On October 31, a Congressional Candidate Orders a Quantity of Campaign

question 42

Essay

On October 31, a Congressional candidate orders a quantity of campaign literature from a local printer. The stated time of performance is November 2. November 8 is Election Day. The printout is not delivered until November 9. Thus, the candidate refuses to pay the printer one cent. Is this position justified? Why or why not? Assume that nothing was said in the contract about time being of the essence.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.

Units-Of-Production Method

A depreciation method that allocates an asset's cost based on the number of units it produces, linking the depreciation expense to the actual usage of the asset.

Useful Life

The estimated duration of time that an asset is expected to be functional and contribute to a company's operations, used for depreciation calculations.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decline in effectiveness.