Contracts Keyed to Frierback
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A manufacturer that produces the most up-to date, high-speed mainframe computers on the market contracted with a company that is on the cutting edge of data storage technology for the sale/purchase of a “Yellow Giant” computer. The written contract stated that the company would purchase one of the manufacturer’s ‘”Yellow Giant’ computers at a price of $175,000.” At the time, the going price for Yellow Giant computers was $150,000. When the manufacturer delivered a Yellow Giant on the specified date, the company refused to accept delivery and refused to pay. The manufacturer sued the company for breach, claiming that its expensive computers were manufactured to order and so it was forced to dispose of the Yellow Giant at a price far below fair market value. In defending the suit, the company’s president wishes to testify that the company rejected the Yellow Giant because both parties knew that the company really wanted a “Purple Giant,” a machine much faster than the Yellow Giant, but which the parties agreed would be called a “Yellow Giant” in the contract to keep competitors in the dark as to the company’s new capabilities, and that the parties had executed contracts in the pa t that had specified a less powerful computer than the model that was actually delivered.
Should the testimony of the company’s president be admitted?CorrectIncorrect
The owner of a store in a small beach town contacted a manufacturer about buying 100 Adirondack chairs. The parties reduced their agreement to sell and buy the 100 chairs to a signed writing that contained all of the essential terms, as well as a merger clause. When the chairs were delivered to the store owner, she discovered that they were not “Adirondack chairs,” as she understood that term and as that term was commonly used, but a different style of chair altogether that was manufactured in the Adirondack region of New York. The store owner refused delivery, and the manufacturer sued the store owner for breach of contract, arguing that he complied with the terms of the contract.
Will the store owner be allowed to introduce evidence of the meaning of the term “Adirondack chair”?CorrectIncorrect
A seller contracted to sell a farm to a buyer. The written signed contract contained the exact boundaries and description of the land selling price, terms of payment, and effective date of contract. The contract contained all essential information except for the quality of title to be conveyed.
Which of the following statements is most accurate?CorrectIncorrect
The owner of a shopping mall entered into a contract with a buyer to sell a store located in the shopping mall. The buyer tendered a $1,000 down payment, as required by the contract, to buy “the mall’s northernmost store and a small amount of land surrounding the store.” The purchase price was set at $200,000, and both parties signed a written agreement. The buyer seeks to repudiate the contract.
Should the trial court allow it?CorrectIncorrect
After several weeks of negotiations, two friends agreed over the phone that one would buy the other’s art collection. “Let me review our agreement,” the buyer said to the seller, “I will purchase all seventy-four of the oils listed in your letter of last week, including their frames, for $874,000 to be paid in twenty-four monthly installments, after a down payment of $374,000.”
“Exactly,” said the seller, “Just apprise your lawyer of the terms and let him prepare a contract.”
The buyer’s lawyer prepared the contract, which provided, “The buyer, agrees to purchase from the seller, and the seller agrees to sell to the buyer, the seventy-four oil paintings named below. The buyer agrees to compensate the seller $374,000 at this signing, followed by twenty-four monthly payments of $20,833.33 to be paid on the thirteenth of each month.”
The buyer made the down payment, and the seller delivered the paintings without their frames. The buyer asserted an action against the seller to recover the frames. Which of the following statements is most accurate?CorrectIncorrect