Fri
29
Sep
Sad Mom asked:
Jennings owns a bakery shop. He has been trying to obtain a long term contract with the owner of Julie’s Tea Salon for some time. Jennings starts a local advertising campaign on radio and television and in the newspaper. The campaign is so persuasive that Julie decides to break the contract she has had for several years with Orley’s Bakery so that she can patronize Jenning’s Bakery. Is Jennings liable to Orley’s Bakery? Why or why not?
Question posted courtesy of: Unique Content
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Friday, September 29th, 2006 at 9:13 pm
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October 1st, 2006 at 12:25 am
I wouldn’t think so. He was not the one who entered into an agreement with Orley.
October 1st, 2006 at 7:29 am
what it comes down to in any situation, was there a breach of contract? and who breached? if you have a contract with someone, personal, business or otherwise, you have to show that the other person has not lived up to their end, and did not try to offer a remedy. otherwise, I don’t know.
call your local legal aid representatives or contract atty.
Good Luck
October 3rd, 2006 at 2:24 pm
Jennings is fine. We live in a free market society. Jennnings can advertise their business just like any other, customers choose who they shop with. If I buy a Chevy because I like the commercials can Ford or Dodge sue them? NO and neither can Orley’s go after Jennings.
That being said, if Julie has a written agreement with Orley’s then Julie is liable unless she followed good faith and broke the contract in accordance to the specified cancellation terms. If those were followed then the losers are Orleys and they need to revamp their marketing strategies to gain the business back or get new business to replace it.
October 5th, 2006 at 9:20 pm
Orley would only be able to sue Jennings for tortious interference with contractual relations. In English law this tort was established by Lumley v Gye.
However one of the key components is that a breach of contract has been induced by the tortfeasor — if Julie (1) terminated the contract with Orley’s pursuant to a contractual power, or other method of lawful termination, or (2) did not violate any negative covenant or restraint of trade in her contract. then this tort is not established.
If there was a restraint of trade clause, a case might be made for an injunction against Julie from contracting with Jennings: Lumley v Wagner.