Scenario: Joe Jones is a new sales representative for Johnson Equipment Corporation. At the request of his manager, Joe takes a customer to dinner. Before dinner is over, Joe and the customer have shaken hands on a deal for Johnson Equipment to sell the customer $500,000.00 worth of industrial equipment. The next morning when Joe is writing the formal contract, he discovers he calculated the equipment’s price incorrectly. His error could cost Johnson Equipment $60,000. In an effort to correct the mistake, he telephones the customer.Learning Activity Questions for Resolution:A. Is the “deal” Joe Jones made an enforceable contract? Explain your response.B. Assuming the contract is valid and enforceable, does the mistake Joe Jones made permit Johnson Equipment to “get out of” the contract? Explain your response.C. What do you think will happen in this situation?
ETH 321 – Joe Jones is a new sales representative
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