Provide comparable delivery services at lower cost

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In January 2012, Courier a delivery company, and, Furniture Co, a manufacturer of furniture, negotiated an agreement under which Courier promised to provide for three years all the delivery services required by Furniture Co in exchange for monthly payments based on the number of deliveries made. Courier drafted an agreement embodying the agreed terms and, on March 1, 2012, sent two signed copies to Furniture Co with a request that Furniture Co sign and return one copy. Although Furniture Co did not sign the document, the parties immediately began doing business according to its terms. During the next six months, Furniture Co paid all of Courier's monthly invoices on time. During the same period, Courier declined two potentially lucrative offers from other companies because performance of the agreement with Furniture Co required most of Courier's time. In September 2012, Furniture Co began to have concerns about the cost of Courier's service. Furniture Co sent a letter to United, one of Courier's competitors, describing Furniture Co's needs, Furniture Co's agreement with Courier, and the amount charged by Courier. United offered to provide comparable delivery services at a lower cost. On September 20, Furniture Co telephoned Courier stating that Furniture Co would no longer use Courier's services. What, if any, rights does Courier have against Furniture Co? Discuss.

Reference no: EM131118309

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