Winston manufactured soda dispensers, such as those found in fast-food restaurants. He entered into a 5-year contract with Spectacular Spuds, a growing potato bar chain. In the third year of the contract, Winston advised Murphy that he had to increase their contract price by 7% due to inflation. Reluctantly, Murphy agreed in writing to do so. However, when Winston sent his bi-annual invoice to Murphy, Murphy paid only the Original contract price. Can Winston legally collect the 7% increase that Murphy agreed to pay? Ⓒ O a. Yes, because Murphy agreed to the new price and inflation is an unforeseen circumstance. O b. No because Winston had, by contract, a preexisting duty to deliver the dispensers at the original price and inflation is not an unforeseen difficulty, OCNo because Murphy's agreement to pay the additional money was made under duress, fearing that he would not be able to expand on schedule, and therefore he lacked voluntary consent, and the promise is void. Od. Yes, because Murphy agreed to the new price in writing.
Winston manufactured soda dispensers, such as those found in fast-food restaurants. He entered into a 5-year contract with Spectacular Spuds, a growing potato bar chain. In the third year of the contract, Winston advised Murphy that he had to increase their contract price by 7% due to inflation. Reluctantly, Murphy agreed in writing to do so. However, when Winston sent his bi-annual invoice to Murphy, Murphy paid only the Original contract price. Can Winston legally collect the 7% increase that Murphy agreed to pay? Ⓒ O a. Yes, because Murphy agreed to the new price and inflation is an unforeseen circumstance. O b. No because Winston had, by contract, a preexisting duty to deliver the dispensers at the original price and inflation is not an unforeseen difficulty, OCNo because Murphy's agreement to pay the additional money was made under duress, fearing that he would not be able to expand on schedule, and therefore he lacked voluntary consent, and the promise is void. Od. Yes, because Murphy agreed to the new price in writing.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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