A contract is an enforceable agreement that can be justified under the law. It consists of a set of policies and promises that are upheld between two parties. For a contract to be legal, it should be prepared for legal purposes. For example, a company can draft an agreement that states the responsibilities of the buyer to the business. If one of the members fails to fulfill the obligations, punishments are enforceable under the law. The contract is also characterized by an interactive agreement where the two parties conclude on a similar basis. The primary challenge experienced in the application of these policies is the cases of cross-border litigation. States differ regarding laws, cultures and lawyers practice. It is therefore essential for organizations and individuals to set out their plans before being involved in cross-border transactions.
Case Study- Overview
In the Race Classic Cars study, plaintiff initiated car purchase negotiations with a company named Defendant. The selling company did not send salespersons to visit Nebraska where the buyer resided. Also, Plaintiff did not inform the seller about the policies set in Nebraska regarding purchases and shipping. According to a report by Court of Appeals of North Carolina (2014), the two communicated using emails and chats until they reached an agreement. Plaintiff explained to the seller that he intended to use the car in a vehicle car show in his country. Alphin, one of the Defendant owners, was involved in the payment and shipping of the car. When the car was delivered to the plaintiff in Nebraska, he was dissatisfied with it because the car did not meet his expectations. He requested a refund of the initial buying price, but the selling firm refused. The two had to seek legal assistance to ensure fair play and substantial justice. The defendant faced some challenges presenting the case in a court in Nebraska due to variation in legal policies between the involved states. The company therefore set to create a plan that would be used to eliminate the necessity of litigation in future cross-border transactions.
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Early Case Assessment
Any agreement requires early evaluation. The procedure involves holding frank and stable discussions before coming up to a conclusion (Laycock & Hasen, 2018). The two parties should evaluate the possible outcomes of the case regarding time and costs involved. As in the Race Classic Cars case, the plaintiff complained that upon receipt of the car, he noticed that the descriptions made on the website were different from the real features of the drive. The paint was cracked, and the car could not be started because the trunk was not in condition. The Nebraska court found it necessary for the seller to repair the damages. In such a scenario, early case assessment would help determine what witnesses would be used in the jurisdiction process. The company should present its policies regarding preparing, assembling, cost estimation and shipment procedures. It would be advisable for clients to visit or send representatives to the organization before making purchase decisions. The sellers can also document witnesses' statements and declarations and send them to the buyers before starting the transactions.
Minimum Contacts
Different countries and states hold different policies on the test of substantial contact. Courts, therefore, face challenges in assuming jurisdiction for such situations. The common idea behind most commercial contracts is the use of forum selection clauses. The contract represents an agreement held between two parties to agree that any disputes that may arise after a transaction will be resolved in a particular forum. When people fail to make such agreements, most courts assume that the primary way of contacting each other is meeting physically (Barnet & Oman, 2016). Most people value personal connection, especially when dealing with cross-border shipment plans. Defendant should take note of the substantial connection test by declaring their most effective method of communication. Personal connection or communication policies should include the circumstances under which the buyer visits the seller. In the classic cars case study, the plaintiff depended on online advertisement and the information on the firm’s website.
Legal Opinions
The company should also notify the buyer on other legal opinions that may be important. In most countries, the policies that are used to deal with cases involving property damage and violation of human rights vary from one region to the other. The reason is that people hold different values and social norms that are used to form the basis for evaluation. The company should inform the buyers of some of the factors that might change the outcomes of their case. These are some of the elements that would not be discovered prior until the legal case is underway (Knapp, Crystal, & Prince, 2019). An example is whether Defendant considers the use of antisuit injunctions which prevent opposing parties from proceeding in a particular forum. When writing down the legal opinions, the company should consider consulting a lawyer who is qualified to practice in jurisdictions. It is also essential to borrow some ideas from the justice system of the involved country and state.
Conclusion
Companies should have a disciplined approach that can be used as a guiding framework in business. The plan should highlight the methods of communicating with the buyer, cataloging, financial transactions, and shipment procedures. The policies should be understood by both the employees and the clients to ensure that there are no changed facts or circumstances in case of a legal process. Organizations should aim at narrowing the gap between possible outcomes and the actual results. The process starts by first understanding and controlling the differences that may widen this gap.
References
Barnett, R. E., & Oman, N. B. (2016). Contracts: Cases and Doctrine . Wolters Kluwer Law & Business.
Court of Appeals of North Carolina (2014). MEYER v. RACE CITY CLASSICS LLC. McMillan Publishers.
Knapp, C. L., Crystal, N. M., & Prince, H. G. (2019). Problems in Contract Law: cases and materials . Wolters Kluwer.
Laycock, D., & Hasen, R. L. (2018). Modern American remedies: cases and materials . Wolters Kluwer Law & Business.
