Relax Chair Company Contracts to Deliver 100 Chairs to Stuffy

question 71

Multiple Choice

Relax Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay. Relax tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy may

• A) await performance, sue Relax, or suspend its own performance.
• B) only await Relax's performance for a commercially reasonable time.
• C) only sue Relax for breach of contract.
• D) only suspend its own performance.

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Definitions:

Conditional Sale Contract

A type of contract in which the sale of an asset or property is contingent upon certain conditions being met, often used in real estate and high-value purchases.

Ordinary Annuity

A financial product where regular payments are received or paid at the end of each period, such as monthly or annually.

Compounded Monthly

Interest calculation method where interest is added to the principal each month, increasing the amount on which subsequent interest is calculated.

RRSP

A Registered Retirement Savings Plan that allows individuals in Canada to save for retirement on a tax-deferred basis.