Fact Pattern 15-1Millet Grains Cooperative and Corn Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed, including a two-year term. Millet Grains begins to perform, and Corn Cereals accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 15-1.Between Millet Grains and Corn Cereals,this contract is most likely enforceable against
A) neither party.
B) Millet Grains only.
C) Corn Cereals only.
D) Millet Grains and Corn Cereals, at least to the extent of the performance.

Question

Fact Pattern 15-1Millet Grains Cooperative and Corn Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed, including a two-year term. Millet Grains begins to perform, and Corn Cereals accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 15-1.Between Millet Grains and Corn Cereals,this contract is most likely enforceable against​ 
A) ​neither party. 
B) ​Millet Grains only. 
C) ​Corn Cereals only. 
D) ​Millet Grains and Corn Cereals, at least to the extent of the performance.

Quizplus · Accepted Answer

Millet Grains and Corn Cereals are both bound by the contract to the extent of the performance. While the faxed memo on Millet Grains's letterhead may not be a formal contract, it does summarize the points of agreement and serves as evidence of the terms agreed upon. Once Millet Grains began performing and Corn Cereals accepted the deliveries, a contract was formed through their conduct and performance. Corn Cereals cannot refuse to pay without breaching the contract.