"Contract Law Case Study"

Company A provides computer technical support assistance.

David, owner of Tech One, contacted Company As salesperson, Kyren, to ask about Company As services.

At the end of the conversation, Kyren said, Company A can provide the services you are looking for.

I will send over our standard contract for you to review. Kyren then emailed Company As standard contract to David.

David read the contract and was pleasantly surprised to see the following clauses:

Term: The term of this contract shall be one year.

Pricing: Customer agrees to pay for the services of Company A technicians on an hourly basis. For the term of this agreement, Company As hourly rate will be $000.00.

David assumed that Company A was running a special promotion that involved providing free technical support for the first year.

Eager to take advantage of this deal, David quickly signed the contract, then scanned and emailed it to Kyren.

Kyren received Davids email, but did not print or sign the contract. The contract was never signed by anyone at Company A.

David expected that Company As special promotion would save his business thousands of dollars.

He used the money he expected to save to buy new computers for his business.

Before long, David had a computer problem and called Company A for assistance.

A Company A technician spent two hours solving the problem.

One week later, Company A sent David a new contract and an invoice for Company As work for $200.00. A cover note stated:

Hi David,

The contract I previously sent you contained an error. Company As hourly rate is $100.00 not $000.00. A corrected contract is enclosed. Please sign the contract, return it to me, and pay the enclosed invoice.

Thanks,

Kyren

David then sent Kyren an angry email: We had a deal! Im not signing your new contract or paying the invoice.

I expect Company A to honour our agreement.

Kyren responded by email, stating Im sorry, David, but since you refuse to pay the invoice, and will not sign the corrected contract,

Company A is terminating its relationship with you.

Tech One filed a lawsuit against Company A seeking to compel Company A to perform the contract, or, alternatively, for damages.

**** IN THIS SITUATION, IS THERE AN ENFORCEABLE CONTRACT BETWEEN THEM ?

**** AND,Tech One IS LIKELY TO WIN ITS LAWSUIT ?

**** ANY DEFENCES FOR Company A against Tech One ?