Mediation Memorandum - Case Study Example

Our first meeting with the grape supplier was unintended and he is the one who actually came up with the idea of the two of us doing business after he discovered that I own a small local health food products business. During our conversation after my first visit to the class, he told me that his family’s produce company is selling Muscadine grapes and informed me of their potential high antioxidant qualities. I became interested and agreed to promote the grapes and the products developed using their seeds and his family’s produce company became my supplier.

Overtime the sales of the product significantly increased due to the aggressive marketing campaign I engaged in. Although his company was by then making prompt deliveries at consistent prices, I decided it would be appropriate to have a signed contract that is legally binding to formalize our contract in order to protect the interests of both parties. I personally drafted a contract that was signed by his son on his behalf. This is acceptable under the law. (Crawford, 2012) Despite the contract guaranteeing consistent price schedule, I was surprised to learn from my Muscadine grape supplier that they intended to terminate the contract contrary to the good faith and fair dealing that has evolved between during our business relationship.

There are two contracts currently at issue. The first is the implied contract that came into effect after our verbal agreement during our first meeting at the Sunday school. Although this was not a written agreement, our consistent business relationship amounts to an implied contract whose warranty which is actually recognized by law, and therefore legally enforceable (Chirelstein, 2010). The second contract involved in this case is the agreement that was signed by his son of the grape supplier on behalf of their family’s produce company