Learner will evaluate how contracts are assigned to third parties.
• Learner will explain the remedies following a breach of contract.
Using the Blog Rubric listed below for the specific grading criteria, complete the following:
Read through the excerpts from the decision of the Michigan Court of Appeals in Able Demolition v. City of Pontiac. After reading and thinking about the Court’s decision, answer the following questions:
• In your opinion, was the result reached by the courts “fair” in this case? Would you have ruled the same way as the trial judge and the appellate courts in this case? Why or why not? Explain your answers thoroughly.
• How do you think Able got itself in this mess? Do you think it just ignored the requirements of the contract, or was something else at play? If you think something other than ignorance must have been involved, what was it?
Support your thoughts using a minimum of two academic, peer-reviewed sources (outside the textbook). Websites such as Wikipedia, LegalZoom, LegalMatch, Nolo, etc. do NOT count as academic sources. A good place to start is the Davenport University Library. Substantial blog entries should contain at least 1200 words.
Answer previewWith regards to the question of whether Able Demolition fulfilled their core duty under the contract, the court ruled that the failure to strictly abide by the requirement of providing a “Letter to Proceed” was sufficient reason for the city of Pontiac to withhold payment (Able Demolition vs. City of Pontiac, 2007). The court correctly sided with the city because the requirement of a “Letter to Proceed” protects the city of Pontiac from legal liabilities resulting from illegal demolitions. As such, they said the condition was crucial to the enforceability of the contract and not a mere technicality. By executing the contract, it gets assumed that Able Demolition agrees to abide by all the conditions and warranties of the agreement. The city of Pontiac cannot proceed and pay the company because of such a breach of an essential requirement of the agreement.
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