Marvel brings four separate actions against Ames, Bell, Cain, and Dole for breach of contract. Decide each claim.
Ames, Bell, Cain, and Dole each orally ordered LCD (liquid crystal display) televisions from Marvel Electronics Company, which accepted the orders. Ames’s television was to be encased in a specially designed ebony cabinet. Bell, Cain, and Dole ordered standard televisions described as “Alpha Omega Theatre.” The price of Ames’s television was $1,800, and the televisions ordered by Bell, Cain, and Dole were $700 each. Bell paid the company $75 to apply on his purchase; Ames, Cain, and Dole paid nothing. The next day, Marvel sent Ames, Bell, Cain, and Dole written confirmations captioned “Purchase Memorandum,” numbered 12345, 12346, 12347, and 12348, respectively, containing the essential terms of the oral agreements. Each memorandum was sent in duplicate with the request that one copy be signed and returned to the company. None of the four purchasers returned a signed copy. Ames promptly called the company and repudiated the oral contract, which it received before beginning manufacture of the set for Ames or making commitments to carry out the contract. Cain sent the company a letter reading in part, “Referring to your Contract No. 12347, please be advised I have canceled this contract. Yours truly, (Signed) Cain.” The four televisions were duly tendered by Marvel to Ames, Bell, Cain, and Dole, all of whom refused to accept delivery. Marvel brings four separate actions against Ames, Bell, Cain, and Dole for breach of contract. Decide each claim.
The following things may happen:
As Buyer A has cancelled their purchasing order before the beginning of the customization process of the television, Company M has no right to take any action against the buyer.
As per the Uniform Commercial Code, the partial payment of the ordered goods is consideration of their purchasing; this creates the obligation for the execution of that contract. Buyer B has made a partial payment and that gives Company M the right to take the desired action.
Since Buyer C sent a signed document to cancel their oral purchasing order, it shows that there exists an agreement of sale between the two parties. This gives right to Company M to take action against Buyer C.
Since Buyer D did not respond to the memorandum of Company M in the context of the purchasing order, there is no proof that there exists a oral contract between them.
The following situations may take place:
In the case of Buyer A, the contract is unenforceable as Buyer A cancelled the order before Company M made the arrangements for the television.
In the case of Buyer B, Company M is entitled to take the required action since a part of payment has been made by Buyer B.
In the case of Buyer C, Company M has the right to take action since Buyer C sent in writing to cancel the order, which showed that there was an oral contract between them.
In the case of Buyer D, the seller cannot take any specific action against the buyer since there exists no proof that there is a contract between them as Buyer D did not even respond to the memorandum sent by Company M.