Sheps & Shaps LLP Signed a One-Year Contract Under Which

question 32

Multiple Choice

Sheps & Shaps LLP signed a one-year contract under which it was to receive a weekly delivery of 10 cartons of 8 x 11 bond paper and 5 cartons of 11 x 14 bond paper for a monthly fee of $700.The contract expired two months ago,but Sheps & Shaps continued to accept two additional deliveries.Given these circumstances,which of the following statements is true?

• A) The Sale of Goods Act will imply a continuing contract between the parties on the same terms as the previously existing contract.
• B) The contract has expired,and therefore Sheps & Shaps is not required to pay for the two additional deliveries.
• C) If the parties have contracted in the past,it may be possible to imply that their contract remains the same.
• D) The business exception rule will impose a requirement that Sheps & Shaps pay a reasonable price for the paper.

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Definitions:

Supervision

The act of overseeing or managing activities and people to ensure that tasks are performed effectively and according to established policies and procedures.

Commuting

The action of traveling from one's home to their place of work or study and back again.

Systems Development

The process of creating and maintaining information systems, including hardware, software, network, and data components, tailored to meet organizational needs.

Budgeting

The process of creating a plan to spend your money, allocating specific amounts to various needs, savings, and desires.