Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to
A) any extent because the order was placed orally.
B) no extent because the order was placed orally.
C) the extent of the three accepted boxes.
D) the extent of the four undelivered boxes.

Question

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to​
A) ​any extent because the order was placed orally.
B) ​no extent because the order was placed orally.
C) ​the extent of the three accepted boxes.
D) ​the extent of the four undelivered boxes.

Quizplus · Accepted Answer

When a party repudiates a contract, it means that they refuse to perform their obligations under the contract. In this case, Physicians Clinic repudiated the contract after three boxes were already delivered and accepted. According to the doctrine of substantial performance, Quality Medical Supplies, Inc. has already performed a substantial part of the contract by delivering and having three boxes accepted. Therefore, Quality Medical can enforce the contract to the extent of the three accepted boxes. The remaining four undelivered boxes cannot be enforced since the contract has been repudiated. The fact that the order was placed orally does not affect the enforceability of the contract under these circumstances.

Physicians Clinic Orders by Phone Seven Boxes of Single-Use Latex