Sam entered into a contract for the purchase of a used dump truck from Joe's Heavy Duty Trucks. The written contract clearly specified, among other things, that "it shall be a warranty to this contract that the truck has the capacity of carrying and properly dumping loads of up to 4000 kg of gravel." In fact, when Sam loaded the truck with 4000 kg of gravel, he discovered that the hoist on the truck was not capable of dumping it. Only if the load was reduced to 3000 kg could the gravel be dumped. Sam obtained an estimate stating that it would cost $8000 to reinforce the hoist mechanism of the truck so that it could handle dumping 4000 kg of gravel. When Sam approached Joe demanding satisfaction, Sam pointed out another term of the agreement that stated that in the event of a breach of contract the "maximum damages payable to the purchaser are limited to $5000." Sam sued. Which of the following statements is correct with respect to the legal position of the parties?
A) Sam must keep the truck and sue for damages, but those damages are limited to $5000.
B) Sam can treat his obligation as over, return the truck, and demand the return of his purchase price.
C) Sam must keep the truck but can obtain the $8000 in damages or what it takes to repair the hoist mechanism.
D) Sam can get an order of specific performance, which will force the seller, Joe, to fix the truck even if it does cost $8000.
E) There is nothing Sam can do as this was a breach of warranty.
Correct Answer:
Verified
Q68: Which of the following is true with
Q69: Sam agreed to purchase and Joe agreed
Q70: Which one of the following statements accurately
Q71: Alan entered into a written contract for
Q72: Specific performance involves a court order to
Q74: _ occurs when the court orders the
Q75: If neighbours have a contract agreeing not
Q76: Where a developer signs agreements to buy
Q77: Rick was a talented computer programmer and
Q78: Perfect Programs Ltd. hired Gill, who had
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents