is to QUESTION 17 Ethel has been in the business of manufacturing office furnitu

Question

is to QUESTION 17 Ethel has been in the business of manufacturing office furniture for 20 years. She writes Fred, a furniture retailer, offering to sell him 150 standard office desks for $400 each. confirming the deak: We accept your offer of 150 desks at $400 each. In addition, you will provide your optional one-key desk- Fred agrees and sends back the following letter OA No contract exists, because acceptance o B A contract was formed for the desks which also includes the locking accessory C A contract is formed for the desks only. which will be paid on credit. Ethel sees the added information about the option, and objects to it. What is the status of the contract? was not the mirror image of the offer. D.A contract is formed for the desks and for the locking accessory, because the parties are merchants and the contract is for the sale of goods. QUESTION 18 of State Universitys German Club Ceramics and orders 20 beer steins with the with the club's crest on them, Each beer stein costs $60 and has to be custom-made. After the steins are made, but before the delivery, the club president phones to repudiate the contract and cancel the order: o A The contract is not enforceable, as it falls within the Statute of Frauds B. The contract is not enforceable because the dub had the right to cancel. C. The contract is enforceable, and Beertown can seek specific performance, thus forcing the club to take the steins and pay the full price D. The contract is enforceable, but Beertown's recovery will be limited to the difference, if any, between the market or resale price and the contract price. Click Save and to save and submit. Click Save ALI A to save al

Explanation / Answer

Ans-17 (c) A contract is formed for the desks only

Ans-18 (c) The contract is enforceable, and Beertown can seek specific performance, thus forcing the clube to take the steins and pay the full price

Ans-14 (d) All terms of contract need to be clear for the court to decide the case OR The court needs to find if the parties intended to contract

Ans-15 Consideration

Ans-12 (d) Moral obligations and consideration given in the past can usually be used to support the consideration element in a current exchange

Ans-13 No, because the offerer had not communicated the terms of the offer to the offeree

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