Question

The Bander Company was seeking an accountant. Eber & Fowler, an accounting firm, offered to prepare financial statements, provide ongoing advise, and do an audit for an annual fee of $3500.00. The bander company responded that the price was too high. E&F submitted a new proposal for $3000.00. The bander company then hired E&F for $3000.00. During the first year of the contract, the financial statements took longer to prepare than E&F had anticipated. E&F therefore charged Bander $3400.00 for the first year. Bander refused to pay. If E&F sues bander banner for the $400, what is the liklihood of success? why?

Answer 1

Eber & Fowler's chances of successfully suing The Bander Company for an additional $400 are low unless the contract included terms allowing for fee adjustments. Without such terms, the agreed amount of $3000 is enforceable.

Step-by-step explanation:

When Eber & Fowler (E&F) agreed to provide services for The Bander Company at a reduced rate of $3000 after negotiation, they entered into a binding contract at that price. If E&F sues Bander for the additional $400, their likelihood of success largely depends on the terms of the contract. In the absence of a provision that allows E&F to unilaterally increase fees due to unforeseen circumstances, which is not mentioned in the provided scenario, E&F's chances of winning the lawsuit seem slim. The previously agreed upon amount of $3000 would be enforceable, and any attempts to charge more without Bander's consent would be seen as a breach of the contract by E&F.