Statement of the Problem Major Problem: Bruce had not lived up to the oral agreement that he had made in front of his parents and attorney about paying off the second mortgage of his arenas, giving them $500 in cash per month, and paying their health insurance and medical bills for the rest of their lives. Minor Problem: In the long run who will be the one to run The Crowner Inn bar. V. Statement of the Objective To resolve the family problem and conflict in a structured and non-threatening way in order to arrive at a Win-Win solution for everyone. To bring back the families closeness before the dispute begins.
VI. Areas of Consideration Strength Innovative Increase in profit Weakness Family issues Opportunities Increase of sales of alcoholic beverages in United States Appropriate location Increase number of competitors Fluctuation of bar industry VI’. Assumption If the problems will not be solved and continue there’s a possibility that The Crowner Inn will close or eventually be sell on the outside party. VIII. Alternative Course of Action AC Barbara sells her share to Bruce but with a written contract that he will meet his oral agreement that he made before and give his mother a lump sum of $175,000.
Family issue will be resolve. Bruce will have a feeling of deep-seated resentment or ill will to the family. Sell The Crowner Inn to an outside party. There won’t be a family problem or conflict. The family effort might go to waste. ‘X. Analysis of Alternative Course of Action If Barbara sells her share to Bruce the family issue will be resolve but to make sure both parties should have a written contract that indicate that he will give his mother a lump sum of $175,000 and continue with payments of $500 per month.
Even though an oral contract is as legally binding as a written contract, the issue with an oral contract is in proving its existence. An oral contract, by definition, does not have a writing to support its terms, conditions or even existence. So how can we prove that it exists? In selling The Crowner Inn to an outside party there will be a possibility that the robber that the family are facing will be solved. Many believe that they’ll get more cash than if they sell their companies to insiders or family members.
For them there is far less risk selling to a third party than to insiders. Because you’re selling an asset in a truly open market. X. Conclusion/ Recommendation Our recommended solution to the problem would be having Barbara sell her share in the bar to his son Bruce but have a written contract that he will meet the oral agreement that he made in front of his parents and attorney and give lump sum of $175,000 to her mother.