Question
Business Co. has been delivering office supplies to Ace Manufacturing Inc. for a number of years. The supplies are delivered on a weekly basis and
Business Co. has been delivering office supplies to Ace Manufacturing Inc. for a number of years. The supplies are delivered on a weekly basis and then a purchase order is sent to Ace. They have always paid in the past within three to four weeks, but the last delivery, totalling $5,000, they did not pay for. It has now been 45 days since the delivery was made. Business Co. has taken the position that payment was due no later than 30 days after delivery. Ace has taken the position that the payment is not late, as the contract between the parties is silent as to payment time. A lawsuit has been started, and the judge will have to interpret the contract between Business Co. and Ace.
Required:
List and describe three methods (doctrines) that the judge can use to determine whether to
a) imply terms into a contract. (Note: Do not use statutes as one of the methods.) (6 points).
B) Which one would the judge probably use in the circumstances and why? (2 points)
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
a The business efficacy test This test requires the judge to determine whether a term is necessary to give effect to the contract and make it workable ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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