Lucy Contracts to Buy Six Cases of Vintage Wine from Mountainside

question 19

Essay

Lucy contracts to buy six cases of vintage wine from Mountainside Vineyards for $1,200.The contract states that delivery is to be made at Lucy's residence "on or before June 1, to be used for niece's wedding reception on June 2." On June 1, Mountainside's delivery vehicle is involved in an accident, and no wine is delivered to Lucy.On the morning of June 2, Lucy buys the wine from Nature's Vintner.That afternoon, just before the reception, Mountainside tenders delivery of the wine at Lucy's residence.Lucy refuses tender.Mountainside sues Lucy for breach of contract.How is the court most likely to rule?

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Definitions:

Active Fiscal Policy

Government policy that involves altering government spending and taxation to influence the economy.

Short-run Phillips Curve

An economic model depicting an inverse relationship between the rate of unemployment and the rate of inflation in the short-term.

Potential Output

The optimum level of real gross domestic product achievable over a prolonged period without triggering higher inflation.

Expected Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, as anticipated by consumers and businesses.