Question

Profit Master Displays contract to deliver thirty coolers to a new retail customer, Green’s Grocery Store, on November 1, with payment made on delivery. Profit Master tenders delivery in its own trucks. Green’s management notices some damage to the cartons protecting the coolers. Green’s owner calls Profit Master’s sales manager and asks whether the cooler might have been damaged as they were being loaded. Profit Master assures Green’s that the coolers are in perfect condition. Green’s tenders Profit Master a check, which Profit Master refuses, claiming that the first delivery to new customers is always for cash. Green’s promises to pay with cash within two days. Profit Master leaves the cooler with Green’s, which stores them in the back of their store pending their “Grand Opening” on November 15. Two days later, Green’s store worker opens some of the cooler to discover that several them have been severely damage beyond repair. Profit Master claims Green’s has accepted the cooler and is in breach by no paying on delivery. Will Profit Master’s succeed on these claims? Explain.

Answer 1

Profit Master entered into a contract with Green to supply thirty coolets on payment on delivery. The mode of payment was not mentioned in it. Now when it supplied the material, Green offered check to Profit Master which they refused saying they need cash for first order from new customers. Here it is clear that Green did not defaulted as per contract. But he accepted to pay cash in two days hence indirectly accepted the additional clause of Profit Master. After two days when Green found the coolers to be damaged he declined to make payment and Profit Master claims that Green breached the contract as he accepted the cooler and did not make the payment.

Here Profit Master can succed in claim to some extent as no payment flew from Green to Profit on date of delivery. However as mutual understanding they agreed in time of two days.

Also Profit supplied defective coolers and Green can argue against the same.