Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 4

When the concluding question in a case problem can be answered simply yes or no, stare the legal principle or rule of law that supports your answer.
While shopping at Home Depot (HD), Carl Murphy cut his thumb, requiring 12 stitches. HD paid this medical bill, but the cut developed a staph infection, and Murphy claimed he lost $3,500 in medical bills and lost wages. Murphy sued HD. His lawyer wrote HD and offered to settle for $7,500. HD's lawyer offered $7,247 representing $7,500 minus HD's previous medical payment. Murphy's lawyer sent a proposed release to HD's lawyer covering "all losses... directly resulting from this incident. My release does not include any other claims." HD's lawyer sent back a new release with much broader language which Murphy's lawyer refused. No settlement was signed, and Murphy received no further payment. HD then asked the court to enforce the settlement agreement it said Murphy's lawyer had agreed to in the correspondence with HD's lawyer. Had a binding agreement been made?