Tippi and Alfred Entered into a Contract for the Sale

question 61

Multiple Choice

Tippi and Alfred entered into a contract for the sale of birds.Under the terms of that agreement, she was to provide him on a weekly basis with 10 lovebirds for his pet store, and he was to pay her $500 on a weekly basis.The agreement also stated that the contract would be in force for one year.For six weeks, each party performed as promised.At the beginning of the seventh week, however, Tippi telephoned Alfred and said that she wanted to bring their agreement to an immediate end.Which of the following statements is most likely to be TRUE?

• A)The parties cannot use the process of rescission to discharge the contract because they have already performed part of the agreement.
• B)The parties can use the process of rescission to discharge the contract, but only if Alfred seals his agreement to Tippi's proposal.
• C)Tippie and Alfred can provide consideration in order to bring the original contract to an end if both agree to give up their existing rights.
• D)The parties' contract will automatically be discharged through the process of novation if neither Tippi nor Alfred ever try to enforce it.
• E)The contract can be brought to an end through the process of release only if Tipi provides fresh consideration or the release is made by Tippi affixing her seal.

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Definitions:

Fraud in the Inducement

A deceitful practice where one party intentionally misrepresents material facts, inducing another to enter into a contract.

UCC Statute of Frauds

A legal requirement under the Uniform Commercial Code that certain contracts must be in writing to be enforceable.

Agreed-upon Terms

The specific conditions and stipulations that are formally accepted by the parties involved in a contract or agreement.

Specially Manufactured Goods

Items that are custom-made to a buyer's specifications, making them unique and not easily resaleable in the general market.