Chapter 17, Problem 6C

On October 1, 2019, Graham’s Weed&Feed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of $3,200. The contract does not include any stipulations for additional periods. On June 1, Graham’s Weed&Feed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is $4,000 per month and is also retroactive to April 1, 2020.

During April and May of 2020, while the new contract was being negotiated, Graham’s Weed& Feed continued to maintain the grounds, and BigData continued to pay $3,200 per month. BigData was satisfied with Graham’s Weed&Feed’s performance, and the only issue during negotiations was the monthly fee.

Required:

Determine if a valid contract exists between Graham’s Weed&Feed and BigData during April and May 2020.