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The Business Law essay
 
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The Business Law. Custom The Business Law Essay Writing Service || The Business Law Essay samples, help

Kandy Kitchen and Cooking Craft seem to have been in a contract the only reason Kandy kitchen were paying the $10,000. Contracts are governed by law of contract. According to this law, the elements in the contract are the contracting parties and the object they are contracting about. Most of these contracts are written and are said to have been completed once the goods or services have been delivered and in the required quality and quantity and the payments for the goods or services are settled in total.

By Kandy Kitchen drawing a check in the settlement of the contract with Cooking Craft was in-order with respect to the law of contract. When the first Michigan delivered the checks but did not wait for the checks to be processed with an excuse of perceived bad weather and this resulted to rejection of the check due to lateness, then this was a breach of contract. This form of breach is referred to as negligence. In negligence one of the parties’ execute the contract but not to the expected and agreed standards. If precaution is taken, damage as a result of negligence would be avoided (Cohen, 2007).

The most probable result would be that first Michigan bank would be directed to compensate for the damages. The compensation would be inform of paying out the amount of the check and paying an equal amount as damages. The reason for such charges is because; first Michigan bank caused inconveniences to cooking craft by delaying the payment. Also, money is more valuable currently than in the future due to factors of inflation and changes in market money demand and supply.

With the delay in the payment, cook craft will not be able to purchase the same stock as they would have been if the check matured immediately. For them not to lose in real terms they need to be compensated.

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