Janet Durham agreed to purchase approximately $10,000 worth of computer hardware from Ted Snuff. The sale of

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Janet Durham agreed to purchase approximately $10,000 worth of computer hardware from Ted Snuff. The sale of the hardware also included a one-time setup service visit estimated at $100 in value. Durham is a professional computer consultant who evaluates and purchases computers for clients. Snuff is the owner of Computer Inc. Snuff had offered to sell the hardware and provide the setup for $11,000. Durham felt that $11,000 was too much, but stated that the contract was acceptable if the price were lowered to $10,000. Snuff did not object to the new price. The computer hardware was delivered and setup and Durham paid $10,000. Snuff argues that an additional $1000 still is owed on the account. Because Durham will not pay the additional $1000, Snuff threatens to declare the whole contract as unenforceable because it was entirely an oral agreement.
a. Please explain whether the $10,000 price is the correct contract price between Durham and Snuff.
b. Is Snuff correct in declaring that the contract is unenforceable because it was an entirely an oral agreement? Explain.
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Advanced Financial Accounting

ISBN: 978-0137030385

6th edition

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

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