Crockett & Tubbs Assignment Example | Topics and Well Written Essays - 500 words

Crockett & Tubbs - Assignment Example There are legal frameworks that guide the formation and fulfillment of business contracts. There are ethical practices that form the business culture of any business establishment. A contract formation consists of several stages. In the case of Crockett and Tubbs, the contract was at the negotiation stage. If an agreement had been reached and the business contract signed by both parties, then such a contract is not to be contravened, since it is legally binding. In law, under the rule of contract, when a business matter, transaction or contract is completed, it is final. Failure for Crockett to sale the Ferrari Daytona at $250,000 would lead to a court case. Otherwise, if a contract had not been signed, Tubbs negotiators can be influenced by the increase in demand for the Ferrari Daytona and change the terms of negation so as to make more profits. For this case, Crockett had not signed a business contract with Tubbs and therefore, the law leaves the decision upon Tubbs to either change the terms and conditions. The aim of a business is to generate profits. To achieve this, the business must establish a nourishing relationship with its partners in business. Crockett should be guided by ethical principles of business conduct. A legitimate business will make the customer come for more and therefore, to reinforce the relationship and also ensure sustainable business, Crockett ought to sell the Ferrari Daytona to Tubbs at $250,000. Some business individuals advance the argument that there is a mutual relationship between ethics and business. They presume that ethics naturally comes to those businesses that are profit-oriented. This argument has both weak and strong versions. For the present case of Crockett and Tubbs, a profit-oriented approach may seem to provide a short term success (Fieser, 1996). Businesses which are thriving are those that have embraced ethical practices