In: Operations Management
Jim rented an apartment from Bahama Beach Apartment. In the contract, it stated that the rent was due on the 1st of the month and there would be a $15 late fee for rent paid after the 5th of the month. Jim paid June’s rent on the 10th of the month. Bahama Beach Apartment did not charge him the later fee. When Jim was late in October, Bahama Beach charged him the late fee. Jim objected to the late fee and stated that the apartment complex had waived the late fees when he did not pay in June. Using IRAC determine whether the apartment complex waived all future late fees.
This assessment will observe and analyze the above-given statement in IRAC form:
Issue:
In this case, the problem is whether Jim has the obligation of paying the charges of late fees or not.
As per Jim, he did not pay the charges in June, and so the apartment complex should waive all the future Late expenses. The apartment objects it.
Rule:
As per rule, the non-fulfillment of one clause in a contract once does not make it vanish.
One can also apply the concept of "Laches" in this case.
Analysis:
Bahama beach apartment waived off the charges of late fees once as a warning gesture for Jim, as it was his first time to pay the taxes late.
It does not give him the freedom from this clause in the contract.
Conclusion:
To conclude, Jim must pay Bahama beach apartment the charges of late fees, and Bahama beach apartment has not waived all the future late fees if they did not charge the new fees once.