You purchase paper from Dunder Mifflin (DM). DM has been your paper supplier for the last 12 years. They have always charged you the same price for your paper – $2.50 per ream. You have never signed a formal contract with DM. DM raised your price to $3.50 per ream two months ago. Upon calling, and requesting the lower price, Dwight, your DM salesperson mentions that you have no formal contract and you should sign one. He also mentions that you should be careful because the bears are very active in this season.
Dwight sends a 500 page contract with prices at $2.50 per ream to your office. You call him back and tell him that you won’t sign something this long. Right after you get off the phone, a salesperson, Pam, from the Michael Scott Paper Company calls you and mentions that there is an early adopter bonus from their company. They will be offering paper at $2.25 per ream. You tell her “I Accept!” and hang up the phone. The next day, a contract from Dwight comes in the mail. It is much shorter, and much more appealing. In fact, you figure out that with the optional “Schrute Bucks” that come with the purchase, it will actually be cheaper to go with DM. You sign on the dotted line and mail it out that day. You call Pam back and tell her that you will need her to go down to a least $1.75 to make up for the additional discounts provided by DM.
The next day, your order from the Michael Scott Paper Company arrives at 5:00 AM. Before you notice the shipment (which has been haphazardly placed in the elevator), Dwight calls you and says he is so glad that you sent him the contract. He will have your first standing order to you by the end of the day.
The next day, you now have far too much paper, and Pam calls you. She informs you that the Michael Scott Paper Company is now out of business and your contract will be transferred to DM.
Who do you have a contract with? What is the price that you should be paying for paper? Please analyze all the issues and walk through the contracting process step by step, identify when offer was made, acceptance was given, what consideration was given, and if the contract had and/or needed a writing.
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