Roger, who was in the market for a computer, visited Husseins Electronics with a view to finding
Question:
Roger, who was in the market for a computer, visited Hussein’s Electronics with a view to finding a bargain. He was directed to a computer that had been used as a floor model in the store. Although the sales representative was unwilling to provide a warranty, he did assure Roger that the unit could be returned if it did not perform satisfactorily during the first month. He also assured Roger that the price could be dropped by $500 if the computer developed minor problems. Roger agreed on that basis to purchase the computer for either $2000 or $1500, depending upon how well the machine performed. By way of payment, he provided a cheque, which he modified to suit the circumstances. First, he stated the amount of the cheque to be either “$1500 or $2000.” Second, although he entered the date of purchase on the cheque, Roger added a notation saying, “payable six months after date.” And third, he added a notation to the cheque that said, “payment conditional upon quality of computer.” Roger has now used the computer for five weeks without any problems at all. Will Hussein’s Electronics, as the payee of his cheque, be able to obtain payment from the drawee bank? Explain your answer.
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0132164429
4th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer