Question 5

That Bob Baird, the Provost for Rice University in Houston, Texas, has been negotiating for a security system to be placed in rice's new physics lab building. Rice's purchasing manager, Allan Andrews recommended carl Camp, president of kemp security system.

After two weeks of negotiations, on which price, quality, and detailed specifications of the security systems were agreed upon, on Monday, November 2nd, 2015, Baird wrote to Camp as follows:

"Camp: I am ready to move on this state-of-the-art $100,000 security system deal. Upon an agreement that it will take four weeks to install the security system, and that the job will be completed no later than November 30th, 2015, you can send your workers over to get started. Let me know if this timetable is fine. I want this to get started right away." Bob Baird

Camp received this letter on Wednesday, November 4. Because the four-week timetable was fine with camp, on Thursday, N5, camp set his workers over to rice to get started. Upon being shown beards letter of November 2nd, rises building manager Let in camp's workers to begin marking spots where the video cameras, heat entry locks, in accompanying wires would be placed. The building manager tried to reach Baird by phone to confirm that this was OK but was told by Baird's secretary the beard in Alan Andrews had left on Thursday morning for a conference in New York City and will not be back until the following Monday. The building manager tried Bob baird's mobile phone number, got no answer, but left a voicemail message stating that camp's men were here and beginning their preparation.

On Thursday night, Baird and his purchasing manager Andrews were out on the town following their conference meetings on Thursday. After a number of beers, Andrews let it slip that camp had paid Andrews $5000 to recommend camp security system over camp's competitor, Harry's security. Baird Was outraged by this. On Friday morning, N6, bear remember to turn on his mobile phone (he had turned off on the plane trip to New York) and got the building managers voice mail message. Immediately, Baird call the building manager and told him not to let kemp's men back in the building.

Baird Wants to argue that not contract was ever formed with Camp because: (1) the offer was not accepted in a proper manner; (2) performance had not yet begun, or (3) any contract because of Camp's illegal bribe. Camp's position is that a contract was formed, because camp properly accepted Baird's offer by beginning performance prior to Baird's revocation.

Counsel Baird on the strengths and weaknesses of these arguments. Camp admits that no money would be due in restitution, since any new firm would make their own marks, and thus the work done so far is of no benefit to Rice University if no contract were created.