Industrial Engineering, Inc. (Company) orally promises to pay Jasmine $50,000 in exchange for software she will deliver to it. Jasmine provides the software to Company. When Company does not pay Jasmine, she immediately files a lawsuit against it. Assume that software is a "service" and NOT a "good" in this case. In determining whether to award Jasmine $50,000, a court is likely to__________

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Answer:

I it is assumed that the software is a "service" not a "good", the court is likely to rule in favor of Jasmine and force the Company to award her the $50,000.

Explanation:

A verbal contract can exert a binding if it meets the requirements of a contract, that is:

Offer and Acceptance: She offers to provide a software, and the will accept it

Lawful Purpose: She cannot use the software to harm the company, nor the company retain the payment.

Lawful Consideration:  The offer of the payment of $50,000

Certainty of Terms: The time to meet the deadline of the delivery.

Free Consent of the Parties:  Both freely accepted the terms.

Furthermore, she is considering it as a service, so the company cannot argue that the work she did is a good. This is important because a good cannot bind via a verbal contract, because in many states if a good exceeds a determined value as $500, a written contract is needed.

As many conditions of the oral promise an be consdered as a binding contraat, she can win the lawsuit and gain the $50,000.

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