Contract formation and enforcement based problem


Problem:

Foodmart, Inc. is a retail grocery store chain based in Any State, U.S.A. Foodmart has stores throughout the United States. Brian McDonald works as the produce manager for the store in My Town, U.S.A. Jeremy Atwater, 17 years old, is spending his summer vacation working for Brian in the produce department.

Scenario 1: Foodmart contracted with Masterpiece Construction to renovate the store on Main Street in My Town. Masterpiece, unable to complete the renovation within the 6-month time limit due to an increase in new contracts, subcontracted the job to Build Them to Fall Construction. Foodmart was unaware of the subcontract. When Foodmart realized, due to the poor quality of work, that Build was handling the renovation, Foodmart petitioned the court for an injunction and sued Masterpiece for breach of contract and specific performance. Masterpiece argued that it had a right to delegate the duties of the contract, or to discharge the contract due to commercial impracticability. Who wins? Explain your answer. Summarize the legal defenses to contract formation and enforcement.

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Business Law and Ethics: Contract formation and enforcement based problem
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