Question

Peter offers to Cynthia a job as a hostess/greeter for Peter’s new bar. Peter states that he will give Cynthia $3,000 per week for six months. In return, Cynthia must work at the bar as a “hostess/greeter” Monday through Saturday from 6:00 p.m. to 2:00 a.m. Cynthia tells Peter two days later, that she will accept the offer; however, she will only work five days a week. Peter says nothing and walks away. Is there a binding contract? Why or why not? Please write your answer in IRAC form.

Answer 1

AS per the IRAC form, the case scenario is elaborated as follows:

Issue:

It is the issue of Peter offering a job to Cynthia and in response to it, Cynthia makes a counter offer to Peter and Peter walks away. It creates the issue that whether the  contract is binding or non-binding in nature.

Rule:

When a person makes an offer and in response to it, whenever a counter offer is made, then original offer is rejected. It means that contract is not binding in nature as original offer is already rejected. It is due to the reason that the original offer was not accepted.

Application:

In the given scenario, Peter has given the offer of a Job to Cynthia. But, Cynthia has not accepted the offer and made a counter offer to Peter. It made Peter's original offer to be rejected. So, there is no any formation of contract.

Conclusion:

The contract is not binding in nature, because there is no any contract formation between Peter and Cynthia. Once Cynthia had given the counter offer, the original offer by Peter, got rejected and no any contract took place between these two parties.