Case Study: Brewery Equipment Contract Dispute ( 75 points possible) Parties: Craft Brewery (Plaintiff) - A small craft brewery in Portland, Oregon that produces specialty beers. Brew Systems Inc. (Defendant) - A company that sells brewery equipment and supplies to craft breweries. Facts: On January 5th, 2023, Craft Brewery signed a contract with Brew Systems to purchase 3 new 30-barrel fermentation tanks for $45,000 to expand production capacity. The contract specified that Brew Systems would deliver and install the tanks by March 1st. Brew Systems required a 50% deposit upfront, which Craft Brewery paid upon signing. By early April, the tanks still had not arrived. Craft Brewery contacted Brew Systems, who stated there were unexpected delays from the manufacturing facility. Brew Systems said the tanks would be delivered by May 1st at the latest. As of May 15th, Craft Brewery still did not have the new tanks installed. The missed deadlines caused disruption to Craft Brewery's production schedule and plans for expansion. Craft Brewery's owner sent a letter to Brew Systems threatening legal action if the tanks were not delivered within one week's time. On May 22nd with still no tanks delivered, Craft Brewery filed a lawsuit against Brew Systems for breach of contract, seeking the following remedies: - Return of $22,500 deposit - Compensation for lost profits due to missed production deadlines. - Compensation for costs incurred from renting additional tank space. - Legal fees from the lawsuit Brew Systems claims the contract is not valid because force majeure clauses in the contract protect against liability for unforeseeable delays. Tip: Force majeure is a clause that is included in contracts to remove liability for unforeseeable and unavoidable catastrophes that interrupt the expected course of events and prevent participants from fulfilling obligations. Assignment: 1. Identify the elements of a legally binding contract and analyze whether a valid contract exists between the parties. (15 points possible) 2. Determine whether Brew Systems breached the contract by failing to deliver the tanks within the agreed upon timeframes. (15 points possible) 3. Discuss what remedies Craft Brewery is entitled to if the court determines a breach of contract has occurred. Address Brew System's force majeure defense. (15 points possible) 4. Recommend a course of action for the two parties moving forward - should they continue to pursue legal action or reach a settlement out of court? (15 points possible)