Question
On February 1, Eileen Corporation, a manufacturer of custom cabinets, contracted in writing with Billy Corporation, a kitchen contractor, to sell 100 unique custom designed
On February 1, Eileen Corporation, a manufacturer of custom cabinets, contracted in writing with Billy Corporation, a kitchen contractor, to sell 100 unique custom designed cabinets for $250,000. The contract provided that the cabinets were to be ready for delivery by April 15 and were to be shipped FOB sellers loading dock. On April 15, Eileen had 85 cabinets complete and delivered them, together with 15 standard cabinets, to the trucking company for delivery to Billy. Eileen faxed Billy a copy of the shipping invoice listing the 15 standard cabinets. On May 1, before reaching Billy, the truck was involved in an accident and all the cabinets were damaged beyond repair. Answer the following questions and explain:
- Was the contract a shipment, destination or consignment contract?
- Who bore the risk of loss on April 15th?
- Was Eileens shipment of the standard cabinets a breach of the contract with Billy?
- Was the contract between Eileen and Billy VALID, INVALID, VOIDABLE, or VOID?
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