Question
Haley and Sarah have been friends for the past 5 years. One day, Haley tells Sarah that she would like to operate a restaurant selling
Haley and Sarah have been friends for the past 5 years. One day, Haley tells Sarah that she would like to operate a restaurant selling gourmet burgers with her. The two of them meet a few days later and discuss the idea further. Within a week, Haley orders tables, a grill, a heavy-duty exhaust system, and tiles for the floor worth a total of $15,000, while Sarah is able to lease a premises for $45,000 per year. Unfortunately, Sarah accepts all that Haley has ordered with the exception of the tiles. Oddly, when Sarah tells Haley that she disapproves of the tiles, Haley is infuriated and informs Sarah that she will only operate the business with her if she allows the tiles that Haley has chosen. Sarah decides against the tiles, causing Haley to leave. However, Sarah is now demanding that Haley pay her $22,500 for the lease of the premises. Haley refuses payment.
Why is Sarah demanding that Haley pay her $22,500 for the lease of the premises? If Haley is to pay $22,500 to Sarah, does this mean Sarah is also supposed to pay $8,000 to Haley? Whatever your answer is to the first question, please provide a reason as to why you have chosen that response.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started