Submitted by: Submitted by shelley44
Views: 831
Words: 1486
Pages: 6
Category: Business and Industry
Date Submitted: 12/14/2011 07:29 AM
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...