SmithStearn Yachts vs Gyrographic Communications - Assignment Example

However, in entering the contract, SmithStearn Yachts entered the contract as SmithStearn Yachts, LLC which was formed before it, even though it went ahead to fulfill its obligation of the contract through paying the required fees and receiving the contract benefits in return. The issue in this case is; did SmithStearn Yachts, Inc ratify the pre-conceived persona as SmithStearn Yachts, LLC, and consequently, does SmithStearn Yachts, Inc have a better title to the claim of the contract?
2. Rule Statement

SmithStearn Yachts, Inc has a better title to the claim of the contract over SmithStearn Yachts, LLC.

After a subsequent company goes ahead to full the required contract obligations of the previously conceived company and in turn receives the accruing benefits, the company has ratified its pre-conceived form (Mallor, J. et al., 2013). On the other hand, the actions of Gyrographic Communications, Inc amounted to recognizing and acknowledging the status of SmithStearn Yachts, Inc as to the party to the contract, through receiving the agreed fees and in turn delivering the advertisement services to it.  

4. Conclusion Statement

The actions of both SmithStearn Yachts, Inc and Gyrographic Communications, Inc amount to the ratification of the pre-conceived form of SmithStearn Yachts, LLC through both parties performing their initial contract obligations. Thus, the status of SmithStearn Yachts, Inc as a claimant in the contract is legalized, and thus Gyrographic Communications, Inc is liable to continue fulfilling its side of the contract obligations, until the contract expires (Mallor, J. et al., 2013).