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John Doe manages a hotel on the beach in Florida

Economics Nov 28, 2020

John Doe manages a hotel on the beach in Florida. In anticipation of a brutal hurricane set to hit the coast, he orders that all of the hotels windows be boarded up with wood and authorizes XYZ contractors to provide the wood and labor for the job. Mr. Doe attempts to clear this with the owner of the hotel but cannot reach him before everyone in the hotel is forced to evacuate. So, he orders XYZ to go ahead and do the job and signs a contract for the work on behalf of the hotel. Please discuss whether or not XYZ and the hotel are in a contract and whether or not the hotel will have to pay for the work, also include why:

Expert Solution

 In this case, John Doe, the manager of the hotel in Florida authorizes XYZ contractor to provide the wood and labor for the proposed construction work in the hotel prior to the anticipated brutal coastal hurricane. However, he is not able to obtain the final official approval for the concerned commercial deal or transaction from the owner of the hotel due to his temporary unavailability during the forced hotel evacuation and hence, Mr.Doe is forced to ask the contractor to go ahead and execute the proposed deal. Now, based on the information provided in the question, the XYZ contractor subsequently signs the official contract with the hotel under the understanding and supervision of Mr.Doe and in the absence or without the official approval of the hotel owner. Therefore, in this instance, the contractor can officially begin the concerned construction work as it signs the official contract with the hotel which becomes a valid legal document or contract once it is officially approved and signed by all the concerned entities directly involved in it. Hence, once the contract has been signed and approved by both the XYZ contractor and the hotel, it has officially and legally corroborated by both the parties regardless of the subsequent understanding and approval of the hotel owner as long as it is an official commercial contract on behalf of the hotel administration. In this regard, the legal and official validity of the contract would practically depend on a thorough and complete mutual understanding, agreement, and approval of both the parties concerning the construction work and if it is signed by both the contractor and the hotel implying the official and legal corroboration of both the concerned entities or parties, it would be considered as officially and legally valid and operational, and in this case, it is signed by Mr.Doe, the hotel manager on behalf of the hotel administration. However, if the contractual terms, conditions, and regulations have not been framed under the complete mutual understanding, consent, and agreement of both the parties, it will not be considered as a legally valid contract. Furthermore, in view of the specific terms, conditions, and regulations of the contractual agreement between the contractor and the hotel, once the concerned construction work has been appropriately and satisfactorily completed by the XYZ contractor as per the instructions and requirements of the hotel mentioned in the official contract, the hotel administration is liable to commensurately pay to the contractor for the construction work in accordance with the specific contractual terms and conditions pertaining to the remuneration for the work, as officially agreed upon by both the parties.

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