You enter an expensive restaurant and are seated by the hostess. A waiter brings

Question

You enter an expensive restaurant and are seated by the hostess. A waiter brings you plates, knives, forks, napkins, and other set-ups for dinner, including bread and butter and ice water, all of which you partly consume. When you read the menu, you realize that the prices far exceed what you can afford. You then make it clear that you do not intend to order a meal. What type of contract (obligation) do you have, if any? What factors and contractual elements will you consider in assessing whether a contract was formed?

What if, instead, you read the menu and place an order, but say nothing about agreement to pay. Is there a contract? Also, assume there is fine print at the bottom of the menu that states: 20% gratuity charged. $20.00 cover charge per table. If you ordered dinner but didn't see the fine print, what is the effect? Does this change in the facts alter your conclusion regarding the scenario above? Why or why not? What key factors and elements are at play?

When answering the question, please describe what a contract is and then discuss the facts presented here.

Explanation / Answer

In such a scenario, you can apologize and excuse yourself by saying that you need to rush for an urgent work. Although, there is no such contract which has been made between the customer and the restaurant.

But if you read the menu and order the meal, then it is an implied contract that by ordering meal you are obliged to make payment for it irrespective of the fact that you will eat the food or not. Also, if the printing at the bottom of the menu clearly mentions the gratuity details and the other charge, then ignoring it or not seeing the details, does not mean that you are not bind by the contract. Also negligence is not an excue to a valid contract.

A contract is an agreement between two or more parties creating obligations on them which is enforceable by law. The basic elements of a contract are mutual assent, consideration, capacity, and legality.

And in this case, if he orders the meal, then there is an implied consent to make the payment for the meal in the form of consideration that is already mentioned in the menu. And yes, you have capacity then only you took a decision to sit in the restaurant and order the meal. And there is an existence of legality too as restaurant is working to earn.

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