SUBMIT TO ASSIGNMENT FOLDER . The GC owners have questions and need clarificatio
ID: 386136 • Letter: S
Question
SUBMIT TO ASSIGNMENT FOLDER.
The GC owners have questions and need clarification about several contract concepts and issues related to their new business. Specifically, they have questions about:
• Statute of Frauds “writing requirement”
• Discharge of a contract
• Satisfaction of contract performance
Winne and Ralph have asked you to prepare examples and explanations of these 3 areas of contract law.
Instructions
To respond to the GC groups questions and concerns, create facts scenarios and explanations to discuss with the GC owners.
1. Statute of Frauds – “writing” requirement
Background: Generally, contracts for the sale of goods must be in writing, and the writing must be signed by the parties to the agreement, and the parties must be sufficiently identified. GC will be selling goods via the internet; the owners are wondering whether these electronic contracts are valid and enforceable.
Write a hypothetical facts scenario describing specific details of a valid, enforceable electronic contract between GC and Windows Bright, a small window washing business in Missouri. The contract is for the sale of 3 cases of Shiny Lite window cleaning solution, at $200 per case, to Windows Bright, and sold by GC via the internet.
The scenario must explain how/why the Statute of Frauds requirement that contracts for sale of goods over $500 be in writing can be satisfied electronically.
2. Discharge of a contract
Background: There are several reasons for which a contract can be discharged before performance under the agreement. Under common law and the UCC (Uniform Commercial Code, Section 2-615), a contract may possibly be discharged because of commercial impracticability when performance could be completed only with extreme difficulty, or at unreasonable expense, or would have little practical value. Courts are relatively flexible on this matter.
Write a hypothetical facts scenario describing specific details of a contract between GC and a Barton Industries (a fictitious company), for which GC was to provide roof and floor cleaning in Barton’s large corporate office building each month for 3 months. Write the scenario facts so that GC could reasonably argue that GC should be discharged from performing on the ground of commercial impracticability.
The scenario must explain how/why the contract might be discharged for commercial impracticability.
3. Satisfaction of performance
Background: Some businesses advertise, “Satisfaction guaranteed or your money back”. A performance satisfaction clause in a contract can mean that one party does not have to pay or perform his or her duties under the contract unless fully satisfied with the other party’s performance. Courts typically apply an objective, reasonable standard to resolve disputes arising from contracts with satisfaction clauses.
Would you advise GC to include a satisfaction clause on their contracts with cleaning clients? Why or why not? Fully explain and support conclusions.
Format Instructions
Create scenarios and explanations in paragraph format.
Number each section.
Explanation / Answer
1. The contract between GC and Windows Bright is to allow GC to sale the window cleaning solutions on the internet on behalf of Windows Bright. Windows Bright is concerned about the limitations of the contract on the electronic mode of sale.
The contract enclosing the details of the work-
Windows Bright would sell off it’d 3 sets of windows cleaning liquid to GC to allow online sale of the same.
The product would be duly scanned for damages before the sale and after the sale too.
Windows Bright isn’t responsible for damages encountered after the online purchase.
The contract remains intact in case GC demands some changes in the formulation which requires changes in manufacturing processes.
The Statute of Frauds requirement enclosing Sale of goods over $500 to be documented can be satisfied electronically owing to the fulfillment of the general requirement for the same. It states that both the parties involved should have fair practices and sale of goods online to be regulated by GC and manufacturing to be monitored by Windows Bright.
2. The scenario deals with GC’s inability to meet the contract requirement with Barton requiring the provision of services to Barton for 3 months with each month GC cleaning its floor and roof, as per contract. The services include cleaning of the roof and floor every month for 3 months. It seems the contract was valid for conditions in which the condition of roof and floor were inspected or assumed less of hassle.
The flowing can be the grounds of discharge of services by GC in the grounds of commercial impracticality-
The physical conditions of the roof and floor are quite severe and replacement rather than maintenance is required.
The employees are least bothered about cleanliness and hence maintenance efforts are in vain.
The environment in which roof and floor are placed are often susceptible to dust and mites and hence futile cleaning efforts.
The profit on the overall contract seems to be diminishing owing to any of the above factors.
3. Yes, I would advise GC to include a satisfaction clause on their contracts with cleaning clients. The quality of services delivered by a company depends upon their reputation and also their workforce. Short term attraction of customer leads to the introduction of money back challenges and what not. Such short-term traps should be refrained from owing to long-term reasons.
Quality delivered would never need any other proof of performance.
Such deals lead to more loss than profit ever. Quality work is done and customer satisfaction is two different situations in some scenarios. It leads to stressed work and steady loss of profit too.
Sometimes it became quite difficult to satisfy a customer owing to their peculiar demands or temperament and that leads to visible frustration and loss.
Such clauses shouldn’t be added owing to short-term goals since customer base takes time to build but also steady customers won’t fall prey to such clauses.
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