Mind Games Inc hires CompuNerd to overhaul its entire computer network for a flat fee of $350
Question:
Mind Games Inc hires CompuNerd to overhaul its entire computer network for a flat fee of $350 000. Marinka, Mind Games's general manager, stresses that the computer upgrades must be finished by the end of July so that there is enough time for Mind Games to complete a large consulting project before its fall deadline. Marinka explains to CompuNerd that a failure to meet these deadlines would cause Mind Games severe financial hardship. From the start, the computer overhaul seems jinxed. Because of several delays, the software upgrades are not quite half finished by the beginning of August. Bernie, the nerd in charge of the upgrades, meets with Marinka that afternoon. He claims that the delays were unavoidable and that CompuNerd is incurring unexpected costs. He insists on renegotiating their agreement to include additional payment for "time and materials." He threatens Marinka by saying that, unless she agrees to the new terms, he will reduce his staff by half. Marinka realizes that such a reduction would mean that the computer upgrades would not be completed for two additional months. Finding herself in a serious bind, Marinka reluctantly agrees to alter the terms of the original flat-fee contract to include additional payment for time and materials. But after the job is finished, Mind Games pays only the originally agreed-upon amount. CompuNerd sues to recover the amount owing under the renegotiated terms. Marinka asks you to determine whether Mind Games is obligated to pay the additional amount. How did you arrive at your conclusion?
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0133847154
5th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer