Question

Fact Scenario:

                   Quik Results, Inc.(QRI), a Michigan corporation, makes and sells Power Up!, a super energy boosting, carbonated beverage. Power Up! is made in Michigan, but shipped to stores all across the Midwest and East Coast. Power Up! is made by QRI, and delivered on QRI. trucks, by QRI employees. QRI has in-house accounting and marketing staff.

                  Quicksilver Delivery Service contracts to deliver Power Up! in California for $5,000, payable in advance. QRI pays the money, but Quicksilver fails to perform. Can QRI rescind the contract? Can QRI also obtain restitution? What does it mean to "rescind" a contract? How is a contract rescinded? What is restitution? How is restitution accomplished? Explain.

Answer 1

Given that ,Quik Results is a Michigian based carbonated beverage manufacturer who ship their product Powerup ! across Midwest and East Coast .Having an in house accounting and marketing staff , the products are shipped via truck by the Quik Results employees.

Quicksilver Delivery service and Quik Results enter a contract to deliver Quik Results product Powerup! at California.They agree on Quik Result paying an advance of $5000 to Quick Silver Delivery Service Quick Silver fails to deliver inspite of quik Result making the payment.

Rescind the Contract :

Rescinding a contract can be done when “ One party will not perform their obligations”,which can be explained as if one of the party in the contract is unwilling to perform or does not perform ,a contract can be rescinded

In the given case,it is clear that Quicksilver Delivery Service has failed to perform on their agreed obligations and hence Quik Result can ask for the contract between the two parties can be rescinded.

By rescinding a contract,it means the cancellation or the nullifying of a contract, consequently canceling obligations recommended by it .

A contract is Rescinded when both the parties on a mutual consent agree to overturn their contract or when one of the party will not perform the intended obligation on the contract .

A contract cannot be reversed if and only if a third party beneficiary involved in the contract.

When a contract is Rescinded , both the parties involved in the contract agree to reverse their relationship to how it existed before the contract happened ,thereby returning all the benefits incurred during the contract .

Hence , after the contract between Quik results and quicksilver delivery service is rescinded , their contract is nullified thereby prescribing quicksilver delivery to give back the advance amount of $5000 to Quik Results in 3 days as per the law.

Restitution:

Restitution can be defined as compensation made by giving an equivalent by one party for loss, damage, or injury caused to another party in a contract.

Restitutions involves a court case as they are considered as criminal offence .Though fines and restitutions sound similar , fines are pre determined penalties whereas restitutions are to help the victimized party regain the loss recurred.

Typically,Restitution is assigned on either of the one cases stated below.

A. To enable the victimized party recover their financial status before the delinquency occurred.

B. To prevent the offender from keeping unlawful acquisition.

Considering this case,Quik Results can apply for Restitution ,as per the US Law, Quik Results is considered to be the victim as Quicksilver Delivery service has taken the advance amount of $5000 and has breached the contract by not delivering the Powerup! At California.This is considered as a Breach of Contract.

Based on the law,Quicksiver delvery service has breached a valid contract and is required pay restitution. The amount that was paid as an advance ,$5000 is to be restituted to Quik Results.

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