Organisation Contract Case Analysis

2040 words - 8 pages

The case is about conflict between Dr Doe (Doe) and drugs companies. Dr Doe is a highly-brain powered scientist. He just appraised with Noble Prize in medicine for what he had done in the development of highly effective drug to prevent the common cold. Giant Drug Company is interested to hire Doe. Francis Stein (Stein), the president of this company has been negotiated with Doe to market a new drug. However, the competitor, MARK Drugs company also interested in hiring Doe, since this occurred, the case became debatable.

Case
As Stein has intention to hire Dr Doe, both of them have been engaged in a deep negotiation. Dr Doe was approached to become vice president of Giant Drug Company. After sometimes, Dr Doe decide that he will accept a position according to their negotiation. But, this needs to be underlined that the negotiation was merely discussed about marketing a new drug. There was no salary discussed in that negotiation.

On the 1st of May, Dr Doe sent a letter to Stein that he agreed to become Giant Drug Company’s vice president. The amount of salary as well as period also written in the letter he sent. He would work in Giant Drug Company for four years within $ 500,000 annual salary. This statement will be considered as an offer.

Due to the letter was delivered on the 1st May; Stein received it within two days. On the 3rd of May, after reading the letter, Stein directly contacted Dr Doe by phone. Stein stated that the written salary is too high. Stein offered a lower salary, which is $ 300,000 per annum. This is believed as a counter offer. Doe considered the counter offer as an unreasonable amount considering that he would in charge of research in marketing new drug. His intellectuality in developing highly effective drug to prevent cold is too great compared to the amount of the salary he would receive. As a result, he remains with his statement on the letter, which is $ 500,000 a year. This implied that Dr Doe had rejected the Stein’s counter offer.

The conversation via phone had over. Without any consideration, Stein immediately informed Doe through a letter that he did non interested in hiring Dr Doe anymore. In other words, Stein has withdrawn his offer.

Later on the same day, Stein decided to send a stamped express mail to Doe that he would hire Doe and willing to fulfill Doe’s salary request. However, the stamped express letter Stein sent will arrived in the next day because it was sent quite late.

The following day, on the 4th of May, Doe made an agreement with Mark Drugs to work as a research director. MARK Drugs is known as a Giant Drug Company’s competitor. Once the agreement made, he decided to read Steins letter that placed on top of his desk by his manager. The statement written in the letter was about agreement to hire Doe with salary $500,000 in annual basis.

In respect to Stein, Doe instantaneously called and informed Stein that he had agreed to work with MARK Drugs. Unavoidable, tension aroused...

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