Reference no: EM131622667

Data is a data processing company. Data's business depends on the operation of several large computers. Data decided to employ an outside company to provide computer maintenance and service. Data's president and other corporate officers met with the president of Reboot to discuss a computer service agreement. The next day Reboot faxed its standard form contract to Data. The contract reads as follows:
Client hereby agrees to purchase computer maintenance services from Reboot at a cost of $2,000 per month. Reboot hereby agrees to provide up to ten hours of service per month, with additional hours payable at $300 per hour. Reboot further agrees that it will provide same-day service in response to every service request. This agreement shall expire one year from the date on which it is made. In the event that Client fails to make a payment required under this agreement, 80 per cent of the entire remaining balance under the agreement shall become immediately due and payable.

Data signed and returned the contract and made the first $2,000 payment. During the first month of the agreement, Data made two service requests. Both requests were received by Reboot at 9:00 a.m. In each case Reboot personnel arrived at Data's offices at noon and quickly fixed the problem. In both instances Data's president complained about the delay but was told it was an unusually busy day. After the second service call, Data sent a fax to Reboot stating that Data would make no further payments under the contract. (Data later hired a different service company.) Reboot then sent a letter to Data demanding $17,600, representing 80 per cent of the remaining balance. When Data refused to pay, Reboot filed a lawsuit.

The president of Data claims that during the initial meeting with Reboot's president, she told him that it was absolutely crucial that Reboot respond to service requests within one hour. She says that Reboot's president told the group, "I understand. If you sign up with us, I promise we'll be there within an hour."

Under what theory or theories might Reboot bring a lawsuit against Data, what defense(s), if any, can Data assert, and which party is likely to prevail? Discuss.