Question

1. On May 1, Jennings, a car dealer, e-mails Wheeler and says, “I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before June 9 [Signed] Peter Jennings. By May 15, having heard nothing from Wheeler, Jennings sells the car to another person. On May 29, Wheeler accepts Jennings’ offer and tenders $13,500. When told that Jennings had sold the car to another person, Wheeler claims Jennings has breached their contract. Is Jennings in breach of the contract? Explain.

2. After a series of e-mails, Jorge Bonilla, the sole proprietor of a printing company in Uruguay agree to buy a used printer from Crystal Graphics Equipment, Inc., in New York. Crystal Graphics, through its agent, told Bonilla that the printing press was fully operational contained all of its parts, and was in excellent condition except for some damage to one of the printing towers. Bonilla paid $95,000. Crystal Graphics sent him a signed, stamped invoice reflecting this payment. The invoice was dated six days before Bonilla’s conversation with the agent.

When the printing press arrived, Bonilla discovered that it was missing parts and was damaged. Crystal Graphics sent replacement parts, but they did not work. Crystal Graphics was never able to make the printer operational. Bonilla sued, alleging breach of contract, breach of implied covenant of good faith, breach of express warranty, and breach of implied warranty. Crystal Graphics claimed that the contract was not enforceable because it did not satisfy the Statute of Frauds. Can Crystal Graphics prevail on the basis? Why or why not? Explain.

Answer 1

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Answer-1

Under section 2-205 of the UCC (Uniform Civil Code) when a merchant, in this case Mr. J, gives in writing and signed the offer to sell his Thunderbird convertible for $13,500 creates an irrevocable offer. A firm offer is created when the merchant offers to sell his product to the buyer in signed writing and provides assurance that the offer will remain open for a specific time. This is called merchant's firm offer. For a valid firm offer, the offer must be signed and in writing. It is not necessary for a consideration to be paid during the stated period.
Mr. W accepted the offer and tendered the required amount, thereby creating a valid contract between them. Mr. J had already sold the product before Mr. J accepted the offer. The offer contained a time window within which the offer may be accepted or rejected (or a counter offer be made) by the offeree. The offeree may accept or deny the offer.

The firm offer cannot be revoked by the offeror during the stated time.
Therefore, Mr. J has breached the contract, as he was obliged to keep the offer open for the stated period.Selling the product before the stated period and when the offeree has accepted the offer has resulted in the breach of contract by the offeror. Hence, Mr. J has breached the contract when he sold the product, before the expiration of the duration of firm offer.

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