subject: The Breaching of a Contract [print this page] The Breaching of a Contract The Breaching of a Contract
Starr touch Enterprises is the company that engaged in a written contract. The specific performance requirement that was considered by, with and for the company that provided the service, seemed to have breached a requirement that caused a non-payment of a sizable amount of funds. Using the six essential elements of an enforceable contract: offer, acceptance, consideration, capacity, intent and object of contract, I will provide a basic analysis, and will discuss options under the contact considering the potential of "substantial performance" and "inferior performance" in respects to the proposed contract
in question.
In defining an action that begins the contract, the acceptance of the offer by one party to another on creation of the contract, to define a necessary element of the contract by means of money, right, interest, benefit, etc and in one's ability to contract in that all is a general presumption and have the capacity to contract, in defining the basic requirement to the information of any contract when both parties must have intent to enter the proposed contract and in knowing the fact that a contract's object must be legal and enforceable. As an evolving company, Starr Touch is building its foundation within the community, looking to provide valued products and services at a fair and reasonable price. We are proud to serve our community and provide employment and training opportunities for the disadvantaged youth and their families that reside within them, and through these opportunities we engage services and jobs for the youth. Our goal is nothing less than to be the best in our industry. In order to provide these services, it is both imperative and important to define an action that begins a contract that allows the company to be paid in a reasonable fashion.
In knowing that a traditional approach in any form of contract law, constitutes a means to the analysis of the offer and acceptance upon approach and thus, can be used to determine whether an agreement exists between two parties; that agreement, of course, entails an offer by an indication of one person who is the offeror and another who is the offeree. This suggest the willingness to enter into a contract on certain terms and without further negotiations which enables the contract to come into existence without further a due. Starr Touch's services and activities are undergirded by their commitment to workforce training and entrepreneurial for the skills and knowledge to the staff of Starr Touch Enterprises and we are committed to a traditional approach to stay within the confinements of the laws that allow the enactment of this specific contract.
Secondly, in defining the necessary elements of a contract one should be mindful of the following: An offer which is an expression of the willingness to contract on a specific set of terms made with the intention of holding the person liable to and by the contract, the acceptance, which is an expression of an absolute and unconditional agreement to all of the terms defined by the offer; this in tern can be oral or written and must mirror the original offer made. The counter-offer is that which extinguishes the original offer and not to mention, the request for information on a particular contract that can reveal both the information and clarification about the offer. Starr Touch is a valued asset available to respond with high quality economical solutions and expects as much for a government organization such as USPS (United States Postal Service).
When we think of the ability to contract we must realize that the contract provision which calls for expanded judicial reviews, especially in respects to that of arbitration awards, may not be enforced in every court or jurisdiction. Businesses must be aware that many provisions can involve the choice of forum and law clauses that will ultimately apply to particular issues that may serve to be relevant or irrelevant to individual contracts in question. There has been talk of a circuit split that will eventually be taken up by the Supreme Court that do not take into account those provisions that deem questionable. Belcher writes that "The Supreme Court's recent holding in Archer v. Warner (In re Warner) is an anticontractual decision that threatens the autonomy of parties to create valid settlement agreements that have lasting effect within bankruptcy courts.The linchpin of contract law is the freedom of parties to bargain for beneficial
provisions. Thus, the public policy in favor of encouraging settlements not
only recognizes the importance ofencouraging contractual settlements but also
the enforcement of valid agreements:2 "Because contract law presumes that
parties will not consensually enter into a contract unless each party perceives a
net benefit, courts enforce contracts absent good reason not to do so."
Third, in order to define the basic requirements to the information of a contract one must devise a standard approach by beginning an analytical process that will measure consistency and quality, so that communication is meant on a common level and not just between developing parties, but between end-users, as well. In some cases the emphasis is to work backwards in defining the necessary business processes that will enable individuals to complete inputs and outputs. The detailed terms of a procedural work flow from start to finish should be fully specified as an inclusion of the contract and as a means of an important process requirement for all parties involved. As CEO of a consumer oriented resource company that provides a number of environmental services, construction, and maintenance support programs (including technological systems) for commercial, residential and industrial settings, I must be mindful, at all times, of those basic requirements that substantially and ultimately create the desire contracts that are necessary in sustaining my company, which brings us to promissory obligations.
There are five types of promissory obligations that can make an agreement legal and legally enforceable and they are: Capacity, Object, Consideration, Promissory Estoppels and Restitution. Agreements cannot be legal if one or more parties to the agreement do not have the capacity for a binding agreement which include, the mentally ill, the aged, the intoxicated- depending on the condition, and Minors. A legal agreement often times involves reciprocal performance and must have a subject matter. The nature of the subject matter can determine whether the agreement is in writing or not. Often with the absence of consideration, an agreement can be partly enforceable in a court of law. In regards to the detrimental reliance, if a party makes a promise to perform in some capacity and the other party suffers detriment, because of a reliance on that promise, then the promisor may be obligated, within reason, to compensate the relying party for any costs or detriment suffered. Finally, an agreement can be forced by conduct.
