Question

Contract law?using IRAC method to answer?700 words?

David owns a music store. He wants to encourage more customers to visit the store so he decides that he will put in massage chairs for customers to use when listening the samples of music. David enters a contract where he will hire 5 massage chairs from Emily for a price of $300/month for six months. Three months later, David discovers that the massage chairs are not bringing any additional business. David talked to Emily about this. Emily promises that she will reduce the price of the chairs to $200/month for the remaining three months of the contract. Six months later David receives the invoice from Emily for the full amount of $300/month x three months, not the $200 x three months he was expecting to pay based on the promise made by Emily. David is happy to pay the reduced amount, but does not think that he is required to pay the full amount.

Advise David.

Answer 1

IRAC

Issue:- David is an owner of Music store. in order to encourage his sales he decided to put up massage chairs for his customers for better experience, David entered into a contract with Emily to hire 5 chairs from her at the cost of $300/month for six months, as the idea did not fetch any extra sales for the 3 months, Emily promised to reduce the rates for chair to 200$/month for the next 3 months. At the end the invoice received by David had the charges quoted as per the initial contract and David is not willing to pay the extra amount.

Rule:- Agreement/Invoice a contract of a sale which a seller agrees to sell and a buyer agrees to buy, under certain terms and conditions spelled out in writing in the document signed by both parties. The key here is the terms and conditions of this legal contract.

Analysis:- While David & Emily mutually decided to change the rates for the chairs for the remaining three months, it was imperative for David to validate the terms of the contract for the second time and make necessary changes of the cost differences.

Conclusion:- If David ignored to have the amended contract, after the verbal discussion he had with Emily, there is no legality to pay lesser price for the remaining chairs for the 3 months and hence he will be obliged to bear the extra cost charged and if David has made all the amendments in the contract, he has all the rights not to pay the extra cost.