Mulligan Pro Shop agrees to provide 10,000-grade AAAAA golf balls to the Golf Kingdom each month for
Question:
Mulligan Pro Shop agrees to provide 10,000-grade AAAAA golf balls to the Golf Kingdom each month for the next four months. For the first three months, Mulligan delivers 10,000 grade A golf balls instead, and the Golf Kingdom accepts the delivery. In month four, Mulligan again delivers 10,000 grade A golf balls to the Golf Kingdom, and the Golf Kingdom rejects the shipment. If Mulligan sues the Golf Kingdom for breach of contract:
The Golf Kingdom will win because the goods were not perfectly rendered.
Mulligan will win because the Golf Kingdom accepted the prior nonconforming shipments.
The Golf Kingdom will win because usage of trade is an exception to the perfect tender rule.
Mulligan will win because it tendered the entire 10,000 golf balls.
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer