Business Law Essay.docx
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Date
Feb 20, 2024
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Business Law I
Analyze a Contractual Situation
Real Food Restaurant Group has every right to submit a contract claim against
Culinarians. The contract between Culinarians and Real food Restaurant Group is considered a
bilateral contract. It's considered a bilateral contract because Real food Restaurant Group
promised to pay Culinarians 3 of the eatery's gains plus her regular payment as Head Chef,
where Culinarians promised to complete the menu for their new conception eatery. First,
Culinarians must review the original contract she had with Real food Restaurant Group to insure
that she's or isn't meeting the conditions in the contract. A contract is a fairly enforceable pledge
or set of pledges (Kubasek, 2019.) For a contract to live it must contain the necessary four
rudiments. These four rudiments are the agreement, consideration, contractual capacity, and legal
obligation (Kubasek, 2019.) To fete if the contract exists, Culinarians will have to examine her
employment contract for the four rudiments of a contract. The agreement consists of an offer by
the offeror and an acceptance of the terms by the offeree (Kubasek, 2019.) Real food Restaurant
Group offered Culinarians a creation, which makes them the offeror, and Culinarians accepted
the offer, which makes her the offeree. Consideration consists of what each party gets in
exchange for their pledge within the contract (Kubasek, 2019.) Real food Restaurant Group is
swapping 3 of the eatery’s gains within the first time of operation plus her regular payment as a
Head Chef to Culinarians. Culinarians is swapping her time, knowledge, and employment with
Real food Restaurant Group. The contractual capacity is the legal capability to agree (Kubasek,
2019.) The offeror and offeree must have legal capacity in to enter into a contract. In
Culinarians’case, everyone within the agreement is at legal capacity to enter the employment
contract. The last element, legal obligation, means the contract can not be illegal or against
public policy (Kubasek, 2019.) Culinarians employment contract has legal obligation because
both parties freely entered the contract. After examining Culinarians' employment contract, it's
linked that thenon-compete agreement is in fact, a contract that exists between Culinarians and
Real food Restaurant Group. Now Culinarians must estimate if her contract with Real food
Restaurant Group is enforceable. Contracts feel to be fairly binding when all four rudiments live,
but one of the parties may have a defense against the contract’s enforcement (Kubasek, 2019.)
Contracts must be entered into freely by both parties. In Culinarians’case, both parties in the
employment contract fit that description. The contract must also fit proper form, which
substantially means writing is absent. Cooks' employment contract was in writing, so it meets the
proper form of a contract. Therefore, the employment contract is enforceable. Cooks must now
evaluate if she is bound to the non-compete agreement with Real food Restaurant Group. Cooks
was not to be involved in any competition, directly or indirectly, with Real food Restaurant
Group in the event of termination. In her case, she was unaware of their new healthy concept
restaurant and menu. When she left Real food Restaurant Group, she was still under the
impression that they were trying to create a non-healthy menu, which consisted of fried food.
Being unaware, she started her own company, which coincidentally also catered to the
health-conscious community. Once it was brought to her attention that Real food Restaurant
Group was also selling healthy food, she is legally bound to terminate her business. The
employment contract is also considered an express contract because it is a written contract with
terms Cooks and Real food Restaurant Group must abide by. This contract is also considered to
be an executory contract because only Cooks performed her terms of the contract. She created a
menu for Real food Restaurant Group, but because of its failure, Real food Restaurant Group did
not pay cooks the extra 3% of the restaurant’s profits. This contract is informal because no
formalities were required when making the contract, it is a simple contract.Most importantly, this
employment contract is valid. The contract is valid because it can be executed. The enactment of
fraud requires a contract to be written to be executed (Kubasek, 2019.) Thus, Real food
Restaurant Group can fairly submit a contract claim on Culinarians for her breach of the
employment contract. She agreed to and inked thenon-compete agreement that stated she
couldn't work for or enjoy a business that directly or laterally competes with Real food
Restaurant Group for ten times, in the event of her termination. Thus, Real food Restaurant
Group isn't bound to compensate Culinarians for her menu ideas, and Discharge of a contract
happens when the crucial scores within the contract end. There are a many ways a contract can
come to an end. Contracts can discharge by performance, fraud, breach, and agreement (Wicks,
2016.) Utmost contracts are performed successfully and discharged after. For a contract to be
discharged with performance, the scores of the parties involved in the contract have to come to
an end (Kubasek, 2019.) Typically, performance is how most contracts are discharged. A contract
is discharged without performance when there has been a breach in the contract (Kubasek, 2019.)
In Culinarians’case, her breach of contract redounded in a discharge without performance. Real
food Restaurant Group is now entitled to damages from Culinarians for her breach of contract.
After examining Culinarians' employment contract, it's linked that thenon-compete agreement is
in fact, a contract that exists between Culinarians and Real food Restaurant Group. Now
Culinarians must estimate if her contract with Real food Restaurant Group is enforceable. Most
importantly, this employment contract is valid. The contract is valid because it can be executed.
