A and B are negotiating a contract according to which A will develop a system for B. Initially, A says, “I can build the system you described for 500 USD”. B says, “You can start the work if you can make it for 300 USD”. A does not respond verbally but goes ahead and does the job. (a) What should B pay once the system is delivered, and (b) why?
A and B are negotiating a contract according to which A will develop a system for B. Initially, A says, “I can build the system you described for 500 USD”. B says, “You can start the work if you can make it for 300 USD”. A does not respond verbally but goes ahead and does the job. (a) What should B pay once the system is delivered, and (b) why?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A and B are negotiating a contract according to which A will develop a system for B. Initially, A says, “I can build the system you described for 500 USD”. B says, “You can start the work if you can make it for 300 USD”. A does not respond verbally but goes ahead and does the job. (a) What should B pay once the system is delivered, and (b) why?
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