Travis Verbally Ordered a New $500 Dinette Set from Timpson's

question 28

Multiple Choice

Travis verbally ordered a new $500 dinette set from Timpson's Furniture and the salesman accepted the order verbally. Taking his name and address, the salesman having run out of sales contracts, said he would send Travis a copy of the contract the following day, and asked Travis to sign and return it. When the copy of the contract arrived, Travis did not sign it and he refused delivery of the dinette set when it arrived. Timpson's sued Travis for breach of contract.

• A) Timpson's cannot enforce the contract because, under the legislation governing sales such as this, the contract had to be in writing to be enforceable.
• B) Travis cannot raise the defence that the contract had to be in writing to be enforceable.
• C) If Travis had accepted delivery of the dinette set, and then had returned it and refused to pay, Timpson's could still not enforce the contract.
• D) The contract sent to Travis would defeat his defence that the contract was not evidenced in writing.
• E) All of the responses are correct.

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Definitions:

Inventory Account

An account used to track the cost of goods available for sale or use, including items purchased for resale, raw materials, work-in-process, and finished goods.

Debit Balance

An accounting entry that occurs when the total of debits in an account exceeds the total of credits, which is common in asset and expense accounts.

Gross Profit

The financial measure obtained by subtracting the cost of goods sold from revenue.

Repossessed Inventory

Goods taken back by a seller or lender from the buyer, typically due to failure to make required payments.