Title: Unit 2 Assignment
Course: SLF 129 Legal Risk Management for The Small Business - Updated Sept 28 > Section: SLF 129 Legal Risk Management for The Small Business - Updated Sept 28

Unit 2 Assignment

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Unit 2 Assignment

Unit 2 Assignment:

Contracts are a large part of our everyday life.  We have contracts for purchasing our homes, cars, insurance, and phones.   Contacts are equally if not more important for business.  They affect every aspect of business from employment, purchasing product, sales territories, and partnerships.

As you can see contracts are just a necessary part of everyday life, so understanding the basics of contracts is essential.  After reading the following scenario please post your response.

Case:

A salesman for a seed company has been making calls on his distributors for the last week.  His seed company has a new hybrid bean that been proven to increase yields by ten percent and at the same time reduce the need for certain insecticides.  His distributors have obviously been very excited about the new product and have been placing orders for all they can get.  The seed company has restricted the amount of seed that each distributor can receive so that all their clients have the opportunity to offer the new hybrid to their customers.

The salesman was visiting one of his last customers who just happen to be his largest client.  The distributor said he had farmers lining up for the new hybrid and wanted to know if he could more than what was allowed.  Since this was his best client and he wanted to keep it that way, he stated that he would ship two orders to the distributor.  He reasoned that since his distributor was one of the largest, they should be able to provide the product even if they would have to withhold from someone else.

1. Is this a contract?
2. Is the seed company bound to fill this particular order?
3. What should have the salesman done, if anything?

Please include answers to these questions within your discussion.