Widgets Inc, a retailer, on Monday, the first, ordered by telephone a purchase o

Question

Widgets Inc, a retailer, on Monday, the first, ordered by telephone a purchase of $100,000 of 'computer tablets' from Ancel Wholesale Electronics.

The final details were worked out during the week and by Friday, the fifth, all 'pertinent' details of the contract were worked out by telephone or email per standard dealings between the parties.

Widgets had secretly negotiated a better deal than what Ancel was offering, and ordered the same 'tablet' purchase from Wang for $75,000.

Ancel sent Widgets, Inc. a final confirmation of the order on the following Monday, the eighth. Subsequently the tablets were shipped and Widgets was appropriately invoiced for the contracted amount.

Widgets, Inc., acting on advice from Wang, simply ignored the invoice for six months.

Widgets, Inc. has accepted the tablets per and by the warehouse manager in Wichita, Kansas.

These tablets were subsequently stolen form the warehouse.

Who bears the loss as Widgets, Inc. asserts unenforceable contract?

Explanation / Answer

In this specific case Widgets,Inc. The whole responsibility of loss even if there is an unforceable contract. As widget was involved in unethical activity by making a secret purchase with other organisation and ignoring the legal bill provided by Ancel wholesale electronics.
Providing company did not violated any of the rules, contract is enforceable on Widgets.Inc and the Bear the loss.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.