Description
Answer the following two discussion board prompts thoroughly:
1) As you learned this week, the ancient doctrine of consideration is simple to state but subtle to apply. The parties must bargain and enter into an exchange of promises or actions. If they do not, there is no consideration and the courts are unlikely to enforce any promise made. A variety of exceptions modify the law, but a party wishing to render its future more predictable- the purpose of a contract- will rely on a solid bargain and exchange.
Consider this: Donovan built a house for Callaway, but the foundation was defective. Callaway agreed to accept the foundation if Donovan guaranteed to make future repairs by the defects. Donovan agreed but later refocused to make any repairs. Donovan argued that its promise to make future repairs was unsupported by consideration.
Discuss who will win the suit, Donovan or Callaway. Is either party acting unethically? Which one, and why?
Discuss if there are any specific types of agreements (perhaps high-value, long-term, extremely time-consuming ones) that should definitely require consideration?
Be sure to cite information found in our course material or credible outside sources to support your analysis.
2) As you learned this week, when one party breaches a contract, the other party is discharged. The discharged party has no obligation to perform and may sue for damages.
Consider this: Toll House, an independent building contractor into a contract with Nestle to build an addition to her house, namely a family room for $50,000. Soon after the contract was signed, a better opportunity came along to work with Hershey Construction, a large contracting firm to build several homes in a new track. Work for Toll House would be steady over several months and his income would be 30 times what he would receive doing the job for Nestle.
Discuss how you would handle this situation (breach of contract) if you were Nestle. Provide at least two detailed solutions.
Be sure to cite information found in our course material or credible outside sources to support your analysis.
Keep in mind that, although there is no length requirement, your response should thoroughly answer the question. Use substantial detail to support your answers.
It must be in APA format.
The link to the textbook is here: https://archive.org/details/andersonsbusines0000tw… (You would have to register. It’s quick and easy to access it!).
