JWM Investments, Inc., a company wholly owned by Respondent John McDonald, entered into a contract with Petitioner Domino's Pizza under which it the parties agreed that JVM would build and lease to Domino's four restaurant buildings. After the relationship began to sour, McDonald, an African-American, demanded that Domino's perform their end of the bargain. Another petitioner Deborah Pear Phillips, employee of Domino's, refused to sign contractually required "estoppel certificates," and the general counsel for Domino's said that it would perform the contracts only if McDonald would agree to amend them, which he refused to do. McDonald claimed that Petitioners' decision to breach the contracts was motivated by racial discrimination and sued under 42 U.S.C 1981, which protects the right to make and enforce contracts. Petitioners argue that McDonald does not have standing to sue because he was not personally a party to the contract. The Supreme Court will thus decide whether 42 U.S.C. 1981 creates a cause of action in one who is not a party to a contract, but who sustained personal injuries as a result of a breach of that contract, where the breach was motivated by racial discrimination against him.

With this case, How apply contract law in defendant?