Question
Jezebel Foodie operates Delicious Delivery Door-to-Door Ltd., a company that delivers orders from food outlets directly to the customer's door. While business boomed during the
Jezebel Foodie operates Delicious Delivery Door-to-Door Ltd., a company that delivers orders from food outlets directly to the customer's door. While business boomed during the Covid-19 lockdown, Jezebel found that the fuel costs for her fleet of delivery cars was cutting into her profits. She contacted Save the Planet Bike Manufacturing, a company that builds electric bicycles, and placed an order, offering to purchase 100 EconoCruise electric bicycles. A term of the order was that the electric bicycles were to be delivered by July 7. Jezebel had written in a letter accompanying the offer: "Until the electric bicycles are in operation it is hard to say what our fuel-related savings will be. Twenty dollars a week per bicycle is my rough guess." Save the Planet Bike Manufacturing failed to deliver the electric bicycles until September 1, eight weeks late. It billed Delicious Delivery Door-to-Door Ltd. for the full contract price less $16 000 (eight weeks at $20 per bicycle for 100 bicycles). Delicious Delivery Door-to-Door Ltd. had discovered that each of the bicycles actually saved $50 weekly in fuel costs. It therefore tendered as payment the full contract price less $40 000 (eight weeks at $50 per week for 100 bicycles). Save the Planet Bike Manufacturing sued Delicious Delivery Door-to-Door Ltd.
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