Question

Business Law

Mickey has never liked Nucky so he decides to play a practical joke on him by pretending to sell him his home in the Cayman Islands. He tells Torrio that he has no intention of selling Nucky the home. Mickey approaches Nucky in a bar where Nucky is clearly intoxicated. The home is assessed at $10 million but he offers Nucky the home for $50,000. He winks and smiles at Nucky and Nucky accepts and the two shake hands. Nucky quits his job at Replay Baseball and moves to the Cayman Islands where Mickey informs him that he never had any intention of selling him the home. Nucky is moving furniture and trimming the hedges at the time. Of course, Mickey never mentioned that he owned a second home in the Cayman Islands that was recently destroyed in a hurricane.  

Nucky decides that he will build a new home in Massachusetts with a large Jacuzzi. He compiles specifications for the construction of the home and sends it to several general contractors so they may provide bids/quotations. Part of the general contract includes a large plumbing sub contract. Boardwalk Construction submits a bid to Nucky for $20 million to serve as the general contractor. As part of its general bid, Boardwalk Construction factored $1 million for plumbing based upon a sub bid submitted by Atlantic Plumbing. There were two other bids for the plumbing work. Boardwalk Construction and Atlantic Plumbing have a falling out and Atlantic Plumbing no longer wants to work on the project. The two other bids were for $10 million each respectively.   

1. Discuss whether Atlantic Plumbing may revoke its offer. What are the competing arguments? Are there any other important facts?

Boardwalk Construction is working on small renovation project for Capone at his home. There is no written contract, but the two have orally agreed that Boardwalk will renovate Capone’s garage for $75,000. The two have agreed that construction is to be completed within one month. Two weeks later, Boardwalk approaches Capone and complains that the cost of nails has increased by 40% and that the cold weather has slowed the construction project. Boardwalk and Capone agree to increase the contact by $5,000 and to extend the completion date by three weeks. Each party agrees in writing to this change. Upon completion of the project, Boardwalk sends Capone a bill for $80,000.

2. How much does Capone have to pay? What are the competing arguments?

Boardwalk Construction has provided Eli a quotation of $20,000 to provide and install a high-end refrigerator. Boardwalk has provided this quote in writing and has stated that the quote is valid for 30 days and that Boardwalk may not revoke its offer. The next day, several of Boardwalk’s employees quit. Boardwalk sends a fax to Eli attempting to revoke its offer. Two seconds after Boardwalk sends the fax, it receives a fax from Eli accepting the offer.

3. Is there an agreement here? What are the competing arguments?

*(Please don't copy and paste the answer from another question, if I am asking those questions again that's because I want different answers!)*

Answer 1

Answer

1

Nucky who has decided that he will build a new home in Massachusetts with having large area of his house for this he offered some bid from the contractors and one contractor agreed for constructing the home of Nucky but Atlantic Plumbing revoked his offer now he don’t want to work with Boardwalk Construction so yes Atlantic plumbing may revoke his offer because he was with Bombard Construction now he don’t want to work with Bombard Construction and main thing is that Boardwalk Construction forced him to do work at $1 only but other two bids was of $10 so how he can work in so less amount as compared to other two sub bids of other plumbing contractors so he revoke and Boardwalk Construction was head of construction who submitted bid for the construction of Nucky’s home and Atlantic plumber was working for only $1 so definitely he can revoke ? Whatever may be completing argument only that argument will be dealt by the Boardwalk Construction because Boardwalk Construction only submitted bid for the construction and sub bid as a head of the Construction of Nucky’s home

Some other important facts are that no one want to work in very less amount because other two bid was of $10 and Atlantic plumber was getting only $1 it is very less so he decided to revoke his work as a part of Boardwalk Construction

2

The Completing agreements between Capone and Boardwalk was of $75000 only but it was oral agreement no written agreement between Capone and Boardwalk so after two week Boardwalk visited to Capone and tells him that nails price now increases 40% more and due to cold weather the work progress is also becomes slow then Capone replies him that he can increase $5000 and you can extend your time also for more three weeks so in the end Capone have to pay $80000 because of oral agreement $75000 agreed by then in the beginning and $5000 agreed by them later after hearing complaints by the Boardwalk so total $80000 have to pay by the Capone

3

In this case Boardwalk has already send the written offer (agreement) in which he provide the cost of installing a high end refrigerator for $20000 and he also wrote that this written statement is valid for 30 days so definitely it is an agreement between Boardwalk and Elli because whatever may be the condition that some employees of Boardwalk Contraction have quite their job after the quotation send by the Boardwalk so it is the problem of Boardwalk but basically it is an agreement and main thing is that it is written agreement send by the Boardwalk including validity period of agreement to the Eli so he has to do it anyhow.