Question

Read the following scenario and answer the question in 5–10 sentences.

A large television company (CFR) contacts a technology provider, GET, Inc., to arrange a meeting to discuss an upgrade of its existing server network. At the meeting, a representative of GET draws up plans for the new servers, along with required modifications of the existing storage structures. On December 1, the president of CFR received a signed letter from GET's sales agent, offering to install the new servers at the cost of $5 million. The letter included provisions for delivery, installation, warranties, and payment terms. However, the letter did not address any method of formal acceptance of the offer. CFR's president immediately decided to accept the offer, telephoning the sales agent for confirmation, however, the agent was out of town. The president left a message for agent stating, "This looks good. I'm sold. Give me a call back when you can." She further ordered her construction team to get started on the modifications. Later that week, news broke of the passage of a law which heavily taxed technology providers. After receiving the news, GET sent out a mass email notifying all of its clients and potential clients that "all current offers were now revoked, and any agreements going forward would be 50 percent higher than currently quoted." What are the arguments you would make as the president of CFR?

Answer 1

In the passage, it has been mentioned that the president of CFR received the letter from GET, who offered them to install the network servers at the cost of $5 million and the president of CFR also accept it. Although the GET will charge 50 percent more charges after getting the news of heavy tax on technology providers, I will not accept it. As a president of CFR my argument will be that I will ask them (GET) to install the servers at the earlier price that the GET offers before heavy taxation, otherwise, I will reject the offer as I had not formally agreed. Because, the president already informed them about the acceptance of the offer.

My other argument will be that if the GET will not accept my previous proposal, I will go to another technology provider, who can offer the service at a lower cost in comparison to the GET.