Signal Sets Company Contracts to Deliver One Hundred Television Sets

question 36

Essay

Signal Sets Company contracts to deliver one hundred television sets to a new retail customer, Tuner Electronics Warehouse, on May 1, with payment to be made on delivery. Signal tenders delivery in its own truck. Tuner's manager notices that some of the cartons have scrape marks. Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded. Signal assures Tuner that the sets are in perfect condition. Tuner tenders Signal a check, which Signal refuses, claiming that the first delivery to new customers is always for cash. Tuner promises to pay the cash within two days. Signal leaves the sets with Tuner, which stores them in its facility pending its "Grand Opening Sale" on May 15. Two days later, Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in breach by not paying on delivery. Will Signal succeed on these claims? Explain.

Distinguish between oral and written contracts and understand the implications of each under the law.

Understand the role and application of the parol evidence rule in contract disputes.

Recognize the exceptions to the statute of frauds and how they affect contract enforceability.

Understand the importance of usage of trade and its impact on contract interpretation and enforcement.

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Definitions:

Abstractly

Thinking or reasoning in a way that is not tied to concrete physical reality, involving conceptual or theoretical considerations.

Logically

Pertains to clear, structured, and reasonable thinking or arguing based on established principles of validity.

Systematically

In a methodical and organized manner, following a fixed plan or system.

Cognitive Strategies

Techniques or approaches utilized in thinking or problem-solving to achieve specific goals.