Legal and Regulatory Context for Managers.

Contract Formation, Contractual Performance and Breach

Archie has been trying to get a contract to handle a very large, very prestigious account. Unbeknownst to him, his friend Ku mentioned him to the owner of the company he was trying to deal with. Archie later receives a call from the owner of the company asking if Archie could take on the account, which Archie agrees to do. When Archie calls Ku to tell him the good news, Ku tells Archie of his conversation with the owner. Archie tells Ku that he is so thankful for what Ku did, he wants to give $50,000 to Ku’s favorite charity. When Ku later calls to give Archie the name of the charity, Archie says he has decided not to give the money. When Ku sues Archie for breach of contract, who wins and why?

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