Contract Analysis

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Contracts Analysis Case Study Wayne Clifton Liberty University The questions raised in the in the case study is whether Wayne should continue to do business with Marshall, what legal cause Marshall may seek, what impacts this may have on Marshall’s exploration of faith, and what Biblical option are available for resolving this dispute with Marshall. There is no doubt that Wayne should sign the output contract with the Texas Company. However, this contract would require Wayne to stop doing business with Marshall. The terms of an output contract would require that Wayne supply the Texas Company with all the Muscadines he produces (Output, Requirements, and Exclusive Dealings, 1975). This will leave no Muscadines for Marshall. This output contract will be beneficial to Wayne’s company, since it will allow the company to get a higher price for the Muscadines, and if he has a bad year due to drought, or other problems, he will only have to supply the output that is possible in good faith (Output, Requirements, and Exclusive Dealings, 1975). When Wayne stops doing business with Marshall; Marshall will have at least three legal causes of action. The first being that there may be a breach of contract. This could possible arise from the contract that was signed by Wayne’s son. However, there are several reasons why this action may not be found in favor of Marshall. The first argument that Wayne would have in regards to this contract; would be the capacity to bind Wayne under this contract. There is no mention that the son is acting as an agent of the company and therefore would not be authorized to sign a contract for the company. In Gebhard v. Garnier (1876) it was found that a court cannot bind a person to a contract, if that contract was signed by a person with no authority to do so. The second argument that Wayne would have against this contract would be a

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