Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention the prices. The server takes their order and both Fred and Betty enjoyed the meal immensely. When the bill comes, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance. The server said, "Are you ready to order" and when Fred said "yes", the server merely asked, "What may I get you tonight"?

A. Fred is correct because no contract was formed.

B. Fred must pay based on a promissory estoppel theory.

C. Fred must pay based on an implied-in-fact contract theory.

D. Fred must pay based on expressed contract theory.

Question

Kylan Padilla

Business

3 August, 13:44

Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention the prices. The server takes their order and both Fred and Betty enjoyed the meal immensely. When the bill comes, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance. The server said, "Are you ready to order" and when Fred said "yes", the server merely asked, "What may I get you tonight"?

A. Fred is correct because no contract was formed.

B. Fred must pay based on a promissory estoppel theory.

C. Fred must pay based on an implied-in-fact contract theory.

D. Fred must pay based on expressed contract theory.

+4

Answers (1)

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Judith · Answer 1

Answer: Fred must pay based on an implied-in-fact contract theory.

Implied contract are agreement where the state of the individuals who makes them enter into an agreement which is not neither written nor explicitly elaborated.

In this scenario, even though there were no prices stated, but the order for food was placed, that implies an agreement or implied contract.