IRACWorsheet11_18-1 (4)
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School
Embry-Riddle Aeronautical University *
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Course
390
Subject
Law
Date
Jan 9, 2024
Type
docx
Pages
2
Uploaded by kaitbeybak
IRAC Worksheet
IRAC Format
Facts:
Sally’s usual supplier was hospitalized and could not ship her weekly order to
service her military accounts.
Sally faxed her standard pre-printed order form to the new supplier for $17,642.54
worth of goods.
Jack's business form included a price of $20,642.54, a three-thousand-dollar price
increase over Sally's invoice.
Jack stated, "Hey! This is Jack, the Substitute Supplier. I want to inform you that
your payment for the shipment is overdue, and because you're late, the rate is an
additional $3,000 per day plus the base price." Sally said Jack told her to review his
invoice which stated that a penalty of $3,000 per 12 hours default nonpayment
surcharge attaches for late payments.
the supplier's form had payment terms demanding payment for delivery of goods
within 12 hours of delivery.
Sally retrieves her form and compares the two order forms side by side. She notes
a substantial difference in the boilerplate terms but notes other conditions are
similar but noticeably different enough to make the effect substantially
unfavorable to her.
ISSUE:
#1: Was the contract binding
#2:
#3
RULE of LAW:
An agreement is only made when both parties agree on the terms of engagement under the assistance of a
lawyer. The purchase order, on the other hand, becomes a contract since it contains contract characteristics
such as an offer, acceptance, and consideration that may be provided by appropriate evidence
ANALYSIS:
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All rights are reserved. The material contained herein is the copyright property of Embry-Riddle Aeronautical
University, Daytona Beach, Florida, 32114. No part of this material may be reproduced, stored in a retrieval
system, or transmitted in any form, electronic, mechanical, photocopying, recording or otherwise without the
prior written consent of the University.
The purchase order issued by Sally and the invoice provided by the seller Jack constitute a legally binding
agreement. As a result, Sally must agree to Jack's payment terms because Jack also met the criteria of Sally's
order. The parties have not created a contract because agreement is one of the parts of a contract, and since it
is missing, the contract is also missing. To resolve this, the parties must agree to create a counteroffer and
resolve the disagreements between them.
CONCLUSION:
There isn't a mind-to-mind meeting. Sally's purchase order and Jack's invoice standard terms are incompatible
and one-sided, as the invoice terms appear to favor Jack exclusively. The absence of mutual assent indicates
the absence of a mind-to-mind meeting. Sally should either immediately return the items due to improper
payment terms and an incorrect invoice, or she should refuse to sign any acknowledgement of products
acceptance. Sally can return the goods on the basis of price discrepancy because she defined the terms and
conditions in the purchase order and the invoice was higher than the purchase order.
worldwide.erau.edu
All rights are reserved. The material contained herein is the copyright property of Embry-Riddle Aeronautical
University, Daytona Beach, Florida, 32114. No part of this material may be reproduced, stored in a retrieval
system, or transmitted in any form, electronic, mechanical, photocopying, recording or otherwise without the
prior written consent of the University.
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