Discussion Board Forum 2: Contracts
BUSI561 – Legal Issues in Business
November 10, 2013

Analysis of the Situation Let me begin by assessing the current situation and relationship with Don. Don and I met because of our individual desires to walk with Christ. We developed our friendship that eventually evolved to a business relationship; we are both small business owners. Our business venture started under favorable circumstances consistent with implied duty of faith and fair dealings. According to Kubasek, Brennan, &Browne (2012), an implied contract is formed by conduct of involved parties rather than written or spoken words. That was exactly the case between us. Don would place routine orders and would generally pay all invoices due within 45-60 days. I continue to supply him with my product [Scuppernong grapes] at consistent prices. The situation appeared to be mutually beneficial. Just recently, my product started to gain popularity that resulted to increased demand far in excess of my ability to supply. A company in Connecticut presented an extremely advantageous offer. After contacting Don to inform him of the circumstances, I was informed that my 17-year-old son who is a part-time deliveryman signed a requirements contract on behalf of my company. Neither my son nor Don had mentioned the existence of the contract before.
Identifying Present Issues Based on recent developments, my company is facing several pressing issues. I have one current and one possible distributor for my product. However, my ability to supply cannot meet the demands from two distributors. The company from Connecticut presents a great offer and excellent business opportunity. If I were to accept this offer, it means I will have to stop doing business with Don. At this time, it appears that I cannot do that due to an existing contract with him. Doing so might