Answered: Does Cafe have a contract with Bakar?…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Bakar is a renowned pastry Mama Cafe, a sole proprietorship, is a well-known restaurant in need of hiring a pastry chef. Bakar and Cafe’s Owner had extensive conversations regarding Bakar coming to work at Cafe. On May 1, a week after those conversations occurred, Bakar sent Cafe a signed letter dated May 1 stating, “I will work for Cafe as a head pastry chef for two years for an annual salary of RM50,000.” On the morning of May 7, Cafe’s Owner telephoned Bakar and said, “The RM50,000 is pretty stiff. Could you possibly consider working for less”? Bakar replied: “I am a renowned pastry chef. I will not work for any less.” Later that morning, Cafe’s Owner sent Bakar a signed letter by regular mail stating: “You obviously think you are too good for my restaurant. I am no longer interested in hiring you to work at Cafe.” Later that afternoon, Cafe’s Owner had a change of heart and sent Bakar a registered, express-mail signed letter stating: “Okay, if you really won’t work for less, I agree to pay you the $50,000 a year you demand to work as head pastry chef at Cafe for two years.” On May 10, the registered, express-mail letter was delivered to Bakar’s office. The regular mail letter containing the rejection was still on its way. Bakar accepted delivery of the registered, express-mail letter from the postal carrier and placed it on his desk without opening it. On May 11, before Bakar read the registered, express-mail letter on his desk, he accepted an offer to work for Restaurant. As a courtesy, Bakar called Cafe’s Owner and said, “Sorry, I just took a job at Restaurant. Too bad you couldn’t afford me.” Cafe’s Owner responded, “You can’t work for Restaurant, I already accepted your offer to work for Cafe for $50,000 a year.” Does Cafe have a contract with Bakar? a) Explain problems between Bakar and Cafe's Owner.

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