Question

In: Operations Management

Farrah and her friend David are chatting online via ICQ (an instant messaging computer program). Here...

Farrah and her friend David are chatting online via ICQ (an instant messaging computer program). Here is part of their conversation:

Farrah:  

I'm thinking of selling my laptop, but it's five years old and I don't think I'll get much more than $300 for it.

David:

I'll give you $400 for it. I need a new laptop and I know you've taken good care of yours.

Farrah:

Speaking of selling things, sometimes I'd like to sell my teenage daughter. She's driving me crazy, lately! Will you take her for $1,000?

David:

Deal!

Is there a valid contract between Farrah and David for the sale of Farrah's laptop? Why or why not? Is there a valid offer? If so, please identify it. If not, why not? Is there a valid acceptance? If so, please identify it. If not, why not? Your answer should be detailed and thorough, giving more than one reason if applicable.

Is there a valid contract between Farrah and David for the sale of Farrah's daughter? Why or why not? Is there a valid offer? If so, please identify it. If not, why not? Is there a valid acceptance? If so, please identify it. If not, why not? Your answer should be detailed and thorough, giving more than one reason if applicable.

Solutions

Expert Solution

On the basis of above conversation the contract is not valid and not a desirable one

1. Firstly the amount which she has demanded for her laptop is not appropriate as laptop is 5 years old so the performance of each and every laptop shoulg get hampered till this time.

2. After some time the RAM and CPU performance automatically gets impacted after usage for long time if it is being maintained by others properly.

3. Apart from this david did not ask anything about the laptop features or anything.

The acceptance of the laptop by david is also bit strange. Here are the below points :

4. The amount which david offered on her counterpart is quite surprised as generally people used to buy any old item at cheapest rate but here the scenario is bit different.

5. There is no official agreement between them as having conversation on phone is genaerally a not reliable way.

So in total i did not find this deal a good one as there is no reliable thing among all the conversation.

The second part was for her daughter.

This conversation is find to be in a funny way as she might be just having a normal conversation with his friend so i dont find this as a bad deal or wrong intention of Farrah.

1). Deal is acceptable beacuse she was bit in a funny mood and she is just sharing her emotion of her daughter with his friend as her daughter is naughty as she drives her crazy so she made the deal just to enjoy the mother nature of anyone.

2) David also accepts the deal as she also felt the same that she is just doing a nutorius thing as there is no serious conversation going on between them.

Here are my key points on above conversation. Happy Learning!!


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