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    Breach of Contract Case Study

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    Distinctive and Idea Furniture Company

    Idea Furniture Company (IDEA) sells home furnishings that require some assembly by the customer. To make it easier for the customers, IDEA provides simple instructions and arranges the hardware, such as screws, nuts, bolts, and other items, in specially designed pouches that were sealed to a rectangular piece of cardboard. The number of pouches per item varies from five to ten, depending on the size and nature of the finished product.

    IDEA made an oral contract with Distinctive Packaging, Inc. (Distinctive) under which Distinctive would supply the packing pouches for IDEA's furniture. Distinctive made a substantial number of packing pouches following IDEA's specifications. IDEA's sales dropped and they refused to take delivery of any pouches. When Distinctive sued for breach of contract, IDEA argued that the contract could not be enforced because the contract was not in writing.

    Will Distinctive succeed in its breach of contract suit against IDEA? Explain why or why not.

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    Solution Preview

    Dear Student,

    Scenario 4: Distinctive and Idea Furniture Company

    "A contract may be oral or in writing. If, however, a particular type of contract is required by law to be in writing, it must comply with the necessary formalities as to writing, registration and attestation, if necessary. If these legal formalities are not carried out, then the contract is not enforceable at law" (New Age Publishers, n.d, p. 6).

    In this case, Distinctive will be able to succeed in the ...

    Solution Summary

    The solution is focused on identifying whether or not the company is in breach of the contract against Idea Furniture Company. Detailed rationale has been provided.