Ask Question
BusinessBusiness
23 July, 07:29

Betty, an accountant, agreed to prepare Tim's income tax returns by April 15th, when they were due. Tim then discovered he needed the returns by March 1st for his daughter's college financial aid application. Betty agreed to finish the returns by that date if Tim would pay an additional $250 for her services. Tim felt he had no choice and reluctantly agreed. Now her bill has come. Does Tim have to pay it

+3
Answers (1)
  1. 23 July, 07:54
    0
    Answer: O Tim must pay because the agreement to complete the tax returns earlier than originally agreed is additional consideration supporting the modification of the contract.

    Explanation:

    When Tim agreed to Betty's stipulation that for her to finish the returns earlier, he would have to pay an extra $250, he in effect agreed to the modification of the contract.

    Modified Contracts are also enforceable by law so Tim has to pay the $250. There was no proof that Betty acted wrongfully as she had to change her schedule and needed to be compensated for the inconvenience. Also even if the modification was not in writing, it is a generally accepted rule that for contracts to be modified orally, the amount must not exceed $500 which it did not.

    Tim is very much liable to pay.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Betty, an accountant, agreed to prepare Tim's income tax returns by April 15th, when they were due. Tim then discovered he needed the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The finance function influences operating decisions about
Answers (1)
Are credit cards considered secured loans or unsecured loans
Answers (1)
If the beginning prepaid insurance balance is $3,400, and the ending value of the insurance is $1,200, the correct adjustment on the work sheet is to debit:
Answers (1)
After the Great Depression, what was the most important factor that worked against the resumption of globalized economic integration?
Answers (1)
MC Qu. 93 Schrank Company is trying to decide how ... Schrank Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 25% of the next month's sales in inventory at the end of each month.
Answers (2)
New Questions in Business
A leftward shift in the long-run aggregate supply curve is most likely going to cause which of the following? A) decrease in the average price level B) increase in the average price level C) increase in real output
Answers (1)
Free market economy how are prices set?
Answers (1)
Patel Service Co. does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During Year 1, Patel Service Co.
Answers (1)
Accepting a special order will improve overall net operating income if the revenue from the special order exceeds: a. the contribution margin on the order. b. the incremental costs associated with the order. c.
Answers (1)
The debit side of an account a. depends on whether the account is an asset, liability, or owner's equity b. is the left side of the account c. can be either side of the account depending on how the accountant set up the system d.
Answers (1)
Home » Business » Betty, an accountant, agreed to prepare Tim's income tax returns by April 15th, when they were due. Tim then discovered he needed the returns by March 1st for his daughter's college financial aid application.
Sign Up Forgot Password?