Question

Hint: U.C.C.

1. Clean Machines Company (Clean) makes washing machines. Over the phone, Clean offers to sell Dealers Appliance Outlet (Dealers) one hundred model EZ2000 washers at a price of $150 per unit. Clean says that it will keep the offer open for ninety days. Dealers responds that within two or three weeks it will decide whether to accept. One week later, Clean faxes, and Dealer receives, notice that the offer is withdrawn. Dealer immediately phones Clean to accept the $150-per-unit offer. When Clean refuses to deliver at that price, Dealer files a suit. Clean asserts, first, that there is no contract and, second, that if there is a contract, it is unenforceable. Please discuss Clean’s assertions, is Clean correct?

2. During a sales call, Tune Products, Inc., offers to sell to Unlimited Sales Company “one hundred MP3 players at $50 a piece, subject to certain specific delivery dates.” Unlimited replies with a signed purchase order that reads, “Accept your offer for 100 MP3 players at $50 each; delivered to our warehouse.” Tune does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Tune answers that there is no contract because Unlimited’s purchase order contained additional terms and is not signed by Tune. Can Unlimited recover? Explain.

Answer 1

1. The first case we can see that no written contract is found and signed between Clean and the dealer. Thus it is just a oral communication that took place in between Clean and dealer and it doesn't holds valid under law. Thus Clean doesn't have an legal bound duty or enforceble agreement with the dealer so that court can give judgement in the dealers favor

2. The Ulimited company or business sends the purchase orders to the Tune Products Inc and asks to accept it by signing while the Tune Products Inc doesn't signs the contract. Thus the contract didnot came to existence as only one party signed and other didn't. So the contract is unenforceable and not valid. The suit filed by Ulimited company to claim will not successful as they cannot claim on the oral or just offer made by Tune Products Inc.