• Case Facts
• Material Terms of Contract at Issue
• Legal Concerns
• Requested Remedies
• Conditions for Achievement of Settlement
Case Facts
The relationship between myself and Nemeth Family Produce (NFP) began with a discussion at a religious service between Lora Lee Nemeth of NFP and myself. At the time of our first meeting, Lora Lee Nemeth led a religious class, which my wife Gloria suggested I attend. During this class, Mrs. Nemeth introduced biblical concepts from Matthew 7, where Jesus instructs His followers to treat other people, as they would have others treat them. After the class was …show more content…
This contract was given to Mrs. Nemeth’s son, who has been responsible for delivering both the orders and invoices throughout our business dealings. Raising no objections to this contract, NFP’s acceptance of this written contract was demonstrated through the continued fulfillment of orders. At a later date, Mrs. Nemeth notified me of NFP’s intent to discontinue providing Muscadine grapes to my company based on a better offer for their company. During this conversation, I notified Mrs. Nemeth of my concern, as NFP’s failure to continue supplying this product at the contracted prices and timeframe required would be considered a breach of contract. In addition, another copy of the written contract was faxed to Mrs. Nemeth at this …show more content…
When a breach of contract occurs, the act is more of a breach of trust, as the seller must trust that the buyer will not back out of purchasing inventory and the buyer must trust that the seller will provide the specific quantity needed in a timely fashion. While acting on good faith in contracting is a legal concern, this breach is also a moral concern.
Since this was a new company to me, the faith I placed in Mrs. Nemeth and NFP to enter into a business relationship was based on trust, which resulted in my assuming her reliance on Christian principles. While I was just a first-time attender of these religious services, the moral authority seen in her position as a biblical teacher contributed to my company’s decision to enter into this contract. Mrs. Nemeth’s decision to cancel this contract without just cause would seem to be against her own teachings. In the initial lesson, Mrs. Nemeth spoke of Jesus instructing the people to love their neighbor better than themselves. In this talk, Mrs. Nemeth also referred to noted theologian Matthew Henry (1706), who called this passage a rule of equity and necessary for justice. The act of reneging on a contract because a better offer becomes available does not seem to follow this moral code. In the secular world, the theory of efficiency caused by breaching