Bus 415 Week 4 Scenarios

Week 4 Scenarios

Learning Team D

Business 415

April 2, 2012

Demond Philson

Week 4 Scenarios

Scenario One

Foodmart contracted with Masterpiece Construction to renovate their building in My Town within a six-month time limit. Masterpiece Construction subcontracted with Build Them to Fail Construction to meet this deadline. The substandard work done by Build Them to Fail has caused Foodmart to petition the court for an injunction and has sued Masterpiece Construction for breach of contract as well as for specific performance. In return, Masterpiece Construction has argued they had the right to delegate the contract as well as discharge the contract because of commercial impracticability.

Foodmart and Masterpiece Construction entered into a written contract, required when involving real estate. The contract is valid because Foodmart made an offer and Masterpiece Construction accepted the offer, documented in writing by both parties. If a contractual duty has not been discharged or excused, the contracting party owes an absolute duty to perform the duty. There are three types of performance of a contract: (1) complete performance, (2) substantial performance (or minor breach), and (3) inferior performance (or material breach) (Cheesman, 2010). In the case of Foodmart versus Masterpiece Construction, Foodmart can claim breach of contract due to material breach/inferior performance. The business Masterpiece Construction subcontracted with did not meet the requirements of the contract put in place by Foodmart. The quality of work is substandard. When there has been a material breach of contract, the non-breaching party has two options: rescind the contract, seek restitution of any compensation paid under the contract, and be discharged from any further performance under the contract, or the non-breaching party may treat the contract as in effect and sue the breaching party to recover damages (Cheeseman, 2010).

Masterpiece Construction has a much...