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Shortly After Entering into a Contract with Prentice Co

question 33

Essay

Shortly after entering into a contract with Prentice Co.to provide consultation on integrating its office systems,Antonio discovers he is the victim of a neurological disease that will kill him very rapidly.Because of his situation and the excellent service he has provided the company in the past,Prentice's president decides to write off the whole of the $30,000 amount the company had advanced him which was to cover the investigatory and recommendation stages of his work for them,even though failure to perform was cause for rescission of the contract.
A)Prentice's action is either a waiver or a release.Which is it and what is the difference between them?
B)What danger does Antonio face if the president now leaves Prentice Co.and the new president reviews the matter?
C)What should be done to protect Antonio from that problem,at the time the promise is made?

Definitions:

Maximizing Profits

The process or strategy of adjusting production or operation dimensions to achieve the greatest possible financial return.

Potentially Efficient

A situation where a system or process has the capability to achieve optimal productivity, but currently may not be doing so.

Value of Gains

The increase in worth or benefit that accrues to an entity, often measured in terms of profits, utility, or increased assets.

Value of Losses

The total monetary value associated with the loss of resources, assets, or functionalities within a specified period.