Discussion Question Two Due on Day 4 Friday After have a full opportunity to examine the subject computer system Turner entered into a contract with Dr Unger to design and install a billing program for Dr Unger s dental practice for a flat fee of 2 000 After entering into the contract with Dr Unger Turner subsequently realized that the task would require several more hours of programming effort than she originally anticipated from her pre contract review of the subject computer system Turner informed Dr Unger that she could not complete the work for less than 3 000 Dr Unger reluctantly stated that he would pay the additional 1 000 and confirmed this in writing but upon completion of the work refused to pay Turner more than 2 000 Is Turner entitled to the remaining 1 000 Hint if the answer to this question seems complete obvious then think again First response Turner entered into a contract with Dr Unger an offer was made and the acceptance was approved A common mistake that is made when making a contract is the price validity A contractor or service provider needs to have in their contract a wording indicating that prices are subject to change or an open term within the contract This wording provides for the servicer to change the agreement price due to material increase fees and extra work that a customer may want to add The same goes with the time frame of paying A schedule of payment must be indicated on the contract to fulfill obligations An open payment term says that payment is due when labor and services are completed Goods that are accepted must be paid for UCC 2 607 1 Unless the parties to a contract agree otherwise payment is due from a buyer when and where the goods are delivered even if the place of delivery is the same as the place of shipment Cheeseman 2010 p 219 Because Turner did not list in the contract the correct terms to indicate a price increase or subject to change and a payment schedule Dr Unger can pay a reasonable price Although Dr Unger did sign a note indicating that he will pay an extra 1 000 this would enter as a counter offer to the contract and will not be valid because it is against the terms of the contract Thus a counteroffer extinguishes the offeror s original offer UCC 2 207 1 is more liberal than the mirror image rule If one or both parties to a sales contract are nonmerchants any additional terms in an acceptance are considered proposed additions to the contract The proposed additions do not constitute a counteroffer or extinguish the original offer Contracts should be made to have an offer acceptance and consideration If a contract leaves out the consideration the offeror will be left out of options to protect themselves 1 Second response Turner is not entitled to the additional 1 000 because he knowingly examined the computer and agreed to Dr Unger paying him the 2 000 in writing this making a contract The offer was made and Turner accepted to the term of a flat fee of 2 000 for work he does on the computer regardless of the amount of time it took him to complete the job The terms were agreed upon both parties in the original contract Although Mr Unger agreed to pay the additional 1 000 in writing when Turner completed the job the adjustment of the additional 1 000 asked for proved Turner to be in breach of the original contract This type of contract according to chapter 10 p 184 is a performed contract otherwise called an executed contract Under the tender of performance the contract is absolute and unconditional to the performance and the terms of the agreement of which Turner chose to do There for any changes or modification will not stand in a court of law 2