Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 7

Bruel Kjaer (B K) contracted to upgrade noise-monitoring and radar systems and provide an annual servicing agreement to the village of Bensenville. It agreed to deliver, assemble, install, test, and make fully operational the equipment and system. The contract referred to the parties as "buyer" and "seller" and stated. "Upon final payment [B K] shall deliver to [Bensenville] a Bill of Sale for the Equipment and System free and clear of any and all liens and encumbrances." An annual servicing agreement was required so B K would "provide all software adjustments necessary." B K developed custom software and provided site visits and engineering support during installation of the systems. After B K repeatedly billed Bensenville the $227,000 contract price, the village paid only $50,000. B K sued for breach of contract. Bensenville argued that the applicable statute of limitations was the four-year sale of goods statute and that time had run. B K argued that the contract was not for the sale of goods but the provision of services and thus a ten-year statute of limitations, which had not yet run, applied Was the contract for the sale of goods or the provision of services?