homework, help

I am the owner of an Accounting firm called Damarys CPA. I was presented with a contract with Ramon Suppliers to buy raw material to make a new addition to the office and remodel the lunchroom. I did not read or sufficiently understand the fine print of every clause in the twelve-page contract, but through it was just standard terms and conditions, so I signed it anyways. The purchase price had been negotiated and was considered to be a good price by my management team and would therefore provide the office with more space and a pleasant place to eat. In the small print, however, was a cleverly worded minimum order quantity clause, which stated that should 100,000 units not be purchased within the first six months, these must be paid for whether ordered or not. I had a requirement for only 50,000 units and therefore found myself having to buy materials I did not need. The result was a loss-making improvement and angry shareholders.

The contract was based on a mutual agreement and it was formal since it was in writing.

I could not sue Ramon Suppliers because I signed the contract where stated the minimum order quantity clause.

If the contract had been made verbal and I did not had idea of the minimum order quantity clause, I could sue Ramon Suppliers for breach of contract by lack of information.

An example of a breach of contract where the plaintiff won a lawsuit against the defendant is the following:

For example, if I call a painter and ask him to visit my office to paint a new sign outside my building, I am entering into a contract. He comes to the office and performs the job as required, but instead of one new sign he finished up painting around ten signs. I am required by law to pay the painter his fee for the work he has done as implied that I would do so when asking him to do the job. If I do not pay the painter his fee for all the job done, I am in breach of contract despite no paper having been signed.

My story would have been similar to the later example if I had not signed the contract and instead it would have been verbal and I had no idea of the minimum order quantity clause.

References:

Steffan, B. (2008). Part 2: Business management and operations - chapter 10: Contract law. London: Kogan Page Ltd. Retrieved from https://www.proquest.com/books/part-2-business-management-operations-chapter-10/docview/357196000/se-2?accountid=158399