HOMEWORK ONE-Contract Exercise (Chapters 7-11).

timer Asked: Feb 6th, 2016

Question description

As a new sales representative for Madmel Enterprises, you take a long time customer out to dinner and drinks.  Before dinner is over, but after sharing a couple of rounds of top-shelf tequila, you have shaken hands on a deal to sell the customer nearly a one and a half-million dollars worth of industrial equipment.  Madmel Enterprises is the only supplier of this industrial equipment.  You have orally agreed on the essential terms of the deal such as price, quantity, delivery, etc.  In writing up the formal contract the next morning, you discover that you miscalculated the equipment’s price.  Your error could cost Madmel Enterprises $120,000. 

You telephoned your customer to explain the situation.  The customer insists we have a deal and if you do not go through with the deal, the customer will sue Madmel Enterprises for specific performance and other damages.  The customer says that without the industrial equipment the company’s operations will be severely impacted and it will cost thousands of dollars a day in lost profits.

You go to your boss and explain the situation.  Your boss is a novice in contract law and asks you to explain in writing whether the deal is enforceable, what specific contractual issues will likely arise in the dispute and if Madmel can even get specific performance or other damages assuming they were successful in a lawsuit. 

Prepare a memo for your boss.  (Be sure to discuss the requirements of a valid contract, any possible defenses, validity of customer’s demand for specific performance or other damages, and whether business considerations may warrant going through with the deal even if the deal is not a contract or unenforceable.)  Be detailed and use the law explaining and defining key terms from the text on contracts to support your analysis.

Tutor Answer

(Top Tutor) Studypool Tutor
School: Purdue University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors