Business Law

DO IT USING IRAC METHOD
Case Study
Chen invites tenders from a number of firms to remodel the kitchen at his restaurant in Sydney. The lowest tender is from Max Renovation Ltd for $155,000.00. Chen accepts Max’s tender and the work begins. Having taken out old ovens and cook tops so that the kitchen is unusable, Max realises that he has made a mistake in pricing the new ovens. The new oven will cost an additional $15,000.00, nearly his entire profit margin on the work. Max approaches Chen and explains the problem. Max says that unless Chen agrees to pay an extra $15,000.00, Max will simply walk off the job. Chen needs to get the restaurant reopened by the contract completion date, as he will need the cash flow to service loans. Because of this, he reluctantly agrees. When Chen complains to his father Xun about Max’s behaviour, Xun says: “That’s alright, you do not have to pay anymore than you originally agreed when you accepted Max’s tender.”
Advise Chen, with reasons based on your knowledge of contract law, as to whether you think Xun is correct.

Don't use plagiarized sources. Get Your Custom Essay on
Business Law
Just from $13/Page
Order Essay
Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.