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Grocery, Inc. Renovations. The Background Grocery Inc. hires company A Company A unable to complete in time Company A contracts company B to complete.

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Presentation on theme: "Grocery, Inc. Renovations. The Background Grocery Inc. hires company A Company A unable to complete in time Company A contracts company B to complete."— Presentation transcript:

1 Grocery, Inc. Renovations

2 The Background Grocery Inc. hires company A Company A unable to complete in time Company A contracts company B to complete the work Company B does a poor job Grocery Inc. was not informed of the sub- contracting

3 The Issue The Performance of work was Substandard. Company A was hired to perform work. That work was not done correctly. Examples of poor quality: – Walls not straight or plumb – Paint on walls not consistent – Electrical outlets not working Company A argues right to delegate

4 The Elements of This Contract The Offer – Company A to perform quality renovations in time The Acceptance – Grocery Inc. agreed to the terms of quality and time in exchange for set payments The Consideration – Some sort of down payment, followed by agreed upon payments as work progressed – Exchanged for quality and timeline of work

5 Who Wins? Not done on time Work was not performed correctly Grocery Inc. Wins


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