Question

In: Accounting

ABC Clothiers, Inc., has a contract with Taylor & Sons, a retailer, to deliver one thousand...

ABC Clothiers, Inc., has a contract with Taylor & Sons, a retailer, to deliver one thousand summer suits to Taylor’s place of business on or before May 1. On April 1, Taylor receives a letter from ABC informing him that ABC will not be able to make the delivery as scheduled. Taylor is very upset, as he had planned a big ad campaign. Can Taylor immediately sue ABC for breach of contract (on April 2)? Suppose that Taylor’s son, Tom, tells his father that they cannot file a lawsuit until ABC actually fails to deliver the suits on May 1. Who is correct, Taylor Senior or Tom? Explain.

Solutions

Expert Solution

Answer:

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Taylor and Sons is a men's clothing store. It orders 1000 summer suits from ABC Clothiers...
Taylor and Sons is a men's clothing store. It orders 1000 summer suits from ABC Clothiers for delivery on April 1. ABC takes the order. After three weeks pass, ABC informs Taylor it will not be able to make delivery as scheduled, but can make delivery by June 1. Taylor has expended monies to have an ad campaign to sell the suits. A) What are Taylor's remedies? B) Should Taylor wait to take delivery, and if so, what are Taylor's...
ABC Inc. ABC Inc. (“ABC” or “the Company”), an SEC registrant, is a retailer that sells...
ABC Inc. ABC Inc. (“ABC” or “the Company”), an SEC registrant, is a retailer that sells men’s and women’s clothing and accessories. As an incentive to its employees, the Company established a compensation incentive plan in which a total of 100,000 options were granted on January 1, 20X1. On that date (the grant date), ABC’s stock price was $15.00 per share. The significant terms of the incentive plan are as follows: The options have a $15.00 “strike” or exercise price...
You are negotiating a contract with a new customer to deliver one of the components for...
You are negotiating a contract with a new customer to deliver one of the components for their product. You estimate that on average you should be able to deliver the product in 8 hours once the customer places the order. Based on historical data, you believe it is reasonable to assume the standard deviation is 1 hour and that actual delivery times are normally distributed. The customer offers you a bonus for deliveries when you are able to deliver the...
You are negotiating a contract with a new customer to deliver one of the components for...
You are negotiating a contract with a new customer to deliver one of the components for their product. You estimate that on average you should be able to deliver the product in 8 hours once the customer places the order. Based on historical data, you believe it is reasonable to assume the standard deviation is 1 hour and that actual delivery times are normally distributed. The customer offers you a bonus for deliveries when you are able to deliver the...
Eureka Design Bhd entered into a contract to deliver one of its fixtures and fittings to...
Eureka Design Bhd entered into a contract to deliver one of its fixtures and fittings to Creative Landscaping Bhd on 1st July 2020. The contract requires Creative Landscaping to pay the contract price of RM30,000 in advance on 15th July 2020. Creative pays Eureka on 15th July 2020 and Eureka delivers the fixtures and fittings (with cost of RM19,000) on 31st July 2020. Required: i) Explain the 5-step of revenue recognition as outlined in MFRS 15 Revenue from Contract With...
On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson...
On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton’s performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2019, and December 31, 2020. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%. Required: 1. Determine the transaction price for the contract...
On January 1, 2017, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson...
On January 1, 2017, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton’s performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2017, and December 31, 2018. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%. Required: 1. Determine the transaction price for the contract...
a) Rural Support Ltd has been successful in gaining a major contract to prepare and deliver...
a) Rural Support Ltd has been successful in gaining a major contract to prepare and deliver meals to elderly and disabled people who reside in Windsor. These operations were previously managed by the Windsor Council, and the services were outsourced by the council as a cost-saving measure. Rural Support tendered a low price, so it is very focused on cost control. The following standard prices have been established for some major food ingredients: Standard price Lamb roast $16 per kilogram...
1. On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an...
1. On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $5,400 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2019. Taylor should recognize revenue in 2018 in the amount of Multiple Choice a. $900 b. $2,700 c. $0 d. $5,400 2. Mary signed up and...
In c++ format please ABC Delivery promises to deliver any package from one location in Miami...
In c++ format please ABC Delivery promises to deliver any package from one location in Miami Dade County to another in 2 to 24 hours. They can handle packages from 0.1 to 100 pounds. Their rate table is below: Flat rate for all deliveries = $50 To that they add $0.50 per pound To that they add a speed surcharge of $100 if request is between 2 and 4 hours and $50 if request is between 5 to 7 hours....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT