Compurite Co Specializes in the Lease of Office and Computer

question 9

Multiple Choice

Compurite Co specializes in the lease of office and computer equipment to companies. ReCompute Co sells second-hand computer equipment. In which of the following situations is Compurite not able to void the contract for unilateral mistake and reclaim its goods from ReCompute?

• A) Infovast Co, a small new business operating an internet search engine, orders 50 computers for lease from Compurite. Infovast employs a logo that starkly resembles that of Infofast Co, a large telephone search directory which Compurite supplied two years earlier and had called earlier in the month to enquire about renewing its equipment. In order to pay its debts, Infovast sells the computers to ReCompute.
• B) Walton, a fraudster, orders 50 computers under a fake company name, 'Futurfax Co'. He immediately sells the computers to ReCompute Co.
• C) Jonas comes to the sales office of Compurite and claims he is William Stockton, the new sales officer for Gower Motors Co. When filling out a lease application for 50 computers, he produces as proof of identity a forged driver's licence. A copy of this licence is faxed to a credit institution and everything checks out okay. Jonas immediately sells the computers to ReCompute.
• D) Compurite can void the contract for mistake in all three situations above and reclaim the computers from ReCompute.

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Definitions:

Cloud-Based Applications

Software programs that are hosted on remote servers and accessed over the internet, allowing for flexibility, scalability, and remote accessibility.

Performance Metrics

Quantitative and qualitative measures used to assess, compare, and track performance or productivity, often utilized within business or project management contexts.

Just-In-Time Manufacturing

A production strategy that strives to improve business efficiency by reducing in-process inventory and associated carrying costs, delivering materials just as they are needed.

Supply Chains

The entire system of producing and delivering a product or service, from the raw materials to the final consumer.