Quiz 19: Breach of Contract and Remedies


In the case of Fresher Foods, Inc. v. Vernon , a trial court would probably find that Vernon must complete the part of the transaction that has already been paid for because of partial performance. Vernon accepted a partial payment for goods promised. Even though the Statute of Frauds required that any contract for the sale of goods prices at $500 or more must be in writing to be enforceable, the oral agreement has been partially paid and accepted by both parties. That part of the agreement was enforceable, so Vernon must deliver to Fresher 100 bushels of corn at $1.25 per bushel.

Yes, the transaction between H and T was covered by the Uniform Commercial Code because it is the solely most inclusive classification of the extensive spectrum laws elaborated in entire commercial transaction. The UCC observes the total commercial transactions for the sale of and payments for goods as solely legal incidences. The transaction in this case also deals with the sale and purchase of the software systems.

Offer and acceptance in contract Offer and acceptance basically refers to the element required pertaining to formation of the contract which is legally bind. Thus the expression by party of an offer to contract based on certain terms to another party which shows the indication pertaining to acceptance of underlying terms by the offeree. In this case, According to UCC, the seller's shipment pertaining to non-conforming goods results in breach as well as acceptance to the contract. However, this rule is not applicable to the seller that notifies the buyer that the non conforming goods will be offered as an accommodation within a reasonable time. Thus such notice of accommodation clearly indicates that the shipment does not constitute an acceptance as a result of which there is no contract. Since, M did not notify about the accommodation within the reasonable time. Therefore, it will be considered as an acceptance to the contract as well as breach to the contract. Hence it is ascertained that M is in breach of contract.

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