You are a new sales representative for Myco Equipment Corporation. You take Sam, a new customer, out to dinner. After dinner, you have shaken hands on a deal to sell the customer nearly $200,000 worth of equipment. In writing the formal contract the next morning, you discover that you miscalculated the equipment price. (Yikes!) Your error could cost your company, Myco, $50,000. (And it could also cost you your job!) You phone your customer and explain the situation. Please answer these questions: 1) Is the "deal" you made at dinner an enforceable contract? 2) Does your mistake permit you to get out of an enforceable contract? 3). What do you think should happen in this situation?
You are a new sales representative for Myco Equipment Corporation. You take Sam, a new customer, out to dinner. After dinner, you have shaken hands on a deal to sell the customer nearly $200,000 worth of equipment. In writing the formal contract the next morning, you discover that you miscalculated the equipment price. (Yikes!) Your error could cost your company, Myco, $50,000. (And it could also cost you your job!) You phone your customer and explain the situation. Please answer these questions: 1) Is the "deal" you made at dinner an enforceable contract? 2) Does your mistake permit you to get out of an enforceable contract? 3). What do you think should happen in this situation?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You are a new sales representative for Myco Equipment Corporation. You take Sam, a new customer, out to dinner.
After dinner, you have shaken hands on a deal to sell the customer nearly $200,000 worth of equipment.
In writing the formal contract the next morning, you discover that you miscalculated the equipment price. (Yikes!)
Your error could cost your company, Myco, $50,000. (And it could also cost you your job!)
You phone your customer and explain the situation.
Please answer these questions:
1) Is the "deal" you made at dinner an enforceable contract?
2) Does your mistake permit you to get out of an enforceable contract?
3). What do you think should happen in this situation?
Your response should be at least 300 words.
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