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

question 12

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 most accurate?

• 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.