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Hypothetical situation for you. Do you think this would be legal to do?



"CannaCo," a licensed cannabis business, hires a consultant to develop their cannabis extraction plans and SOPs. CannaCo takes these plans to "ExtractsCo," a popular extraction company, and hires them to do their extractions as per the SOPs.


Instead of doing the work themselves, ExtractsCo delegates their duties under the contract to "Cannabis General Extractors," a reputable extraction company.


Is this delegation valid? Can CannaCo sue ExtractsCo for breach of contract?


What do you think?


Answer is below in the comments....


#cannabis#compliance#business#contracts


ANSWER: Although case by case details may differ... the overall answer is that the delegation is probably VALID and ExtractsCo is probably not liable for breach of contract by having Cannabis General Extractors do the work for them.

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