A. Ralph, the owner of a shoe store, entered into a contract with Alice, a shoe wholesaler, for 1500 pairs of black "Bata dress shoes, model 11" for $150,000. The contract was signed by both parties. The agreement stated that delivery was scheduled for December 1. On that date, 750 pairs of these shoes were shipped instead. When Ralph say that only 750 shoes were delivered, he sought to discharge the entire contract. Can he discharge the contract under traditional legal rules? Explain. (6 credits) B. Ed, the owner of a lumber shop, entered into a contract with Trixie, a wholesaler of machinery that cuts wood. Ed ordered 10 "model A saws" for a price of $400. Delivery date was scheduled for December 1 . Three days before the delivery date, Trixie telephones Ed and tells him the following: "I am not sending you all of the items you ordered. I will, however, only send you nine of the saws your ordered." The nine saws arrived on the delivery date, but Ed refuses to accept them and seeks to rescind the contract Can he discharge the contract? Explain. (6 credits) C. In 2006, Oscar enters into a 25 year fire insurance contract. A clause in the contract states that his property must be inspected by the local fire marshall by June 30th of each year and be certified to be "safe" from dangerous fires. This inspection is done annually. For 10 years, inspections were done and the factory was in compliance. In year 11, Oscar forgets to contact the fire marshall by the inspection due date. The inspection was to take place on July 10th. Two days earlier, a fire destroys a considerable amount of the factory. The insurance company refuses to pay. What would be the best basis for the company not to pay any damages? ( 6 credits) A. Ralph, the owner of a shoe store, entered into a contract with Alice, a shoe wholesaler, for 1500 pairs of black "Bata dress shoes, model 11" for $150,000. The contract was signed by both parties. The agreement stated that delivery was scheduled for December 1. On that date, 750 pairs of these shoes were shipped instead. When Ralph say that only 750 shoes were delivered, he sought to discharge the entire contract. Can he discharge the contract under traditional legal rules? Explain. (6 credits) B. Ed, the owner of a lumber shop, entered into a contract with Trixie, a wholesaler of machinery that cuts wood. Ed ordered 10 "model A saws" for a price of $400. Delivery date was scheduled for December 1 . Three days before the delivery date, Trixie telephones Ed and tells him the following: "I am not sending you all of the items you ordered. I will, however, only send you nine of the saws your ordered." The nine saws arrived on the delivery date, but Ed refuses to accept them and seeks to rescind the contract Can he discharge the contract? Explain. (6 credits) C. In 2006, Oscar enters into a 25 year fire insurance contract. A clause in the contract states that his property must be inspected by the local fire marshall by June 30th of each year and be certified to be "safe" from dangerous fires. This inspection is done annually. For 10 years, inspections were done and the factory was in compliance. In year 11, Oscar forgets to contact the fire marshall by the inspection due date. The inspection was to take place on July 10th. Two days earlier, a fire destroys a considerable amount of the factory. The insurance company refuses to pay. What would be the best basis for the company not to pay any damages? ( 6 credits)
