Question

PROJECT 5.2’s purpose is to help you understand Sales of Goods among Merchants.

1. Firsten Company (FC) often sells soda and related products to Consumption Inc (CI) , which owns and operates a chain of soda shops. Over the phone, representatives of the two firms negotiate a sale of 2,454 cases of certain kinds of soda. FC sends a letter to CI detailing the terms and ten days later ships the soda. Is there an enforceable contract between them? Explain. Cite your textbook for support
2. Taply, Inc., offers to sell to Joanna’s Company, headquartered in Idaho, one thousand hard disk drives at $105 each. Their agreement is subject to certain specific delivery dates. Joanna’s replies with a signed request to purchase order that reads, “Joanna’s accepts your offer for 105 e-drives at $105 each. Must be delivered to our warehouse in Florida.” Taply does nothing. Joanna’s files a suit for breach of contract, to which Taply answers that there cannot be a contract because Joanna’s’ order contained additional terms and Taply did not agree to such in writing (no signature). Can Joanna’s recover? Explain. Cite your textbook for support

Answer 1

Answer 1= As soon as the letter containing the term and conditions of the sales contract was sent on the basis of the telephonic negotiation ( oral contract) there is a sales contract between the two companies. However as per UCC, if the letter containing the term of sales is sent to the other parties and within a reasonable time no objection is raised, there is a valid contract between the companies. So as in the case give the terms and conditions were sent after the oral agreement and no objection was raised by the other company within 10 days which is a reasonable time, it indicates the formation of an enforceable contract.

Answer 2= Nothing can be recovered by Joanna in the given situation as the term and conditions of the sales contract was not accepted or signed by Taply, Inc. As there are changes in the terms of the sales contract, it must be accepted and approved by both parties.