Subject: Business Law

1. Sanford entered into a contract with Banson, a manufacturer of jackets to purchase a number of collection of jackets for $5,500. Two weeks before the date for the shipment of the jackets, Banson placed a call to Sanford and indicated that he would be unable to deliver the jackets at the contract price of $5,500. Banson requested a change in the price to $7,000 or he would not be able to deliver.

After discussing the matter with his sales manager, Sanford reluctantly agreed to the $7,000 price, and Banson agreed to send the jackets. After the jackets had been delivered and accepted by Sanford, Sanford refused to pay the $7,000. He insisted on paying the original contract price of $5,500. Is the contractual modification binding?

Please Explain.

Legal Problem,

Legal concept,

and Explanation

2. Darlene and Sead, an elderly immigrant couple, agreed to purchase from Ace Furniture a refrigerator with a fair market value of $450 for twenty-five monthly installments of $60 per month. Darlene and Sead now wish to void the contract because they did not realize the exorbitant price they would have to pay. What is the result?

Please Explain.

Legal Problem,

Legal concept,

and Explanation

3. Hilton Hotel needed 200 compact refrigerators on a rush basis. It contacted Wholesale Refrigeration Co., a manufacturer of refrigerators. Wholesale said it would take some time to quote a price on an order of that size. Hilton responded by saying, "Send the refrigerators immediately and bill us later." The refrigerators were delivered three days later, and the invoice arrived four days after that. The invoice price was $140,000. Hilton believe that the wholesale market price of the refrigerators is only $120,000. Do the parties have a contract? If so, what is the price?

Please Explain.

Legal Problem,

Legal concept,

and Explanation