Bank''s promise to make the monthly payments

Assignment Help Operation Management
Reference no: EM132090587

Everett Company chartered a ship for two years and agreed to make monthly payments of $25,000 to Michaels, the owner of the ship. Every month Everett wired a telex message to his bank to transfer the monthly payment to Michaels. One month, the bank failed to act on Everett's instruction and did not transfer payment. Under the charter contract, Michaels could cancel the contract if Everett failed to make a monthly payment. Michaels canceled the contract. As a result, Everett lost profits of about $2 million because it was unable to charter another ship. Everett sued the bank and the evidence proved that the bank was negligent in failing to make the payment as instructed by Everett. Who wins? Why? Was there consideration for the bank's promise to make the monthly payments? Where were the offer and the acceptance?

Reference no: EM132090587

Questions Cloud

What methods can a company use to add new products : What methods can a company use to add new products?
Avoid the risk from exchange rate fluctuations : If a U.S. firm needs 100,000 euros in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could
Define competitors and competitive rivalry : Define competitors, competitive rivalry, competitive behaviour and competitive dynamics.
Eliminate abuse of power and corruption : What can be done to prevent or eliminate abuse of power and corruption?
Bank''s promise to make the monthly payments : Was there consideration for the bank's promise to make the monthly payments? Where were the offer and the acceptance?
Exhibiting sensitivity and etiquette : Write an email to the alumni pertaining to this situation, exhibiting sensitivity and etiquette.
Meaning of contracts not to be performed within one year : What is the meaning of “Contracts not to be performed within one year”?
Transportation has mandated that additional bus routes : The Colorado Department of Transportation has mandated that additional bus routes be privatized within the next three years.
Several milestones of the history of hospitals : we learned of several Milestones of the history of hospitals.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd