1. Petra contracted to paint Bret’s house for $2,000. After beginning the job, Petra realizes that the house is really quite big, and she’s not going to make enough profit, so she tells Bret she wants another $500 to finish the job. Bret doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll have trouble finding someone else to finish it, so he agrees. Is Bret legally obligated to pay the extra $500?
No, Petra had a pre-existing duty to paint the house for $2,000.
Question 2.
Beta Inc. offers to buy 25 screwdrivers from Industrial Hardware for $75. Industrial responds, “We have the screwdrivers you wish to purchase, but the price is $80.” Beta replies, “No, we can find them cheaper somewhere else.” Industrial now responds, “We accept your offer of 25 screwdrivers for $75.” Do they have a contract?
---No, Industrial’s counteroffer terminated Beta’s offer.
Can you double check
Answer to question 1 is correct. Answer to question 2 is wrong. The correct answer is Yes, Industrial was merely attempting to negotiate. Answer can be verified in the class online text Ch 4.2 The Offer
1. In the given scenario, Bret is not legally obligated to pay the extra $500. This is because Petra had a pre-existing duty to paint the house for $2,000. By asking for additional payment, Petra is essentially demanding more money for a task that she was already obligated to complete under the original contract. Bret, as the party not requesting the modification, is not legally obligated to agree to the new terms.
2. In the given scenario, there is no contract between Beta Inc. and Industrial Hardware. Industrial's response stating that the price is $80 constitutes a counteroffer, which terminates Beta's original offer. When Beta then states that they can find the screwdrivers cheaper elsewhere, it constitutes a rejection of Industrial's counteroffer. Therefore, when Industrial finally accepts Beta's original offer, it is no longer effective as it has already been terminated by Industrial's counteroffer.
Sure, I can double-check the information for you.
For the first question, concerning Petra and Bret, the information provided is correct. Bret is not legally obligated to pay the extra $500 because Petra had a pre-existing duty to paint the house for $2,000.
For the second question about Beta Inc. and Industrial Hardware, the given answer is also correct. Industrial's counteroffer terminated Beta's original offer, and therefore there is no contract between them.
Is there anything else I can help you with?