On May 1, Brand Name Industries, Inc. (BNI), sent carol a letter, via overnight delivery, offering to employ her to to audit BNI's financial statements for the current year for $1,000. In the letter, BNI stated that Carol had ten days to accept. On May 5, Carol sent BNI a fax that stated, "The price for the audit seems to low. Would you consider paying $1,200?" BNI received the fax. The next day, Dan offered to conduct the audit for $800. On learning of Dan's offer, Carol immediately emailed BNI, agreeing to do the work for $1,000. BNI received this email on May 7. Explain why BNI and Carol do, or do not, have a contract.
2007-10-24 08:53:34 · 5 answers · asked by Chris K 1 in Politics & Government ➔ Law & Ethics
BNI and Carol have no contract. Carol rejected BNI's original offer of $1,000. She instead sent a counter-offer. A counter-offer kills the original offer. As such she never accepted the first offer. BNI never responded to her counter-offer and thus never accepted.
Her agreeing to do the work for $1000 was another counter-offer made to BNI. BNI are not contractually obliged to either Dan or Carol on the facts provided as they have not accepted either offer made.
Although it won't be accepted in court, Carol could try to argue that BNI never withdrew their original offer and as she had complied with the terms of acceptance (within 10 days) they did have a contract. However once again this wouldn't hold up due to the fact that she made a counter-offer.
2007-10-24 19:27:18 · answer #1 · answered by xxalmostfamous1987xx 5 · 0⤊ 0⤋
I say they do because BNI laid out the terms they were willing to do business under and Carol agreed, therefore they had "a meeting of the minds" and therefore an agreement hence a contract. The other offer is irrelevant because BNI did not withdraw the offer from Carol. If her fax stated that she was not willing to do the work for that price then she did not agree to BNI's terms and they never agreed to hers meaning there was no meeting of the minds.
2007-10-24 16:04:27 · answer #2 · answered by Erica T 3 · 0⤊ 3⤋
Neither Dan nor Carol have a contract with Brand Name Industries.
Brand Name Industries did not offer the contract to Dan, therefore he can not accept the contract offered to Carol.
Brand Name Industries offered the contract to Carol, but she made a counter offer. Her counter offere negated the initial offere by Brand Name Industries including the 10 day acceptance time.
2007-10-24 16:05:29 · answer #3 · answered by peggysnotions 2 · 1⤊ 0⤋
they do not have a contract as carol declined the offer and counteroffered
note: a contract is created when there is an offer, an acceptance and consideration. The promise to pay $1000 was adequate consideration.
2007-10-24 16:30:17 · answer #4 · answered by Scott K 7 · 1⤊ 0⤋
Because she rejected the contract with her fax. A counter offer basically states "I do not accept the terms of your offer so I propose this offer." Additionally, it is an offer, not a contract. Offers are not binding, contracts are binding.
2007-10-24 16:07:42 · answer #5 · answered by davidmi711 7 · 0⤊ 1⤋