Abstract
In the contract analysis of Case Study 2, we find what looks like a legal and ethical issue at
play. This analysis will cover answers to the following questions:
1. What should you do about continuing to do business with Marshall?
2. If you elect to stop doing business with Marshall, what legal causes of action might
he bring against your company, what damages or remedies might he seek, and what
legal defenses might your company have?
3. If you stop doing business with Marshall, what are the potential impacts on
Marshall’s continued exploration of his faith? What biblical options are available for
resolving your disputes with Marshall?
Decision on continuing to do business with Marshall
Initially when reading the case study I saw many factors that give me a lot of reason to
stop doing business with Marshall. Firstly, it is expected that when making on time delivery for
Marshall that one will receive the same urgency in return. Marshall was frequently late in
making payments to the sent invoices. As a business you want to ensure you provide quality
product and on time services with the same responsiveness expected with who you are in
business with. Not doing so demonstrates a lack of respect and shows that Marshall is taking
advantage of the kindness of not being charged a late fee. His actions also shows that perhaps he
is taking advantage that he is dealing with a Christian and may think that because we go to the
same church that he can take advantage of the relationship. There should be trust and
responsibility in all relationships whether it is Christian or not. The surprise of a contract was
one that showed immediately that there was no act of responsibility to communicate. Realizing
that the contract was signed by the son who was then a minor and working as a delivery boy
shows lack of trust and gives the immediate impression of fraud. For the reasons of lack of trust
and responsibility I would choose to not do business with Marshall.
Legal causes of action
The contract per the case study is a requirements contract. Per LaMance, an attorney at
law, a requirement contract is a type of contract where the exact quantity of items to be sold and
purchased is not specifically determined. Instead, the amount to be sold is dependent on the
amount that the buyer “requires”. These types of contracts are common in situations where the
buyer’s needs are subject to fluctuation (LaMance, 2012). Since the quantity of goods is not set
in the contract, there is a high level of concern, because of the lack of trust already experienced
with doing business with Marshall. There is also opportunity of abuses and violations to a
requirement contract per LaMance. To prevent abuses, breaches of contract, and violations, there
are legal concepts one should be aware of, such as “good faith” that are a major part of
requirement contracts (LaMance, 2012). Under good faith Marshall should not exercise fraud or
intentionally take advantage of parties involved in business for his advantage. By deceiving the
seventeen year old son to sign a contract it shows evidence of misrepresentation with intention
and fraud.
According to Kubasek, Brennan and Browne (2015), when two parties enter into a legally
enforceable contract, it is presumed that they have entered of their own free will and that the two
parties understand the content of the contract in the same way (Kubasec, et al.; 2015) In the case
study, Marshall told the seventeen year old that it was “just a formality” to guarantee a
continuing business relationship (Case Study). By misrepresentation of the contract and not
discussing it directly with the adult he made business with, this shows that Marshall made the
contract with intent to deceive. In addition the contract was signed by a minor without the
capacity to understand the contract he is entering into. According to Bennett capacity addresses
whether parties entering into a contract have the minimal age or mental ability to comprehend
what they have done (Bennett, 2012). It was important for Marshall to ensure that the seventeen
year old understood what he was doing; in this case it is clear that the seventeen year old did not
know or should know, since he was just a delivery boy and not the main person to do business
with. Marshal may argue the case that the contract may be binding as the son that signed the
contract is now eighteen years old, which is the age of majority. However the law of contract is
set up to protect minors. According to Bennett (2012), If a party is below the legal age for
contracting , the contract can be voidable and can be disaffirmed any time before reaching the
age of majority or within a short time thereafter, this depends on the circumstances (Bennett,
2012). In this case study the circumstances are clear the minor was deceived in signing a contract
and did not understand what he was doing. We can defend ourselves by arguing that the contract
was signed on a misrepresentation by Marshall, and claim that the contract is voidable. There is
also possible fraud that we can use as a defense against the enforcement of the contract. We can
demonstrate more than a misunderstanding by the seventeen year old son and argue that the
misrepresentation was intentional and fraudulent. According to Kubasec et al., 2015, if fraud
exists, genuine assent or a “meeting of the minds” has not taken place and the grounds for
cancellation of the contract exists (Kubasec et al., 2015).
Biblical options about resolving conflict
The first impression of this situation brings a feeling of betrayal of trust and a feeling of
being taken advantage of. From a biblical perspective , the Bible teaches us in Ephesians 4:31 to
“let all bitterness and wrath and anger and clamor and slander be put away from [us], along with
all malice”. Understanding that Marshall is new to the faith, we have to be very careful how we
handle this situation as our actions will speak very loudly of our faith and ethics. Also failure to
handle this situation with Christian values may result in division in the body of Christ and grief
to the Holy Spirit. Even though our sinful nature gives us way to hold bitterness, we have to be
careful not to allow a root of bitterness to spring up among us, leading to trouble and defilement
(Hebrews 12:15). In this case a biblical method of conflict resolution is important to follow.
The Bible instructs us in Matthew 18:15-17, “If your brother sins against you go and tell
him his fault, between you and him alone. If he listens to you, you have gained your brother. But
if he does not listen, take one or two others along with you, that every charge may be established
by the evidence of two or three witnesses. If he refuses to listen to them, tell it to the church. And
if he refuses to listen even to the church, let him be to you as a Gentile and a tax collector. I am
instructed to go to Marshall and try to speak to him about the issue one on one. There is always
the hope that Marshall would listen and see things from a different perspective. If Marshall is not
open to listening then gather two or more elders of wisdom to try and come up with a resolution
to the conflict. There are times when, despite all efforts to reconcile, sin prevents us from
resolving conflict. In Luke 17 verses 3-4, Jesus says, “If your brother sins, rebuke him, and if he
repents, forgive him, and if he sins against you seven times in the day, and turns to you seven
times, saying, 'I repent,' you must forgive him." The bible teaches us on this verse that
forgiveness is important when resolving conflict. As a Christian we will be tested and tried, but
References
Harrison, B. A, (2012). The Legal, Ethical, and Regulatory Environment of Business in a
Diverse Society, Pages 95, 111
Kubasek, N. K., Brennan, B. A., Browne, M. N. (2015). The Legal Environment of
Business – A Critical Thinking Approach, Page 251
LaMance, K. (2012). Legal Match Law Library, “What is a Requirement Contract?”
Retrieved from http://www.legalmatch.com/law-library/article/what-is-a-requirement-
contract.html
The Holy Bible, English Standard Version. Copyright ©2001 by Crossway Bibles, a
publishing ministry of Good News Publishers. Retrieved from
http://www.openbible.info/topics/conflict_resolution
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