Merchant Supply Company and National Discount Stores Enter into a Contract

question 8

Multiple Choice

Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers.Merchant assures National that it has valid title to the goods.Under the UCC,this type of title warranty arises

• A)automatically in most lease contracts.
• B)only if the lessee asks for such a warranty.
• C)only if the lessor expresses such a warranty.
• D)only in conjunction with sales contracts,not lease contracts.

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Definitions:

Mistakenly Offers

Incorrect proposals made unintentionally during negotiations or in the course of business transactions.

Intended Price

The price at which a seller aims to sell a product or service, often reflecting costs, market conditions, and profit margins.

Bilateral Mistake

A situation in a contract where both parties are mistaken about a fundamental fact that is central to the contract.

Unforeseen Storm

A sudden and unexpected weather event with potentially destructive effects.