Posted: August 15th, 2022

Strategic Plan Overview: Alternative Dispute Resolution

Strategic Plan Overview: Alternative Dispute Resolution
Summary of Dispute
The dispute lies in the misinterpretation of the supply order made by Jerry’s Pizza to Dazzling Dough Co., and the supply agreement made by Dazzling Dough Co. to Jerry’s Pizza. Jerry’s Pizza made an order of 200 pounds of pizza dough, along with some other items. Therefore, their expectation from the contract was that they would receive a supply of the same order under the signed contract. Dazzling Dough Co., on the other hand, upon sending the contract anticipated that Jerry’s Pizza was agreeing to purchase 200 pounds of items worth $30,000. Based on that, Dazzling Dough Co.’s lawyer’s interpretation of the term, ‘along with’; on the supply order, did not tally with what was outlined in the contract. However, since Jerry’s Pizza did not dispute the language, both parties’ interpretation during supply was reasonable. It would have been better if Dazzling Dough Co. owned up to the misunderstanding while drafting the contract. Thus, the case was a big misunderstanding from both parties. The dispute would have also been resolved quicker if Jerry’s Pizza were more critical in reading and understanding the contract stipulations before signing it.
Proposed Revisions to Contract Language
Revisions to the contract language would assist in clarifying the buyer’s expectation from the supplier. This would mean that the contract is specific regarding what amounts of each of the items are to be supplied, and how much money is to be imbursed. In doing so, the contract would read, “Jerry’s Pizza agrees to purchase 200 pounds of pizza dough, (a given amount) of pizza toppings, (a given amount) of desserts and (a given amount) of soft drinks for (a given amount) of Dollars.”
Ethical Considerations
Since business contracts are legally binding, it is ethically presumed that the parties will observe and fulfill their contractual requirements. Both parties must be aware of and agree to the offer made by one party and the acceptance made by the other party. In cases where misunderstandings arise, ethics seeks to identify the reasons for acting or refraining from acting by the mistaken party towards the contract. This allows one party to understand the motives of the other party in order to decipher whether to enforce the specific terms of a contract against another or to discuss and amicably agree on the way forward with regards to the contract.
Recommendations
In this case, possible settlement options based on ethical and legal considerations would be to have Jerry’s Pizza pay any actual difference they owe Dazzling Dough Co. outside the figure highlighted in the contract. This would need Dazzling Dough to tabulate the actual totals for the items they supplied and subtract the amount they received from Jerry’s Pizza; for Jerry’s Pizza to clear the balance. Since Dazzling Dough Co. typically fulfills orders of 150 pounds to most of its customers, Jerry’s Pizza could work out a contract whereby Dazzling Dough Co. supplies them that amount of dough then gets a supply of the difference in dough from another company. Jerry’s Pizza could propose negotiation or mediation which are less expensive and less time-consuming methods of dispute resolution. This is because; based on the contract they agreed that the winning party is subject to receive reimbursement of attorney fees. These methods of dispute resolution would also not abrase their relationship as businesses.

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