosen an equitable remedy, and that is a breach of contract. Foodmart, Inc. win's the suit because Masterpiece is in breach of the contract for subcontracting another company without the approval of the other party that is involved in the contract.

Scenario 2:

Before an individual enters into a contract he or she must understand what a contract is, the involvement of persons in a contract, and comprehend the types of contracts. Also one must know if a contract is valid, void, or voidable. A contract is an arrangement enforceable by law or justice. Second, a contract involves at least two participants, an offeror and an offeree. An offeror is the contributor who makes the offer to enter into a treaty. The offeree is the participant to whom a proposal is made. Classification of contracts can be unilateral or bilateral, and informal or formal. An agreement is bilateral if the offeror's guarantee is responded with a promise of agreement by the offeree. A unilateral contract occurs only if the offerer's proposal is accepted by the presentation of an act by the offeree. In addition formal contracts necessitate a unique form of creation, and informal contracts do not qualify as formal contracts. Next, a valid contract meets prerequisites to create a contract, and a void agreement has no legal result. Finally, a voidable treaty in which at least one participant has the alternative to avoid his or her contractual responsibilities (Cheeseman, 2010).

Possible outcomes for Scenario 2

The contract that Jeremy Atwater makes with Smooth Sales Used Cars is voidable. Jeremy is the participant in this contract who has the right to evade his contractual duties. With certain exclusions agreements may be voided by minors (Cheeseman, 2010). Smooth is accountable for ensuring that Jeremy has reached the age of maturity prior to entering into an agreement with him. This car dealership did not assume equitable care before entering into an agreement with Jeremy. The only exception to this statute is if a minor enters into