Question

In: Operations Management

Algol Rigel works with her brother Altair Rigel in a small tourism business known as Beacon...

Algol Rigel works with her brother Altair Rigel in a small tourism business known as Beacon Tours that operates in Tasmania. To promote the business Algol creates several vouchers. These vouchers confirm that for the first ten customers that bring the voucher plus a friend to the business premises on a weekday that they will be entitled to a tour of Port Arthur for an introductory price of $50. Normally such tours are conducted by Algol’s business at a price of $200 per person. The brochures are placed into a number of letter boxes in suburbs around Hobart and Launceston. The next Monday Horton Hearsawho arrives at the business with his friend Ned McDodd and they claim the right to be taken on the tour of Port Arthur that same day. Algol tells them that the vouchers were just promotional. Horton disagrees. Both are friends of yours and have sought your assistance.

Required:

Advise Algol and Horton using the principles of offer and acceptance

.

Questions to Consider:

Has a valid offer been made?

Has that offer been accepted?

How was acceptance to take place?

Is there agreement?

Solutions

Expert Solution

· Yes, a valid offer has been made because the voucher confirms that for the first ten customers who bring the voucher and a friend to their business premises on a weekday would be entitled to a tour of Port Arthur for an introductory price of $50. This shows Algol Rigel’s willingness to enter into a contract.

· Yes, the offer has been accepted because on one Monday Horton Hearsawho arrives at the business with his friend Ned McDodd and they claim the right to be taken on the tour of Port Arthur that same day.

· The acceptance would need to take place by Algol Rigel arranging for the tour of Port Arthur that same day.

· No, there is no agreement between the two parties because Algol Rigel refused to arrange them for a tour of Port Arthur as she said that they were only promotional ads which shows that Algol Rigel has used misleading statements leading to fraudulent activities.

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