Authorization is an extremely important and detrimental process in contract negotiations. According to the authors, Liuzzo and Bonnice, of Essentials of Business Law Sixth Edition, " The vast majority of contracts entered into in any business day are valid. A valid contract is an agreement resulting in an obligation that is legally enforceable. It meets all the requirements of a contract because all six essential elements are present." Luizzo and Bonnice go on to say on p. 85 that "A contract in which all of the terms of the agreement have been fully performed by both parties is an executed contract." Contracts must be accompanied by the appropriate documentation evidencing the authority of the contractor to enter the contract, the authority of a particular officer to execute the contract on behalf of the company, agency or organization and the proposed officer signing for the contractor.
I will embody the fact that the contractor in question, did not obtain authorization and in not acquiring an authorized signature to do the proposed work (snow removal) for the United State Postal Service, the sub-contractor, Starr touch Enterprises, was left unpaid for services rendered and thus a breach of contract seemed evident, although an oral contract by the post master deemed just as imperative and legal as that which is the written authorization, not prevalent. On page 185 of Essentials of Business Law, authors Liuzzo and Bonnice write, "A breach of contract occurs when a party to a contract refuses to perform as required by the contract or performs in an unsatisfactory manner;" Liuzzo and Bonnice, go on to list three examples of which is a failure to perform a contractual obligation, within the time specified or within a reasonable time, which in this case, refers to the United States Postal Service in non-payment of work that was satisfactorily rendered.
I was told to provide detailed (a break down) of all duties performed for each individual postal location, and was told that the postal service would compensate me with an extra three thousand in interest and still have yet to be paid in full for my company's services. I must admit that since it has already been more than a year since payment has been due and thus not yet rendered, I am currently deciding now, if I want to pursue the added burden, in respects to time, stress and cost to sue in light of my company's lost in the amount of a whopping, 60 thousand dollars! Making sure pay day comes
The right to payment for work carried out is enshrined in the Housing Grants, Construction and Regeneration Act 1996 [the Act]. This sets out the minimum requirements that a construction contract must include with regard to payment. Failing this, the provisions of the Act are implied into the construction contract between the parties.
In respects to substantial performance, the company may have unknowingly, not fully complied with the specific terms of the contract by way of not specifically requiring an authorized signature, but the contract has been fully performed and thus the other party (USPS) should not be allowed to get out of the paying of the contract. According to an article written in The Beaverton Balley Times entitled, Contractors Play Important Roles In USPS, "Along with USPS employees, our contractors' dedication to excellence is helping us continue to improve the level of service we provide to our customers:" and on that note, would somebody give me my money already! According to the article entitled Pay-If-Paid Clauses: Freedom of Contract or Protecting the Subcontractor From Itself? "One thing is clear: if the parties to a subcontract truly want a payment provision requiring payment by the owner to the general contractor as a condition precedent to payment to the subcontractor, the provision must clearly express that intention." This sounds like a clause relevant to any job that fits the category of my ordeal with the postal service environment in question.
Although there have been no inferior performances on the company's behalf, there have been potential remedies for the non-breeching party, (i.e.) the company. In providing a basic analysis, and discussing options under the contact, while considering the potential of "substantial performance" and "inferior performance" in respects to the proposed contract, the contractual duty has been performed and warrants an absolute satisfaction of payment. In this instance, Starr touch, the non-breaching party may recover monetary damages from the breaching party which includes foreseeable damages that arose from circumstances outside the contract and thus a situation in which an engaging written or oral contract containing specific performance requirements has not been as of this day, meant, in regards to the six essential elements of an enforceable
contract.
Upon thinking what should Starr Touch do now, I would assume I could do several things, one of which is to sue, USPS, the County Comptroller, the county executive, the post master and whomever else is in charge or Starr Touch can continue to wait patiently for the near bank-erupt Postal Service, to pay out, either way it doesn't look like a happy ending occurring soon.
It was Starr touch Enterprises who engaged in a written contract with the Postal Service. Although the specific performance requirement that was considered by, with and for the company that provided the service, seemed to have breached a requirement that caused a non-payment of a sizable amount of funds, it was essentially the use of the six essential elements of an enforceable contract: offer, acceptance, consideration, capacity, intent and object of contract, that provided an overall basic analysis, as well as an option that enabled consideration of the potential of "substantial performance" and "inferior performance" towards the proposed contract.
References
Liuzzo, A. & Bonnice, J. (2007) Essentials of Business Law (6th ed.). New York :
McGraw-Hill/Irwin.
Moore, B & Parker, R. (2007) Critical Thinking, (8th ed.). New York: McGraw-Hill
Sutton: Abstract retrieved March 20, 2011, from ProQuest Direct database.
