Question: QUESTION 8 4 points Save Answ Questions 8-11 are based upon the following fact situation: On February 15 Paula, who sold fresh fruit wholesale in

 QUESTION 8 4 points Save Answ Questions 8-11 are based upon

QUESTION 8 4 points Save Answ Questions 8-11 are based upon the following fact situation: On February 15 Paula, who sold fresh fruit wholesale in New York City, agreed to purchase 5,000 bushels of peaches from Sam, who operated a large peach orchard in California. The contract was made over the telephone, and Sam agreed to ship the peaches F.O.B. LOS Angeles no later than March 15. The peaches were to be Grode A Fancy. Paula agreed to pay the wholesale market price in Los Angeles, as determined by the March 20th issue of Fruit Growers Weekly, a trade newspaper which contained a listing of average prices paid for fresh fruit during the previous week. As soon as they concluded their conversation, Paula wrote. signed, and sent to Sam the following note: February 15 SAM: Just to confirm that I've agreed to buy 5,000 bushels of peaches, delivery in N.Y.C. to be made before March 15. s/Paula For the purpose of this question, assume that there is no Statute of Frauds problem. Sam delivered the peaches to the railroad company on March 14th and made a proper contract for their shipment. If the peaches were destroyed because the ralroad car's refrigeration failed OA Paula would have to pay the contract price B. Paula would not have to pay the price, but would be liable for the difference between the contract price and the market price in Los Angeles OC. Paula would not have to pay anything because the agreement amounts to a promise to agree in the future about the price. which is an essential term. n onwil ndd nt hae t na sthine harait ta che dared tn herin Na Verleci inaer

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

\f