Did the promisors offer new consideration

Assignment Help Econometrics
Reference no: EM131227513

Consider the following two cases of contract modification: In Recker v. Gustafson (279 N.W.2d 744, 1979), the Reckers agreed to pay the Gustafsons $290,000 for a farm. Prior to closing, however, the Gustafsons demanded an additional $10,000 after informing the Reckers that they were "willing to go to court to get out of the [original] agreement and that litigation was expensive." The Reckers agreed to the price increase but later sued to have it refunded, claiming coercion.

In Blakeslee et al. v. Board of Water Com'rs of City of Hartford (139 A. 106, 1927), the plaintiff sought and obtained a price increase when the cost of building a dam rose unexpectedly due to the diversion of workers and materials at the outbreak of WW I. The city later sued to have the original price reinstated.

(a) Did the promisors offer new consideration in support of the requested price increase in either of these cases?

(b) Does economic theory provide any basis for distinguishing between the two cases? Explain.

Reference no: EM131227513

Questions Cloud

What factors influence the offer price of stock : Explain the use of a prospectus developed before an IPO. Why does a firm do a road show before its IPO? - What factors influence the offer price of stock at the time of the IPO?
What is the sales forecast for the product : What raw materials, parts, and subassemblies will you need? What location (country/state/city) is best suited to provide the material? What tools and/or information can you use to negotiate the best prices for the materials needed to produce your p..
Equation for the marginal rate of substitution : (a) Derive the equation for the marginal rate of substitution for this utility function. (b) Solve for Jackie's optimal consumption bundle.
Initial source of a hyperinflation : Although inflation is always and everywhere a monetary phenomenon, explain why the initial source of a hyperinflation is typically related to the fiscal policy.
Did the promisors offer new consideration : In Blakeslee et al. v. Board of Water Com'rs of City of Hartford (139 A. 106, 1927), the plaintiff sought and obtained a price increase when the cost of building a dam rose unexpectedly due to the diversion of workers and materials at the outbreak..
Examine the room rates by clicking accommodations : You are a sales rep for Xerox Corp. Assuming Xerox has just designed a new, less expensive, and better quality copying machine, make a list of 15 prospective businesses you'd plan to contact. Identify the sources you would use to develop your pro..
Fundamentals of innovation and entrepreneurship : Fundamentals of Innovation and Entrepreneurship - Design thinking is a time-tested approach for practicing innovation - Explore the importance of influencing and inspiring others in innovative and entrepreneurial enterprises. In particular, the focu..
Firm concentration ratio for industry : 1. Consider data on U.S. Refrigerator sales from 2009. The market shares of the top 4 firms was 12% for Sears, 9% for Lowes, 5% for Walmart, and 3.5% for Home Depot. Firms 5 through 25 combined summed to 20.5%m and all other independents out..
Possible economic effects and outcomes of raising : What are the possible economic effects and outcomes of raising the minimum wage rate to labor and job market?

Reviews

Write a Review

Econometrics Questions & Answers

  Would this have been the result of a change in demand

Would this have been the result of a change in demand or a change in the quantity demanded? Would you recommend the flat fee or the fee per bag? Why?

  What portion of the tax would be borne by buyers

QD = 140,000- 25,000P QS = 20,000 + 75,000P, where Q = daily sales in 6 packs of beer, and P = price per 6 pack. The city has hired you to provide the following information regarding the beer market and the proposed tax.

  What would be the firms cost disadvantage

Suppose that a firm comtemplating entering the market for breakfast cereal would need to invest $100 million in a production plant (or about $10 million annually on an amortized basis). Such a plant could produce about 100 million pounds of cereal..

  Explain what is the inverse demand function

Ajax, Inc. is a monopolist. The estimated demand function for its product is Qd = 120 - 0.8P + 12Y + 4A Where Qd denotes quantity demanded, P denotes price, Y denotes personal income (in thousands of dollars), and A denotes advertising expenditures

  Which gives rise to a marginal factor cost curve of mfc

A monopsonist's demand curve for labor is given by w = 12 - 2L, where w is the hourly wage rate and L is the number of person-hours hired. a. If the monopsonist's supply (AFC) curve is given by w = 2L, which gives rise to a marginal factor cost cur..

  Should the monopolist advertise

A monopolist has two types of customers. There are 100 of type A, who will each pay up to $10 for a single unit of goods, and 50 of type B, who will each pay up to $8. Neither is willing to purchase additional units at any price. If it must charge..

  Determine what is the amount of the payment

A student borrowed $5,000 which she will repay in 30 equal monthlyinstallments. After her 25th payment she desires to pay theremainder of the long in a single payment. At 15% interestcompounded monthly, what is the amount of the payment.

  What is the probability for different cases of meal price

The 2003 Zagat Restaurant Survey provides food, décor, and service ratings for some of the top restaurants across the United States. For 15 top-ranked restaurants located in New York, the average price of a dinner including, one drink and tip, wa..

  How can we develop more accurate estimates early

How can we develop more accurate estimates early during the product life cycle when funds typically are programmed and expectations set?

  What price will the firm charge to maximize its profits

A firm's total revenue is given by; TR= 30Q-Q^2 Its total cost function is given by TC= Q^2+10Q+10 a.find the profit maximizing output b.what price will the firm charge to maximize its profits

  Is it true that you cannot have too much of a good thing

Is it true that you cannot have too much of a good thing?

  What is the net present worth or npw of this investment

The new extruder will increase the company's annual income by $90,000. Maintenance and operating costs are expected to be $4,000 during the first year and to increase by $1,200 each year. XYZ uses a MARR of 12% for its preliminary economic studies..

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