Tag (SQ): Formal Contract

Peter, a 17-year-old undergraduate, had his attachment training at Harmony Rural Bank. The internship coincided with the acquisition and installation of the TechSoft software, and Peter worked alongside the IT team to install the software.
Upon completion of his internship, he returned to college but solicited online for customers for TechSoft Solutions, the software service providers. They occasionally paid him some allowance and, in some instances, Peter assisted the new customers to install the TechSoft software for which he received additional fees that were not made known to the service provider.
Prosperity Rural Bank purchased and installed the TechSoft software with Peter’s assistance but is very unsatisfied with the service as the solution failed to meet their expectations. They threaten court action against TechSoft Solutions for breach of contractual obligations and seek consequential damages. There is no formal contract between Prosperity Rural Bank and Peter, and the service providers are denying liability and claim Peter is a minor who lacked capacity to have entered into a formal agreement with TechSoft software solutions.

(a) You are the only professional in Prosperity Rural Bank, and the Managing Director has come to you seeking to pick your legal brain on this.

(b) Explain the significance of contracts under seal.