Jim is the manager of an electronic store.Tom is an electronics distributor.On August 1,Jim calls Tom and orders 25 video game systems for $6,000.On August 5,Tom sends Jim an e-mail confirming his order of 25 video game systems for $6,000.On August 20,Jim replies to Tom's email and Jim says he no longer wants the 25 video game systems.Tom ignores Jim's emails and ships the video game systems to Jim.Tom sues Jim for $6,000,who wins and why?
A) Jim wins because the Statute of Frauds has not been satisfied.
B) Jim wins because the Statute of Frauds has been satisfied, but Jim properly rejected the order.
C) Jim wins because although a contract was created over the phone, Jim properly rejected the order.
D) Tom wins because a contract was created when he sent his e-mail and Jim did not properly reject the order.
E) Tom wins because an irrevocable contract was created when Jim placed his order over the phone.

Question

Quizplus · Accepted Answer

When Tom sent the email confirming the order, a contract was created. Jim's later attempt to reject the order was not a proper rejection and therefore still bound him to the terms of the contract. Tom fulfilled his obligations by shipping the video game systems to Jim, and is therefore entitled to the $6,000 payment.

Jim Is the Manager of an Electronic Store