$7$:$25$

$0$

$46$

Hoy

$7$:$16$ p$.$m$.$

Editar

HDR

izzes$/1311190/$take

caveat emptor because Shawn thinks he is right.

Question $32$

$2\mathrm{.}5pts$

Pooley Costumes & Caps LLC $("$PC & C$")$ is a large props company formed in $1957,$ and Fast Flags Corporation is a small, local flag manufacturer formed in $2018.$ These two businesses never had any dealings with each other until they recently entered into a contract, with terms all drafted by PC & C$.$ The contract provides that PC & C shall purchase $1,000$ flags that Fast Flags will specially design for PC & $.$ The coritract further provides that PC & $C$ has the right to initiate, on a weekly basis, purchase orders of up to $100$ flags until the contract's total number of flag purchases $-1,000$ flags $-$ has been reached. Also, the contract includes a clause stating that PC & C can cancel its obligation to pay for the remaining flags at any time if any Fast Flags shipment does not arrive on the exact day as stated in a particular purchase order; this last provision is included in the contract even though time was of little importance to $PC$&$C.$

The first shipment of $100$ flags arrives a day late, and PC & C decides to cancel the entire remainder of flags due, leaving Fast Flags with $900$ flags displaying a PC & C logo$.$ Fast Flags does not have a secondary market in which to sell these flags and decides to offer these flags to PC & C at $30\%$ of the initial price. What is Fast Flags' best claim to enforce the original contract?

Promissory Estoppel. Fast Flags needs the revenue from the original order to continue to operate and make flags.

Unconscionability. The clause that states PC & C can cancel the order at any time if shipments arrive one day late is grossly unfair.

Incapacity. Fast Flags is$,$ in terms of its business experience, the status of a legal infant.

Undue Influence. PC & C used its power to influence Fast Flags to reduce the cost to $30\%$ of the initial price.

Breach of fiduciary duty. PC & C had a fiduciary duty to handle the contractual relationships with proper ethics.