Question
A. Max bought electronic equipment for $120,000 from Cray on June 10, 2020. Cray guaranteed the equipment to be free from defects for 10 years.
A. Max bought electronic equipment for $120,000 from Cray on June 10, 2020. Cray guaranteed the equipment to be free from defects for 10 years. The first payment of $10,000 was due July 1, 2020 with a payment of $10,000 due every month after. Shortly after the sale, Cray assigned the contract rights to Zeke for $110,000. Cray did not delegate any duties to Zeke. Zeke notified Max of the assignment on June 15, 2020. The electronic equipment was determined to be defective and thus the sale beached the warranty of merchantability. As a result, Max did not make the July 1, 2020 payment. Zeke claims he is entitled to payment from Max because he did not sell the defective merchandise. Discuss the rights of Max, Zeke and Cray.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started