Java Jet Proposal

Java Jet Proposal

LAW/575

Java Jet Proposal

Java Jet, Inc. has created a specialized espresso machine and is pursuing a contract with Bright Lights, Inc. to operate coffee houses in New York and Paris. Before negotiating the contract, Java Jet and Bright Lights must consider ways to protect the interests of their companies. They must formulate a business strategy that includes a plan to comply with state and federal regulations, hire employees, acquire the property and equipment needed, and determine the domestic and international legal risks and laws that may affect how they expand the business.

Fiduciary Duties

Java Jet’s intention to enter into a contract with Bright Lights, of Paris, France and Bright Lights’ agreement to accept the contract indicated the formation of a partnership. According to Kubasek et al. (2010), a partnership is a voluntary and consensual relationship between two parties, who mutually agreed to co-own a business for profit, and understand that profits and losses are equally shared.

Once the partnership is formed between Java Jet, Inc. and Bright Lights, they will incorporate Java Jet’s specialized espresso machine into Bright Lights’ current and future locations. Both parties will have duties to uphold. The most common types of duties that partners have to one another are the duty to be loyal, the duty of care, and the duty of obedience.

Loyalty in business and personal relationships serves as a solid foundation and provides an opportunity for longevity. Duty of loyalty is fiduciary duty, which emphasizes the importance of “partners working in a manner that benefits the relationship and avoid acting or conducting business that impedes or competes with the partnership” (Kubasek, 2012, p. 800). Failure to uphold the duties of the partnership can lead to issues of liability, if losses occur. The fiduciary duties that require specific attention are those of Java Jet because of Jeffery, Java Jet’s vice president...