Was ALPA's settlement with Continental irrational?
Question 2
Daniel and Annie signed a contract providing that Annie would sell craft beers to Daniel's grocery stores at a price of 20 per case. During negotiations, Daniel and Annie agreed that the price would go up to 22 per case once he had bought 1,000 cases. This provision never made it into the contract. After the contract had been signed, Daniel agreed to a price of 23 per case once volume exceeded 1,000 cases. The contract had an integration provision but no modification clause. What price must Daniel pay for cases in excess of 1,000?
a. 20
b. 22
c. 23
d. The contract is void because the terms are unclear. NOTE: Because there is an integration clause, the agreement to pay 22 is unenforceable. Because there is no modification clause, the subsequent oral agreement is enforceable.