Legal Analysis - Business with Mr. Marshall Petersen

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If Mr. Petersen took my company to court for breach of implied in fact contract and breach of implied duty of good faith and good dealing. I would inform the court that I felt I had the right to take on another offer because Mr. Petersen was always late making his payment which affected me financially. Therefore, Mr. Petersen was breaching the implied contract because he was not fulfilling his commitment to pay when he received his invoice. I would also inform the court that Mr. Petersen also broke the law by getting a minor to sign a contract without my knowledge and parental consent. This is an act of being conniving and working unfairly therefore breaching our contract of good faith and fair dealing.

According to the Alabama Deceptive Trade Practices Act, Title 8 Commercial Law and Consumer protection, chapter 19 “Deceptive Trade Practices,” section 8-19-5 Unlawful trade practices states that engaging in any unconscionable, false, misleading, or deceptive act or practice in the conduct of trade or commerce is declared to be unlawful. (Act 1891, n.d.) In addition, it states that misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction is declared to be unlawful. (Act 1891, n.d.) Consequently, I can use this Alabama law as a legal defense because when my son delivered some product to Mr. Petersen, he was handed a requirements contract and asked to sign on behalf of my company. This contract included a guaranteed price schedule consistent with what Mr. Petersen had been paying. Mr. Petersen told my son that this contract was “just a formality” to guarantee a continuing business relationship. Mr. Petersen had no right to have my son sign this contract. I believe he was clearly taking advantage of my son. Mr. Petersen’s actions were misleading, deceptive, and misrepresenting his authority.

In addition, according to the Code of Alabama, Section 26-1-1, the age of majority is 19 years (Act 1975, n.d.). Age of majority is the legal age established under state law at which an individual is no longer a minor and, as a young adult, has the right and responsibility to make certain legal choices that adults make (National Conference of State Legislature, 2014). My son was only 17 years of age at the time he signed this contract. Therefore, under the Alabama Law, a single individual under 19 years of age lacks the capacity to contract (ALA Code section 16-64-41). A binding agreement of purchase and sales requires parties to have the legal capacity to contract (Capacity to Contract, 1997). In a contract law, capacity is a person’s ability to satisfy the elements required for someone to enter binding contracts. (Legal Information Institute, n.d.) A minor’s lack of capacity stems largely from inexperience relative to an adult. As a result, the law is designed to protect the minor from being taken advantage of by an adult. Not only was my son minor, I was unaware of this contract being signed by him. Mr. Petersen never came to me to discuss any issues or concerns he may have had. That would have been the right way to go about this. I believe these are some good legal defenses my company could use to help us if taken to court.

I don’t feel me discontinuing business with Mr. Petersen would impact his exploration of faith and if it does then I feel he went about this entire situation with the wrong intentions.

Instead of going to court, Mr. Petersen and I could take a Christian approach to resolve our issues. By taking this route as Christians we would focus on peace, forgiveness, reconciliation, and love (Edmonds, n.d.). “Disciples are encouraged by Jesus to settle disputes before matters escalate into litigation. Scripture urges godly people to overlook insults and to avoid retaliation. Disciples are to avoid repaying wrong for wrong, but always try to be kind to each other and to everyone else” (1 Thess. 5:15) (Edmonds, n.d.). I believe if we take a Christian approach it would be more beneficial for the both of us. One of the most applicable passages when emphasizing Christian conciliation is Matthew 18:15-17. (Edmonds, n.d.) This plan is a simple three step process. “If another believer sins against you, go to them privately and let them know of their wrong doing. If the other person listens and confesses, you have won that person back. But if you are unsuccessful take one or two others with you and go back again so that everything you say may be confirmed by two or three witnesses. If the person still refuses to listen, take your case to the church. If that does not work treat him as you would a pagan or tax collector” (Matthew 18:15-17 New Living Translation). The goal of this process is reconciliation (Edmonds, n.d.). We would be able to present our problems to one another without going to court and try to come to amends to fix the issues.

Since I have not yet made a final decision on whether to discontinue my business with Mr. Petersen and take on the offer from the company in Texas, I believe Mr. Petersen and I can prevent going to court and come together to work out a better agreement.

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Reference

Act 1975, 26 Code of Alabama Section 26-1-1 (n.d.) Retrieved from http://alisondb.legislature.state.al.us/acas/codeofalabama/1975/coatoc.htm

Act 1981, 8 Alabama Code Section 8-19-5 (n.d.) Retrieved from http://www.ago.state.al.us/File-Alabama-Deceptive-Trade-Practices

Capacity to Contract. (1997). Ontario Real Estate Law Guide, (267), 1-1+. Retrieved from http://search.proquest.com/docview/231706182?accontid+12085

16 Code of Alabama Section 16-64-41 (n.d.) Retrieved from http://codes.lp.findlaw.com/alcode/16/64/16-64-1

Edmonds, J. (n.d.) Alternative Dispute Resolution: Choice or Command? Retrieved from http://www.cbfa.org/Edmonds.pdf

Legal Information Institute. (n.d.) Contract Implied in Fact. Retrieved from the Cornell University Law School website: http://www.law.cornell.edu/wex/contract_implied_in_fact

Legal Information Institute. (n.d.) Capacity. Retrieved from the Cornell University Law School website: http://www.law.cornell.edu/wex/capacity

Moran, A., Niese, D., Schafer, M., Camacho, J., McLaughlin, M., & Hansen, A. (n.d.). Contractual Capacity and Genuine Assent. Retrieved from http://brycej.sites.truman.edu/files/2012/04/Ch-18-Contractual-Capacity.docx

National Conference of State Legislature. (2014, January) Termination of Support – Age of Majority. Retrieved from