Exam 13: Sales Contracts: Formation, Title, and Risk of Loss

Braxton has an oral contract to deliver 500 cases of green beans to Mary for $10,000. During a court hearing concerning the validity of the contract, Braxton admits that he sold Mary 100 cases of green beans. The contract is enforceable to only 100 cases of green beans.

The Convention on Contracts for the International Sale of Goods (CISG) requires a written contract for the sale of goods when the price exceeds $5,000.

Warren left his watch to be cleaned at a jewelry store. By mistake, a clerk sold the watch to Foley. Foley did not know that the watch rightfully belonged to Warren. Analyze the case.

Jackson Furniture Co. states in writing that their offer to sell sofas to a hospital will be held open for 40 days. The written offer requires a consideration to be legally binding.

A gift is legally considered the same as a sale, since title passes in both a gift and a sale.

A bill of sale provides evidence of the transfer of personal property from one person to another.

MeatPackers, Inc. bought a new kind of refrigeration system from Coolit, Corp. for storage of its meats. As part of the contract, Coolit delivered the refrigeration system to the MeatPackers plant, installed it, set its temperature, and then monitored it for several hours to make sure it worked. Before they left, Coolit's technicians handed MeatPackers a bill of sale. Absent any other terms or conditions, MeatPackers, Inc. received title to Coolit's refrigeration system when:

Joshua, a merchant, promises in a signed writing to Pedro, a consumer, to hold an offer to sell goods open for five months without Pedro giving consideration in exchange. However, Joshua sells the goods to another consumer and Pedro sues him for breach of contract. Which of the following is true of this case?

In an auction with reserve, the auctioneer must accept the highest bid.

If both parties are merchants, the UCC modifies the common law "____________" rule, by allowing ____________ terms to become a part of the contract, unless they ____________ change it.

Massive Equipment Company sends machinery on approval to Mountain Moving Company. While in possession of the machinery, but prior to acceptance, Mountain becomes insolvent. The machinery is subject to the claims of Mountain's creditors.

Which of the following is true of insurable interest?

It is important to identify a ____________ contract because it includes both goods and services. If the sale of goods dominates the contract, then it will be governed by ____________; however, if services dominates the contract, then it will be governed by ____________.

____________ goods are those that are in accordance with the obligations under the contract.

Starbucks Coffee contracts with Juan Valdez coffee farms to purchase "all the coffee beans Starbucks needs for the next twelve months." The parties have a(n) ____________ contract.

Fish not yet caught by a commercial fisher are called future goods.

Title may pass as soon as goods are identified to the contract, but only after they are in possession of the seller.

On Saturday, Hussein purchases a sofa from Big Box Furniture Inc. who agrees to deliver the sofa without charge to Hussein at 3 p.m. the following Monday. Hussein forgets about the delivery and is not home at 3 p.m. on Monday when the Big Box delivery truck arrives. The delivery truck takes the sofa back to the Big Box store where it is destroyed in a fire that occurs at 9 p.m. Monday. Discuss the risk of loss in this case.

Mike and Jane contract to purchase and sell $1,000,000 worth of computer chips to be manufactured in Japan and shipped to San Francisco. The contract is silent about the method of delivery. Mike asserts that delivery is by ship, which is customary in the computer chip industry, but Jane insists that delivery is by air, which is what a previous contract between Mike and Jane provided. Explain how a court will resolve this dispute.

Which of the following is considered to be future goods?