Case #3: Great Homes Group v. Best Advertising, Inc. Great Homes Group contracted with Best Advertising to run advertisements in the Miami Herald newspaper. The contract required Great Homes to designate the size of each ad and stated that Best Advertising would print them and “bill for the exact space published.” The agreement also permitted Best to “revise, alter, or reject any advertisement for any reason, but no change in advertising copy will be made without the customer’s prior consent.” After three years, Great Homes Group brought suit against Best for breach of contract, because the printed ads were 10% smaller than the copy Great had submitted. Analyze whether Great Homes Group has a valid claim for breach of contract or whether Best Advertising, Inc. substantially performed. Assume that Best Advertising, when it submitted the ads, was told by the Miami Herald newspaper that the documentation was too large for publication and would need to be reduced by 10% to fit the page. What should Best have done at this time? Why? What is the business lesson to be learned?
Case #3: Great Homes Group v. Best Advertising, Inc.
Great Homes Group contracted with Best Advertising to run advertisements in the Miami Herald newspaper. The contract required Great Homes to designate the size of each ad and stated that Best Advertising would print them and “bill for the exact space published.” The agreement also permitted Best to “revise, alter, or reject any advertisement for any reason, but no change in advertising copy will be made without the customer’s prior consent.” After three years, Great Homes Group brought suit against Best for breach of contract, because the printed ads were 10% smaller than the copy Great had submitted.
Analyze whether Great Homes Group has a valid claim for breach of contract or whether Best Advertising, Inc. substantially performed.
Assume that Best Advertising, when it submitted the ads, was told by the Miami Herald newspaper that the documentation was too large for publication and would need to be reduced by 10% to fit the page. What should Best have done at this time? Why? What is the business lesson to be learned?
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