Petroleum, Inc. is in need of tax consulting services and wants to engage an accounting firm to perform these services on its behalf. The following events have occurred:

• On December 1, Petroleum, Inc., sent Brick, Waterhouse, & Co. (BW&C) a letter, via overnight delivery, offering to engage BW&C to review Petroleum’s tax situation for the current year for $10,000. In the letter, the company stated that BW&C had ten days to accept.
• On December 5, BW&C sent an e-mail message that stated, “The price for the tax analysis seems too low. We remain interested in the engagement. Would you consider paying $15,000?” Petroleum received the message without responding immediately.
• The next day, Smith & Taylor, a BW&C competitor, offered to conduct the tax services for $8,000.
• On learning of this offer, BW&C immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7.

Explain why BW&C and Petroleum do, or do not, have a contract.

Answer rating: 100% (QA)

Yes There is an implied contract between BWC and Petroleum Inc An implied contract is ... View the full answer