Question

Marcia Williams agreed to purchase computer hardware from Mark Johnson. Williams is a professional computer consultant who evaluates and purchases computers for clients. Johnson is the owner of Macanddos, Inc. Johnson had offered to sell the hardware and provide the setup for $11,000. Williams felt that $11,000 was too much, but she stated that the contract was acceptable if the price were lowered to $10,000. Johnson objected to the new price. The computer hardware was delivered and set up, and Williams paid $10,000. Johnson argues that an additional $1,000 still is owed on the account. If the payment of $1,000 is not immediately forthcoming, then Johnson threatens to declare the contract unenforceable because it was entirely an oral agreement. Decide.

Answer 1

Oral agreements are enforceable and there is definitely a contract between Williams and Johnson. Williams had informed that the contract was acceptable if the price was lowered to $10000. Johnson delivered the hardware and did set up giving implied acceptance to the contract. Though Johnson had objected to the new price, he accepted the contract by delivering the hardware and setup. So the new price of $10000 is binding on Johnson. Williams was very firm in her price of $10000. Williams should have recorded the oral contract in a device so that the same can be produced in front of mediating authorities. Johnson should not have delivered when Williams has agreed only for $10000. If Williams has started using the hardware, Williams can fight the case with a mediating authority that oral agreements are also binding so long as Johnson agrees that Williams had agreed for a price of $10000. Otherwise it is in the best interest of Williams to return back the hardware though it may involve some hardship to Williams. The hardship is better than a disgruntled seller who wants the hardware back.