Conwell was a partner in Piece of America (POA), a company that sold one-square-inch pieces of land

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Conwell was a partner in Piece of America (POA), a company that sold one-square-inch pieces of land in each of the 50 states. The company wanted to sell them through a website and approached Gray Loon Outdoor Marketing to design and publish its website. Gray Loon sent a proposed design for $8,080 and POA agreed. During the development, POA asked for a few changes that were not written down but were completed. When the work was done, Gray Loon charged $8,500, which POA paid. Several months later, POA asked for several changes that required major reprogramming. Gray Loon agreed over the phone to make them and started work immediately. 


No price was agreed to. When the modifications were complete, POA contacted Gray Loon for approval but POA said it no longer wanted them. Gray Loon then sent POA a bill for $5,224. After several failed attempts to collect, the head of Gray Loon met with the head of POA, who said he had no problem with the invoice but he needed more time to collect the funds. During this time, the website remained online at a cost of $75 per month. Finally, Gray Loon sent a registered letter saying it would take the site down if POA didn’t pay. When POA didn’t pay, Gray Loon took the site offline and sued for nonpayment. POA argued the contract was for services and that under the common law, since no price was agreed on for the modifications, it was not liable. Is it correct? Explain.

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Related Book For  answer-question

Law for Business

ISBN: 978-1259722325

13th edition

Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards

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