Question

The Home Shopping Club ordered 12,000 Care Bear lamps from Ohio International, Ltd. When the lamps arrived, they had poor painting and staining, elements were improperly glued and could come loose (a danger to the children with the lamps in their rooms), and they overheated very easily (another danger for children and a fire hazard). Home Shopping Network notified International and gave it three months to remedy the problems and provide different lamps. After three months, Home Shopping Network returned all lamps and notified International that it was pulling out of the contract. Could they do so, or had too much time passed?

Answer 1

ANSWER

No, they could not do so.

Reason:-

A contract can not be withdrawn at the time of its maturity. If it is done, the acting party has to pay a substantial amount to other party.

So, if Home Shopping Club cancel the order, it has to pay some amount to Ohio International, Ltd. as compensation.

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