In commerce, it is not unusual for difficulty to arise during the performance of a contract. Sometimes, the problems arise from the parties' pre-contract conduct or a misunderstanding. In other cases, the problems may be caused by changes in circumstances after the contract was formed.

Note that the scenario as presented does not include all of the facts. In the following questions, you will consider a series of alternative additional facts. In each instance, please address the likely argument that each party, Galactic and Solutions, would put forth to support their positions. These arguments will be based on the legal doctrines discussed in the Practical Law articles. Factors to consider may include:

• Was a mistake made? If so by which party or parties?
• Was a party negligent in the pre-contract process?
• Did an unanticipated change in external circumstances occur? If so, when?
• Was any party dishonest during or after the contract negotiation?

Questions

Please answerallof the following questions (5 questions in total):

Questions about Pre-Formation Issues

1. What if, because the notice from NoGood was very late getting to Mini, neither Solutions or Galactic actually knew, or should have known, about the New Version prior to contract execution?
2. Instead, What if Galactic actually had been notified by Mini of the New Version during the contract negotiation, but neglected to give this information to Solutions?
3. What if, instead of neglecting to give Solutions the information they knew about the New Version, Galactic intentionally decided not to tell them because they believed it might result in a price increase from Solutions?

Questions about Post-Formation Issues

1. Assume that instead of the New Version being released by NoGood before the Solutions-Galactic contract was executed, it was released shortly after the contract was signed. The effect of the New Version would remain the same and it would cause substantial additional time and cost to complete the Custom Integration for the now obsolete system that the parties had expected to integrate.
2. Instead assume that shortly after the Solutions-Galactic contract is signed, NoGood enters bankruptcy and terminates all support for their existing products. Mini's license to continue use of the now unsupported products will expire at about the same time Solutions could complete the Custom Integrations for any of Mini's systems.

Answer rating: 100% (QA)

Question 1 PreFormation Issue If the notice from NoGood arrived late and neither Solutions nor Galactic knew about the New Version before the contract was executed both parties would likely argue Solu... View the full answer