Industrial Construction Co. wanted to raise money to construct a canning factory
ID: 467903 • Letter: I
Question
Industrial Construction Co. wanted to raise money to construct a canning factory in Wisconsin. Various persons promised to subscribe the needed amount, which they agreed to pay when the construction was completed. The construction company assigned its rights and delegated its duties under the agreement to Johnson, who then built the cannery. Vickers, one of the subscribers, refused to pay the amount that he had subscribed on the ground that the contract could not be assigned. Was he correct?
Please refer to Business Law Fourth Edition Twomey and Jennings
Explanation / Answer
no, he is not correct. once they agreed to buy their share and accepted to pay the amount at the required time, they must delilver the promise. of course they may not have any writen agreement on this, but it comes under implied contracts which does not require any writen or documents for the agreement.
the above discussion is comes under implied contracts, which means an agreement created by actions of the parties involved, but it is not written or spoken. this is a contract assumed to have been drawn. In this case, there is no written record nor any actual verbal agreement. a form of an implied contract is an implied warranty provided automatically by law.
so in this case he is wrong and must pay his obligation to the firm.