Business law Essay Example | Topics and Well Written Essays - 500 words - 7

Business law - Essay Example The CEO is also liable to pay damages to Ronnie for committing fraud and acting in bad faith when he offered to sell his house in order to trick him and play a practical joke on the buyer, by offering the house for sale for a low price of $50,000, when in truth and in fact, the property was non-existent because it was recently destroyed by a hurricane. B. Snookie Plumbing cannot revoke its offer. In the case of Campbell Co. General Contractors, Inc. V. Virginia Metal Industries, Inc. 708. F.2d 930 (1983), the Supreme Court laid down the principle of promissory estoppel of the subcontractors liability in construction bidding cases by stating that: â€Å"We are not the first court to encounter the situation where there has been a promise unsupported by consideration which has occasioned reliance and change of position so that the promisor who backs away from his undertaking visits a real hardship on the promisee. An absence of consideration in such cases should not permit an unjust result. Rather, the law has developed the concept of promissory estoppel which allows recovery even in the absence of consideration where reliance and change of position to the detriment of the promisee make it unconscionable not to enforce the promise or to award damages for its breach.† Therefore, Snookie cannot revoke its offer, otherwise, it shall be liable to pay damages to Contractor for breach of contract. C. The contract is enforceable because there was a contract signed by the CEO and Situation Construction. All element of a valid contract are present. The CEO consented to amend the contract when he signed the agreement which demanded increase in payment. The consideration is $2 Million, to which the CEO agreed. Under the law, the contract can be amended provided that consent was freely given by both parties. Here, the CEO was not forced to sign to new contract reflecting the increase in the cost of construction. Therefore,