Colby Contracts in Writing to Sell His 2005 Dodge-Brand Pick-Up

question 36

Essay

Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for $10,500.Colby agrees to deliver the truck on Friday,and Efrem promises to pay the $10,500 on the following Monday.On Thursday,Efrem tells Colby that he changed his mind and will not buy the truck.Over the weekend,Efrem changes his mind again and tenders $10,500 to Colby on Monday.Colby has not sold the truck to another party but refuses the tender and refuses to deliver.Efrem claims that Colby has breached their contract.Colby contends that Efrem's repudiation released him from his duty to perform under the contract.Who is correct,and why?

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Definitions:

Gross Domestic Product

The Gross Domestic Product, or GDP, is the overall market or monetary worth of all completed goods and services generated inside the territorial limits of a country over a designated period.

Aggregate Expenditure

The total spending on goods and services in an economy at a given price level, including consumption, investment, government spending, and net exports.

Aggregate Expenditure

The total amount of spending in the economy that includes consumption, investment, government spending, and net exports.

Consumption

The use of goods and services by households, constituting one of the major components of gross domestic product (GDP).