Orville (contractor) had signed a contract with a university and agreed to supply a specific amount...
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Orville (contractor) had signed a contract with a university and agreed to supply a specific amount of steel at a set price. Earlier also, Orville had provided steel to the university for many of its projects. This time, Orville's costs for the steel increased. Orville requested a higher price for the steel supplied, and the university agreed to pay the higher price. The steel was delivered timely, and Orville demanded payment. But the university claimed that it did not get anything in return for its promise to pay more and refused to pay the higher price. The university contended that Orville still had the same obligation to supply steel under the original contract. Orville claimed that there was promissory estoppel in this case. Orville also argued that the university received consideration in that he promised to give the university a "good price" on a subsequent project. Orville further argued that the university did not have to pay for 60 days after the price increased. Will the university be bound to pay the higher price it promised to Orville? What are your arguments on both sides, yes or not? If not, what could Orville have done to ensure that the court would enforce the university's promise to pay more? (20 points) Orville (contractor) had signed a contract with a university and agreed to supply a specific amount of steel at a set price. Earlier also, Orville had provided steel to the university for many of its projects. This time, Orville's costs for the steel increased. Orville requested a higher price for the steel supplied, and the university agreed to pay the higher price. The steel was delivered timely, and Orville demanded payment. But the university claimed that it did not get anything in return for its promise to pay more and refused to pay the higher price. The university contended that Orville still had the same obligation to supply steel under the original contract. Orville claimed that there was promissory estoppel in this case. Orville also argued that the university received consideration in that he promised to give the university a "good price" on a subsequent project. Orville further argued that the university did not have to pay for 60 days after the price increased. Will the university be bound to pay the higher price it promised to Orville? What are your arguments on both sides, yes or not? If not, what could Orville have done to ensure that the court would enforce the university's promise to pay more? (20 points)
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The university will not be bound to pay the higher price it promised to Orville O... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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