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Andy enters into a contract with John to purchase some pies for a party he is giving. The contract specifies that John will provide 10 "moon pies" for the occasion. Prior to the contract, Andy was at a friend's house and was served an unusual pie made out of chocolate and green cheese, and the friend told him it was a moon pie - this is what Andy meant to be ordering. Unbeknownst to Andy, the pie John calls "moon pie" is made with ollaliberries and tang. The night of the party, John delivers his version of moon pies. Andy is stunned when he sees the fruity concoction and refuses to accept them.

(A) Assume John had no reason to know that Andy thought moon pies were made out of cocoa and green cheese, and Andy had no reason to know that John thought moon pies were made with frui t. What result? Explain.

(B) Now assume that just prior to their first meeting, John had heard Andy told Chris, John's receptionist, about the delicious chocolatey-cheesy moon pies he was hoping to serve at his party? What result? Explain.

Operation Management, Management Studies

  • Category:- Operation Management
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