The purpose of this memo is to provide facts on the outstanding conflict between my company and the supplier of Muscadine grapes. The conflict is surrounded by some legal issues and would be preferably solved by mediation due to the close relation between our family and the company. The areas to be addressed include facts of the case, contract issues, legal issues, requested remedies, conditions under which the settlement might occur, and scriptural support.
Facts of the Case
The Muscadine supplier approached our company after a social meeting and proposed to supply grapes to my company so that my company would promote sale of grapes. The supplier provided samples on the first day which turned out to be more popular among the clients. As a result, the number of deliveries increased. The company was solely responsible for the advertising of Muscadine grapes. Our company sent payments though they were late and the supplier did not charge any levies and make any formal complaints. Our companies assumed that our supplier acted in good faith due to the close relationship that existed between the two companies. The supplier’s son signed a contract on behalf of the company. The requirement contract showed all clauses that were to adhere to both parties. Since the son acted on behalf of the company the contract was assumed to be valid. The manager of the supplier company had no information about the contract signed between the two parties. The supplier’s son was 17 years old at the time the contract was signed but turned eighteen the next month. After the Huffington post marketed the products in their site, the supplier’s company received numerous offers and later informed our company that they had offers from other companies willing to purchase their products. Our company felt that it had invested more into the business and was supposed to be the only one being supplied with the product. It also believed to be the only party with the contract with the company. This was the basis of the conflict.
Our company observed several important elements of a contract and firmly believes that an oral contract exists between the two parties. The supplier’s company made us an offer to market and sell their products to customers. Our company accepted the terms and conditions set forth by the supplier. A contract is normally made up of three important terms which are an offer, acceptance, and consideration (McKendrick, 2014). We adhered to all of the above three elements. The consideration part was fulfilled by monthly payments on the supplied items. Therefore, we firmly followed all elements in the contract. Our company issued a requirement contract that expected all parties to adhere to the payment terms. Since there was an understanding between the two parties, the supplier’s son signed the contract. Both parties who signed the contract never informed the other parties until it was too late.
Some important legal issues arise from the conflict. The first one is the eligibility of the first contract. All contracts are only supposed to be signed by adults or individuals who have attained the age of eighteen (Hunter,2015). The requirement contract was signed by the supplier’s seventeen-year-old son who is not classified as an adult and therefore makes the contract null and void. Another major issue brought forth was whether a contract existed that barred the supplier from directly engaging with the other marketers since they had an oral contract with one of the parties.
Our company would like to sign a formal contract with the supplier’s company. This new contract should be signed by the owner of the firm. Our company agrees that the company erred in the initial contract and was supposed to provide details of the contract to all parties concerned and to the required stakeholders. The company requests the supplier to agree to a new contract that would see continued supply and marketing of the products by our company. The company would also like to limit of interest from other parties. In case, the suppliers company is interested in doing business with other companies; then it should supply a certain percentage of the products to our company as a sign of good faith. Our company is also willing to raise the price of grapes provided the above remedies are allowed.
The suppliers be willing to sign a contract with the company signifying the existent of the oral contract between the two companies. The suppliers should also agree to supply a certain percentage of the produce to our company. On our part, our company accepts that the requirement contract that was signed was null and void since one of the signatories to the contract was under age and had not been given permission to act on behalf of the company (Chen-Wishart, 2012). The company will also offer a new price for the buying grapes from the supplier. It will also expect all parties to adhere to all the required clauses in the contract. It will also allow the supplier’s company to venture into other markets provided the supply percentage to the firm is retained. It will also ask both parties to act in good faith due to the good relationship that existed before the conflict.
Since both parties met through a spiritual forum, it is important to mediate this issue through the use of scriptures. God made several covenants with the people of Israel and expected all of the contracts to be followed to the latter. The contracts exclusively state the obligations of different parties and how they are supposed to be fulfilled to the letter. In case any violation is made to the contract which is commonly referred to as a covenant in the Bible, a punishment was always provided. However, God would, later on, make a new contract with his people. Other contracts that were followed to the letter such as the one made between Abraham and God bore the required fruits. Therefore, in our case, the initial contract might not have adhered to the required standards but the second one can bear fruits similar to the one between God and Abraham.
Chen-Wishart, M. (2012). Contract law. Oxford University Press.
Hunter, H. (2015). Modern Law of Contracts.
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK).