Jamael Is a Chef Who Has Opened a New Restaurant

question 52

Essay

Jamael is a chef who has opened a new restaurant.He agrees with Bob,a baker,that Bob will deliver 10 dozen hamburger and hotdog buns each morning at 6:00 a.m.as long as Jamael doesn't call to cancel the next morning's delivery by 6:00 p.m.the previous evening.This delivery routine continues for about ten days when Jamael realizes at 10:00 p.m.one evening that he has a surplus of buns.At 6:00 a.m.the next morning,he refuses to accept the morning delivery.Discuss,with reference to common law,whether a contract exists.

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Definitions:

Inventory Loans

Short-term loans or lines of credit secured by a company’s inventory, used to purchase products for sale.

Factoring Accounts Receivable

A financial transaction where a business sells its accounts receivable to a third party at a discount to immediately raise cash.

Commercial Paper

An unsecured, short-term debt instrument used by corporations to finance their immediate needs.

Accounts Payable

Obligations or debts that a company owes to its suppliers or creditors for goods or services received that have not yet been paid for.