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Business law question: You entered into a contract for the purchase of 20,000 small engines for...

Business law question: You entered into a contract for the purchase of 20,000 small engines for your go-kart factory. You wanted the engines to be painted fire-engine red, to match the paint on the go-karts. When you were negotiating the order with the engine manufacturer, he promised you that if you would order at least 20,000 engines, he would throw into the deal an extra-large carburetor on each engine to make the engines more powerful. But when you write up the contract, you make no mention of the extra-large carburetors in the written agreement. You also told the engine manufacturer that you absolutely, positively had to have delivery of the engines no later than May 1, 2021, or else the go-karts could not be completed in time for the Walmart Spring Sale, and you would not pay him for the engines. But the contract does not include the term "Time is of the essence."

The engines are not delivered until May 5, 2021. When they are delivered, you discover that the engines are not painted fire-engine red, but rather, a sort of reddish brown. You also discover that the engines have only the standard small carburetors. Do you have to pay for these 20,000 engines? Go to the discussion section, and tell me what you think. A simple yes or no answer will get you no credit. You must tell me your reasoning, and what rules you are applying.

Homework Answers

Answer #1

No the buyer doesn't have to pay for this deal. As there are many reasons in the support of the buyer in this case which are mentioned below:-

A. The specification related to painting of the engines is not met by the selling party. As the product is not according to the buyer specification he is not entitled to pay for it.

B. As the seller promised that if the buyer place an order for at least 20,000 engines then he will throe into a deal of extra cuberator. Also this requirement of the agreement is not fulfilled by the seller.

C. Another reason for the above case is that that they have to make the delivery of engines up to 1 may, 2021 but also this condition is not met by the selling party. As they delievered the goods after 5 May,2021. And after that these engines were of no use to the go kart company.

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