Question

Counsel for the defendant (XYZ) must argue the case against breach of contract in a type-written. Brief of Argument of 750 words. The Brief of Argument must contain the information mentioned in the previous paragraph.

Facts

The ACME Sheet Metal Company ("ACME") planned to add a new product to its line and required new, custom-made equipment. ACME contacted Ralph Evans, who advertised himself as an independent dealer in industrial machinery. Evans told ACME representatives that he was a sales agent for XYZ Machinery Incorporated ("XYZ") and that he would be able to order from XYZ, the custom-made equipment ACME required. ACME signed an agreement with Evans, subject to confirmation by XYZ for the manufacture, sale and installation of the equipment. ACME gave Evans a deposit for part of the price and a promissory note (ie an enforceable debt agreement) for the remainder. Evans delivered the deposit money, the agreement and the promissory note to XYZ. The deposit and funds were accepted as payment by XYZ and the contract was approved by XYZ. Delivery of the equipment was delayed beyond the time mentioned in the agreement. ACME sent faxes to XYZ on several occasions requesting a progress report. XYZ responded to only one of the faxes and never indicated at all that XYZ did not consider itself bound by the terms of the agreement signed by ACME. Eventually, XYZ delivered and installed the machinery. After a few days use, it became clear the equipment would be completely unsatisfactory and would never perform in any way to the specifications. When ACME contacted XYZ to demand that the machinery be repaired or replaced, XYZ said that it had no contract with ACME. As far as XYZ was concerned, its contract was with Evans, because XYZ claimed to have a contract only with Evans. XYZ explained that it never deals directly with end-user customers and that it deals only with Evans. It accepts responsibility for its business dealings with Evans and therefore denies any liability to ACME.

Answer 1

Answer:-

The defendant (XYZ) case:-

The contract is meant to be legally enforceable agreements between two parties and provide both parties the rights if any contractual obligations are breached.

It is very clear from the above case that XYZ is legally liable with respect to any contract with Evans and not ACME as XYZ never deals directly with end-user customers. Also, ACME has signed a contract with Evans for the manufacture, sale, and installation of the equipment so Evans is held responsible for any damage caused to ACME and fulfills its demand. Evan should have provided a contract in written format and make XYZ legally liable for the contract with ACME and include all the terms and considerations if they fail to comply with it in the future. However, as XYZ was not bound by the terms of the agreement signed by ACME, so the contract is considered indefinite and unenforceable.  Hence, XYZ is not liable to ACME.

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