Mike and Jane Contract to Purchase and Sell $1,000,000 Worth

question 47

Essay

Mike and Jane contract to purchase and sell $1,000,000 worth of computer chips to be manufactured in Japan and shipped to San Francisco.The contract is silent about the method of delivery.Mike asserts that delivery is by ship,which is customary in the computer chip industry,but Jane insists that delivery is by air,which is what a previous contract between Mike and Jane provided.Explain how a court will resolve this dispute.

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Definitions:

Principal

Principal refers to the amount of money originally invested or loaned, on which interest is calculated.

Authorized

Officially permitted or endowed with legal power or right by a legal or regulatory body.

Corporate Securities

Financial instruments such as stocks and bonds issued by corporations to raise capital, representing ownership or debt obligations.

Articles of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.