Sheps & Shaps LLP signed a one-year contract under which it was to receive a weekly delivery of 10 cartons of 8 x 11 bond paper and 5 cartons of 11 x 14 bond paper for a monthly fee of $700.The contract expired two months ago,but Sheps & Shaps continued to accept two additional deliveries.Given these circumstances,which of the following statements is true?
A) The Sale of Goods Act will imply a continuing contract between the parties on the same terms as the previously existing contract.
B) The contract has expired,and therefore Sheps & Shaps is not required to pay for the two additional deliveries.
C) If the parties have contracted in the past,it may be possible to imply that their contract remains the same.
D) The business exception rule will impose a requirement that Sheps & Shaps pay a reasonable price for the paper.

Question

Quizplus · Accepted Answer

If the parties have contracted in the past and continued to act as if the contract is still in place, it may be possible to imply that their contract remains the same, suggesting a continuation of the terms.

Sheps & Shaps LLP Signed a One-Year Contract Under Which