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You hire your friend Ralph to trim some trees for you. He looks at the job, and says he'll do it for $1500.00. He's a good worker, and you know he's an honest guy because he bought your used pickup a few months ago. You're short on cash, so you suggest that you'll pay him $500 cash when he's done, and he can deduct $500 from his next truck payment to you. You also remind Ralph that you volunteered to help him build his deck last summer, and that work should be worth at least another $500.00. Ralph starts the job, and then tells you that some of the limbs are too high and he's going to have to rent a bucket truck to get at them, at an additional cost of $500. You reluctantly agree.

1. Do you and Ralph have an enforceable contract for $1500? Explain.

2. What if you decide not to pay Ralph the additional $500 for the bucket truck? Would Ralph win a lawsuit against you? Explain.

3. What if Ralph decides he wants $500 cash from you instead of deducting that amount for your help with his deck? Would Ralph win in a lawsuit against you? Explain.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93107667

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