Category : Articles
Foodmart, Incorporated enters into an express agency with Masterpiece Construction that, which will renovate the company??™s store on Main Street, in My Town, USA. According to Cheeseman (2010), an ???express agency??? will occur when the principal and the agent enter into a contract with one another (Cheeseman 2010, p. 331). Masterpiece Construction is the agent in this scenario, has the obligation to perform the duties within the agreed upon contract, meeting the standards of reasonable care, skill, and diligence (Cheeseman, 2010). Within the contract, the agent has the duty to notify the other party involved in the matter of any changes or concerns. The duty to account, and maintain accurate records of transactions, and the duty of loyalty to Foodmart, Incorporated (Cheeseman, 2010).
Within the scenario, Masterpiece could not complete the renovation within the original six-month timeline. Masterpiece, subcontracted the project to Build Them to finish the project, without giving notification to Foodmart, Incorporated. Foodmart was unaware of the subcontract, Foodmart upon inspection noticed poor quality of workmanship. Foodmart as well discovered that Build Them Construction finished the renovation. Masterpiece Construction breached its duty to perform their duties that, which was part of the original contract between Foodmart Incorporated and Masterpiece Construction. Masterpiece as well breached the duty to notify Foodmart.
The defense of Masterpiece Construction, the company has the right to delegate duties of the contract or discharge the contract altogether. Masterpiece did however, fall behind in its duty of promise however, Masterpiece did not discharge the contract instead they delegated to renovation to Build Them, without giving notification to Foodmart Incorporated. Foodmart Incorporated as well can petition the court for an injunction to sue Masterpiece Incorporated for the breach of contract and claim, ???frolic and detour??? (Cheeseman, 2010). Masterpiece Construction wanted to continue to make new contracts however, they failed to satisfy the contract that, which they were already involved in with Foodmart Incorporated.
Foodmart Incorporated, in this scenario will prevail in its suit against Masterpiece Construction and will not, need to pay Masterpiece Construction for its work under the contingency fee. The aspect of the contingency fee, the agent is paid only if the agency completes and collects damages for lost time and loss of business.
Cheeseman, H. R. (2010)? The legal environment of business and online commerce: Business ethics, e-commerce, regulatory, and international issues (6th ed.) Upper Saddle River, NJ: Pearson Prentice Hall.