BLAW question please help. Electronic Seller Corp receives a purchase order for

Question

BLAW question please help.

Electronic Seller Corp receives a purchase order for 500 Sony televisions sets from Big Retail Store. The order does not specifically state a price, but it does specifically identify the model number of the desired televisions. The order form provides for payment in cash within 90 days of receipt of the televisions. The Electronic Seller Corp’s acceptance form sets the price of the televisions at $1000 each and makes payment in cash due within 45 days of receipt of the televisions by Big Retail Store and requires 10 percent simple interest on the unpaid balance. The acceptance form is mailed to Big Retail Store when the order is processed. The purchase and order forms are both in writing and signed by the respective agents of the corporations. Big Retail Store doesn’t read the Electronic Seller Corp acceptance form until it receives an invoice for payment 25 days after the televisions are shipped. Big Retail Store thinks a reasonable price for the televisions at the time of its order was $980 each and it believes it should have the 90 days to pay. Identify the legal issues, describe the applicable laws, and then make an analysis of who should prevail. State any assumptions you make for your decision.

Explanation / Answer

The legal issues that arises in this case is failure pof Big retail store to go through the acceptance mail from Electronic Seller Corp. beacuse the acceptance mail not only contains the acceptance of offer but also states the terms and conditions relating to the Price of goods to be supplied and relating to the repayment of the debts

Big retail store accepts the offer relating the supply of goods by signing the order by the respective agents.When the offer is accpeted by both the parties it turned to the contract.If the contract is not performed it becomes a punishable office

There will be excuse for non performance of contract in the following cases like

1.Mistake

2.Misrepresentation

3.Impossibility

4. Illegality

5. Impracticability

But the situation in the case negligence in reading the terms of the offer

So the Big retail store has to accept the offer and perform the contract

If the contract is not performed it turns to the material breach of contract and this can cause action in the court and the court can order for performance of contract and Big Retail Store has to pay damages and penalty as mentioned by the court

Damages – An effective Remedy

Types of damages:

General and Special Damages

Nominal Damages

Nominal Damages are awarded when there is an infraction of legal right, and though it gives no right to any real damages, yet gives the right to a verdict because of the infringement.

The plaintiff is awarded nominal damages when:

Aggravated and Exemplary Damages

In certain cases, the court may award more than normal measure of damages, by taking into account the defendant’s motives or conduct. Such damages may be

Liquidated and Unliquidated Damages

Damages are said to be liquidated when they have been agreed and fixed by the parties. Section 74 applies to these damages. In all other cases, the court quantifies or assesses the damage or loss; such damages are unliquidated. It is possible that the parties fix an amount as liquidated damage for a specific type of breach only; then the party suffering from another type breach may sue for the unliquidated damages arising from such breach.

Thank you

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