Foodmart

Foodmart Inc, Paper

BUS/415

December 10, 2011

Miriam V. Gold

Part 1

In this case Foodmart entered into a contract with Masterpiece Construction for

renovation that needed to be completed within a six month period. The renovation was to be

completed to the store that is located on Main Street in My Town. Due to Masterpiece

Construction increase of new clients they are unable to complete the contract that was signed

with Foodmart.

Masterpiece Construction decided to subcontract to job to Build Them to Fall

Construction. Foodmart was unaware of Masterpiece’s decision to subcontract the contract with

Build Them to Fall Construction until they started noticing the poor quality work that was

being done. Due to the poor quality work that was done by Build Them to Fall Construction they

did not live up to the contract and would be considered as a material breach of contract.

According to Cheeseman on page 184, material breach occurs when a party renders

inferior performance of his or her contractual duties. There are two choices that Foodmart can

make according to Cheeseman. The first is that Foodmart can rescind the contract and seek

restitution for any compensation that was paid to Masterpiece Construction. The second is that

Foodmart can sue Masterpiece Construction due to breaching the contract to recover any

damages.

The legal defense to contract formation that could possibly be presented in a case like this

is the lack of capacity, misrepresentation, undue influence, unconscionability, duress, and

illegality. However, the only defense that I see in this case of Foodmart vs. Masterpiece

Construction is that Masterpiece may attempt to use unconscionability defense.

Part 2

Jeremy Atwater, a minor, saved his money to put a down payment on a car. Jeremy

works part-time, after school to afford the car payments. Jeremy decides to purchase his vehicle

from Smooth Sales Used Cars. The salesman did not ask Jeremy his...