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David owned a ranch that was improved with about four miles of white post-and-wood fencing. David left the ranch for a month to tend to business back East, and while he was gone, Peter and Paul came by his home and left a flyer on his front door. It said "Peter and Paul's Pretty Good Fence Repair Company is in the area, and will repair and paint all fencing to look like new. We'll be working in the ranch lands, so if there are any areas of fencing that you don't want to be repaired and painted, please hang a white cloth on that section of fencing so we'll know you don't want our services." David came home a couple of weeks later and found his fencing repaired and painted, and a note on his front door explaining that the service had been provided, and the bill was enclosed.

David appreciates the repair work, but he is not sure if he is obligated to pay Peter and Paul. Which of the following is most correct?

Answer

A. David is obligated to pay, but only if he was negligent in not having someone watch his property during his absence. That negligence will be determined by a 'reasonable person' standard.

B. David is not obligated to pay for the services because of a contractual obligation, but he did receive services from the other party, and must pay a reasonable price for those services or return them. Obviously, one cannot return fence repair and painting, so he must pay, even though there is no contract.

C. David is obligated to pay the contract because performance constituted agreement.

D. David is not obligated to pay for the services provided.

Operation Management, Management Studies

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