Business Law IRAC
Question One
Issue
The issue at hand is the breach of contract by Sam. Sam and Paul entered a legally binding agreement after Sam had sold his Shoe repair business to Paul on condition that he would not open up any other competing business within 10-years. Nonetheless, Sam grew tired of retirement, and he went ahead to set up a new business within the same locality, and the practice led to the breach of contract he had set with Paul. The violation of the contract consequently contributed to the lawsuit filed by Paul to seek damages for the breach of the contract
Rule
A business contract establishes specific obligations that must be fulfilled by parties involved in the contract. The failure to fulfill the contractual obligation by any party would contribute to the breach of the contract. In the lawsuit file by Paul against Sam for violating the agreement they had entered, which barred Sam from initiating another shoe repair business in Northridge California within 10-years, the court would rule into the case by taking into account various conditions to confirm whether Sam violated the contract. First, the court will have to determine if a contract ever existed between the two parties. The court will also have to consider what the contract required each of the parties to do. Furthermore, the court will have to locate if the deal was altered at any point. Additionally, the court will identify if it is true that Sam breached the contract as claimed by Paul in the lawsuit. In case there is evidence of the breach of the deal, the court will have to consider if the violation was material to the contract. Likewise, the court will have to determine if Sam has a legal defense to enforcement of the agreement. Lastly, the court will have to consider the damages incurred by Paul as a result of the action of Sam to set up a new shop repair in Northridge. After assessing and exhausting the conditions required to hold a party involved in a contract to be liable for the breach of the contract, the court might pass its ruling by making the violate to compensate the victim for the violation of the contract. In the case, if the court found that Sam violated all the terms of the contract, he would be held culpable, and he would be expected to compensate Paul for the damages he has incurred fully.
Application
The condition for granting injunction requires that the plaintiff must convince the court through factual evidence that he sustained damages and that the accused actually breached the contract. The court will apply the requirements for granting an injunction to determine whether Paul is eligible for an injunction or not. The court will scrutinize the factual evidence to locate if it is true that Sam violated the contract by setting another Shoe repair business in Northridge in California. The court will also apply the requirement for granting an injunction to determine whether both parties agreed that the accused should not set up any shoe repair shop in the city within 10-years from the date the contract was created. After exhausting all the conditions for granting an injunction, the court would pass its judgment on the case by accepting to grant or decline the injunction.
Conclusion
Paul may have a viable claim for the breach of contract. It is most likely that the court will rule in favor of Paul, and Sam would be held liable for breaching the contract. Moreover, the court will grant Paul injunction, and this would make Sam to compensate Paul for the damages he has incurred.