Posted: August 5th, 2015
Camille has developed a good network among those in the fashion industry, especially the seamstresses who have been hired by well-known celebrities. One day, Camille spoke with Sonya, the owner and Lead Seamstress for Shazam Clothing Industries. Shazam is a leading manufacturer of unique limited edition clothes in Silkadonia. Camille presented Sonya with her order to sew a limited number (500) of hot pink and black machine knitted sweaters with a matching knit hat. Each sweater was to have a number and Candie Cardigan’s signature on a label sewn onto the bottom right side of the sweater. The hats would have the same label with matching number to its sweater, but sewn on the right side of the turned up hat cuff. Sonya agreed to make each sweater and hat pair for $100. Camille’s plan was to sell each set for $300 thereby making a $200 profit per set. While discussing the type of yarn to be used, Sonya’s cell phone rang. Sonya pushed a piece of paper and a color palette towards Camille and whispered “write the type of yarn you want used and exact dye lots” and I will begin work on this right away. Camille did as requested, but forgot to give Sonya the traditional 25 percent down payment. The down payment has always been used to purchase the materials.
Sonya completed production of all 500 sweaters in record time and has presented Camille with an invoice for payment for the same. At the bottom of the invoice, the words, “Payment Due Upon Receipt” were written. Camille changed her mind about wanting the sweaters and hats, as she decided that the items would not be as profitable as originally anticipated. Sonya now comes to the law firm you work for, P. Strami, and Hammond, Attorneys at Law, and wants to know if she has any recourse. Attorney Strami hands you the following instructions and asks that you draft a memorandum to him incorporating your research.
Please determine whether or not a contract has been formed using the basic contract principles of offer, acceptance, and consideration. State whether or not any of the crucial parts of the initial offer may be missing.
Further, please research whether or not Camille and Sonya’s prior course of dealings has an impact on the parties’ communications and whether or not Sonya would be successful against CARDWARE Inc. should a breach of contract lawsuit be brought against her.
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