Question

In: Operations Management

EC#2: Harry, the CMO of Gryffindor Corporation, calls Draco, the head of sales at Slytherin Inc,...

EC#2: Harry, the CMO of Gryffindor Corporation, calls Draco, the head of sales at Slytherin Inc, to inquire about engaging Slytherin to provide marketing and other creative consulting services to Gryffindor. On the call they agree that Slytherin will provide 20 hours of such services per month for $10,000 a month for a period of two years. Is this a valid and enforceable contract? Please explain why or why not. (5 pts)

Solutions

Expert Solution

It is an enforceable contract owing to the following grounds:

  • The agreement over the telephonic conversation is enforceable by law because both the parties are competent in entering into the contract, with a lawful consideration of $10,000 a month for a period of two years, proving 20 hours of services per month, and posses a lawful object of providing consulting services thereby not void.
  • There is a proper offeror, Slyntherin and Proper acceptance by Harry in place over a phone call.
  • There was assumedly a free consent of both the parties involved in the agreement and hence a valid contract since enforceable by law.
  • Moreover, the consulting service is also a lawful object.
  • There is further certainty of meaning about the consulting fees when the agreement is made, post the discussion of the fees.
  • There is further a possibility of performance by Syltherin for Harry.
  • The whole of agreement is legal and can hence be a contract.
  • It is hence an Oral contract but still is absolutely a valid contract and therefore enforceable by law.

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