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Question: Facts: Bill, a contractor in Brentwood, New York, prepared a bid for construction of an office bu...

Facts: Bill, a contractor in Brentwood, New York, prepared a bid for construction of an office building for Fred. In preparation of his bid, Bill asked Sam, a tile manufacturer in Setauket, New York, for a quote on tile to Bill's specifications. On October 27, 2006, Sam returned a statement on his letterhead with a quote of $8,000.00 which stated that the quote was irrevocable. Although Bill did not tell Sam, Bill submitted a bid for the building on November 11, 2006, using Sam's quote as the basis for part of his bid.

On January 8, 2007, after the price of tile had increased, Sam told Bill that he was revoking his offer. On January 9, 2007, Bill was awarded the contract to build the office building. Bill demanded that Sam deliver tile as per Sam's offer, but Sam refused. Bill thereupon purchased tile to his specifications from Ted, another tile manufacturer, for $9,000.00.

Bill also needed doors for the office building. He contacted Steve, a door manufacturer in Syosset, New York, and placed an order for doors at a cost of $6,000.00, F.O.B. Syosset. Steve entered into a contract, which was reasonable, with a common carrier for the transportation of the doors from Syosset to Brentwood. While the doors were en route, the truck in which the doors were being transported was struck by lightning. The doors were completely destroyed. Bill refused Steve's demand for payment. Steve refused to supply Bill with replacement doors. Bill obtained replacement doors from Tom, another door manufacturer, for a cost of $7,000.00 which was then the current market value for doors meeting Bill's specifications.

Bill and Susan, a window manufacturer in Stony Brook, New York, entered into a written contract whereby Susan agreed to provide windows to Bill's specifications no later than October 23, 2007, for a cost of $12,000.00. Susan's profit on the sale to Bill was $2,000.00. Susan has thousands of windows in stock, and can supply anyone with as many windows as he or she needs, at any time. On October 15, 2007, Susan delivered windows to Bill; however, the windows did not conform to Bill's specifications. Bill refused the windows and notified Susan in writing that day that he refused the windows. On October 16, 2007, Susan notified Bill that she would cure the non-conforming tender of goods. On October 18, 2007, Susan delivered new windows to Bill which conformed to Bill's specifications, but Bill had already purchased the windows he needed from Tina, another window supplier, for $11,500.00, on October 17, 2007, and Bill refused to accept Susan's second delivery of windows. Susan sold the windows to Frank, another buyer, for $12,000.00.

Bill seeks damages from Sam, Steve and Susan. Steve and Susan seek damages from Bill.

UCC Section 2-205 provides that all firm offers are irrevocable for three months

True/False?

Sam's price quote written on his company's letterhead satisfies the UCC Section 2-205 requirement that a firm offer must be made in a signed writing.

True/False?

By submitting a bid to Fred for the construction project, Bill accepted Sam's offer.

True/False

Revocation of a firm offer must be communicated in writing to the buyer.

True/False?

Bill is entitled to receive cover damages from Sam in the amount of $1,000.00.

True/False?

Bill is entitled to receive punitive damages from Sam since Sam revoked his offer.

True/False?

According to UCC Section 2-201, the Statute of Frauds requires that a contract for tiles in the amount of $8,000.00 must be in writing with the quantity stated and signed by both parties in order to be enforceable by both parties.

True/False?

Steve and Bill entered into a valid shipment contract for the purchase of doors.

True/False?

In a destination contract the risk of loss passes from the seller to the buyer when the seller tenders the goods to the buyer at the destination point.

(True/False?)

Steve was discharged by impossibility when the doors were destroyed by lightning during transportation to Bill.

(True/False?)

The term "Free on Board" (FOB) can denote a shipment or destination contract depending on the stated location in the contract.

(True/False?)

UCC Section 2-509 states that when the goods are neither shipped by a carrier nor held by a bailee, the risk of loss passes to the buyer on his receipt of the goods if the seller is a merchant.

(True/False?)

Bill is entitled to receive the full contract price of $6,000.00 from Steve.

(True/False?)

According to UCC Section 2-508, a seller who delivers non-conforming goods to a buyer has a reasonable opportunity to cure the non-conformity as long as he notifies the buyer and it is still within the stated contract time of delivery.

(True/False?)

Susan delivered defective windows to Bill on October 15, 2007

(True/False?)

Susan is a lost volume seller since she had thousands of windows in stock and could supply anyone with as many wndows as they need, at any time.

(True/False?)

Susan is entitled to recover the full contract price of $12,000.00 from Bill.

(True/False?)

Bill is entitled to receive $500.00 in compensatory damages from Tina.

(True/False?)

An injured party may also receive incidental damages for the costs of transportation, storage or commissions.

(True/false?)

According to UCC Section 2-206, unless otherwise stated in the offer, an acceptance may be made in any manner and by any medium reasonable under the circumstances.

(true/false?)

Answer 1

• UCC Section 2-205 provides that all firm offers are irrevocable for three months

False ; Only in case of non-mention of duration it is deemed to be of three months.

• Sam's price quote written on his company's letterhead satisfies the UCC Section 2-205 requirement that a firm offer must be made in a signed writing.

True; If it is in writing and signed by both parties it is satisfactory.

• By submitting a bid to Fred for the construction project, Bill accepted Sam's offer.

False; These are two separate instances and are not contractually related.

• Revocation of a firm offer must be communicated in writing to the buyer.

True ; For any contractual agreement to take place, it should be communicated in writing and agreed in writing.

• Bill is entitled to receive cover damages from Sam in the amount of $1,000.00.

False ; As there was no contractual agreement of the offer completed. Though the offer was there it was not signed into a contract.