Question
David, a recent Baruch College graduate, just opened a retail clothing business in Brooklyn. Prior to opening his shop, David did extensive research and knows
David, a recent Baruch College graduate, just opened a retail clothing business in Brooklyn. Prior to opening his shop, David did extensive research and knows which brands can be purchased at the best price.
On November 20th, he receives a written offer from Marks Denim Co. to buy 10 dozen bell-bottom jeans at $100 per dozen, delivery by December 10th. The offer states that it expires on December 4th. Before he accepts the offer, David learns from Julie, his girlfriend, that the same model denim jeans are selling for $90 per dozen at Kylies Denims. Julie knows this because Sally, her next-door neighbor, showed her the written offer from Kylies Denims.
David is desperate to stock his shelves in time for the Christmas shopping season and mails acceptance letters to both Marks Denim and Kylies Denim on December 4th. These acceptance letters are received on December 6th.
As of December 15th, neither Marks Denim nor Kylies Denim has delivered the goods ordered. When David calls each company to inquire about the delay in the shipments, both companies claim that they do not have contracts with David.
A. Can David successfully sue Marks Denim? How about Kylies Denims? Explain your answers.
B. Assume instead, that David buys 100 dozen denim jeans from Jennys Jeans Co. at $100 per dozen. The goods are delivered on time to David. However, David just discovered that 10% of the jeans are defective and refuses to pay the $10,000 invoice. Jennys insists that they delivered top quality goods to David. David mails a $9,000 check payable to Jennys Jeans and marks the check paid in full. He attaches a post-it to the check and explains why he deducted the $10,000 amount.
Should Jennys Denims cash this check? What, if anything, can Jennys Denims do should they decide to cash the check?
Would your answer be different if David had Tony, his assistant, deliver the $9,000 payment, in cash, to Jennys?
Would your answer be different if Jennys Jeans cashes the check from David for $9,000 but asserts that David is lying about the quality of the jeans? Jenny's Jeans then asserts fraud in its claim for the other $1,000 against David. Please discuss this.
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