In January Marcus, a CEO of a large corporation located in
Canada, contacted Samuel to secure a condo in Hawaii, for July1,2,3, 4 and 5th
for his corporate annual meeting with the board of directors. The meeting
generally is two half days, and on the last day there is a party to thank all
for attending the annual meeting. Marcus wanted to continue his stay throughout
the holiday weekend. As in the past, Marcus wants to have the party in the
condo. Marcus called Samuel and was advised that for the specific dates he is
requesting, there is only a 5 bedroom home available at $2,000 per day instead
of the condo which was a rate of $1,000 per day. Marcus responded, “I
don’t need a five bedroom house. What if I only use one of the bedrooms?”
Samuel replied, “That would be O. K. Since we want to do everything
possible to satisfy you since you have been such a good customer, we’ll let you
have the house under the condition that you are using only one bedroom. We can
honor a special price for $1,500 per day.” Marcus said, “Thanks, and
instructed Samuel to send the bill to his office.”
In late March Marcus was offered a new job and decided to
take it, knowing he booked the house in Hawaii for his corporate meeting, and
due to his new job, he is unable to attend the meeting. He offered the house to
his friend, Thomas, who has always wanted to take a vacation to Hawaii. Thomas
accepted. Marcus told Thomas: “It’s $1,500 a day. After your stay, tell
Samuel to send you the bill.” Marcus neglected to tell Thomas about the
condition that he could only use one bedroom.
Thomas arrived and stayed in the house for the 5 days. At
the end of his stay, Samuel sent a bill for $10,000, $2,000 per day to Marcus.
Marcus has refused to pay the bill, and Thomas claims that he is only
responsible for $1,500 per day. What rights, if any, does Samuel have against
Marcus and/or Thomas? Discuss.
