Question

In January point pleasant beach in new jersey ordered fireworks from kaboom. With delivery to be on or before June 29th. On April 15th kaboom notified point pleasant beach it will not be able to carry out its contract as written. How will the law carry out this action. Does point pleasant have to wait till June 29th before buying fireworks from another supplier.

Answer 1

Answer- A contract is basically an agreement between two parties to do or not to do a certain thing upon some consideration and which is legally enforceable. Here, one party places an order of goods with another party and also mentioned or specified the time of delivery. Since before the actual time of delivery one party explains it’s situation of not being able to fulfill it’s promise of selivering the goods on the time specified, so here the point pleasant beach has the following rights-

• It can wait till the contract matures and claim damages for goods equal to the difference in the price they had set and the price point pleasant beach ended up paying for such goods.

• If kaboon had prior knowledge of any further contract that would be affected of point pleasant beach then it must pay damages for such loss.

• The court upon hearing both the parties representations may decide an order prohibiting kaboom yo furthervtake up such type of contracts in future till the time specified , if any.

• Point pleasant can purchase from another supplier anytime after the notification is received from kaboom of not able to fulfill it’s promise.