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Jo, Maddy and Taylor, the prospective owners of PI, wanted to order personal business cards for each of them and general informational brochures to be used to introduce themselves and the new business to various contacts as they plan the new PI business. Jo, Maddy, and Taylor sent an email, followed by a written confirmation letter to Professional Cards, Inc. (PC) ordering 900 business cards (300 for each of the prospective owners) and 900 informational brochures. They requested the cards and brochures be delivered to Jo's personal address not later than April 1. The email/letter order did not include a price.

PC did not respond but shipped the cards and brochures as ordered by April 1 at a price totaling $1800.

The price was higher than expected. The PI owners wonder whether they are bound to accept the cards and brochures from PC since there was no formal acceptance or written correspondence from PC.

After discussing the contract issues with Pat and Gale, you agree to email the PI owners. The email should address the following.

A. An analysis and explanation of whether this is a valid contract between Taylor, Maddy, and Taylor, and PC, and why or why not.

Consider in the analysis that the purchase was a personal purchase by the three potential owners, not a business purchase on behalf of PI because PI is not yet a formal business entity. Consider whether the Statute of Frauds applies to this purchase and, if so, whether the Statute of Frauds was satisfied.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93132418

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