Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie. Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you
want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased. Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit. Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney. Assume that Ellen doesn't call the deal off when she is told the price is now $7.00, but wants to hold Lulene to the deal to supply pies at $5.00 . If Lulene fails to supply the pies, and if Ellen then sues her for a breach of contract, what is Lulene most likely to argue to avoid liability?
a. sufficiency of writing
b. substantial performance
c. failure of a condition subsequent d. impossibility
e. failure of a condition concurrent
d
You might also like to view...
Electronic funds transfers ________.
A) are more expensive than mailing a check to make a payment B) are a way of moving cash by paper documents C) include direct deposits and debit card transactions D) do not appear on the bank statement
On December 2, 2014, Loofa Company, which operates a furniture rental business, traded in a used delivery truck with a carrying amount of $5,400 for a new delivery truck having a list price of $16,000 and paid a cash difference of $7,500 to the dealer. The used truck had a fair value of $6,000 on the date of the exchange. The exchange has commercial substance. At what amount should the new truck
be recorded on Loofa's books? a. $10,600 b. $12,900 c. $13,500 d. $16,000
Which statement is correct concerning judicial review of an administrative agency's action?
A)Courts usually accept the facts of the case as determined by the agency and often defer to the agency's interpretation of the law. B)Courts conduct a de novo review of the case. C)Courts ignore the facts of the case. D)Courts substitute their opinion for that of the agency.
The Occupational Safety and Health Administration (OSHA) has proposed rules aimed at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. If ATC, Inc. wants to challenge the proposed rules, it must do so in court before the rules become final.
Answer the following statement true (T) or false (F)