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Case Study
This paper presents a case study analysis of a Sam and John’s case study. Specifically the paper seeks to identify some of the arguments presented in the case study with relation to the issues identified, rules of contract and their application.
Facts
Sam and John decide to open a lawn care service company aimed at assisting their neighbors in cutting grass. They draw up a contract which clearly states that they will charge each client 20$ a week for their services. Subsequently, the two business partners soon get clients from the neighborhood and they purchase a new lawn mower, which they use to provide services to their clients. Just as the business is beginning to pick up, the business faces various setbacks, which cause a legal issue for the business. At the outset one of the clients, the Johnson’s, lose their jobs, and they are unable to continue paying for the lawn mowing services. Based on the specifications of the contract, Sam and John continue servicing these clients at a weekly charge. Secondly, during a break from work at the Smith’s Sam leaves his Lawn Mower on and a neighborhood boy pushes it over, thus destroying Smith’s flowerbed and screen porch. After these incidences, the two business partners call off their business, as they believe that they can no longer work together as a team. Subsequently, John returns the stops making payment for the mower acquired from Mower Inc an states that he will not make any more future payments. Sam wishes to continue with the business but he cannot provide his services to clients without a lawn mower.
Issue 1
As clients to the company, and after the acceptance of the contract, should the Johnsons be bound by the contract made to offer payment of 20$ a week for Lawn Mowing services to Sam and John’s company.
Rule 1
The law of contract states that all parties in the contract need to fulfill the provisions of the contract until the end of the period contracted (Suff 3). Each party involved in the signing of the contract is legally bound to perform as per the provision of the contract. In addition to this the law of contract also allows the termination of contract if it is impossible to fulfill (lawyers.com 1).
Application 1
In this case, Sam and John can argue out that for the collection of payment for services offered to the Johnsons based on the acceptance of the contract by the clients. This argument supports continual payment for services offered by the company to the Johnson’s irrespective of the unfortunate events that befell these clients. Here, Sam and John can argue that the contract supported the issuance of payment from the Johnson’s without the provision of any special circumstances. The Johnsons, on the other hand, can argue for the termination of contract on the basis of impossibility to fulfill the contract as they cannot afford weekly payment for the services offered by Sam and John.
Issue 2
Should the Smiths terminate their contract with Sam and John’s company on the basis of a breach of contract owing to negligence, and should they offer a consideration for the contract.
Rule 2
According to the law of contract, the acceptor of the contract can argue for consideration if the during the course of service, the company’s performance implies possible injury to a person or property (Suff 28). This law supports the attainment of value for both parties involved in the contractual agreement.
Application 2
There are two options for the Smiths in the case issue presented above and that is to sue Sam and John or to terminate the contract between them and the Company. The argument here can be presented as a breach of contract due to company negligence. The Smiths can argue for a rescission of the contract as Sam and John’s company proves a threat to the destruction of property or possible injury owing to the prior incidence regarding the destruction of the flowerbed and the screen porch.
Issue 3
Should Mower Supply Inc be bound by the contract made by its client John, where John had committed to paying for the Lawn Mower, which he withdraws payment after the fall out with Sam.
Rule 3
The rule of contract states that a contract is legally binding and for that reason all parties who signed the contract need to fulfill the provisions of the contract to the period when the contract ends. The contract law also states that individuals under the age 18 are not viable for entrance into contractual agreements (lawyers.com 1). Accordingly, contractual agreements with people under 18 are considered as invalid.
Application 3
Mowers Supply Inc is bound by contract to Sam and John’s company for the provision of the Lawn Mower to the company. Accordingly, Mowers Supply Inc can sue Sam and John for the termination of contract without prior notice. Mowers Supply Inc can demand payment for the remainder of the period contracted for the lease of their lawn mower to Sam and John. As a counter argument, John can plead infancy so as to void the contract with Mower Supply Inc on the basis of consequential liability. This is because John is only 17 years old, and for that reason, is considered a minor in legal matters.
Work Cited
“Reasons to End or Terminate a Contract”. N.d. lawyers.com. 12 December 2011.
<<http://contracts.lawyers.com/contracts/Reasons-to-End-or-Terminate-Contracts.html>>
Suff, Marnah. Essential Contract Law. United Kingdom: Routledge, 1997. Print.