Assignment task:
Apply the elements of contract law to help the Health Co.'s legal department defend against the breach of contract case. Operators, Inc. is a call center. It contacted Health Co. about taking over Health Co.'s customer service operations. Operators, Inc. estimated the cost at $125,000 per quarter. Health Co.'s manager found that figure to be reasonable, so he agreed to it. In the contract, the parties also agreed that Operators, Inc. would keep its dropped call rate at or below 5%. The first quarter of operations went smoothly and Health Co. paid Operators, Inc. $125,000 per their agreement. However, by the third quarter, Health Co. was receiving numerous customer complaints about dropped calls. In fact, roughly 30% of the traffic routed to the call center resulted in dropped calls during peak times. By the fourth quarter of operations, so many customers were frustrated with customer service, that they cancelled their insurance plans with Health Co. Health Co. lost $50,000 in sales by year-end. It refused to pay Operators, Inc. the quarterly service bill of $125,000. Health Co. subsequently sued Operators, Inc. for breach of contract. Apply the elements of contract law to Health Co.'s breach of contract case against Operators