Signal Sets Company contracts to deliver one hundred (100) 52-inch plasma high-definition television sets to a new retail customer, Tuner TV Store, on May 1, with payment of $300 per setto made upon delivery.

Signal tenders delivery on May 1 in its own truck. Tuner's manager notices that some of the delivery cartons have scrape marks. The manager tells Tuner's owner and the owner calls Signal's offices and asks whether the sets in the cartons with scarpe marks may have been damaged as they were being loaded on Signal's truckfor delivery. Signal's representative assures Tuner's owner that the sets are in perfect condition.

Tuner then tenders Signal's truck drivea check, which the driverrefuses, claiming that the first delivery to new customers is always in cash. Tuner promised to pay in cash within two days. Signal's driver calls the main office and is autorized to give Tuner two days to pay in cash. The driver leaves the sets with Tuner.

Tuner leaves the sets in its warehouse pending its "Grand Opening Sale" on May 15. On May 5, Tuner's stocker opens some of the cartons and discovers that 30 sets have cracked screens and are damaged beyond repair.

Signal files a lawsuit claiming breach of contract claiming that Tuner has accepted the sets and is breach by not paying on delivery.

1. Will Signal succeed on its claims of breach of contract? Explain.

2. In what Florida court would Signal file its breach of contract action? Explain.

Answer rating: 100% (QA)

Signals Success on Breach of Contract Claim Signal is unlikely to succeed on its claims of breach of ... View the full answer