Billy Is an Avid Bicyclist

question 83

Essay

Billy is an avid bicyclist.Billy would like there to be a paved bike path into his neighborhood,so he contacts Don,who heads up the local city-sponsored bicycle program.Don is in charge of deciding where to locate new bicycle paths using the proceeds of a substantial grant that was recently received.Billy arranges to meet with Don at the Harmonic Convergence Brewpub for a few of their Granola Stout specialty brews.They have the following conversation:
Billy: Don,you know there's no bike path up to my subdivision,Heavenly Hills.There are many people in Heavenly Hills who would like a bike path constructed up that direction.
Don: Yes,I realize that.But there are many areas not yet served by bike paths around town and even though this recent grant is fairly good-sized,it is not unlimited.People are coming out of the woodwork with requests since news of this grant hit the papers.
Billy: Well,as you know,I just shared in the recent lottery jackpot.If you do everything you can to make sure that a path out to Heavenly Hills is included in projects funded by this grant,I can give you a few thousand dollars.
Don: I'll need a thousand up front before I can promise that.But,if you do that,I can promise you that the good people of Heavenly Hills won't be left out of the final plan.
Billy: It's a deal.
Billy then reaches into his bike bag and gets $1,000,which he gives to Don.Billy then leaves $40 on the table to cover the cost of their beer,and rides home.Twelve months later,the final plan is announced and there is no path planned out to Heavenly Hills,although there is a path which is planned to go about halfway from downtown in the general direction of Heavenly Hills.Don sues Billy seeking further payment,and Billy countersues seeking a return of his $1,000.What arguments could each raise,and how would a court likely rule? Discuss contract law principles only.

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Definitions:

Competitive Advantages

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Value Chain

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Buying Criteria

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Resource-Based View

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