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Contract Case Study Group 3 1

Emily worked in her mother Margaret's antique doll shop since 2006 in exchange for receiving any unsold dolls when Margaret retired. In 2009, Margaret decided to give the unsold stock to charity rather than Emily. Emily may have a case for breach of contract against her mother. It is recommended that Emily pursue an out-of-court settlement to preserve her relationship with her mother and avoid a lengthy legal process, though she may receive less compensation that way. An implementation plan outlines negotiating a settlement through scheduled meetings, stating desires, bargaining terms, agreeing, and documenting the agreement.

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Jun Martine Salcedo
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52 views4 pages

Contract Case Study Group 3 1

Emily worked in her mother Margaret's antique doll shop since 2006 in exchange for receiving any unsold dolls when Margaret retired. In 2009, Margaret decided to give the unsold stock to charity rather than Emily. Emily may have a case for breach of contract against her mother. It is recommended that Emily pursue an out-of-court settlement to preserve her relationship with her mother and avoid a lengthy legal process, though she may receive less compensation that way. An implementation plan outlines negotiating a settlement through scheduled meetings, stating desires, bargaining terms, agreeing, and documenting the agreement.

Uploaded by

Jun Martine Salcedo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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BULACAN POLYTECHIC COLLEGE

City of Malolos, Bulacan

Case Study: Contracts


In Partial Fullfillment of the Requirements in
Regulatory Framework & Legal Issues in Business

Submitted by:
Bactat, Nicole B.
Bernabe, Jasmin Joy R.
Caparas, Jonas P.
Dela Cruz, Carolyn
Lagrimas,Cindy Ella M.
Orosco, Joy Anne O.

Submitted to:
Mrs.Jenneth M. Natividad
BRIEF SUMMARY
Margaret owned an antique store that specialized in rare porcelain dolls. When she
opened the business in 1989, it was at a shop in an eastern suburb of Melbourne. In 1999 she
started to advertise on the internet and by 2006 the business had grown to the point where she
needed help to keep the business going. After a family discussion one night at the kitchen table
in July 2006, it was agreed that Margaret would probably keep the business going for another
couple of years and then retire. Emily, her youngest daughter and aged 16, would work in the
shop as long as was needed and in return, she would received any unsold dolls. When
Margaret retired at the end of 2009, she decided that she would give the unsold stock to charity
and they could auction it and keep the proceeds.

SITUATIONAL ANALYSIS
As per business law it can be understood that Margaret being the sole owner of the shop has
the right to give in her shop for charity at her will and wish. But the question in contradiction is her
promise to Emily for helping her. Before advising Emily her further steps we check through the
relationship of Margaret and Emily in the business and it can be understood that the business if of
employment because Emily was promised to receive the unsold dolls in return for her work in the Shop.
The law states that the person in status of an employee can take refuge in law if the employer breaches
the terms of the contract of their employment. It can be understood here that Margaret in order to
reduce her hectic work had taken help of her daughter and promised to give unsold dolls in return i.e.,
the dolls which she is planning to give in for charity were the dolls she had promised to give Emily. Thus,
Emily can be advised to approach this issue with reference to Law of breach of contract or agreement
whether it is oral or written. Emily as per the acceptance based on which she had joined the shop to
help her mother can file a suite under the law of contract and the laws relating to the breach of promise
her mother made with her. Under the breach of contract law it can be noted that the employee has all
the freedom to approach any court whether local or the district if the employer is default in the payment
of the promise made . In the given scenario Margaret had promised to give Emily the unsold dolls but
latter she decides to give it for charity thus; she had breached the contract which she had made with
Emily.

STATEMENT OF THE PROBLEM


1. Does Emily Entitled to Received compensation or not?
2. Do you think Emily has the right to contradict the decision of Margaret?
3. Can Emily file a lawsuit against her mother?
ALTERNATIVE COURSE OF ACTION
Emily has two possible solutions to the problem identified. She can either file

a case against her mother or make an out court settlement. If Emily decided to file a

lawsuit against her mother she has to undergo long process at the same time it

might cost her a lot ,getting a lawyer is not for free. And most especially her
relationship with her mother might come to an end. It can also be the cause for it to

be imprisoned and going to court might disturb her private life. However the

assurance that her mother will compensate her is hundred percent sure for the law

will obliged her to do so or else she’ll be imprisoned for not conforming. Emily can

assure that she wont be denied from her legal rights because she will be given
enough knowledge and advice from expert lawyers. On the other hand if she take or

decided to make an out of court settlement it would only take an hour to settle

everything with her mother which is convenient since Emily wont be needing to get

and consult a lawyer that she needs to pay and at the same time attend a court

hearing. Lastly her relationship with her mother can still be reconcile and start anew.
Nonetheless when Emily agree to a settlement, she may become unable to pursue

further legal action. Moreover, if she settle out of court, her mother may not even

have to pay compensation but still depend on the arrangements they agreed upon.

The compensation she can obtain she settle a case out of court may be significantly
lower than the actual worth.

RECOMMENDATION

We advice Emily to take an out court settlement, considering the relationship

she has to Margaret, her mother is more important. It would also be convenient on
her part If she settle the case out-of-court because she can easily be able to recover

damages faster, instead of waiting for months or years if she decides to go before the

court . Furthermore at her young age Going to court may be difficult experience

because all of the details become public and people might utter negative comments

about the issue which make her feel invasive. By settling out of court Emily may avoid
all of possible negative impact on her. And considering the fact that her Mother

Margaret give those unsold dolls to charity and allow them to auction it and keep the
proceeds is a good deed and not for personal gain but to help those in needs is an

acceptable reason though.

IMPLEMENTATION PLAN
⚫ Phase 1
Schedule a meeting for the purpose of hearing what Emily is complaining about.

⚫ Phase 2
Give Emily an opportunity to clearly state what she wished or intend to happen

⚫ Phase 3

Start the negotiations and bargaining. This includes the terms and conditions

⚫ Phase 4
Both sides must agree and have their consent with what are included on the settlement

⚫ Phase 5
Have it written or documented and both parties must sign it for compliance and proof.

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