A and B Agree in Writing That a Will Sell

question 59

Multiple Choice

A and B agree in writing that A will sell to B $5000 in widgets by September 1.On August 28th,B tenders payment of the $5000.00 on A,who refuses to accept it and later refuses to deliver the widgets to B because their value went up after the contract was entered into.In this case,if A sues B for breach of contract and B successfully counterclaims for specific performance

• A)A is in breach of contract and B will only have to pay the $5000.00,but no interest or costs.
• B)by not continuously trying to ensure that A accepts the $5000.00,B is in breach of contract.
• C)A is in breach of contract and B is not bound to do anything more.
• D)the contract is at an end.
• E)none of the above

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Definitions:

Credit Purchases

Transactions where goods or services are bought on credit, to be paid for at a later date.

Equipment

Tangible property (other than land or buildings) that is used in the operations of a business, such as machinery or computer hardware.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific parent account, facilitating more detailed financial tracking and analysis.

General Ledger

A complete record of all financial transactions over the life of a company, organized by accounts.