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Legal Actions Against Breaching an Agreement

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Quinn Co. submitted an offer to Monarch Tool, Inc. to perform all maintenance and repair services on Monarch's manufacturing equipment at its Cortland, NY facility for a fixed fee and for a period of one year. Monarch sent a response to Quinn stating that the offer was accepted; but further requiring that Quinn ALSO service Monarch's manufacturing equipment at its Rochester, NY facility. Quinn did not respond to Monarch's additional terms. If Monarch contracts with another company to provide services for both its facilities, would Quinn be successful in a legal action against Monarch for breaching their agreement as to the Cortland facility? Explain fully.

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Solution Summary

The legal actions against breaching an agreements are examined.

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The issue that is at hand with the current contract involves the counteroffer that has been given by Monarch in reference to the original offer given by Quinn Company. Because Quinn Co. offered the original offer, the legal responsibility is placed upon them to accept, decline, or make another counteroffer for the business contract. The rules of law state that Quinn Co. has the legal responsibility to respond once a counteroffer has been made by Monarch; the failure to do this will restrict some legal rights afforded to the company.

Negotiations are the most common form of business haggling and although contracts require agreements from both parties to substantiate the terms of a contract, this doesn?t negate the responsibility of the ...

Solution provided by:
Raushaun Rigsby, MSc
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  • Associates of Arts , Lone Star Community College
  • Bachelor of Science , Sam Houston State University
  • Masters of Science, Kaplan University
  • Masters of Science , Kaplan University
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