Foodmart, Incorporated

Foodmart, Incorporated

Antonia Messina

Business Law BUS/415

July 19, 2010

University of Phoenix

John P. O’Brien

Scenario One

In the case of Foodmart versus Masterpiece Construction, Foodmart has filed an injunction and sues Masterpiece Construction for breach of contract and specific performance. Assuming that Masterpiece Construction is a fully licensed general building contractor in Any State, U.S.A; the subcontract with Build Them to Fall Construction is illegal. As a licensed general building contractor, Masterpiece Construction may subcontract the work performed as long as the company subcontracted meets the specific qualifications of relative work. For example, a general building contractor cannot legally subcontract work to general engineering contractor to renovate the sidewalks, sewer system, and the parking lot of the Foodmart. They will have to subcontract a concrete company, asphalt specialist, and surface painters to perform individual tasks of the project. According to the Business and Professions Code Section 7057, a general building contractor can subcontract only to companies that specialize in specific trade such as plumbing, electrical, or carpentry.

It is unlawful for Masterpiece, as a general contractor, to subcontract the entire Foodmart renovation project, unless in the contract between Foodmart and Masterpiece Construction it clearly states conditions allowing Masterpiece to subcontract the entire renovation project to another general contractor. When awarding a construction bid, a company such as Foodmart enters a binding agreement with the general building contractor. Masterpiece Construction was awarded the project and expected to perform and execute the scope of work that was bid on. Foodmart has contracted with Masterpiece to complete the renovation project, not Build Them to Fall Construction. Build Them to Fall Construction could have been a competing company during the bidding phase of the project and...