Why Was the Defendant in Smith V Hughes Not Liable

question 3

Multiple Choice

Why was the defendant in Smith v Hughes not liable to pay the contract price for the new oats?

• A) Old oats were discussed before the oral contract was concluded.
• B) Old oats were not discussed but the seller knew that the buyer believed that the oats were in fact old.
• C) The seller knew that the buyer was contracting for old oats.
• D) All of the options provided are correct.

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Definitions:

Sub-Contracting

The practice of a company hiring a third-party to perform tasks, handle operations or provide services that are either difficult to manage or outside the company's expertise.

Discount Rate

The discount rate that is used to compute the present value of forthcoming cash flows.

Annual Payments

Recurring payments made once a year.

Compounded Monthly

Determining interest on a monthly schedule by including both the initial principal and previously earned interest in the calculation.