Case Study Example on Camille & Sonya Make Oral Contract: Legally Binding Obligation

A contract is defined as a binding promise made between two or more parties to fulfill an obligation. Legally, contracts are protected by law to ensure that the interests of both parties are protected, and in the event of a breach of the contract, a legal remedy can be sought. Contracts can be made orally or in writing and in both forms, the contract can be enforceable (Chandler and Brown, 2015). The conversation between Camille and Sonya qualifies as an oral contract, for it meets the four basic elements of a valid contract.

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First, there was an offer to sew 500 sweaters matching hats by Camille, and Sonya accepted the offer; thus, there was an agreement. Secondly, both parties who entered the contract were adults, of a sane mind, and not under the influence of alcohol or drugs. Thus, Camille and Sonya had the capacity to enter a binding oral contract. Third, there was a consideration that was agreed upon by both parties. A consideration price of $100 for each pair of sweaters and hats was agreed upon. Fourth, there was an intention by both parties to enter the contract. For Camille, she would sell each pair of sweaters and hats for $300 to make $200 from each pair of sweaters and hats. For Sonya, she had made a good business deal to sew sweaters with matching hats to CARDWARE Inc. Thus, since conversation between Camille and Sonya qualify to be a valid oral contract, it is legally enforceable, and Sonya can successfully seek legal remedies for Camille's breach of the contract.

Camille had a good network in the fashion industry and had prior dealings with seamstresses, including Sonya, the owner of Lead Seamstress. There is a high possibility that Camille had honored her contractual obligations in the past dealings, leading to the development of trust. The trust factor could have been the cause of not seeking the 25% down payment, for she trusted Camilla would honor her contractual obligations as she had done in the past. The fact that Sonya forgot to seek the 25 percent down payment does not mean that the contract was not valid as it was not among the conditions discussed on the conversation between the two parties. The paper that Camille wrote down the yarn type and the dye dots to be used and the 500 hot pink and black machine knitted sweaters and hats that had numbers and Candie Cardigan’s signature labels form physical evidence that there existed a contract between Camilla and Sonya. The change of mind by Camilla is a breach of contract and violates the statute of frauds.

The justice system recognizes oral contracts, and it is possible to sue a party that breaches an oral contract (Petty, 2015). However, to have a strong case against the party that breaches the oral contract, one must adequately prove that the other party did not meet its obligation. In a case Gravett v. Gravett, No. 14-0480, 2015 Iowa App. LEXIS 298 (Iowa Ct. App. Mar. 25, 2015), two brothers had entered an oral contract that one supplies the other hay worthy $26,000 (Ghany, 2018). After supplying the hay, the brother only paid halfway and claimed that he had ordered half the amount of hay delivered. The court ruled in favor of the brother who supplied hay after establishing that the testimonies provided were valid and credible, and the supplier was awarded a $13,000 plus interest as a remedy for the breach of the oral contract. Thus, Sonya can sue Camilla for a breach of the oral contract and get full payment for damage caused by the breach of the oral contract.

Reference

Chandler, A., & Brown, I. (2015). Law of contract. Oxford University Press.

Ghany, A. (2018). Reliance on Oral Promises and the Concept of Statute of Frauds and Promissory Estoppel. Ct. Uncourt, 5, 38.

Petty, R. D. (2015). Contracts. Wiley Encyclopedia of Management, 1-4.