Business Finance – Economics

Before you start on this week’s part of the project, you learn more facts about the negotiation of this contract:

Bob decides that he wants the toys and calls you to set up a meeting  to discuss the price and to examine the collection of toys to make sure  they are in excellent shape.

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On October 4th, you meet at a local restaurant whereupon Bob examines  the toys, which are up to his standards. You offer to sell them to him  for $750.00. Bob scoffs and offers $650.00. Although you are a bit  frustrated with his counteroffer, you remember that you really need the  money so you offer $725.00. Bob grumbles and increases his offer by a  mere $10 to $660.00. He claims he will not pay a penny more. You lower  your price to $720.00 and inform him that this is your best, final  offer.

Bob states that he will not pay that price and departs the  restaurant. Feeling defeated you collect your toys and go home. As you  walk home, you wonder if you should have continued the negotiation and  gone lower seeing that $700 is your goal price.

On October 13th, you get a call from Bob. It turns out that he combed  the entire Internet and can’t seem to find a set that is complete like  the one you are offering. Sounding a little bashful, Bob offers to pay  you $700.00 for the set. Just to toy with Bob a bit, you provide a price  of $710.00. After hesitating for a few moment, Bob accepts.

You mutually agree that you will meet at noon on October 17th back at  the restaurant that you met the previous week. You make a stipulation  that you want payment to be in cash, particularly smaller bills.

Earlier you were introduced to the overview of the project for this  course. For this week you will start on your way to drafting a contract  for this situation by filling in the worksheet that appears as an  attachment below. You will need to open the attachment and save it to  your files.

You will fill in the worksheet and answer the questions that  follow the chart.

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