Cengage Advantage Books: Introduction to Business Law 4th Edition by Timothy Koch, Jeffrey Beatty, Jeffrey Beatty, Susan Samuelson, Susan Samuelson

Exercise 1

Tindall operated a general contracting business in Montana. He and Konitz entered into negotiations for Konitz to buy the business. The parties realized that Konitz could succeed with the business only if Tindall gave support and assistance for a year or so after the purchase, especially by helping with the process of bidding for jobs and obtaining bonds to guarantee performance. Konitz bought the business, and Tindall helped with the bidding and bonding. Two years later, Tindall presented Konitz with a contract for his services up to that point. Konitz did not want to sign, but Tindall insisted. Konitz signed the agreement, which said: "Whereas Tindall sold his contracting business to Konitz and thereafter assisted Konitz in bidding and bonding, without which Konitz would have been unable to operate, NOW THEREFORE Konitz agrees to pay Tindall $138,629." Konitz later refused to pay. Comment.