Consideration for bank promise to make the monthly payments

Assignment Help Operation Management
Reference no: EM131228389

Everett Company chartered a ship for two years and agreed to make monthly payments of $25,000 to Michaels, the owner of the ship. Every month Everett wired a telex message to his bank to transfer the monthly payment to Michaels.

One month, the bank failed to act on Everett's instruction and did not transfer payment. Under the charter contract, Michaels could cancel the contract if Everett failed to make a monthly payment. Michaels canceled the contract. As a result, Everett lost profits of about $2 million because it was unable to charter another ship. Everett sued the bank and the evidence proved that the bank was negligent in failing to make the payment as instructed by Everett.

Who wins? Why? Was there consideration for the bank's promise to make the monthly payments? Where were the offer and the acceptance?

Reference no: EM131228389

Questions Cloud

Cultural diffusion assist in methods for managing : How can the process of cultural diffusion assist in methods for managing and maintaining cultural innovation? Give an example of where an aviation idea was developed in one country and borrowed in another.
Regarding the systems development environment : Write a reflective essay regarding the systems development environment and the sources of software. This assignment covers Course Objective 2. Why is the process of identifying and selecting projects so crucial to an organization's success? Discuss t..
How does the anthropological definition of culture : How does the anthropological definition of culture differ from the more common use of this term? To which definition does The Cultural Dimensions of International Business best reflect? Create a definition of an ‘aviation industry’ culture
Synchronize with the company vision and mission : You are the project manager for a needed future requirement that will nest and synchronize with the company’s vision and mission. Newly recruited team members are inquisitive about this whole project manager positon and ask you, “Why all the hoopla? ..
Consideration for bank promise to make the monthly payments : Everett Company chartered a ship for two years and agreed to make monthly payments of $25,000 to Michaels, the owner of the ship. Every month Everett wired a telex message to his bank to transfer the monthly payment to Michaels. Who wins? Why? Was th..
Major overseas development initiative involving several : You have just been informed that you will serve as a Project Manager for a major overseas development initiative involving several southeast Asian countries. Astonished, elated, and emotionally distraught, your head is swimming with all the pending r..
Use decision tree to recommend a decision : The Gorman Manufacturing Company must decide whether to purchase a component part from a supplier or to manufacture the component at its own plant. If demand is high, it would be to Gorman's advantage to manufacture the component. Use a decision tree..
What is the basis for the rankings : In the field of human resource management, we find five areas of practice: recruiting and selection, training and development, performance evaluation, compensation and benefits, and labor and employee relations. What is the basis for the rankings?
What are the sources of power often seen in organizations : What are the sources of power often seen in organizations? Be sure to give the definition of each source of power in the health field. What are negative impacts on an organization when its members exercise power and play political games within Mintzb..

Reviews

Write a Review

 

Operation Management Questions & Answers

  Evaluate the pros and cons for formal disciplinary process

You have been asked to research the use of better recruitment practices and a formal disciplinary model to address the increased turnover and disciplinary issues in the maintenance department. Additionally, evaluate the pros and cons for a formal dis..

  Why do employees join labor unions

Why do employees join labor unions? Did you ever belong to a labor union? If you did, do you think union membership benefited you? Why or why not. If you did not belong to a labor union how can labor unions benefit employees? What are your personal l..

  What is the price elasticity of demand

What is the price elasticity of demand

  Research project on social needs

This answer provides cogent arguments relating to the Social Needs: Issue, source, affect to operations, legislation

  Why has there been a trend within supply chain logistics

Why has there been a trend within supply chain logistics managemen

  Explain the terms-reliability and validity of measurement

Explain the terms: (1) Reliability of measurement and (2) Validity of measurement.   What would be your response if the CEO came to you and wanted a new program for hiring employees that included a testing instrument in healthcare?

  Best cultivate communities of practice

Snyder, Wenger, and McDermott suggest that practice-based learning communities have been in existence since the dawn of man. They go on to claim that knowledge has become the key to success and that it is simply too valuable of a resource to be left ..

  Provide a brief description about the quality tool

Identify a minimum of two quality tools that you will use in this process improvement project. Provide a brief description about the quality tool and explain how this tool will help your team improve the process

  What are appropriate measures of service for this facility

An auto-rental agency has two employees at its service counter. Customers arrive at an average rate of 18 per hour. The service times mean a service rate of 15 customers per hour. The coefficients of variation of the inter-arrival times and the servi..

  Prepare a schedule of expected cash payments

The Tin Bucket Company projects the following direct materials purchases: Purchases on Account Cash Purchases December 2011 $30,000 $20,000 January 2012 50,000 30,000 February 2012 60,000 20,000 March 2012 60,000 30,000 The company pays for the cash ..

  Find the new product strategy at minnesota biolabs

What triggered the new product strategy at Minnesota Biolabs? What prediction would you make for the success of getting the country general managers in Europe and Japan to adopt the new product?

  Outside consultant reviewing employee behavior

The process of an internal employee or outside consultant reviewing employee behavior to note any deviations from the company’s ethics standards and bringing them to the attention of the company is called a: If a company obeys the laws of a country i..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd