Question 4 GravelCo is a distributor of high quality gravel used on construction projects. In August, GravelCo found itself with more gravel than it could easily store. On August 15, GravelCo's sales director sent a fax on company stationary with GravelCo's logo at the top and the sales director's name printed just beneath it to Builder, GravelCo's biggest customer. The entire text of the fax stated, "Because of an oversupply, we are offering to sell up to 5000 tons of high-quality gravel at $8 per ton, full payment due on delivery. We can guarantee this price for only thirty days." On August 17, the purchasing agent for Builder faxed back a response stating, "We do not wish to order at $8 per ton, but would consider a purchase at $7 per ton." On September 1, a railroad strike caused a gravel shortage and an immediate rise in the market price for gravel. On September 5, GravelCo entered into several contracts with major contractors to sell large quantities of gravel at $11 a ton. On September 7, GravelCo received an overnight letter from Builder signed by its purchasingagent. The letter stated, "We accept your offer for 5000 tons of gravel at $8 per ton. Terms attached." Attached to the letter was Builder's standard purchase order form, one of the terms of which stated that payment would be made within 90 days after delivery of the purchased product. Inorder to deliver 5000 tons of gravel to Builder, GravelCo would now be forced to purchase some of the gravel on the open market at over $10 a ton. 1. Is GravelCo obligated to sell 5000 tons of gravel to Builder at $8 per ton? Discuss. 2. If GravelCo is bound to sell the gravel to Builder, can Builder be required to make full payment upon delivery? Discuss.4. You are Credit Controller for Barker Furniture Stores and have recently received Notice of Judgment against Mrs Dorothy Chang for the sum of $27,490. You have a meeting arranged with your Credit Manager to discuss the enforcement options available. In the meantime, you receive notice that the defendant has filed an application to set judgment aside, claiming that she has not seen the claim form because she has been away in Austria for the last eight weeks visiting her son. Mrs Chang is 77 years old and claims that her daughter has already been in touch with your company and agreed a payment arrangement. TASK a) Outline the different types of judgment and, with specific reference to the above, identify which is the most likely type of judgment in this case. (12 marks) b) Discuss the term 'set aside judgment' referring your answer to the circumstances of Mrs Chang. (4 marks) c) Critically assess the above and give your proposal to obtain payment. (4 marks) (20 marks)Baker is a renowned pastry chef. Cafe, a sole proprietorship, is a well-known restaurant in need of hiring a pastry chef. Baker and Cafe's Owner had extensive conversations regarding Baker coming to work at Cafe. On May 1, a week after those conversations occurred, Baker sent Cafe a signed letter dated May 1 stating, "I will work for Cafe as a head pastry chef for two years for an annual salary of $100,000." On the moming of May 7, Cafe's Owner telephoned Baker and said, "The $100,000 is pretty stiff. Could you possibly consider working for less"? Baker replied: "I am a renowned pastry chef. I will not work for any less." Later that morning, Cafe's Owner sent Baker a signed letter by regular mail stating: "You obviously think you are too good for my restaurant. I am no longer interested in hiring you to work at Cafe." Later that afternoon, Cafe's Owner had a change of heart and sent Baker a registered, express-mail signed letter stating: "Okay, if you really won't work for less, I agree to pay you the $100,000 a year you demand to work as head pastry chef at Cafe for two years." On May 10, the registered, express-mail letter was delivered to Baker's office. The regular mail letter containing the rejection was still on its way. Baker accepted delivery of the registered, express-mail letter from the postal carrier and placed it on his desk without opening it. On May 11, before Baker read the registered, express-mail letter on his desk, he accepted an offer to work for Restaurant. As a courtesy, Baker called Cafe's Owner and said, "Sorry, I just took a job at Restaurant. Too bad you couldn't afford me." Cafe's Owner responded, "You can't work for Restaurant, I already accepted your offer to work for Cafe for $100,000 a year." Does Cafe have a contract with Baker? Explain.Caroline was employed as a receptionist for ABC Corporation. Her desk was located at the entrance of the corporate office and her duties were to greet customers, answer telephone calls, sort mail, and respond to general requests for information about ABC. One day, while all of the managers of ABC were out of the office, a representative of XYZ Insurance Co. stopped by to solicit ABC as a new client. He told Caroline that he wanted to find out whether ABC might be interested in canceling its present employee health insurance plan and adopting a plan provided by XYZ. Although Caroline explained that none of the ABC managers were in the office, the XYZ representative nevertheless described his company's health insurance plan in detail. When Caroline reacted by stating that XYZ's plan sounded better than the current ABC plan, the XYZ representative immediately produced a contract for Caroline to sign. Reluctantly, Caroline signed the contract accepting the offer to adopt XYZ's insurance plan. If XYZ seeks to enforce the contract against ABC, is ABC bound to the contract