A service provider has a 12-month agreement to provide a customer with services for which the custom pays $1,000 per month. The agreement does not include any provisions for automatic extensions, and expires on 30 November 2018. The two parties sign a new agreement on 28 February 2019 that requir the customer to pay $1,250 per month in fees, retroactive to 1 December 2018. The customer continued to pay $1,000 per month during December, January and February, and the servi provider continued to provide services during that period. There are no performance issues being disput between the parties in the expired period, only negotiation of rates under the new contract. Required Does a contract exist in December, January and February (prior to the new agreement being signed)?

A service provider has a 12-month agreement to provide a customer with services for which the custom pays $1,000 per month. The agreement does not include any provisions for automatic extensions, and expires on 30 November 2018. The two parties sign a new agreement on 28 February 2019 that requir the customer to pay $1,250 per month in fees, retroactive to 1 December 2018. The customer continued to pay $1,000 per month during December, January and February, and the servi provider continued to provide services during that period. There are no performance issues being disput between the parties in the expired period, only negotiation of rates under the new contract. Required Does a contract exist in December, January and February (prior to the new agreement being signed)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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