You own a promotions company (MC) that has been a vendor to the American Minor League Widgetball (AMLW) team the Scorpions. You have been dealing with the Chief Marketing Officer (CMO) for all decisions on marketing and promotions for the past decade, and getting paid by the head of accounting. Sometimes the Scorpions prepay for services and sometimes you accept post payment because you've never had any issues with getting paid. The CMO contacts you and says they need to do a huge advertising push because the AMLW is going to have a huge tournament next month with all AMLW teams involved and they want it to be well attended. There is a ton of unsold merchandise they will finally be able to unload. You let the CMO know that you can't start on the advertising push without some money up front because it is likely going to require purchase of some media and hiring an extra independent contractor to help with the workload in such a short time. The CMO says "that's fine. Talk to the head of accounting to have them cut you how much you need as a deposit." You talk to head of accounting and they cut you a check. You also tell them that you will provide the final total after the tournament. Head of accounting says "that's fine." You do a social media blitz and some purchase paid spots to get the social media posts promoted to a wider audience, for the entire month leading to the tournament. The tournament was a bust and almost nobody showed up. Revenue on sales of the Scorpions merchandise didn't even cover the deposit already paid to you for marketing. You submit your final bill to cover the rest of the costs for services, additional staff, and money you floated on the social media promotion, to the CMO. The CMO is outraged and yells at you that they didn't even cover the cost of the deposit off their sales and after a decade of being a vendor, how could you possible spring this bill out of nowhere on them. CMO refuses to pay your bill and says he never authorized this amount you are charging and will never do business with your company again. Is there an enforceable contract between MC and the Scorpions? If so, outline which facts support each element for formation of a contract and how the Scorpions are bound to that contract. If not, indicate which facts support an element, and which element(s) is/are missing to form a contract.

Answer rating: 100% (QA)

Yes there is an enforceable contract between MC and the Scorpions The key elements supporting the fo... View the full answer