Introduction
Different situations in the society require the application of the business law especially when engaging in business contracts that would need some agreements in the process. The use of business law is essential in the regulation of the legal issues that may arise during the commercial relationship and in creating a solution to any problems (Machado, & Davim, 2016). This paper will analyze the way the business law can be used in creating a solution for a specific case study involving Sam Stevens and the landlords.
Sam is staying in an area but has a new invention that barks like a dog to scare away any form of potential intruders. A chain store that deals in the safety products require selling products, but there is a challenge that Sam never signed a contract with the store. They previously agreed that he would make a supply of 1000 units of the products. However, there is a challenge that Sam gets when he gets the landlord has given him a notice of 30 days to quit the premises as the products are causing disturbance among other tents. On the other hand, the store is also making a demand that Sam needs to make a delivery of the 100 units immediately as earlier promised. The following section looks at the different elements of the case if there is a valid contract between Sam and the chain store.
Elements of the case as a contract
A look at the case provides different elements indicating that there was a valid contract between the chain store and Sam. In legal practice, a legal contract is determined by four factors; agreement, payment, the capacity to get into a deal, and the legal object (Knapp, Crystal, & Prince, 2019). The case presents an agreement between Sam and the chain that there would be 1000 units of the new invention product that was to be supplied to the chain store. The presence of an agreement shows there was an existing contract between the two parties. The second element was the agreement on the payment that Sam would receive upon the delivery of the 1000 units of the products. While the study does not present the exact amount under consideration, Sam would not consent to the delivery without the payment.
The third element of the contract was in the ability of Sam to make the delivery of the 1000 units of the products as at the agreed time. The existing contractual capacity agrees to a contract between the parties. Further, the deal is legally binding as there was no proof that the agreements were made when Sam was under duress or in no capacity. However, the fact that no document was signed to demonstrate the existence of the agreement makes it possible that the contract could not have been valid. The lack of the legal object makes it possible for one to conclude the contract was not valid. There is no legal binding document that would tie the two parties as a contract.
Elements of Quasi-Contract
Lack of the legal object makes the contract between Sam and the Chain store not qualify as a legal contract. However, there is a possibility that there was promissory estoppel. This is a quasi-type of agreement where there are contractual obligations placed on the parties so that one cannot unjustly enrich themselves (Lazar, 2017). To determine the existence of the quasi-contract, evidence of the payment from the chain store to Sam would be evidence of such agreement. This is a condition that would make the court to believe the existence of the contract between chain store and Sam. Promissory estoppel comes when an individual or an institution changes the earlier agreement because it was relying on just a promise. The court would be relying on the pieces of evidence of payment because of the absence of the legal object as an essential element of the contract (Samuel, 2018). The agreement can be used as the basis through which the court will use in sending the delivery between the two parties. In such a case, the application of the promissory estoppel is valid unless there would not have been the talk of 1000 units between the two parties. The elements of the quasi-contracts make it possible for the courts to enforce the delivery of the items even when there is an absence of the essential elements of the contract.
Rights and Obligations of the Landlord
The rights and obligations of the landlords in a contract depend on the terms and conditions between the parties as at the time of the contract. There can be an agreement between the two parties that can be documented or can be made verbally. One of the issues coming out is the breach of contract on the part of Sam as he was making noise for the rest of the tenants. It is the responsibility of the landlord to keep the residential premises quiet and peaceful free of disturbance through the noise. In this obligation, the landlord would as such have to terminate between him and Sam in creating peace for the rest of the residents.
However, there can be an argument that Sam was not in breach of contract. There was a communication between Sam and the landlord on the possibility of having an invention, and consequently, the landlord acknowledged and wished him the best of luck. This is an indication that the landlord was permitting Sam to go ahead and carry out the invention of the products. It is the disturbance that is making the landlord to breach the agreement they made with Sam over the issue. The fact that there was an agreement between the landlord and Sam, it is possible to indicate that the landlord does not have the grounds to evict Sam from the premises. Also, Sam doesn't have a contract issue with the chain store further making it not possible for the landlord to have the problems with Sam.
Defenses Sam may raise
The eviction process may mean that Sam would need to seek court intervention. In seeking legal redress, it is possible that he can raise different arguments in his defense. The first line of defense is the approval of the landlord for him to carry out the inventions within the premises (Stewart, Warner, & Portman, 2016). Also, there is no evidence that Sam had sent any products to the chain stores as well as the absence for any consideration would also form part of effective defense during the litigation process. There is a need for Sam to demonstrate that he had not made any official contract with the firm on the delivery of the said products. If there is no contract, then Sam is not conducting any business within the premises and as such can be allowed to continue residing until he makes the delivery and gets paid before moving the business premise out of the residential apartments.
References
Knapp, C. L., Crystal, N. M., & Prince, H. G. (2019). Problems in Contract Law: cases and materials. Wolters Kluwer.
Lazar, L. M. (2017). The Sources of Obligations under the New Civil Code. Contemporary Readings in Law and Social Justice, 9(2), 541-546.
Machado, C., & Davim, J. P. (Eds.). (2016). MBA: Theory and Application of Business and Management Principles. Springer.
Samuel, G. (2018). What is the legal literature legacy?. In Rethinking Legal Reasoning. Edward Elgar Publishing.
Stewart, M., Warner, R., & Portman, J. (2016). Every landlord's legal guide.
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