blaw 2

Topics: Contract, Promissory note, Negotiable instrument Pages: 9 (4792 words) Published: October 12, 2014
1.Adams orders one thousand widgets at $5 per widget from International Widget to be delivered within sixty days. After the contract is consummated and signed, Adams requests that International deliver the widgets within thirty days rather than sixty days. International agrees. Is the contractual modification binding? Yes the contract modification is binding because both parties agreed to the modification before the widgets were delivered. When Adams requested the new shipping method and International agreed to the new terms. 2. In problem 1, what effect, if any, would the following letter have? International Widget: In accordance with our agreement of this date you will deliver the one thousand previously ordered widgets within thirty days. Thank you for your cooperation in this matter. (signed) Adams

The letter wouldn’t have any affect at all because the contract has already been modified by both parties and had been accepted. It would just be useful if for some reason one of the parties didn’t fulfill their part of the new contract. 3. Browne & Assoc., a San Francisco company, orders from U.S. Electronics, a New York company, ten thousand electronic units. Browne & Assoc.’s order form provides that any dispute would be resolved by an arbitration panel located in San Francisco. U.S. Electronics executes and delivers to Browne & Assoc. its acknowledgment form, which accepts the order and contains the following provision: ‘‘All disputes will be resolved by the State courts of New York.’’ A dispute arises concerning the workmanship of the parts, and Browne & Assoc. wishes the case to be arbitrated in San Fran- cisco. What result The case would be arbitrated in San Fransico because the New York company agreed to their term of “Browne & Assoc.’s order form provides that any dispute would be resolved by an arbitration panel located in San Francisco” and they didn’t agree to modify the contract to change that. 22

2. Smith, having contracted to sell to Beyer thirty tons of described fertilizer, shipped to Beyer by carrier thirty tons of fertilizer, which he stated conformed to the contract. Nothing was stated in the contract as to time of payment, but Smith demanded payment as a condition of handing over the fertilizer to Beyer. Beyer refused to pay unless he were given the opportunity to inspect the fertilizer. Who is correct? Explain. Smith is correct because Beyer contracted him to deliver the thirty tons of fertilizer, and like Smith stated is conformed the contract. 5. Edwin sells a sofa to Jack for $800. Edwin and Jack both know that the sofa is in Edwin’s warehouse, located approximately ten miles from Jack’s home. The contract does not specify the place of delivery, and Jack insists that the place of delivery is either his house or Edwin’s store. Is Jack correct? In my opinion I don’t think jack is correct because it was not stated in a contract that the sofa was to be delivered to jacks home and even with him knowing the sofa was in the warehouse 10 miles away he still purchased the sofa. 6. On November 4, Kim contracted to sell to Lynn 500 sacks of flour at $4 each to be delivered to Lynn by December 12. On November 27, Kim shipped the flour. By December 5, when the shipment arrived, containing only 450 sacks, the market price of flour had fallen. Lynn refused to accept delivery or to pay. Kim shipped 50 more sacks of flour, which arrived December 10. Lynn refused delivery. Kim resold the 500 sacks of flour for $3 per sack. What are Kim’s rights against Lynn? Kim has no rights against Lynn because the order was never fulfilled on her part because Lynn never accepted the shipment of the remaining 50 sacks of flour on December 10. 23

1. Stein, a mechanic, and Beal, a life insurance agent, entered into a written contract for the sale of Stein’s tractor to Beal for $6,800 cash. It was agreed that Stein would tune the motor on the tractor. Stein fulfilled this obligation and on the night of July 1 telephoned Beal that...
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