Devold Manufacturing, Inc., entered into a con- tract for the sale to Hillary Company of 2,000 solid- state CB radios at $27.50 each, terms 2/10, N/30, F.O.B. Hillary's loading platform. After delivery of the first 500 radios, a minor defect was discovered. Although the defect was minor, Hillary incurred costs to correct the defect. Hillary sent Devold a signed memorandum indicating that it would relinquish its right to recover the costs to correct the defect, pro- vided that the balance of the radios were in conformity with the terms of the contract and the delivery dates were strictly adhered to. Devold met these conditions. Shortly before the last shipment of radios arrived, a dispute between the parties arose over an unrelated matter. Hillary notified Devold that it was not bound by the prior generous agreement and would sue Devold for damages unless Devold promptly reimbursed Hillary. In the event of litigation, what would be the result and the basis upon which the litigation would be decided?

a. Devold will lose in that Hillary's relin- quishment of its rights was not supported by a consideration.

B-Devold will win in that the defect was minor and the substantial performance doctrine applies.

C-Hillary will lose in that the communication constituted a waiver of Hillary's rights.

D-Hillary will win in that there was a failure to perform the contract, and Hillary suffered damages as a result.