Legal Considerations and Contract

Contracts Analysis Case Study Case Overview Marshall Petersen and his wife, Gloria, began visiting the Sunday school class being taught in Huntsville, Alabama, about six months ago. Marshall is not a Christian, but with the encouragement of his wife, who is a believer, he says he is beginning to explore the faith. This relationship eventually culminated in a business arrangement in which Marshall's small, local health food products business begins purchasing Muscadine grapes your family's produce company sells.

This relationship results in a regular business arrangement with orders being placed every month. Despite often being late with the payment for the shipments, there was never any penalties or interest being charged and the prices and shipments were kept consistent. However, a disruption in the agreement eventually manifested in which Marshall asked that the delivery person, an adolescent son, to sign a contract that guaranteed the same rates and availability of the product.

The contract is potentially problematic however since the young man was legally an adult, nor an official represented of the company. Yet, after a spike in the product's demand became apparent, Marshall has chosen to attempt to enforce the contractual agreement anyway. There are two basic aspects to this case analysis, one from a legal standpoint and one from a moral and ethical perspective.

While the legality of the contract that Marshall is attempting to uphold is questionable at best, the more pressing issue is how to deal with the issue in a moral manner that represents the values a Christian business man would hold most dear. When looking at the case from this perspective, the decision-making process can be more complex than what the legal aspects of the case require.

For example, while it may be legal to ignore the contract, it is also an opportunity to form an enduring relationship and bring Marshall closer into the faith, as well as help him form a more cohesive family through this faith. Discussion It is my opinion that the legality of the situation should be the first aspect of the case to be addressed. The legal considerations will provide the range of potential actions that are available in the situation and can help guide the decision making process.

The contract that Marshall is in possession of is unlikely to hold up in any court. It was not signed with the consent of the management or an official company representative that was authorized to enter into such a contractual arrangement. In fact, it was not even signed by a legal adult. Therefore, it is reasonable to suspect that the court would not recognize the contract. The basis for a contract requires four distinct factors (Vinson, N.d.): 1. a mutual agreement or "meeting of the minds," 2.

two or more parties capable of contracting or reaching an agreement, 3. an agreement in which all parties have to carry out some obligation, and 4. a lawful purpose. Furthermore, in Georgia, the legal age of majority (the age at which a person is considered to be an adult in contractual situations) is 18 years; youths under 18 (that is, minors) may not legally enter into contracts (Vinson, N.d.). Without a valid contract, Marshall will have few legal options.

In court, he could claim that the contract was based upon a verbal agreement and should constitute a good-faith arrangement even if the contract was not signed by an authorized party. However, given the manner in which Marshall "pressured" the adolescent to sign a contract, there may be a counter-claim of fraud that could be entered into the case. The American Bar states that (American Bar, N.d.): "That a principal of a company can sign contracts for you, but only with your permission.

The law refers to such an arrangement as agency. We couldn't do business without it. For example, when you buy a car, you bargain and finally cut a deal with the salesperson. But she doesn't own the car she's selling you. She might not even have a car. She is an agent, someone with the authority to bind someone else - in this case, the car dealership -by contract.

The law refers to that someone else as the principal." Therefore, there is multiple factors present that make the contract invalid and the only legal worry in this case should be restricted to the fees for defense that will be required to argue this case. However, from a moral perspective, the case becomes far more complex.

While there may be no need to worry about any major legal ramifications from any of Marshall's potential actions, there is an opportunity to form a stronger relationship with Marshall and set a good example of how Christian business men are expected to act in such a situation. I think the best thing to do would be to speak directly with Marshall about the matter and explain all of the options that are available and talk about them openly, honestly, and in a transparent manner. You could explain that.