Case Study : Acme Fireworks, Owned And Operated By John Epson

1757 Words Feb 17th, 2015 8 Pages
Acme Fireworks, owned and operated by John Epson, has approached you, the manager of Acme to go over a contract he entered into with several large businesses. Acme is a business that sells fireworks, as well as, puts on aerial and ground displays for local communities. However, John is realizing the limited capabilities of his business under a sole proprietorship. Therefore, this paper will examine the validity of a contract, types of agencies, potential risk, and explain advantages and disadvantages of restructuring the business entity; my recommendation for John Epson would be to restructure his business as a limited liability company.
A bilateral contract is an exchange of promises, which can be written, spoken, or entered into by one 's actions. An example, if party A agrees to give party B money in exchange for goods, a bilateral contract has been formed. In this case, a contract was made by way of an oral contract over the phone. As the manager, I am checking over the details of the contract validity. In a valid contract, there must be specific requirements: an offer, the acceptance, and a consideration. Representatives from TNT and Fantastic Fireworks contacted John Epson, an offer begun with the inquiry pertaining to Acme 's ability to create firework displays in large quantities. Once the offer was presented; all parties have now entered into the acceptance phase. All parties discussed cost associated with setting up firework displays, as well as, requirements for…

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