Db Reply 1

Forum 2 Case Study

Introduction

Relationships in business are extremely important. Most successful businesses are built on this concept. Unfortunately, there are times when what is best for the business is not best for the relationship. Employees are fired, leadership is changed, and jobs are outsourced. Difficult decisions are just part of business. The relationship between the Scuppernongs grape company and Don’s store began slowly at first, and then developed into a steady exchange of business. Don, without mentioning anything to the Scuppernongs grape company owner, had his minor son sign a contract that included a guaranteed price schedule. This is when the relationship was officially damaged. Scuppernongs grape company now has a contract offer to be exclusive with a company in Connecticut. When the Scuppernongs grape company owner contacted Don, he informed him of the contract and that he intended to hold the Scuppernongs grape company to the terms detailed. Due in part to the contract being invalid as it was signed by a minor who also was not an authorized legal representative of the company, the Scuppernongs grape company should accept the contract offer from Connecticut.

Minor’s capacity to contract

The Scuppernongs grape company owner’s son was working part-time as a delivery driver and was minor at the time Don had him sign a contract as a representative of his father’s company. Don did this without the knowledge of the minor’s father. Minors are not capable of entering into contracts unless there are specific and preapproved prerequisites met, and in the case of the aforementioned minor there are no preapproved reasons as to why he would be able to enter into contract himself. The law considers that such people need to be protected from exploitation, and will generally refuse to enforce contracts against them on the basis that they do not have the legal capacity to enter into contracts (“Minors and Contracts”, 2008)...