BUSN 420 Week 3 Discussion : Contracts: Introduction and Formation,2021

Discussion - Week 3 Contracts Introduction and Formation Fine Dining You enter an expensive restaurant and are seated by the hostess. A waiter brings you plates, knives, forks, napkins, and other set-ups for dinner, including bread and butter and ice water, all of which you partly consume. When you read the menu, you realize that the prices far exceed what you can afford. You then make it clear that you do not intend to order a meal. • What type of contract (obligation) do you have, if any? • What factors and contractual elements will you consider in assessing whether a contract was formed? • What if, instead, you read the menu and place an order, but say nothing about agreement to pay. Is there a contract? Also, assume there is fine print at the bottom of the menu that states: 20% gratuity charged. $20.00 cover charge per table. • If you ordered dinner but didn't see the fine print, what is the effect? • Does this change in the facts alter your conclusion regarding the scenario above? Why or why not? • What key factors and elements are at play? I would say that you shouldn’t go to the expensive restaurants and you had to be aware first that you can afford that much. However, having a fine print that states 20% gratuity and 20% cover charge per table was a bit shocking for a customer because you were paying expensive foods plus the other charges. A valid contract is a promise made between two or more parties that which allow the courts to make judgement. A contract has six important elements so that it will be valid which offer, acceptance, and consideration, intention to create legal relation, certainty and capacity. If the main elements are not in contract, it would be an invalid contract. After having an offer in the contract, there should be acceptance. For a contract to be made there should be acceptance from the other party or person. When the other party is clear with the offer, there would make an acceptance once they are clear with the rules and regulations being offer in the contract. There will be no contract if the parties are still negotiating or discussing and have not made accept the offer.