Question
Polly owns a dog toy factory and has made an agreement (contract) with Amy, the owner of a dog toy store. The contract states Polly
Polly owns a dog toy factory and has made an agreement (contract) with Amy, the owner of a dog toy store. The contract states Polly will deliver 100 dog toys per month to Amy by the 15th of every month. Amy called Polly to discuss the contract. Amy explained that she thought people were stealing dog toys. As Amy was talking, Polly was secretly filling garbage bags full of dog toys to take home for her own dog.
Polly explained to Amy that due to COVID-19, there has been an increase in demand for dog toys, and she can't make any guarantees on the factory's ability to ship out the next order as scheduled. However, Polly promised that she would do the best she could to have the dog toys shipped out soon. Amy angrily told Polly that if she could not hold up its end of the agreement, then she might find another supplier who could and angrily ended the call.
Two weeks later, Amy called Polly asking for a status update. Polly assured Amy that the production team is working hard and that she hoped to be able to ship the toys within 2 weeks. Without responding to Polly's last email, Amy immediately contacted another supplier to place an order.
Agreement:
Invoices; Payment. Payment for the Goods is due within 30 days of the date of the Seller's invoice, which date will not be before the date of the Seller's delivery of the Goods.
Delivery; Title; and Risk of Loss. Seller shall deliver the Goods FOB the Buyer's facility in Any State, and title to and risk of loss of the Goods will pass to the Buyer upon such delivery by the Seller. The Seller will be liable for any losses, damages, penalties, or expenses for failure to meet any delivery date.
Limitation of Liability. The Seller will not be liable for any indirect, special, consequential, or punitive damages (including lost profits) arising out of or relating to this agreement or the transactions it contemplates (whether for breach of contract, tort, negligence, or other form of action) and irrespective of whether the Seller has been advised of the possibility of any such damage. In no event will the Seller's liability exceed the price the Buyer paid to the Seller for the specific Goods provided by the Seller giving rise to the claim or cause of action.
Limitation of Actions. No action arising out of or relating to this agreement or the transactions it contemplates may be commenced against the Seller more than 12 months after the basis for such claim could reasonably have been discovered.
Governing Law and Designation of Forum. (a) The laws of the State of Michigan (without giving effect to its conflicts of law principles) govern all matters arising out of or relating to this agreement and the transactions it contemplates, including, without limitation, its interpretation, construction, validity, performance (including the details of performance), and enforcement.
Force Majeure. The Seller will not be liable for delays in performance or for non-performance due to unforeseen circumstances or causes beyond the Seller's reasonable control.
A. How did the contract get discharged? (choose from discharged by performance, discharged by operation of law, discharge by agreement, or discharge by failure of a condition.
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