The enactment of fraud requires a contract to be written to be executed (Kubasek, 2019.) Thus,
Real food Restaurant Group can fairly submit a contract claim on Culinarians for her breach of
the employment contract. She agreed to and inked thenon-compete agreement that stated she
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couldn't work for or enjoy a business that directly or laterally competes with Real food
Restaurant Group for ten times, in the event of her termination. Thus, Real food Restaurant
Group isn't bound to compensate Culinarians for her menu ideas, and Discharge of a contract
happens when the crucial scores within the contract end. There are a many ways a contract can
come to an end. Contracts can discharge by performance, fraud, breach, and agreement (Wicks,
2016.) Utmost contracts are performed successfully and discharged after. For a contract to be
discharged with performance, the scores of the parties involved in the contract have to come to
an end (Kubasek, 2019.) Generally, performance is how most contracts are discharged. A
contract is discharged without performance when there has been a breach in the contract
(Kubasek, 2019.) In Culinarians’case, her breach of contract reacted in a discharge without
performance. Real food Restaurant Group is now entitled to damages from Culinarians for her
breach of contract. After examining Culinarians' employment contract, it's linked that thenon-
contend agreement is in fact, a contract that exists between Culinarians and Real food Restaurant
Group. Now Culinarians must estimate if her contract with Real food Restaurant Group is
enforceable. In conclusion, Real food Restaurant Group has successfully taken advantage of
Cook, served off her menu ideas, and can get plutocrat from Cook's home business. Now
Culinarians must terminate her business until the contract is over, in ten times. According to
thenon-compete agreement, she can not enjoy or work for a business that competes, directly or
laterally, with Real food Restaurant Group for ten times. Once the ten times are over, she can
renew her business and not have to worry about Real food Restaurant Group taking legal action
against her. She could basically produce anon-healthy food business, which may not be
considered a contending business with Real food Restaurant Group. It will be extremely hard for
Cooks to find another source of income that does not compete with Real food Restaurant Group.
Courts generally acknowledge a business’s concern to protect trade secrets as a legitimate reason
to enforce a non-compete agreement (Flanagan, 2020.) Next time, Cooks will be more aware of
the agreements she signs within the next company she works for. Cooks' next task would be to figure out if she could submit a breach of contract claim against
Real food Restaurant Group for taking her original menu ideas. When an individual is under an
employment contract any ideas and concepts developed by that individual belong to the
employer. Therefore, many employers have their employees sign employment contracts that
include non-compete agreements. Kubasek stated “Employers justify the use of covenants not to
compete by saying they are necessary to protect their trade secrets, talent, and proprietary
information,” (2019, pg. 324.) By having employees sign contracts, the employers can keep their
recipes confidential and prevent employees from using those recipes to compete with them
(Cansler, 2014.) Real food Restaurant Group has the right to use Cooks' ideas and concepts for
their new menu. Unfortunately, Cooks cannot submit a breach of contract claim against Real
food Restaurant Group for using her menu ideas. Even though Cooks cannot submit a contract
claim against Real food Restaurant Group, she firmly believes that she deserves compensation
for her menu ideas and concepts. Cooks cannot prove that those were her menu ideas, so she
cannot legally file a contract claim against Real food Restaurant Group. Even so, because she
was terminated and signed the employment contract, she has no right to receive compensation.
Some would argue that she was promised 3% of the restaurant’s profits within the first year of
operation if her menu was successful, but her menu was not. Although Real food Restaurant
Group had successfully created a menu based on her ideas and concepts, Cooks did not develop
the entire menu. Restaurants must be proactive, like Real food Restaurant Group, and have legal
protection for their recipes created within the company (Cansler, 2014.) Therefore, Real food
Restaurant Group is not bound to compensate Cooks for her menu ideas, and Discharge of a
contract happens when the key obligations within the contract end. There are a few ways a
contract can come to an end. Contracts can discharge by performance, fraud, breach, and
agreement (Wicks, 2016.) Utmost contracts are performed successfully and discharged after. For
a contract to be discharged with performance, the scores of the parties involved in the contract
have to come to an end (Kubasek, 2019.) Typically, performance is how most contracts are
discharged. A contract is discharged without performance when there has been a breach in the
contract (Kubasek, 2019.) In Culinarians’case, her breach of contract redounded in a discharge
without performance. Real food Restaurant Group is now entitled to damages from Culinarians
for her breach of contract. Thus, Real food Restaurant Group can order Culinarians to terminate
her business and may also get compensation from her gains. In conclusion, Real food Restaurant
Group has successfully taken advantage of Cook, served off her menu ideas, and can get
plutocrat from Culinarians’home business. Now Culinarians must terminate her business until
the contract is over, in ten times. According to thenon-compete agreement, she can not enjoy or
work for a business that competes, directly or laterally, with Real food Restaurant Group for ten
times. Once the ten times are over, she can renew her business and not have to worry about Real
food Restaurant Group taking legal action against her. She could basically produce anon-healthy
food business, which may not be considered a contending business with Real food Restaurant
Group. It'll be extremely hard for Culinarians to find another source of income that doesn't
contend with Real food Restaurant Group. Courts generally admit a business’s concern to cover
trade secrets as a licit reason to apply anon-compete agreement (Flanagan, 2020.) Coming time,
Culinarians will be more apprehensive of the agreements she signs within the coming company
she works for.
REFERENCES
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Cansler, Cherryh. “Are Your Recipes Protected by Law?” Www.fastcasual.com, 22 Jan. 2014,
www.fastcasual.com/articles/are-your-recipes-protected-by-law/. Flanagan, Jane. “No Exit:
Understanding Employee Non-Competes and Identifying Best Practices to Limit Their Overuse:
ACS.” American Constitution Society, 27 Apr.
2020, www.acslaw.org/issue_brief/no-exit-understanding-employee-non-competes
and-identifying-best-practices-to-limit-their-overuse/
. Kubasek, Nancy K., et al. Dynamic Business Law. McGraw-Hill Education, 2019. Wicks, Diana.
“Difference Between Discharge & Termination of a Contract.” Small Business - Chron.com,
Chron.com, 26 Oct. 2016,
smallbusiness.chron.com/difference-between-discharge-termination-contract17568.html.