Case Study: Resolving Disputes and Contractual Obligations Analysis

This case study explores two key areas: dispute resolution and contractual obligations. The first case outlines a step-by-step approach to resolving disputes, including initial meetings, counseling, negotiation, and the potential use of an arbitrator. The second case examines a scenario involving a contract for widgets, focusing on the concept of 'impossibility of performance' due to unforeseen circumstances (a tornado). It highlights the importance of a clause addressing third-party fulfillment in case of such events. The final case focuses on the types of damages applicable in a situation where software developers cause harm, differentiating between compensatory damages (to cover losses) and punitive damages (to deter future misconduct). The case studies provides valuable insights into practical business scenarios, offering students a comprehensive understanding of these critical aspects.

Case 1
The dispute resolution steps that I would choose are:
 I would firstly arrange a meeting of the parties. The agenda of the meeting would be to
discuss the issues that the parties face with each other. This step will also involve
counseling of both the parties
 Then I would start the negotiation process which will aim to arrive at a win-win situation.
 If the dispute does not get resolved by negotiation, then I would appoint an arbitrator that
will help the parties in taking a decision.
Case 2
The contract is to get 100 widgets delivered in the form of 10 per month after three months of
signing the contract. But, after sixty days of signing the contract i.e. two months, the plant of the
vendor got flattened by tornado. In this case, the contract can be cancelled because of the
‘impossibility of performance’. Since the area of operation has been destroyed, so the vendor
cannot produce and hence it is impossible for him to fulfill the obligation of delivering 100
widgets.
The clause that can protect this option is: if the vendor is unable to deliver the widgets due to any
hazard or miss-happening, then he is liable to fulfill his obligation via a third party and the
vendor will be solely responsible for the products, its quality and delivery on behalf of the third
party.
Case 3
The appropriate damages in this case are:

 Compensatory damages- The Company can ask for the monetary amount for the loss that
it has suffered and the customers that it has lost because it will have to invest more for
getting back the customers.
 Punitive damages- This will punish the software developers so that they do not harm any
other company in the future intentionally.