Business Law Case Study: Muscadine Grape Company

My wife Gloria and I met a gentleman in a church Sunday school class about six months ago. One day in conversation I share with him about my small-scale health food business and how I was looking to expand it. Ironically, his family company produces a specific Muscadine grape with high antioxidant and he was looking to promote this product, the grapes themselves and the various products that were developed using the seeds. This was a great opportunity for both of us and he agreed to send a sample as a trial. The product was well received by the consumer and it was decided to have it as one of the items for sale at my business. My company started ordering this product from the Muscadine grape company on a regular basis, and the product was supplied as scheduled. He billed my company for the products that were supplied and we paid between 45-60 days out. …show more content…
An agreement between the companies seemed to be a wise decision, thus a requirements contract was drafted by me. The last time the Muscadine grape company’s owner’s son brought supplies, I requested him to sign the contract as he represented the company. Shortly thereafter I received a call from Muscadine grape company owner saying he could no longer supply the Muscadines grapes or any of the various products associated for the reason there was a large company that heard about this product and was willing to be his sole buyer. Although this was a surprise to me and very disappointing, I explained to him we have a contract in place. Furthermore, if he chooses this route he would be breaching the requirements contract we have between our companies that was fully executed by his